How to Start a Construction Company in Nebraska | Essential Guide

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Nebraska Construction Company

Starting a construction company in Nebraska can be lucrative and rewarding for anyone with the right skills, resources, and determination. With a strong demand for quality construction services and a consistently growing population of 2,002,052 (2024 data), there is always room for new Limited Liability Companies to thrive in this industry. However, starting a construction company is a challenging task and requires careful planning, dedication, and hard work.

In this article, Webinarcare Editorial Team will discuss the necessary steps to Start a Construction Company in Nebraska and provide valuable tips for ensuring your success in this competitive industry.

How to Start a Construction Company in Nebraska

What is a Construction Company?

A construction company in Nebraska is a business that specializes in the planning, design, and execution of construction projects. These projects can range from residential homes to commercial buildings and infrastructure projects such as roads, bridges, and utility systems. Nebraska construction companies must adhere to local building codes, regulations, and licensing requirements to ensure their projects are safe, efficient, and compliant with state standards.

Nebraska construction companies often offer various services, including general contracting, design-build, and specialized construction services. They collaborate with various stakeholders, such as architects, engineers, developers, and property owners, to bring projects to life. By employing skilled tradespeople, project managers, and other professionals, construction companies in Nebraska work to deliver high-quality, durable structures that meet their client’s needs and contribute to their community’s development and growth.

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It is suggested that you speak with a legal professional before you begin setting up a construction company. They’ll understand what’s best for you and your future company. To safeguard your personal assets from business debts, you can always start an LLC in Nebraska.

– WEBINARCARE EDITORIAL TEAM

How to Start a Construction Company in Nebraska

To launch a construction business, you must follow the guidelines that include researching the construction industry, developing a business plan, registering your business, securing funding, purchasing equipment and material, hiring a skilled team, and marketing your construction company.

Step 1: Research the Construction Industry

Before diving into starting your construction company, it’s essential to understand the local construction industry in Nebraska. Research your area’s market trends, major players, and potential competition. This will help you identify gaps in the market that your company can fill and allow you to make informed decisions about the types of services you want to offer.

Some key areas to research include:

  • Types of construction projects in demand (residential, commercial, etc.)
  • The average cost of construction projects in your area
  • Local building codes and regulations
  • Key stakeholders in the industry (architects, developers, etc.)
  • Licensing and certification requirements for contractors in Nebraska

Step 2: Develop a Business Plan

A well-thought-out business plan is crucial for the success of any new business, including a construction company. Your business plan will act as a roadmap for your company’s growth and development, helping you make informed decisions and keep your business on track.

Some key elements to include in your construction company business plan are:

  • Company Overview: Describe your company’s mission, vision, and goals. Include the legal structure of your business (LLC, corporation, sole proprietorship, etc.) and your company’s name and location.
  • Market Analysis: Summarize your research on the local construction industry, including the target market, competition, and growth opportunities.
  • Services Offered: Clearly define the types of construction services your company will offer, such as general contracting, design-build, or specialized construction services.
  • Marketing and Sales Strategy: Outline how to attract and retain clients and your strategies for generating leads and closing sales.
  • Management and Organization: Detail the roles and responsibilities of your management team and any key personnel you plan to hire.
  • Financial Projections: Provide a realistic estimate of your company’s financial performance over the next few years, including projected income, expenses, and profits.

Step 3: Choose a Business Name

Selecting a name for your Nebraska construction company is essential to forming. Your business name should be unique, memorable, and reflective of your products or services. There is a complete guide on Nebraska Business Name Search for you to have a proper Nebraska construction business name. 

In Nebraska, if you do not wish to file your construction business company right away but want to hold the name that you have decided on, then you can reserve your Nebraska construction business name for 120 days. You must file a name reservation application with the Nebraska Secretary of State to keep the name. 

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for Nebraska DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in two methods, by mail and in person.

However, before filing a DBA, you should know that you need to renew your DBA every ten years, which costs $100.

You can check the availability of your desired business name by searching the Nebraska Secretary of State Corporate & Business Entity Search‘s website.

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Step 4: Register Your Construction Company

Register your business with the appropriate government agencies before officially starting your construction company in Nebraska and obtain any necessary licenses and permits. 

Hire a Registered Agent

A Registered Agent is a person or entity responsible for receiving legal documents and official notices for your construction business. The qualifications of a Registered Agent vary depending on the jurisdiction, but generally, they must meet the following criteria:

  • Age: The Registered Agent must be at least 18 years old.
  • Residency: The Registered Agent must reside where the company is registered or authorized to do business in that state. In some jurisdictions, a domestic corporation or limited liability company (LLC) can act as its Registered Agent if it has a physical address in Nebraska.
  • Physical Address: The Registered Agent must have a physical street address, not just a post office box, where the company is registered. This is where they will receive official correspondence and legal documents on behalf of the company.
  • Availability: The Registered Agent must be available during normal business hours (9 a.m. to 5 p.m., Monday through Friday) to receive and sign official correspondence and legal documents.
  • Good Standing: If the Registered Agent is a business entity, it must be in good standing with the state and not be in default, suspended, or revoked.
  • Compliance: The Registered Agent should know Nebraska requirements and deadlines for the company, such as Biennial Reports and Nebraska franchise tax filings, and ensure that the company stays compliant. 

You can serve as your Registered Agent, appoint a friend or family member, or hire a Professional Nebraska Registered Agent Services.

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File For Certificate of Organization or Articles of Incorporation

If you form an LLC for your construction company, you must file the Nebraska Certificate of Organization, which costs $105. However, you must file the Articles of Incorporation if you form Nebraska Corporation for your construction company. The Articles of Incorporation filing fee costs $30 for in office filing and $25 for online filing. It is crucial to provide accurate and complete information on this document, as errors or omissions may result in delays or rejection of your filing.

  • Online Filing: Create a subcriber account/Log in to the SOS site, get the online eDelivery form, fill it, and submit online or go to office to do the proces. 
  • Offline Filing: there’s no offline method of filing the documents

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Create an Operating Agreement

Operating Agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in Nebraska is optional. Yet, having one as an internal document is strongly advised. 

Recommended: Creating an Operating Agreement is like having a personal legal guide at hand; it’s efficient, thorough, and ensures the smooth and compliant operation of your business. With LegalZoom’s operating agreement, it will protect your rights as an owner, keeping misunderstandings at bay and your business on the path to success. That’s why we recommend using –

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Obtain an Employer Identification Number

You must first obtain Nebraska Employer identification number (EIN) from the IRS if you will open a bank account or hire an employee for your Nebraska construction company. 

The application of an EIN in Nebraska can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

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Step 5: Obtain the Necessary Licenses and Permits

Starting a construction company in Nebraska requires several licenses and permits. Some of the most common licenses and permits you’ll need include the following:

  • Business License: Your local city or county government may require Nebraska Business License. The business license fee in Nebraska ranges from $50 – $300.
  • Contractor’s License: A contractor’s license is required in most states for construction businesses that perform specific types of work, such as general contracting, electrical, plumbing, HVAC, or other specialized trades. Requirements for obtaining a contractor’s license may include passing an exam, providing proof of experience, and obtaining bonding and insurance.
  • Building Permits: Construction projects typically require permits issued by the Nebraska building department. Building permits ensure the construction project complies with local building codes and regulations.
  • Occupational Licenses: Some states may require occupational licenses for specific types of work, such as asbestos abatement, lead paint removal, or the installation of fire protection systems. Check with your state’s licensing board to determine if any special licenses are required for the work your construction company will perform.
  • Nebraska Sales Tax Permit: A sales tax permit from the Nebraska Department of Revenue allows you to collect sales tax. Currently, the Nebraska sales tax rate is 5.50%.
  • Environmental Permits: Depending on the nature of your construction projects, you may need to obtain environmental permits, such as stormwater discharge or air quality permits.

Step 6: Secure Funding

Starting a construction company requires significant capital to cover equipment, materials, and labor costs. To secure funding for your Nebraska business, you must explore various financing options and determine the best fit for your needs.

When seeking funding, be prepared to present your business plan and financial projections to potential lenders or investors. This will demonstrate your commitment to your company’s success and help build their confidence in your ability to repay the loan or generate a return on their investment.

However, consider applying for your construction company’s Nebraska Small Business Loans.

Step 7: Purchase Equipment and Materials

Once you have secured funding for your Nebraska construction company, you must purchase the necessary equipment and materials to begin operations. This may include items such as:

  • Construction vehicles (trucks, excavators, etc.)
  • Power tools and hand tools
  • Safety equipment (hard hats, safety goggles, etc.)
  • Building materials (lumber, concrete, etc.)
  • Office equipment and supplies (computers, printers, etc.)

Invest in high-quality equipment and materials, as this will help you deliver exceptional results to your clients and build a strong reputation in the industry. Consider purchasing insurance for your equipment, as this can help protect your investment in the case of theft, damage, or accidents.

Step 8: Hire a Skilled Team

Your Nebraska construction company’s success will largely depend on your team’s skills and expertise. Hire individuals with experience and knowledge in the construction industry to build a strong workforce. This may include:

  • Project managers
  • Construction laborers
  • Skilled tradespeople (electricians, plumbers, etc.)
  • Architects or engineers
  • Administrative staff (accountants, receptionists, etc.)

In addition to hiring qualified employees, invest in ongoing training and development programs to help your team stay current on industry trends, technologies, and best practices. This will improve the quality of your services and help you attract and retain top talent in the competitive construction industry.

Step 9: Market Your Construction Company

You must develop a comprehensive marketing strategy to attract clients and grow your Nebraska construction company. This may include building a professional website that showcases your services, portfolio, and testimonials from satisfied clients; creating and distributing print materials, such as brochures, business cards, and direct mail advertisements; networking with industry professionals, such as architects, developers, and real estate agents, to generate leads and referrals, and utilizing social media and digital marketing strategies to reach a wider audience and drive traffic to your website.

By consistently promoting your Nebraska construction company and showcasing your expertise and quality work, you can build a strong reputation in the Nebraska construction industry and attract a steady stream of new clients.

Benefits of Forming a Construction Company

Forming a Construction LLC is best for a start-up company since it offers the following advantages.

Limited Liability Protection

LLC provides limited liability protection to its owners, also known as members. This means that the personal assets of the LLC members are separate from the company’s debts and liabilities. In the construction industry, where accidents, property damage, and contractual disputes occur, limited liability protection is crucial to protect business owners’ assets.

Pass-through Taxation

An LLC typically offers pass-through taxation, meaning the company’s profits and losses are reported on the owner’s tax returns. This avoids the double taxation corporations may face, where the company and its shareholders are taxed separately. Pass-through taxation can lead to potential tax savings for the Nebraska construction company’s owners.

Flexibility in Management

LLCs have a more flexible management structure than corporations. They do not require a board of directors, and the owners can choose how to manage the company through member or manager management. This flexibility allows Nebraska construction companies to adapt their management structure as needed.

Simpler Record-Keeping and Compliance

LLCs still require formalities; they typically have fewer record-keeping and reporting requirements than corporations. This can save time and resources for Nebraska construction companies, allowing them to focus on their core business operations.

Credibility

Forming an LLC can provide the Nebraska construction company with increased credibility and professionalism in the eyes of clients, vendors, and financial institutions. This can be beneficial in securing contracts and building a positive reputation in the industry.

FAQs

What business licenses and permits do I need to start a construction company in Nebraska?
You likely need a state contractor’s license, a business license, and possibly specialized permits for certain projects.
What are the insurance requirements for a construction company in Nebraska?
Nebraska law requires construction companies to carry workers’ compensation insurance and liability insurance.
How do I register my construction company with the state of Nebraska?
You can register your company with the Nebraska Secretary of State’s office and obtain any required state business licenses.
What types of construction companies are in high demand in Nebraska?
Commercial and residential building and renovation companies are highly sought after in Nebraska.
Do I need a surety bond to operate a construction company in Nebraska?
Some projects require surety bonds, so it is advisable to obtain one to have more opportunities for work.
Are there any restrictions on hiring undocumented workers in Nebraska’s construction industry?
Employers in Nebraska cannot knowingly hire or employ unauthorized workers, and may face penalties or fines if they do.
How can I find out about Nebraska’s prevailing wage rates for construction projects?
Prevailing wage rates vary by county, and you can obtain updated information from the Nebraska Department of Labor.
What is the Nebraska Contractor License Bond, and do I need it?
This bond serves as a financial guarantee to the state that you will follow all regulations and laws as a licensed contractor, and may be required.
Can I use subcontractors on Nebraska construction projects?
Yes, subcontractors are a common part of the construction industry in Nebraska.
Where can I purchase building materials for my Nebraska construction business?
There are many building supply stores throughout Nebraska, and you can research prices and availability online.
What resources are available in Nebraska to help small construction businesses get started?
The Nebraska Business Development Center and SCORE Nebraska offer free consultation services to small businesses.
Does Nebraska have specific licensing requirements for roofing contractors?
Yes, you must pass the Nebraska Roofing Contractor exam to obtain a state license if you wish to operate a roofing company.
Do I need a separate license to work on public works projects in Nebraska?
Some public works projects with the state may require specialized licenses or certifications.
How do I register a trade name for my construction company in Nebraska?
Visit the Nebraska Secretary of State’s website for information on registering a trade name.
Are there grants or loans available for small construction businesses in Nebraska?
Yes, the Nebraska Department of Economic Development offers loans and grants to eligible small businesses.
What is the sales tax rate for construction-related transactions in Nebraska?
Depending on the county and city where your transaction occurs, sales tax rates typically range from 5.5% to 8%.
What safety regulations should a Nebraska construction company adhere to?
The state follows OSHA safety guidelines, and you should also ensure that your workers follow industry-specific safety protocols.
Does Nebraska require a special license for contractors who manage asbestos removal?
Yes, to bid on or undertake an asbestos removal project, your company must hold a valid asbestos contractor’s license.
Can non-US citizens start a construction business in Nebraska?
Non-US citizens can own and operate a business in Nebraska, but may need specific documentation.
Can a Nebraska construction company legally work in surrounding states?
Sometimes, additional permits or licenses may be required for work in surrounding states, so be sure to verify the legal requirements.
How do I obtain environmental permits for construction projects in Nebraska?
Depending on the project’s location and scope, you may need to obtain permits from the Nebraska Department of Environmental Quality.
Does Nebraska have a DBA filing process for construction companies?
Yes, you can file for a Doing Business As (DBA) name with the Nebraska Secretary of State.
What is the average cost of an accountant for a Nebraska construction business?
Accounting costs for small businesses vary depending on the level of service you require, but expect to pay anywhere from $100 to $500 per month.
Is Nebraska’s apprenticeship program mandatory for construction companies?
The Nebraska Apprenticeship program is optional, but can provide valuable education and connections in the industry.
What legal structure should I choose for my Nebraska construction company?
Your options include sole proprietorship, partnership, LLC, S Corp, C Corp, but consult with a lawyer for advice on the best fit.
Are there any specific supervision requirements for construction work in Nebraska?
A licensed construction supervisor must supervise every project, and site inspections must be passed before work continues.
Where can I learn business basics, such as marketing and bookkeeping, for my construction company?
The Nebraska Business Development Center, Small Business Administration, and SCORE offer free business courses.
Do I need to pay state taxes on construction projects outside of Nebraska?
If you operate a business outside the state, it is important to consult with an experienced tax professional.
Does Nebraska have a limitation on required initial bond issuance for construction contractors?
Yes, under the Nebraska Contractor Registration Act, you cannot be required to obtain a bond exceeding $50,000 from any governmental subdivision of Nebraska.
What are the requirements for starting a construction company in Nebraska?
You need to register your company with the state as a legal entity, obtain construction licenses and permits specific to your area, and secure liability insurance.
What type of business entity should I choose for my construction company in Nebraska?
You can choose between forming a sole proprietorship, partnership, limited liability company (LLC) or corporation. Talk to a lawyer or an accountant to help you choose the most appropriate structure for your business.
How much does it cost to form an LLC in Nebraska?
The filing fee to form an LLC in Nebraska is $100.
Where do I register my construction company in Nebraska?
Register your construction company with the Nebraska Secretary of State.
How long does it take to register a construction company in Nebraska?
It typically takes around 1-2 weeks to register your construction company in Nebraska.
What type of construction licensing do I need in Nebraska?
In Nebraska, general contractors are required to be licensed with the state.
How do I obtain a contractor’s license in Nebraska?
First, register your business with the Nebraska Secretary of State, then apply for a contractor license with the Nebraska Department of Labor.
What is the cost of a general contractor license in Nebraska?
A general contractor license in Nebraska costs $400 for a three year renewal period.
How to bid on construction projects in Nebraska?
To bid on public construction projects in Nebraska, you need to register as a contractor with the Nebraska contracting authority or sign up for the Bid Express service.
Are there any local permitting requirements for construction work in Nebraska?
Yes, local jurisdictions often have their own permitting requirements in Nebraska.
Do I need to register as a contractor with the state of Nebraska if I only work in certain areas?
Yes, contractors working on construction projects in Nebraska need to be licensed with the state regardless of where they work.
Are there any special permits needed for construction projects in Nebraska near waterways?
Yes, if construction activities may impact waterways, then certain permits may be required by both state and federal agencies.
Can an individual be a general contractor in Nebraska?
Yes, an individual can be a general contractor in Nebraska.
Can an out-of-state contractor bid on projects in Nebraska?
Yes, out-of-state contractors can bid on projects in Nebraska as long as they obtain the necessary licenses.
What are the bonding requirements for a construction company in Nebraska?
In Nebraska, construction companies have to be bonded for certain projects, depending on various factors such as location, size and cost of the project.
What is the biggest challenge of starting a construction company in Nebraska?
Competition from existing companies can be a challenge for construction startups in Nebraska.
Are there any training courses or certifications required to be a construction worker in Nebraska?
No, there are no specific training courses or certifications required to work on a construction project in Nebraska.
Is there a statewide database for subcontractors in Nebraska?
Yes, the Nebraska Department of Labor maintains a database of licensed contractors and subcontractors.
What permits are needed for demolishing a structure in Nebraska?
The type of permit required depends on the size of the structure being demolished and its location, since it may impact other people’s properties.
How often do contractors need to have liability and worker’s compensation insurance in Nebraska?
Contractors must have liability and worker’s compensation insurance coverage continually while working on construction projects in Nebraska.
Are there any tax incentives available for construction companies in Nebraska?
Yes, various tax incentives, including personal property tax and income tax exemptions, may apply to construction companies in Nebraska.
What are the penalty provisions if a contractor is found in violation of Nebraska law?
Violations of Nebraska professional or regulatory laws can carry both civil and criminal penalties, which can result in fines, probation, suspension or revocation of one’s contract license.
Where can I access Nebraska construction laws and regulations?
You can access Nebraska construction laws and regulations on the website of the Nebraska Department of Labor.
Who do I contact, if during the course of work, my construction company is requested to make adjustments to groundwater treatment by the regulatory authorities?
You would need to contact authorities such as the USDA or the U.S. Environmental Protection Agency for advice on water treatment regulations and protocols.
Is a permit required to discharge conc r ete waste in Nebraska?
In Nebraska, permits may be required if concrete waste is being discharged in certain areas that may impact the environment or public health.
How long do construction projects typically last?
Construction projects’ timeline will differ, depending on the project’ size, complexity and the stakeholders’ planning.
How do I make payments to my Nebraska construction company?
You may issue checks or use electronic payment options to make payments to your construction company in Nebraska.
Are there any state or federally-level resources that I can reach out to when setting up a construction company in Nebraska?
Yes, you can seek help and advice from resource centers such as the Nebraska Builders Association or the Nebraska Associated General Contractors.

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Conclusion

Starting a construction company in Nebraska can be challenging yet rewarding for those prepared to invest the time, effort, and resources necessary for success. By following the steps outlined in this article and dedicating yourself to providing exceptional service and quality work, you can create a thriving construction business that stands out in the competitive Nebraska market.

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