Business Law Attorney

Nebraska New Tax Law Affecting Pass-Through Entity  Tax Filing

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Li Law Group understands the challenges and rewards of running a business. We have helped many small and medium size business owners.

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Nebraska Legislative Bill 512 became the new Nebraska law on May 30, 2019. It requires all S corporations, limited liability companies, and partnerships with income derived from Nebraska to file tax state tax return beginning after Jan 1, 2019.

 

In the past, single member LLC and partnerships are treated as pass-through entities where owners do not need to file additional tax returns besides their own individual income tax returns. This new law requires these pass-through entities to file separate tax returns. 

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Specifically, in Section 77-2734.01(7), the revised language states, A small business corporation or limited liability company return shall be filed only if the small business corporation or limited liability company has income derived from Nebraska sources.

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The Nebraska Department of Revenue encourages all S corporations, limited liability companies, and partnerships to e‑file their pass-through entity returns. When e-filing a pass-through entity return, a Nebraska state ID is required.
 

Businesses that have an existing Nebraska state ID issued by DOR should e-file using the income tax withholding or sales tax number. Businesses that do not have an existing Nebraska state ID, should apply for one.

For more read more from Nebraska Department of Revenue (here).