Nebraska · LLC tax election
Nebraska LLC: S corp or C corp?
Nebraska's corporate rate is stepping down on a fixed schedule, and 2026 is the middle step.
See Nebraska at a glanceShort answer
Nebraska's C corporation tax is 4.55% for tax years beginning in 2026, falling to 3.99% in 2027. Nebraska follows the federal S election, so S corporation profit lands on your return, and the company files Form 1120-SN. An S corporation may also elect to pay the tax itself.
Last checked .Nebraska at a glance
What is different about Nebraska?
Nebraska has written its corporate rate cuts into the statute, so you can see the whole path. Taxable years beginning in 2026 are taxed at 4.55%, and 2027 and later at 3.99%. For a founder choosing between S and C, that schedule is the story: the corporate layer is shrinking every year, so the savings from skipping it shrink too. Nebraska follows the federal S election, so pass-through profit lands on your own return, and the S corporation files Form 1120-SN. It can also make an irrevocable annual election to pay the tax at the entity level.
Does Nebraska recognize a federal S corp election?
Nebraska follows the federal S election: resident shareholders include their share of the income in their Nebraska taxable income. There is no separate Nebraska election form. An S corporation with Nebraska-source income files Form 1120-SN. The corporation can also make an irrevocable annual election to pay Nebraska tax at the entity level, in which case Schedule PTET applies. Without that election the company itself does not pay income tax.
Does my LLC need a separate Nebraska election or form?
Nebraska has no separate S election; an S corporation with Nebraska-source income files Form 1120-SN.2
What does Nebraska tax an S corp or LLC at the entity level?
- Nebraska does not tax an S corporation itself unless it elects to pay tax at the entity level.3
Is a Nebraska LLC taxed as a C corp ever better?
A Nebraska C corporation pays a flat 4.55% on all taxable income for years beginning in 2026. The statute sets 3.99% for years beginning in 2027 and later. We did not verify a minimum tax. Dividends you take out are taxed again on your personal return. The rate applies to all taxable income, with no brackets, so there is no low-income break to plan around.
Run your Nebraska numbers
Because Nebraska's corporate rate falls from 4.55% to 3.99%, the tax saved by skipping the corporate layer is smaller each year. The second layer, tax on dividends at your personal rate, is the part that keeps an S election attractive if you take profit out each year.
Result
How much would a Nebraska LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 | $21,194self-employment tax $21,194 |
| S corp | $9,344payroll tax $7,344 + Nebraska S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + Nebraska S corp tax $0 + $2,000 payroll and prep |
| C corp | $17,214payroll tax $7,344 + Nebraska tax $1,456 + federal $6,414 + $2,000 payroll and prep | $30,527payroll tax $13,770 + Nebraska tax $2,730 + federal $12,027 + $2,000 payroll and prep |
Assumes a 60% salary7 and a single filer. Income tax is left out. C corp dividends are taxed again. We could not confirm on an official Nebraska source whether a default LLC pays an entity-level tax, so none is shown.
When is the Form 2553 deadline for a Nebraska LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on Nebraska: How to start a Nebraska LLC · How to start a Nebraska corporation · Nebraska LLC cost · Nebraska annual report · Annual report late fees by state
File the S-Corp Election for your Nebraska LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
What is the Nebraska corporate income tax rate in 2026?
4.55% on all taxable income for taxable years beginning on or after January 1, 2026 and before January 1, 2027, per the Nebraska statute. There are no brackets for corporations: the rate applies to all taxable income.
Will the Nebraska corporate rate change next year?
Yes. The statute sets 3.99% for taxable years beginning on or after January 1, 2027, so the corporate layer gets thinner. That lowers what an S election saves on the entity side.
Does Nebraska tax my personal income from an S corporation?
Yes. Nebraska has graduated individual income tax brackets, so S corporation profit that passes to you is taxed on your Nebraska return. Compare your own bracket before choosing between S and C.
Does Nebraska have a separate S election form?
No. Nebraska follows the federal election. An S corporation with Nebraska-source income files Form 1120-SN. It can also elect each year to pay Nebraska tax at the entity level.
Sources 8 links, checked Nov 6, 2026
- Nebraska follows the federal S election: resident shareholders of a corporation with a subchapter S election include their share of its income in their Nebraska taxable income. nebraskalegislature.gov, checked Nov 6, 2026
- Nebraska has no separate S election; an S corporation with Nebraska-source income files Form 1120-SN. revenue.nebraska.gov, checked Nov 6, 2026
- Nebraska does not tax an S corporation itself unless it elects to pay tax at the entity level. nebraskalegislature.gov, checked Nov 6, 2026
- Nebraska taxes C corporation income at a flat 4.55% for tax years beginning in 2026, dropping to 3.99% in 2027. nebraskalegislature.gov, checked Nov 6, 2026
- Nebraska taxes individual income through graduated brackets. nebraskalegislature.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.