Ch 17 Legal Issues for Small Businesses: Nebraska Concepts (Vocabulary)

A set of vocabulary flashcards covering key legal concepts, entity types, and Nebraska-specific requirements for small businesses, including attorney roles, entity formation, trade names, tax obligations, and relevant state resources.

Attorney

A lawyer who knows and understands the law; the right lawyer is essential, and specialization may occur in areas like contracts, patents, or trademarks.

Generalist vs. Specialist Attorney

Generalists handle broad areas (e.g., contracts) while specialists focus on niches (e.g., patents, trademarks). In Nebraska, many local attorneys are generalists.

Pro bono

Free legal services, typically offered for nonprofit organizations or specific circumstances with a lawyer donating time.

Contingency fee

A fee paid to an attorney only if a favorable outcome is achieved in the case.

Flat fee

A single upfront charge for a defined legal service, regardless of time spent.

Hourly fee

Payment to an attorney based on the number of hours worked.

Retainer

An upfront fee paid to secure ongoing access to an attorney, often applied against future work.

Secretary of State

State office that handles business registrations, trade name searches, and formation documents.

One-stop business registration

State portal that streamlines starting a business, including trade name search and required filings.

Trade name / DBA (Doing Business As)

The business name used in operations that may be different from the legal entity name; must be registered with the state.

Trade name search

Process of checking state records to ensure a chosen trade name is available and not confusing with existing names.

Articles of Organization

The document filed to form a Limited Liability Company (LLC) with the state.

LLC (Limited Liability Company)

A popular small-business entity that provides limited personal liability and flexible tax treatment (can be taxed as a sole proprietor, partnership, or S corp).

Sole Proprietorship

Easiest form of business with no separate legal entity; profits taxed on the owner's personal return and trade name can be registered for protection.

Partnership

A business owned by two or more people; pass-through taxation and shared liability; no separate entity unless formed legally.

Tax ID Number / EIN

Federal Employer Identification Number issued by the IRS; required for employees and certain entity types; obtain from irs.gov.

Nebraska Sales Tax Permit

Permit required to collect Nebraska sales tax; necessary for most businesses that sell goods or taxable services.

Nebraska Department of Revenue

State agency that provides guidance on tax requirements, starting a business, and sales/excise taxes.

Sales tax rates (Nebraska)

State rate 5.5% plus local city rates typically 0.5% to 2%; rates vary by location and may apply online as well.

Prepared vs. unprepared food tax

Prepared foods are usually taxable; groceries (unprepared food) are generally not taxed, with some exceptions and taxable items within groceries.

Domain name

The web address for a business; choosing a memorable and descriptive name helps with branding and online presence.

Weebling Entrepreneurship Clinic (UNL)

A student-lawyer clinic at the University of Nebraska–Lincoln that performs contract work under licensed attorney oversight; limited cases per year.