{"id":6658,"date":"2024-11-25T10:25:56","date_gmt":"2024-11-25T15:25:56","guid":{"rendered":"https:\/\/www.harborcompliance.com\/blog\/?p=6658"},"modified":"2024-11-22T10:26:17","modified_gmt":"2024-11-22T15:26:17","slug":"nebraska-professional-services-update","status":"publish","type":"post","link":"https:\/\/www.harborcompliance.com\/blog\/nebraska-professional-services-update\/","title":{"rendered":"Understanding Nebraska\u2019s New Professional Services Requirements"},"content":{"rendered":"\n
\"nebraska<\/figure>\n\n\n\n

In a significant regulatory update, the state of Nebraska recently announced that they will no longer consider architecture and engineering to be professional services for the sake of forming or qualifying a professional corporation or professional LLC. This has significant impacts on both new and existing firms operating in the state, so let\u2019s unpack things a bit.<\/p>\n\n\n\n

Key Changes and Implications<\/h2>\n\n\n\n

The update from Nebraska changes what types of companies are considered professional corporations or professional LLCs. Nebraska legislature bill 628<\/a> was passed in February of 2024 and took effect on July 19, 2024. The bill, which focuses on changing provisions relating to limited liability companies and professional corporations, eliminates some important language that has significant implications for certain industries.<\/p>\n\n\n\n

The previous statute stated: “Professional service means any type of personal service to the public which requires as a condition precedent to the rendering of such service the obtaining of a license or other legal authorization and which includes, but is not limited to…”. This was largely interpreted to mean a wide variety of industries.<\/p>\n\n\n\n

The updated language removes “but is not limited to” and gives a list of professions that does not include architecture and engineering. Instead, the list mainly focuses on legal, medical, accounting, and real estate professions. As a result, architecture and engineering firms are no longer considered professional services<\/strong>.
Due to the change, these types of organizations are no longer required to register as professional organizations. Instead, architecture and engineering firms can form business corporations or standard LLCs<\/a>, just like any other type of business. Not that this is not a choice; they are specifically excluded from registering as PCs or PLLCs.<\/p>\n\n\n\n

I\u2019m already registered as a PLLC. What happens now?<\/h2>\n\n\n\n

Firms already registered with the state can choose to continue doing business under their existing entity type, but they will be required to continue filing the annual PC<\/a> and PLLC reports<\/a>.<\/p>\n\n\n\n

Firms also have the option of filing an amendment to change their entity type to a standard business entity (business corporation or LLC), in which case they would no longer be required to file the annual reports required of PC and PLLCs.<\/p>\n\n\n\n

Regardless, companies will still be responsible for filing their Biennial Occupation Tax Report<\/a> if they are a:<\/p>\n\n\n\n