Setting Up a Manufacturing Relationship in Nebraska

In Nebraska, you can choose from several business structures including sole proprietorship, partnership, limited liability company (LLC), or corporation. Many manufacturing businesses opt for an LLC or corporation due to liability protection. Nebraska offers favorable LLC filing fees ($105 online) and corporation filing fees ($110 online). Consider consulting with a business attorney to determine which structure best suits your specific manufacturing operation, tax situation, and liability concerns.

Yes, manufacturing businesses in Nebraska typically require several permits and licenses. These may include a general business license, environmental permits from the Nebraska Department of Environment and Energy (if your operations involve emissions or waste), workers' compensation insurance if you have employees, and potentially industry-specific permits depending on what you're manufacturing. Additionally, if you're manufacturing food, beverages, pharmaceuticals, or chemicals, you'll need permits from relevant regulatory agencies. Contact the Nebraska Business Development Center for guidance on your specific requirements.

Nebraska manufacturers must comply with both state and federal environmental regulations. The Nebraska Department of Environment and Energy (NDEE) oversees air quality permits, water discharge permits, and waste management. Depending on your manufacturing processes, you may need permits for air emissions, wastewater discharge, or hazardous waste handling. Nebraska also has specific regulations regarding chemical storage and reporting requirements. It's advisable to conduct an environmental compliance assessment early in your planning process to identify all applicable requirements.

Nebraska offers several tax incentives for manufacturers through programs like the Nebraska Advantage Act and ImagiNE Nebraska Act. These may include sales and use tax refunds, property tax exemptions, and investment credits. The Nebraska Manufacturing Extension Partnership also provides resources for small and medium-sized manufacturers. Additionally, certain rural areas offer enhanced incentives. To qualify, you typically need to meet minimum investment and job creation thresholds. Contact the Nebraska Department of Economic Development to determine which incentives apply to your specific manufacturing operation.

A comprehensive manufacturing agreement in Nebraska should include: detailed specifications for products/components, quality standards and testing procedures, delivery schedules and logistics, pricing and payment terms, intellectual property protections, confidentiality provisions, warranties and indemnification clauses, dispute resolution mechanisms (Nebraska courts or arbitration), and termination conditions. Nebraska follows the Uniform Commercial Code (UCC) for sales of goods, so your agreement should align with these provisions. Consider having an attorney with manufacturing experience review your agreement to ensure it protects your interests and complies with Nebraska law.

As a manufacturer in Nebraska, you must comply with both federal OSHA regulations and Nebraska's workplace safety requirements. This includes providing a safe working environment, proper training, appropriate personal protective equipment, and maintaining safety records. Nebraska requires employers to carry workers' compensation insurance for employees. You must also post required safety notices, conduct regular safety inspections, and report serious workplace injuries. The Nebraska Department of Labor offers consultation services to help manufacturers identify and address safety concerns before they result in violations or injuries.

To protect intellectual property in Nebraska manufacturing relationships, use comprehensive written agreements with confidentiality provisions, non-disclosure agreements (NDAs), and clear ownership clauses for any IP developed during the relationship. Consider filing for appropriate federal protections like patents, trademarks, or copyrights before sharing sensitive information. Nebraska recognizes and enforces trade secret protections under the Uniform Trade Secrets Act. Your agreements should include provisions for what happens to IP rights if the manufacturing relationship ends. An intellectual property attorney can help craft protections specific to your manufacturing situation.

When hiring manufacturing workers in Nebraska, you must comply with both federal and state employment laws. Nebraska's minimum wage is $10.50 per hour (as of 2023), and the state follows federal overtime requirements. You must verify employment eligibility, withhold appropriate taxes, and provide required breaks. Nebraska is an at-will employment state but prohibits discrimination based on protected characteristics. For manufacturing specifically, be aware of child labor restrictions that limit certain dangerous work for minors. If you plan to use employment contracts or non-compete agreements, know that Nebraska courts generally enforce reasonable non-competes.

To address product liability concerns in Nebraska, implement robust quality control processes, maintain detailed documentation of your manufacturing procedures, and consider appropriate product liability insurance. Nebraska follows strict liability principles for defective products, meaning manufacturers can be held liable regardless of negligence. The statute of limitations for product liability claims in Nebraska is generally four years. Include appropriate warnings and instructions with your products, and consider disclaimers and limitation of liability clauses in your sales agreements, though these may not protect against all claims. Regular product safety reviews with legal counsel can help minimize liability risks.