Starting a Business in Lincoln: City and County Steps to Check

A practical walk-through of the City of Lincoln and Lancaster County steps a new business should check, from activity permits and occupation taxes to food permits.

LNK Biz · Last reviewed October 23, 2026 · 6 min read

Opening a business in Lincoln means dealing with several layers of government at once: the State of Nebraska, the City of Lincoln and, for some things, Lancaster County or a joint city-county agency. Most registration paperwork happens at the state level, but the steps that most often surprise new owners are local ones: a permit tied to a specific activity, a monthly occupation tax, or a space that turns out not to be zoned for the use you planned.

This guide walks through the local layer in a practical order and points briefly to the state registrations you will also need. It is general information, not legal or tax advice. Rules, rates and forms change, so confirm the details with the office named before you sign a lease, order inventory or open your doors.

Get the state registrations in motion

Two state offices handle most of the basic registration work. The Nebraska Secretary of State's Business Services Division records registrations for corporations, limited liability companies, limited partnerships, limited liability partnerships, trade names and trademarks.

The Nebraska Department of Revenue says you may need to register with it if you will have employees, make retail sales, rent or lease tangible personal property, or provide services that are subject to sales tax. You can register online or use the Nebraska Tax Application, Form 20. If you will collect sales tax, you receive a sales tax permit, which must be displayed at each retail location. Registering for income tax withholding requires a federal Employer Identification Number from the IRS.

If you are buying an existing business, read the department's warning closely: a buyer can be held liable for the seller's unpaid state taxes. The department offers a certificate of clearance through the Tax Clearance Application, Form 36.

Check whether your activity needs a city license or permit

The City Clerk's licenses and permits page is organized by activity, and it is worth scanning line by line. Among the items it lists are:

Food truck program permits, sidewalk vendor permits and sidewalk cafe permits
Peddler permits, tobacco licenses and vending machine applications
Pawnbroker licenses and secondhand jewelry permits
Auctioneer licenses and refuse or waste hauler bonds
Public dance permits, special event permits, parade permits and film permits
Lottery and raffle permits
A liquor application and Special Designated Licenses for events

Alcohol involves more than one step. The City Clerk's page lists a liquor application, an entertainment district application and Special Designated Licenses for events, so ask the City Clerk early which approvals your plans need. Zoning can matter too: the city's Development Review division notes that special permits are used to allow certain uses, and it names alcohol sales as one example.

Find out whether you owe a Lincoln occupation tax

Lincoln collects occupation taxes from a handful of business types. The City Treasurer's occupation tax page lists:

Restaurants and bars: 2% of gross receipts
Hotels and motels: 4% of gross receipts for stays of 30 days or less
Short-term rental operators: 4% on rentals of residential dwellings for 30 days or less
Car rental businesses: 4% of rental rates
Telecommunications businesses: 4% (the city notes this rate changed to 4% effective October 1, 2024)
Businesses in two enhanced employment areas, Gateway Shops at Lincoln (0.5%) and SouthPointe Pavilions (1%)

For most of these taxes, the return and payment are due on or before the 25th day of the month for the previous calendar month; telecommunications returns are due by the last day of the month. Restaurant and bar taxes may be filed monthly or quarterly. Registration and payment are available online through the city.

This is a city tax, separate from the sales tax you register for with the state. For example, imagine a small cafe with indoor seating. It would register with the Department of Revenue for sales tax and also check whether it owes the city's restaurant and bar occupation tax. Food truck operators are reminded on the city's food truck page that they also remit occupation tax monthly or quarterly.

Food businesses: start with the health department

The Lincoln-Lancaster County Health Department permits and inspects restaurants, retail food stores, food processors, food warehouses and institutional food services. It reviews plans before an establishment opens and publishes instructions for new food operators, a guide to food establishment design and a checklist for licensing a food establishment. Read these before you commit to a build-out, because equipment, finishes and plumbing all need to meet code.

Staffing has a local rule that catches many newcomers: all employees of food establishments permitted by the department must hold department-issued food handler or manager permits. There are four types: Food Protection Manager, Restricted/Shift, Prep/Cook and Serve/Clean. Permits can be obtained online, and study guides are offered in English, Spanish, Arabic, Chinese and Vietnamese.

Mobile and event-based food sales have their own path. The city's food truck program asks operators to have a health department food establishment permit, a fire prevention permit if the truck has appliances that produce smoke or grease, and a Food Truck Program permit from the City Clerk. Temporary food stands at events need a temporary food establishment permit.

Confirm the space before you commit

Zoning, building permits and signs are handled by Planning and Development Services at 555 South 10th Street. Every property in the city and county is in a zoning district that controls what uses are allowed, and the city encourages applicants to meet with planning staff before filing for a change. Planning also offers a pre-application service for development concepts. Our guide Zoning, Signs and Permits in Lincoln: Check Before You Lease covers this step in detail.

The Lancaster County pieces

Several county-level items apply no matter where in Lancaster County you operate:

Personal property: the Department of Revenue says owners of depreciable tangible personal property, such as equipment and furnishings used in a business, must file a Nebraska Personal Property Return with the county assessor on or before May 1 each year, and late returns are penalized.
Zoning outside city limits: Lincoln's planning staff administer both the city zoning ordinance and the Lancaster County zoning regulations, and the 2050 Comprehensive Plan guides growth for both Lincoln and Lancaster County. If your site is outside Lincoln, ask which rules apply.
Health: the health department is a joint city-county agency, so food and environmental health rules come from one office for both.

A practical order of operations

Decide your legal structure and register with the Secretary of State.
Get an EIN and register with the Department of Revenue for the tax programs that apply to you.
Check the City Clerk's list for any activity-specific license.
Confirm zoning and permit needs for your space before signing a lease.
For food businesses, contact the health department about plan review early.
Register for any city occupation tax that applies, and calendar the monthly due date.
Put May 1 on your calendar for the county personal property return.

Key takeaways

Most registrations are state-level, but Lincoln adds activity-specific permits and some occupation taxes.
Restaurants, bars, hotels, short-term rentals, car rentals and telecommunications businesses should check the city's occupation tax rules.
Every employee of a permitted food establishment needs a health department food handler or manager permit.
Confirm zoning and building permit needs before you sign a lease.
Business equipment generally means a personal property return to the county assessor by May 1.

Sources

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