Healthcare organizations operating in Nebraska face a unique compliance challenge: the state actively enforces the Corporate Practice of Medicine doctrine while maintaining three distinct professional entity types and strict single-discipline ownership requirements. All medical practice owners, officers, and directors must hold active Nebraska medical licenses. These overlapping requirements demand continuous monitoring across biennial reporting cycles, licensing verification, and coordination of professional board certifications with Secretary of State filings.
Nebraska recognizes three professional entity types for healthcare organizations: Professional Corporations (PCs) governed by Nebraska Revised Statutes Chapter 21, Professional Limited Liability Companies (PLLCs) governed by Neb. Rev. Stat. Sections 21-102, 21-185, and 21-190, and Limited Liability Partnerships (LLPs) governed by Neb. Rev. Stat. Sections 67-409 and 67-454.
Professional Corporations operate under Neb. Rev. Stat. § 21-2202, with shareholders limited to individuals licensed in Nebraska to render the same professional service. The entity name must include "Professional Corporation" or "P.C." Filing costs $110 in-office or $100 online, plus a mandatory $30 certificate fee from the examining board.
Under Neb. Rev. Stat. § 21-2205, Professional Corporations must render "only one type of professional service and ancillary services," preventing multi-specialty structures.
Professional Limited Liability Companies operate under Neb. Rev. Stat. § 21-102, where members and managers must be licensed to provide professional services. Formation requires filing a Certificate of Organization with the same fees as Professional Corporations: $110 in-office/$100 online plus a mandatory $30 Certificate from Examining Board fee.
Like Professional Corporations, Neb. Rev. Stat. § 21-190 restricts PLLCs to render "only one type of professional service and ancillary services," meaning physicians and nurse practitioners cannot co-own a single PLLC.
Healthcare providers may organize as Limited Liability Partnerships under Neb. Rev. Stat. § 67-409. Formation requires filing a Statement of Qualification with a $110 filing fee and the partnership name must include "R.L.L.P.," "RLLP," "L.L.P.," or "LLP." Healthcare LLPs must also comply with Neb. Rev. Stat. § 44-2824, maintaining minimum malpractice insurance coverage of $800,000 per occurrence and $3,000,000 aggregate annual limit.
Nebraska enforces the Corporate Practice of Medicine doctrine through case law and statute, most recently reaffirmed in Noel v. Pathology Medical Services, P.C., 320 Neb. 92 (2025). Neb. Rev. Stat. § 21-2216 mandates professional corporations be owned and operated exclusively by licensed professionals.
Nebraska permits Management Services Organizations (MSOs) where a physician-owned PC retains ownership while an MSO provides non-clinical administrative services. The MSO cannot employ physicians directly or control medical decision-making.
Healthcare entity formation in Nebraska requires professional licensing board certification, state filing, and registered agent designation. Total costs range from $130 to $170: a $30 certificate from the regulating board, $100-$110 state filing fees, and optional $30 name reservation.
Registered agents are mandatory; failure to maintain one causes administrative dissolution. Online filing offers a $10 savings and is the recommended method through the Nebraska eDelivery Online Filing System.
Nebraska operates on a biennial (not annual) reporting cycle with different deadlines for Professional Corporations and Professional LLCs. Professional Corporations must file by March 1 in even-numbered years (next due March 1, 2026) with a delinquency date of April 15. Professional Limited Liability Companies file by April 1 in odd-numbered years (next due April 1, 2027) with a delinquency date of June 16. The filing fee is $30 for both entity types.
Nebraska does not impose a separate franchise tax on healthcare professional entities. Instead, they are subject to corporate income tax on Nebraska-sourced income at a flat rate of 5.20% for the 2025 tax year. This rate is scheduled to decrease to 4.55% in 2026 and 3.99% in 2027.
Filing Deadline: April 15 for calendar year filers (Form 1120N), or the 15th day of the fourth month following close of tax year for fiscal year filers.
The Nebraska Board of Medicine and Surgery requires physicians to complete 50 hours of Category 1 continuing education within the 24-month period immediately preceding license expiration. Credits must be approved by the Accreditation Council for Continuing Medical Education (ACCME) or American Osteopathic Association (AOA).
Within the 50-hour requirement, physicians must complete 3 hours of continuing education on opioids, including 0.5 hours specifically dedicated to the Prescription Drug Monitoring Program (PDMP). Physicians may carry over up to 24 hours of completed CME credits to the next renewal period.
If any director, officer, shareholder, or professional employee is not licensed or legally authorized to perform professional services, the corporation will be suspended (Neb. Rev. Stat. § 21-2216). This creates significant compliance risk requiring ongoing monitoring of physician-owners' license renewals (October 1 of even-numbered years), CME completion (50 hours within 24 months), and fee payments ($171 biennial).
Managing compliance across Nebraska's complex healthcare entity requirements creates a significant administrative burden. Tracking physician license renewal dates, obtaining professional board certifications, managing biennial reports due March 1 for Professional Corporations and April 1 for PLLCs, and maintaining a registered agent demands continuous attention that diverts focus from patient care.
Discern provides registered agent services and automated compliance tracking that eliminates this burden. Our platform handles professional entity formations, biennial report automation, and compliance software designed for healthcare entities across all 51 jurisdictions. Book a demo today and see how we can reduce your administrative burden while ensuring your Nebraska entities stay in good standing.
Can non-physician investors own a medical practice in Nebraska?
No. Nebraska actively enforces the Corporate Practice of Medicine doctrine, most recently in Noel v. Pathology Medical Services, P.C., 320 Neb. 92 (2025). Neb. Rev. Stat. § 21-2216 requires all shareholders, officers (except secretary/assistant secretary), and directors to hold active Nebraska medical licenses. Non-physician ownership is permitted only through MSO arrangements.
What happens if a physician-owner's license lapses?
Loss of licensure creates immediate entity compliance consequences. Under Neb. Rev. Stat. § 21-2216, if any director, officer, shareholder, or professional employee is not licensed, the corporation will be suspended. Administrators must track all physician-owners' license renewals (October 1 of even-numbered years) and CME completion to prevent suspension.
Does Nebraska require annual reports for healthcare professional entities?
No. Nebraska operates on a biennial (not annual) reporting cycle. Professional Corporations file by March 1 in even-numbered years ($30 fee), while Professional Limited Liability Companies file by April 1 in odd-numbered years ($30 fee).
Can physicians and nurse practitioners co-own a practice in Nebraska?
No. Nebraska prohibits multi-discipline ownership through a single professional entity. Neb. Rev. Stat. § 21-190 limits professional limited liability companies to rendering "only one specific kind of professional service," making multi-discipline co-ownership legally impermissible.
.png){kind=small}