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Linear vs. Nonlinear FEA

It isn't about whether your material is elastic. It's about whether the stiffness matrix stays the same number from the first load increment to the last.

A common assumption is: "my part is steel, staying well under yield, so my FEA is linear." Material behavior is only one of three things that can break the linear assumption. A thin steel bracket deflecting several times its own thickness, two elastic parts that start apart and come into contact under load, a bolt with pretension — none of these involve yielding, and all three require a nonlinear solve. The real dividing line is narrower and more mechanical than "is the material elastic": does the stiffness relating load to displacement, [K], stay constant throughout the load, or does it change as the structure deforms?