An LLC is one of the most famous business structures in the United States. It is a hybrid business entity with the limited liability features of a corporation and the tax flexibility of a partnership.
Starting a limited liability company (LLC) is a big step, but your responsibilities do not end there. This guide will tell you 9 things you need to do after forming an LLC.
It sounds like many steps, but many of them are pretty simple and easy and I will provide you with detailed information and resources where you can do all these steps.
Recommended: If you haven’t formed an LLC yet, and you want to start an LLC We have written many LLC Guides so you can get guidance from them.
9 (Extremely) Important Things You Need To Do After Forming an LLC
- 1 9 Things You Need to do After Forming an LLC
- 2 Get an Employer Identification Number (EIN)
- 3 Create an Operating Agreement
- 4 Open your Business Bank Account
- 5 Apply for Business Licences and Permits
- 6 Maintain your LLC Compliance
- 7 Apply for Trademark Protection
- 8 Create a Website
- 9 Hire an Accountant
- 10 File Any DBAs for Any Business Name Variations
- 11 Conclusion
9 Things You Need to do After Forming an LLC
Starting an LLC is one of the important steps of your business but it is not the last step. 9 important things you need to do after forming an LLC, which are:
- Get an Employer Identification Number (EIN)
- Create an Operating Agreement
- Open Business Bank Account and Get Credit Cards
- Apply for Business Licenses and Permits
- Maintain your LLC Compliance
- Apply for Trademark Protection
- Create your Website
- Hire an Accountant
- File Any DBAs for Any Business Name Variations
Get an Employer Identification Number (EIN)
The most important step after forming an LLC is to apply for an Employer Identification Number (EIN). It is also known as a Federal Tax Identification Number.
What are the Purposes of EIN?
- An EIN is important for your business tax purposes.
- It is also necessary to open a business bank account in the United States.
- It is also needed when you want to hire employees legally.
Applying for an EIN is quite simple and free of cost. You can quickly obtain this by visiting the IRS.gov website.
Create an Operating Agreement
An operating agreement is one of the important documents but not required in every state. It is highly recommended to create an operating agreement.
An operating agreement is a document which is set out the rights and responsibilities of the members and managers of a Limited Liability Company. If you do not have an Operating Agreement, state LLC law will govern the operation of your LLC.
Open your Business Bank Account
Opening a bank account is the most essential step after forming an LLC. A separate bank account for your company is the best and smartest way to protect your personal assets from business debts and liabilities.
Most United States banks require a Certificate of Formation which is also known as Article of Organization and Employer Identification Number (EIN) to open a bank account.
Having a separate bank account opens up many special opportunities including purchasing business supplies, accepting payments, and paying bills via your own personal checking account or credit card.
Apply for Business Licences and Permits
After forming your LLC, You need to obtain the necessary business licenses for the type of business that you will be conducting. Operating a business without the proper business license will lead to fines that are additional expenses that you’re going to want to avoid.
Obtaining the correct business license gives you the right way to conduct your business. Business licenses differ and it depends on where you live. You must obtain a business license that is compliant with your state’s law.
General business and Professional licenses, Zoning and construction permits, and Seller’s permits are some of the common types of local business licenses.
Maintain your LLC Compliance
For forming an LLC, you need to file your certificate of formation with your secretary of state but your job isn’t done after you submit that initial paperwork. But you will need to keep up with state paperwork generally on an annual basis. You’ll need to manage your LLC, keep profits from being classified as taxable and file your estimated personal taxes annually to the United States Internal Revenue Service (IRS) and pay any state taxes if have them.
Apply for Trademark Protection
When you form an LLC, you protect your business from other companies that might be using the same name and in the same state.
There’s a difference between that type of protection and federal trademark protection which can cover you throughout all 50 states on a national level so it’s highly recommended to register your company’s brand as a trademark.
Learn More: How to Register Your Trademark in 2022
Create a Website
In this modern age, every business must have a website and online presence on social media platforms.
Having a website allows you to showcase your business’ online presence. Your website is also important because it helps establish credibility with customers as well as among industry peers, which directly affects how your company is viewed in terms of reputation and trustworthiness.
To create a website you need to find a fast and reliable hosting provider. Most hosting companies provide free domains with their hosting plan.
Hire an Accountant
As a small business owner, it’s a common misconception that you can just do your taxes because payroll can be expensive, and especially when you’re growing quickly from one month to the next.
But this isn’t true because if you do end up getting audited, it will cost you a lot more money and then there’s the legal trouble you might have to deal with too for not doing things correctly in the first place. So it is highly advised to hire an accountant who can handle it professionally.
File Any DBAs for Any Business Name Variations
The next thing you need to do after forming an LLC is to get doing business as a DBA. If you plan to operate under a variation of your registered company name this basically means that you will need to file a doing business as a DBA for each of the variations of businesses that you’ll be operating.
For example, a business owner is in the business of construction real estate, and technology. You should have your LLC file the DBAs so they operate under the same LLC.
You should look to create a separate entity for each different business venture. This means that you would have an LLC for your technology business for your construction business as well as for your painting business failure to create separate business entities will create a domino effect, basically meaning that if one business venture gets sued the other business ventures may be negatively impacted.
In this guide (9 things you need to do after forming an LLC), I have tried to include all the things you need to do after forming an LLC.
I hope that this guide helps you and your business achieve success. I aimed to make it as comprehensive as possible, but I’m sure more points can be included. If you have any questions, you can reach out to me at any time. I’ll be sure to help you out. I hope this guide is helpful.