Forming your LLC is a big milestone—but it’s just the beginning. Once your Limited Liability Company is officially registered, there are several important steps you must take to operate legally and position your business for success in the United States.
Here’s a practical checklist of what to do after forming your LLC.
1. Get an Employer Identification Number (EIN)
Even if you don’t plan to hire employees, most LLCs need an EIN from the IRS. It’s required to open a business bank account, file taxes, and manage payroll.
You can apply online for free through the IRS:
🔗 Apply for an EIN
2. Open a Business Bank Account
To separate your personal and business finances (which is essential for protecting your limited liability status), open a dedicated business bank account using your LLC documents and EIN.
This helps you:
- Track business expenses
- Accept payments professionally
- Build business credit
3. Register for State and Local Taxes
Depending on your business location and type, you may need to register for:
- State sales tax
- Employment taxes
- Franchise taxes
- Business licenses
Check with your state’s Department of Revenue to make sure you’re fully compliant.
4. Obtain the Necessary Licenses and Permits
Your LLC may need specific licenses or permits based on your industry and location. These could include:
- Health permits
- Zoning permits
- Professional licenses
Check with your city or county government to learn what applies to your business.
5. Create an Operating Agreement (If You Haven’t Already)
An Operating Agreement isn’t required in every state, but it’s a smart move—even for single-member LLCs. It defines:
- Ownership percentages
- Voting rights
- Profit distribution
- Procedures for dispute resolution and dissolution
This document can prevent future conflicts and strengthen your LLC’s credibility.
6. Set Up Accounting and Bookkeeping
A clear financial system helps you:
- Stay on top of taxes
- Monitor business performance
- Avoid penalties
You can use accounting software like QuickBooks, hire a bookkeeper, or work with an accountant to stay organized.
7. Understand Your Federal and State Tax Obligations
Your LLC’s tax responsibilities will depend on how it’s structured:
- Single-member LLCs: taxed as sole proprietors by default
- Multi-member LLCs: taxed as partnerships
- LLCs electing S Corp status: must file IRS Form 2553
Consult a tax advisor to choose the best structure for your business.
8. Protect Your Business with Insurance
Consider getting business insurance, such as:
- General liability insurance
- Professional liability
- Workers’ compensation (if you have employees)
Insurance adds an extra layer of protection for your assets and operations.
Final Thoughts
Forming your LLC is just the first chapter in your entrepreneurial journey. By completing these crucial post-formation steps, you’ll ensure your business is legally compliant, financially secure, and ready to grow.
Do you need help deciding your next move after forming your LLC? Drop your questions in the comments—we’re here to support your startup success.