Once you’ve successfully formed your Limited Liability Company (LLC), many new business owners assume the process ends there. However, setting up an LLC is just the beginning of building a compliant and successful business in the United States. Whether you’re a U.S. citizen or a resident with the legal right to operate a business, here’s what comes next after your LLC is approved by the state.
1. Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is essential for opening a business bank account, filing taxes, and hiring employees. Even single-member LLCs need an EIN if they plan to have employees or choose to be taxed as a corporation.
You can apply for an EIN directly from the IRS for free using this official portal:
🔗 https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
2. Open a Business Bank Account
Opening a separate business bank account helps you maintain your LLC’s liability protection by keeping personal and business finances separate. Most U.S. banks require your EIN, LLC formation documents, and an operating agreement.
For guidance, visit the Consumer Financial Protection Bureau for general banking information:
🔗 https://www.consumerfinance.gov/
3. Create an Operating Agreement
An Operating Agreement outlines how your LLC will be run, even if it’s a single-member LLC. While not always legally required, it provides structure and protects your limited liability status.
Some states require you to keep this document in your records. For more guidance, refer to your state’s official business division, often found on your Secretary of State website.
4. Register for State Taxes and Permits
Depending on the nature of your business and the state in which you operate, you may need to:
- Register for state sales tax
- Obtain a business license
- Register for state employer taxes if you have employees
Visit your state’s official website. For example, California’s business registration portal is:
🔗 https://www.cdtfa.ca.gov/
For broader guidance across states, the U.S. Small Business Administration provides a breakdown by state:
🔗 https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
5. Understand Your Tax Responsibilities
LLCs are typically pass-through entities, meaning the income “passes through” to the owners’ personal tax returns. However, you may also choose to have your LLC taxed as an S Corporation or C Corporation, which has different implications.
You must file the correct forms depending on your tax structure. The IRS provides resources for business tax filing here:
🔗 https://www.irs.gov/businesses
6. Maintain Annual Compliance
Most states require LLCs to file annual reports and pay franchise taxes to remain in good standing. Missing these filings can lead to penalties or even the dissolution of your LLC.
Always check your Secretary of State website for state-specific compliance requirements. A good starting point is:
🔗 https://www.nass.org/business-services
7. Set Up Bookkeeping and Accounting
Keeping clear financial records is crucial. Choose an accounting method (cash or accrual), record all business transactions, and consider using bookkeeping software or hiring a professional accountant to ensure compliance with IRS requirements.
8. Get Insurance
Business insurance protects your company from potential risks. Common types include:
- General Liability Insurance
- Professional Liability Insurance
- Workers’ Compensation (required in most states if you have employees)
The U.S. Small Business Administration provides an overview of insurance types:
🔗 https://www.sba.gov/business-guide/launch-your-business/get-business-insurance
9. Build a Business Presence
Now that your LLC is formed and compliant, it’s time to grow your brand:
- Create a website and professional email
- Set up a Google Business profile
- Develop a marketing plan tailored to your industry
Conclusion
Forming an LLC is just the first legal step in launching your business. The tasks that follow are critical to ensuring your company remains compliant, protected, and positioned for growth. Always consult with legal and tax professionals to tailor your setup according to your business type and location.