Important Steps To Take After Forming An LLC
It can be very exciting to start a new business, but you need to make sure you take the proper steps after your LLC is formed.
Here are some things that should be done:
1. Make sure your records and documents are in order
Bylaws that describe how you intend to operate your new corporation need to be created after incorporating a business. You may also be required to publish a newspaper notice of the incorporation, depending on the state you live in.
You'll need a corporate minute book set up, as well as file where you will store important corporate documents, including your certificate of incorporation, bylaws, shareholder information and resolutions. Also depending on which state you are in,you may be required to file an initial report, and will generally need to hold shareholder and director meetings once a year, at minimum.
2. Acquire an Employer Identification Number
An Employer Identification Number, or EIN for short, is a number that the IRS (Internal Revenue Service) uses to identify a business. It works for a business similarly to how a Social Security Number works for a person. Most businesses do need an EIN, but if you don’t have employees or pay excise taxes, you may be able to use your Social Security Number instead.
An EIN can be applied for free of charge online at the IRS website. You'll receive the EIN as soon as you’ve finished the application. Another way you can apply for this is through online service, by mail, or by fax.
3. Open a Business Bank Account
The purpose of a business bank account is to keep your business finances separate from your personal finances. This makes recordkeeping and tax preparation easier, while helping to preserve your business’s separate identity.
To open a business bank account, you will need:
- Your EIN
- The Certificate of Business Formation you received from the state
Obtaining a business credit card is another thing to look into, and helps your business begin to develop its own credit history.
4. Register Your Business With Your State, and, if needed, obtain a Seller's Permit
You will need to pay required state business taxes, including income, employment and sales taxes, so you must register your business with your state’s tax agency.
If you intend to sell items or services in your state and collect sales tax on those items, or in order to buy goods from wholesalers without paying sales tax, most states will also require you to obtain a seller’s permit, a.k.a. a "resale permit", before you make any sales.
Many states allow you to register your business and apply for a seller’s permit online. Head over to the website for your state tax agency for more info on this.
5. Obtain Local Business Licenses
Depending on the type of business you’re in and where you’re located, you may need business licenses from your city or county. You can contact your local government offices to find out about these requirements and any local taxes you may be required to pay.
6. Get Legal Guidance
It can be easy for new businesses to make legal mistakes, but many of those mistakes are avoidable if you seek advice from a Business Attorney before you sign contracts or hire employees.
An attorney has the ability to draft and review contracts, negotiate more favorable terms for business contracts, as well as advise you on how to protect intellectual property like logos or product designs.
To further minimize your legal risks, it’s always a good idea to contact an Business Attorney and get appropriate guidance for your business. Joe Dragon happily offers a Free Consultation to anyone in Nevada needing legal assistance for their new or established business.