7 Things to Do After You Form Your LLC
Forming your LLC is a big milestone: but it’s just the beginning. Once your LLC is officially registered with the state, there are a handful of important steps you need to take to make sure your business is actually protected, legal, and ready to operate.
Skipping these steps is one of the most common mistakes new business owners make: and it can cost you later. Here are the seven things you should do right after forming your LLC.
Get Your EIN from the IRS
Your EIN (Employer Identification Number) is a nine-digit number from the IRS that acts as your business’s tax ID. You’ll need it to open a business bank account, hire employees, file taxes, and work with many vendors. Apply for free at IRS.gov, it takes about five minutes and you’ll get your number immediately. Don’t pay a third-party service to do this for you.
Open a Dedicated Business Bank Account
Mixing personal and business money is one of the fastest ways to lose your LLC’s liability protection. Open a separate business checking account as soon as your LLC is approved. Bring your EIN, your LLC formation documents, and a valid ID. Most banks also require a small initial deposit. This one step makes bookkeeping, tax filing, and protecting your personal assets dramatically easier.
Create an Operating Agreement
An operating agreement is a document that outlines how your LLC will be run: including ownership percentages, member roles, how decisions are made, and what happens if someone leaves. Even if you’re a single-member LLC, you should have one. Some states require it. And if you ever go to court, having a solid operating agreement is one of the strongest pieces of evidence that your LLC is a legitimate, separate business entity.
Register for State Taxes
Depending on your state and what your business does, you may need to register for state income tax, sales tax, or employer taxes. Check your state’s revenue or taxation department website to find out what applies to you. If you’re selling physical products or taxable services, sales tax registration is usually required before your first sale. Don’t skip this: operating without proper tax registration can lead to back taxes, penalties, and interest.
Get a Business Address
Using your home address as your business address puts your personal information on public record: every state requires an address on file for your LLC. Consider using a virtual mailbox service or a registered agent service to keep your home address private. This gives you a professional address for contracts, invoices, and correspondence, and keeps your personal and business worlds separate.
Set Up Your Business Phone and Email
A dedicated business phone number and a professional email address signal credibility to clients and partners. You don’t need an expensive phone plan: a Google Voice number or a VoIP service works great for most small businesses. For email, use a custom domain address (like hello@yourbusiness.com) instead of a Gmail or Yahoo account. It looks more professional and builds trust from day one.
Protect Your Business with the Right Insurance
An LLC limits your personal liability, but it doesn’t eliminate it. Business insurance fills in the gaps. At minimum, look into general liability insurance: it covers things like property damage, bodily injury, and basic legal claims. Depending on your industry, you may also need professional liability insurance (errors and omissions), product liability, or a business owner’s policy. The cost is usually much less than most people expect, and it’s far cheaper than a single lawsuit.
Forming your LLC is just step one. The businesses that thrive are the ones that take the time to set up their foundation right. If you want help making sure every piece is in place: from your EIN to your business presence, Legit Launch Solutions is here for it. Check out our services and let’s get your LLC built to last.