While you may think that it is all done after you have registered your LLC, it is probably just the beginning. Getting your LLC registered is a significant achievement in itself, but what follows is even more imperative and requires a lot of patience and effort.
Get An EIN
If your LLC is employing people, it needs to have an employer identification number. It is also known as a federal tax identification number and is required by LLCs with employees working in it. If you have a single-member LLC or a multi-member LLC but don’t have employees, you will not need an EIN.
An EIN is a nine-digit unique number that IRS assigns to businesses. For an LLC with employees, whenever it wants to apply for a business bank account or applies for a business license, EIN is the primary requirement.
Open A Business Bank Account
Opening a business bank account for your LLC is a step that follows after getting EIN for your business. If your business doesn’t have employees, it can apply for a business bank account without an EIN. Since an LLC is all about keeping yourself and your business separate, nothing proves it more than a different bank account for your business.
A business bank account, for starters, shows that the business is a separate entity from the person who owns it. It helps to maintain the limited liability protection of the members of an LLC.
Furthermore, a different business account will make the entire process of taxation easier for you. You won’t have to worry about all the personal expenditures being included in tax calculation as your business bank account will only show you transactions related to your business.
Last but not least, having a separate business bank account gives additional credibility. This credibility is always helpful in dealing with creditors, vendors, and customers.
Get A Business License
Whether your LLC needs a business license or not will be determined by the kind of business that your LLC is dealing with.
Licenses for LLC can be of two types:
- General licenses from your county or state
- Specialized licenses based on your industry.
One type of LLC required to have a license is a PLLC, also known as Professional LLC. A PLLC is an LLC that offers specialized services to clients, including but not limited to an LLC formed to provide medical services or an LLC formed by lawyers for legal advice, etc.
Get A Seller’s Permit
Depending upon the state of your LLC, the name of the seller’s permit may vary from Reseller License Permit, Reseller Permit/Number, Resale ID number/Permit, or Resell Permit/Number, etc.
It is different from a business license, which is required for professional services. Various states usually require a seller’s permit for LLCs that sell merchandise, vehicles, property, etc.
A seller’s permit is not just a requirement, but sometimes, it also comes with plenty of benefits for your LLC. For example, in some states, with the help of a seller’s permit, you can purchase physical goods at wholesale prices and then sell them at retail prices to the end customer.
Considering its importance and advantages, applying for a seller’s permit should be one of the first things that you should consider getting after successfully forming your LLC.
Learn About Your Tax Requirements
Taxes and LLC have symbiotic relationship, and there is no way you can avoid the fuss about taxation when you’re operating an LLC. It is made even more complex, with every state having its different tax laws.
There are various taxes that your LLC may have to pay, from income tax to employment taxes and sales tax, etc.
You can find the tax requirements for your LLC in your state at your state tax department.
Many states provide online services to fill your tax forms, while in others, you have to file your tax requirements manually.
Publish Your LLC
If your LLC is located in Arizona, Nebraska, or New York, you would have to publish your LLC. However, if your LLC is registered in any other state than these three, you won’t have any publishing requirement for your LLC.
In Arizona, the state will send you notice of publication and instructions with your articles of the organization after your LLC is registered.
If your LLC is registered in the state of Nebraska, the state will send you instructions to publish a ‘notice of organization‘ in a legal newspaper of general circulation. You will have to publish it in the newspaper for three consecutive weeks.
Similarly, in New York, a notice of organization for your LLC must be published in at least two newspapers of general circulation once a week for at least six weeks.
It is essential to know that one of two newspapers, where you’re publishing your notice of organization, should be daily, and the other should be a weekly newspaper.
In Nebraska and New York, after you have published your notice of organization, respective newspapers will then issue you a certificate of publication, affidavits from the newspaper, and other copies of the posted notices.
Once you receive these documents from the newspaper, you will have to file these documents to the secretary of state departments of respective states.
Get A Registered Agent
In all states of the United States, every LLC is legally required to have its registered agent responsible for all the documentation of the LLC with its state.
If your existing registered agent is no longer serving your LLC, you are legally required to file for a form named ‘changed of registered agent’ with the secretary of state office. You or any member of your LLC can also serve as the registered agent for your LLC.
The importance of a registered agent is crucial. For example, you can’t file a lawsuit, or a lawsuit can’t be filed against your LLC unless you have a registered agent for your LLC.
It is also a way for states to make sure that big corporations don’t get to hide behind thousands of employees. One person is responsible for all the documentation related to the corporation, and the state knows about that person.
Insure Your LLC
Insuring your LLC is absolutely imperative, especially if the thought of racking up significant losses scare you when running a small-scale business. While the basic insurance of protecting your assets from lawsuits comes with forming an LLC, there are many other types of insurances that you should consider for your LLC.
Some of the more common insurances startups and small companies generally take advantage of for their LLC are:
- Business income insurance
- Commercial property insurance
- Workers’ compensation insurance
- Commercial auto insurance
Frequently Asked Questions
- What should I do after I file for my LLC?
After you have filed for your LLC, you should start getting an EIN for your LLC (if applicable), followed by ensuring your LLC, opening a business bank account, and getting a license and seller’s permit for your LLC.
- How do I get the most out of my LLC?
You can get the most out of your LLC if you keep the filing fees and annual reports of the entity up to date, maintaining essential liability protection, keeping the minutes in case it’s a C Corp, and maintaining separate accounts for personal and business use.
- Are the fees of an LLC one-time?
Yes, the fees of registering your LLC are one-time. However, other costs related to LLC are recurring, and you have to pay after a certain period. For example, annual LLC fees are to be paid every year to keep a good standing of your LLC with the state and comply with the state’s requirements.
