Once I form a new LLC what should I do next?
In general, once you have formed your limited liability company (“LLC) there are a number of things that you should do before beginning to operate your business.
- Get a well drafted LLC Operating Agreement. The LLC Operating Agreement is your LLC’s most important document. The LLC Operating Agreement is the central document that is referred to when matters involving the LLC need to be resolved. It is extremely important that all members of a LLC sign the Operating Agreement because the Operating Agreement will only be enforced against the members who are party to the agreement.
- Obtain an EIN for your new LLC. An Employer Identification Number (EIN) is also referred to as a Federal Tax Identification Number. The EIN is generally used to identify a business entity. In general, every business requires an EIN. You can obtain an EIN online free by visiting the IRS web site or by selecting the following link – EIN
- Registering with the state. If you have formed your LLC in a different state then where you will be operating your business, you may have to register with that state. Check with the Secretary of State in that state for guidance.
- Consult with an accountant. Once you have formed your LLC, you should consult with an accountant to determine the tax return filing obligations for the LLC and the members. For example, you should determine if you will have to pay estimated taxes and/or whether your entity’s business will be subject to sales tax.
- Keep your LLC related documents safe and secure. It is important to keep a copy of your Articles of Organization and Operating Agreement somewhere safe.
