Are you sure you know everything after forming a Limited Liability Company?

Are you sure you know everything after forming a Limited Liability Company?

If you’re someone who has recently formed an LLC or incorporated, you should know that you’ve taken a vital step for setting up a legal identity for your business and safeguarding your personal and business assets. Not only can you protect your assets but you can also establish certain credibility with your customers. Now if you think that you’re done and you’re all set to start your own business, you’re not done yet. There are several other things that need to be checked off the list before you are finally ready to start off with the business.

So, let’s take a quick look at the steps that you need to take after forming an LLC. Apart from seeking help of incorporate online, you may go through the steps given below.

  1. Get all the important permits and licenses for your business

There are many novice entrepreneurs who are of the opinion that setting up an LLC or a corporation is similar to grabbing a license for business. If they do so, few days later, they will probably understand that it is not the case when they’ll be fined for operating without any business license. So, you have to think it in another way where the LLC is the initial step which gives a legal identity to your business and a business license provides you the right to operate.

  1. Obtain an EIN or Employer Identification Number

The other name given to an EIN is a federal tax ID number and this is the very first way for the IRS to recognize your business and trace the business operations. What EIN is to companies is what Social Security Number is to individuals. If you set a business where you think of keeping several employees, having an EIN is mandatory. Obtaining an EIN is even a smart option when you don’t have employees. You can give your EIN instead of the SS number to your vendors and clients.

  1. Obtain a seller’s permit

There are many states which have a rule of getting a seller’s permit. This is a permit which is needed for LLCs, sole proprietors, corporations and partnerships which sell services and goods. For instance, in California, a permit for sellers should be obtained by any business which leases or sells property which is subject to the retail sales tax for the state. You have to ensure you receive this permit before you begin selling products.

  1. Open a bank account for your business

Once you’ve established an LLC, you have to open a bank account for your business under LLC. As you open a bank account, this will let you accept checks which can be given to your business’ name. Moreover, the owners of LLCs and corporations will be obliged legally to maintain separate corporate and personal finances. This is why it is a must to have a separate bank account.

Therefore, once you form an LLC, you have to make sure you take the above mentioned steps so as to alleviate the process of business operations.

Categories: Business

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