After Your Business Is Established
If you just created a Limited Liability Company, then you will be more than happy with the outcome. But just because you created the LLC, doesn’t mean you are done. You will still have to register your company with the state. You also have to file an operating agreement and even deal with registration fees. Since there are several more steps to take after establishing your new business, we have listed 11 things to do after forming an LLC, S Corporation, or Corporation.
#1 Name Your Business
Keep in mind that the LLC name can be anything you want. It doesn’t need to be the name that you place on marketing materials. The idea here is to take your time as you find a good name for your business. The more creative you are, the better the results will end up being in the end.
The fact that you can limit your personal liability is an excellent option with a Limited Liability Company. That being said, you can easily add LTD or LLC to the name if you want to. Do keep in mind that if you do register as an LLC, you will not be able to use Corporation in the business name, so try to consider that. Researching state requirements is going to be an excellent idea.
After all, you want to avoid stuff like copyright infringements or anything around those lines. The best thing you can do is to hire an attorney. Or you can work with a trademark research company if you want to avoid legal problems down the road.
#2 Get the Employer Identification Number
While the first step seems complicated, this next one is just as important. You will need an employer identification number. The EIN makes it easy for the government to track your payments and employee wages, among many others.
You have three methods to get the EIN. One of them is by applying via phone. You can complete the IRS form SS-4 and submit it via mail, or you can register on the IRS website. Do remember that if you apply via phone, the IRS will be able to identify the information fast!
#3 Tax Preparation
Preparing the right tax information is a crucial aspect here. Ideally, you want to use an accounting software program that will be able to offer proper assistance. Working closely with the accountant will make things easier for you too, which is what you need. Make sure that you define the fiscal year, as that’s when you will file the tax returns. In case you have multiple members, you will need to submit more tax returns, so try to keep that in mind if you can.
#4 Appoint a Registered Agent
Getting a registered agent is essential because he will receive things like the official correspondence, service of process, legal notices, and a variety of other vital pieces here. Most states nowadays require you to have a registered agent when you opt to have an LLC. In case your state doesn’t need one, it’s still a good idea to have one to be safe. Accountants, lawyers, and many other professionals will be able to work as registered agents if necessary, for a fee, of course. Both Incfile and Northwest Registered Agent are solid choices for getting a registered agent.
#5 Get a Business Bank Account
Make sure that you create a business bank account, especially for the LLC. This way, you can easily manage and track expenses instead of dealing with any problems. You will need an authorized signer; the co-members will be a good option here. Make sure that you pick the right person because they can withdraw money, close the account, and so on. You want that person to be trustworthy. Otherwise, there are bound to be some great benefits and value to be had in here.
To create the right business bank account, you will need the EIN, LLC operating agreement, and the persons that need to sign, as well as their identification!
#6 Get a Merchant Account or Line of Credit
This is an essential thing to do. Many LLC owners miss this. But you need it if you want to accept any credit card payments. There are millions of credit cardholders in the US and worldwide, which means every store should offer the option to receive such a card. Of course, if you want merchant accounts, you want to use Square or any good online payment processors that can work for you. Many of them tend to compete with one another to the point where you will get pretty good prices without having to worry about spending a lot, so it makes a lot of sense to use such an approach if you want to.
Ideally, you want to talk with your bank representative to see if they have any merchant friendly options. You should also have a business credit card. You get to track your expenses a lot easier this way. And then you also have some benefits like getting some of the cashback, not to mention you can gain discounts on airlines, rental cars and so on. Of course, you want to be sure that there’s not a lot removed from the cash account.
#7 Insurance For Your Business
Insurance might not be a pretty topic, but it’s pretty much a necessity. This is great because it allows you to avoid personal liability problems, so try to consider all of that. The LLC structure is not protecting the company from any losses. That’s why you do need to figure out a way to protect your business against any problems like this.
You can choose things like general, product, professional liability insurance, home-based business insurance, or commercial property insurance. In case you have employees, you also need to have some insurance that will cover them too. All these things are essential, and they will help you quite a bit in the end.
#8 Understand The State’s Requirement for Licenses and Permits
Every business has specific requirements when it comes to regulatory schemes, permits, and licenses. These are some of the things to keep in mind:
- You need to make sure that you understand the type of business that you operate. Every kind of business is regulated differently, so try to keep that in mind.
- If the federal government regulates you, you will have to meet the federal licensure requirements.
- Some companies will require professional training, which in the end will be a crucial aspect that you need to consider as much as you can. Your business will need specific licensure and training requirements that have to be fulfilled before the services are shared with the public.
- Of course, you also have companies that require you to operate with a local permit. Getting the permit is extremely important even well before you have to open the business!
- Of course, this is the tip of the iceberg. Some cities require you to regulate signage; others need fire safety compliance permits, elevator permits, and so on. Working with a local law representative is the best way to identify and handle any problems like this.
#9 Hire Employees
You will not have to hire employees. The thing to keep in mind here is that you need to offer a healthy work environment and fair pay. Make sure that you figure out if you hire employees or if you use them as contractors. Defining the right relationship here can be an excellent idea, and it will help prevent any problems in the long run as you go along.
This means you have to identify the tax liability and deal with all of this the best way you can. Ideally, you want to make sure that you handle all of this the right way, to be safe. When you hire people, you have to pay workers compensation insurance, social security tax, federal unemployment taxes, and many others. Of course, the LLC also needs to tell every employee their rights. In case you have employees, you have to post notices from the Worker’s compensation department in the country, and you can also contact the EEOC.
When you identify the company policy, you need to make sure that everything runs correctly and in an efficient manner. This way you can avoid any problems like harassment and so on! Check out chapter 6 regarding online payroll services. Very reasonable prices.
#10 Work with Independent Contractors
From a legal standpoint, there are a variety of ways you can define what is and how will an independent contractor operate. The IRS will focus on the amount of control you have over that person, and the compensation method will also dictate that stuff as well. If the person receives a paycheck often, then they will be seen as an employee. If they are paid per project, then they will be an independent contractor.
Moreover, some other things can make a person an independent contractor and not an employee. If the person supplies their tools, materials and they have their working times, they are an independent contractor, so try to consider all of that. But even if you work with independent contractors, it’s essential to maintain records here. That being said, you will have to rely on contracts for each project!
#11 Protect Your Intellectual Property
If you have an LLC, you need to find a way to protect intellectual property. That being said, it can be very tricky to do that the right way, it all comes down to using the right system that may be able to help you here. Every LLC needs to define the intellectual property and protect it with a trademark. Registering the trademark is inexpensive, but it’s pretty much necessary in the long run, and you will have to do everything in your power to protect it the right way!
Copyrights will protect only architectural work, graphics, computer programs, motion pictures, sound recordings and music, pictures, and manuscripts. The copyright law makes the owner the only person that can copy or modify the work. You can protect the copyright by registering at the United States Patent and Trademark Office; you have to pay a small fee there. You can also ask employees to ask for confidentiality agreements that will protect all the copyrighted materials.
One thing is sure, setting up an LLC the right way is not going to be a walk in the park. It’s the type of thing that can require a lot of hard work and commitment. The idea here is to make sure that you adapt everything to your business requirements. As long as you avoid rushing, results can be more than okay. That being said, these steps will help you go in the right direction. You will find it easy to create and also execute a business strategy, and that can offer some rewarding benefits all the time!