What To Do After Forming An LLC
Congratulations on the successful formation of your limited liability company (LLC). You’ve made an important business decision that can help protect your personal properties against the company’s debts and other liability obligations.
However, launching your company doesn’t end after choosing a business structure. More is needed to start selling products or services to customers. There are other essential steps before you can start running your business. They include the following:
Open A Business Bank Account
One of the reasons most business owners choose LLCs is its protection for personal assets. With this business structure, the owner’s assets or properties can’t be used to settle business debts and other liabilities. However, there are certain circumstances under which you could lose this protection. One is when you keep personal and business money in the same place. This is why you should open a business bank account immediately after you form your LLC.
A bank account can help you avoid mixing your personal and business money. Since your funds are separated, it also simplifies financial tasks like record-keeping and tax preparation.
In addition, opening a business bank account is also essential to help build your credibility. Allowing customers to pay using debit and credit cards and checks can help establish your brand as a credible entity in the sector. A business bank account can also help your business look more professional instead of using a personal account.
Opening a business bank account is easier than you think. You only need to carry your LLC formation documents, ownership agreements, employer identification numbers, and business licenses to the bank. From there, the bank will review your documents and help you to open a US-resident or non US resident LLC bank account if you aren’t a citizen of the US.
Obtain Employer Identification Number
Whether you’re a US resident or non-resident, you’ll have to pay taxes out of your company’s profits to the government. But to achieve that, you must have an employer identification number (EIN). This number is provided by the internal revenue service and is required for all your tax payments and return filings.
Moreover, getting an EIN is necessary since, as indicated in the previous sub-section, you’ll need an EIN to open a business bank account to help separate your personal and business money.
Apply For Local Business Licenses and Permits
Once you form your LLC, you’ll get a certificate of formation that shows that your business exists. However, you should first secure other licenses and permits from the local government before you open doors to customers or start marketing your products or services.
Generally, the license requirements vary from one region to another. It also depends on the products or services you want to sell. For instance, the licenses and permits for a liquor store might be different from those of a restaurant. For better guidance, you can visit the local government office to learn about the license requirements and any fees you may have to pay to obtain them.
Get Business Insurance
You might not see the need to buy business insurance until things go wrong. However, incidents can happen that may affect your operations and put your customers and employees at risk. This is where getting business insurance comes in.
Insurance is essential to running your business since it can help pay for damages you’d otherwise have to cover from your business money or personal pockets. As such, you can save money and enhance the profitability of your LLC.
The types of insurance to buy depend on the type of business and other factors. For instance, you may need professional liability insurance if your business deals with professional services such as accounting and cybersecurity. On the other hand, you’ll need workers’ compensation insurance if you hire employees. But at minimum, it’s best to consider purchasing general liability insurance, which is a broad coverage to protect your LLC against various lawsuits and expenses.
Develop A Company Website
Once you’ve sorted the technical aspects of launching your LLC, you can start looking at how to connect with your target market. After all, your company’s success will majorly depend on the number of leads you generate and convert as paying customers. And because today, most customers prefer to shop online, the more it becomes essential to have an online presence. One of the practical ways to achieve that is by creating a company website.
A website can be beneficial in many ways. For instance, it allows you to leverage digital marketing and connect with many customers globally. It also allows you to run your business 24/7, which increases your chances of increasing your sales and attending to customer concerns. And to further boost your online visibility, leveraging search engine optimization (SEO) tactics can be beneficial. For instance, you can publish helpful content, optimize your website for mobile devices, and build backlinks.
Becoming a business owner is more than just choosing a business structure, filing documents with the secretary of state, and obtaining a certificate of formation. There are several other important steps before opening doors for customers and running your operations.
Opening a business bank account, applying for local business licenses, subscribing to business insurance, and creating a company website are some of these things to do after forming your LLC.