If you have recently organised your business as a Limited Liability Company (LLC), you have taken an important step towards protecting your personal assets and setting the legal foundation for your business.
But after you form your LLC, you still have a lot of work to do before you can officially open for business. Here are 5 things to consider before you are ready to do business.
1. Name your business properly
Your name should be creative, informative and good enough to appeal to consumers. Also the name that you registered the LLC does not need to be same that you put on marketing materials. When you create an LLC your name is automatically protected in your state for some business this is enough but companies register trademark for their company name in order to legally protect in all 50 states. You do need to trademark the business name, a trademark is a brand name that are relatively easy and inexpensive to register.
2. Get an Employer Identification Number
EIN also known as Federal Tax Id Number is a way for IRS to identify your business and track its transactions as LLC is a separate entity and needs its own EIN from IRS. EIN is necessary even if you are not planning to hire any employees. Without an ein number, you won’t be open a bank account for your business.
There are three ways to apply for EIN:
- You can apply for EIN through IRS website by answering few questions and entering social security number.
- You can apply for EIN by telephone by calling (800) 829-4933.
- You can apply for EIN through mail also.
3. Apply for business licences
Forming an LLC is different from getting a business licence. LLC creates a legal foundation for the business where business licence gives you the right to operate. Contact your local state office to find out what kind of licence are required for your business.
4. Open a business bank account
You can open a business bank account under the LLC after you have EIN. Business bank account allows you to accept payments in your business name also makes it easier to separate your business expenses from your personal expenses.
To open business bank account, you need to carry these documents in the bank:
- LLC Application or LLC Operating agreement
- EIN proof
In addition to opening a separate business bank account you should also apply for business credit card also keep a tab on how much money you process on cards so you can manage your financial records efficiently.
5. Insure your business
LLC protect your personal assets from any liability of the company, its doesn’t protect your business itself from losses. You should evaluate your assets and buy some business insurance to cover them in event of loss. Also if you have employees, then you are required to provide some kind of insurance to the workers as per the law.
To avoid any hassle on your path of success of your business you need to master the small details during the setup phase. By completing these 5 steps after forming LLC you will be on right path of your success.