Steps to Take After Forming LLC

Form a corporation

Starting your own business can be overwhelming, but it can also be extremely rewarding. If you’re thinking about starting a business, consider taking steps to create an LLC. Here are some steps to show how to form an LLC.

First, it’s important to obtain any necessary business licenses and permits. Many people think that when they form LLC online they’re covered and ready to do business, but that’s not the case — you still need to get a proper business license and any other permits.

Getting a seller’s permit is another essential step of how to form an LLC. It’s required for all businesses that sell taxable goods and services.

Next, get an employee identification number (EIN). This is a federal tax ID number that allows the IRS to correctly identify your business and track the transactions. It’s sort of like a social security number for businesses. If you’re hiring additional employees, an EIN is required, but even if you’re conducting business by yourself, it’s highly recommended because it makes your business look more professional and legitimate.

Opening a business bank account is another important step of getting your LLC off the ground. Once it’s established, it allows you to cash checks that are made out to the name of your business. Owners of corporations and LLCs also have a strict legal obligation to keep their business finances completely separate from their personal finances. That’s why it’s essential for you to have separate banking accounts for your personal and business finances.

Applying for a business credit card is another crucial step. This is a smart idea because putting all business expenses on a card specifically meant for business transactions gives you an instant audit trail of the year’s business expenses by the time tax season arrives. Having a business credit card also helps retain a sense of protection over your personal assets.

Finally, one last step of the LLC process that should not be neglected is getting a ‘Doing Business As” (DBA). This is required for any variation of the official company name that you may be using to conduct business with as well. A DBA must be filed for each separate name variation under the original name so that they officially operate underneath the LLC.

For more information on how to form a corporation or how to form an LLC, contact a professional. More info like this.

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