Congratulations! You took a big step in your life and career and formed a Limited Liability Company (LLC) or incorporated. As any Austin business lawyer will tell you, this is a great and important move. Having an LLC allows you to have much more legal protection and rights over your business. It definitely took a lot of hard work to get your LLC, and it might have been a long process. But don’t take that sigh of relief just yet– there’s always work to be done in a business.
So you got the business, and now it’s time to run it. There are still additional steps you should take to ensure you have as much legal and financial protection as possible for your business. So if you’re wondering what to do with your LLC next, look no further than this list.
Get your documents together
Now that you have your business, you’ll need to run it. For legal reasons, you’ll need to put exactly how you plan to run it on paper. For the most part, this depends on what state you’re in. Visit the website for your secretary of state to find out exactly what requirements you should be fulfilling after forming your LLC.
A good place to start no matter what state you’re in is with your operating agreement. This operating agreement helps the government to understand how your business is being run and provides you with some legal protection. You can create an operating agreement with an Austin business lawyer or look up various templates and examples online. Along with your operating agreement, be sure to check with your state to see if you need to file things such as initial reports or notices of information.
Get your licenses and permits together
Contrary to popular belief, getting an LLC doesn’t automatically allow you to run a business! Getting an LLC is not the same thing as obtaining certain licenses or permits. You’ll have to do this separately, and you’ll want to do it quickly after you form your LLC to get your company up and running.
Once again, what kinds of licenses and permits you may need vary by state. Here’s a list of some permits that are often needed:
- seller’s permit
- zoning permit
- general business operation license
- home occupation permits
Additionally, there are different permits you would need depending on your business. For example, these are the permits you may need if you were looking to open a convenience store in the state of Texas according to the Texas Business Licenses & Permits Handbook:
- air permits
- air permits by rule
- alcohol licenses and permits
- aquatic/fish farm business licenses
- lottery sales license
- cigarettes, e-cigarettes and tobacco products regulations
- coin-operated amusement machine license and registration
- weighing/measuring device permits
- produce licenses
- pesticide/herbicide sales permits
Get an employer identification number
An employer identification number (EIN) also known as a federal tax ID number is what the IRS uses to identify your business and tax it accordingly. Most businesses in the country need this, and you can easily apply for one online with the IRS or through mail or fax.
If you are the sole business owner and you don’t have any employees, it may be possible for you to just use your own social security number. Check with the IRS for more information if you are the sole business owner with no employees.
Open a business bank account
Opening a business bank account is generally necessary to track business expenses, but can also be useful in the branding of your business and upholding it as a separate entity.
You will need to be able to accept checks under the name of your business once your LLC is open. In order to do this, there needs to be a business bank account. In order to open a business bank account, you will need your Employer Identification Number (EIN) and certificate of business formation from the state.
All owners of corporations are also legally obligated to keep their personal and business finances separate, so keep this in mind when opening your business bank account (which you need to keep your finances separate!) A smart idea to keep fees as low as possible is to look at the prices of different banks in your area.
Similarly, getting a credit card for your business is also a good idea as it can help your business build credit and credit history.
Get insurance
Having an LLC is a great legal foundation that protects your assets. However, unless you have insurance, your business won’t be protected from any unforeseen accidents or losses. There is a general business insurance you can get, a Business Owners Policy (BOP) and if you are selling a product, there are also insurance policies you can get for your product.
Get in touch with an insurance agent and see if there are any other types of insurance policies your type of business may benefit from investing in. Just as with permits, licenses, and other documents, remember that things may vary depending on your type of business and the state your business runs in. You’ll want to be sure you’re getting the best possible services for your business.
Get legal guidance from an Austin business lawyer to keep up with ongoing requirements
There are many things you need to do in order to keep your LLC compliant. Getting to the point where you own an LLC is a great accomplishment, but as they say, with great power comes great responsibility. Getting a business lawyer can help with knowing how to keep your LLC compliant, but also help with any contracts you may need for when you start hiring employees, protecting intellectual property, and many other things.
Getting an LLC is a great accomplishment, but what really matters is what you do afterwards. Taking all the steps you can and hiring all the help you can get from people such as business lawyers, accountants, assistants, and more can help ensure you and your business success.
Hollister Legal offers corporate and transactional, tax planning and consulting, immigration and visas, and business and startup services.