The first 5 things to do after forming your LLC

Forming your LLC is a big milestone, but it’s really just the beginning. Once your paperwork is approved, there are a few important steps that help you get your business fully set up and running smoothly.

1. Apply for an EIN An Employer Identification Number (EIN) from the IRS acts like a Social Security number for your business. You’ll often need it for taxes, hiring employees, and opening financial accounts.

2. Open a business bank account Keeping business and personal finances separate is one of the most important habits new founders can develop. It makes bookkeeping easier and helps maintain your LLC’s legal protections.

3. Create an operating agreement Even if your state doesn’t require one, an operating agreement outlines how your LLC is structured and how decisions are made.

4. Set up bookkeeping or accounting systems Tracking income and expenses from day one will save you a lot of time (and stress) when tax season arrives.

5. Make sure you understand your state’s compliance requirements Many states require annual reports or other filings to keep your LLC in good standing.

Getting these pieces in place early helps your business operate more smoothly and keeps your LLC compliant as it grows.