Hold your horses for just a moment, there’s a little more to be done!
First of all...you did it! Congratulations on entering this exciting chapter — you probably feel proud, motivated and perhaps a little nervous, and there’s nothing wrong with that. You are in control now, and as you ramp up to start doing business, we want to make sure that you’re equipped to take on your first few customers. Here are some steps to take now that you’ve filed your new business:
Depending on the nature of your business, you may be required to apply for and obtain permits that are specific to your business operation. Permits for liquor or other controlled products may be an obviously necessary step for some, but most municipalities also require business licenses for all companies that wish to operate within city limits. If you’re planning to run everything from your home and host clients on your own property, you may be required to obtain a permit for a home-based business and make alterations to your home to meet bylaw requirements for public access.
The best way to ensure that your business is ticking all of the right boxes and avoids getting into trouble with your municipality is to contact them directly to speak with their business licensing office. This way you can get the right information straight from the horse’s mouth and deal with any necessary permits while you’re awaiting your LLC approval.
Get a Business Bank Account
If you haven’t obtained your EIN yet, it’s time to get into gear! You’ll need to provide your EIN when setting up business accounts with your local bank so that everything is tied to your LLC and not to you. Incfile can help by handling the EIN paperwork and obtaining an EIN within just one day on your behalf.
A business bank account will allow your LLC to issue and cash checks and also simplify the accounting process since business expenses can be paid for by the business via a business credit or debit card. Once your LLC is approved, it will create a lot more work if you are constantly spending from your personal account to purchase supplies and assets for your business — remember, a big reason for the LLC is to separate you from your company!
You’ll also want to complete a Banking Resolution, and file a “Statement and Resignation of the Organizer.” These documents aren’t required by the state but will help your bank verify your authorization to control the accounts.
- Banking Resolution
Authorizes bank accounts to be opened and determines who will have signing authority for each account.
- Statement and Resignation of the Organizer
A letter from your designated organizer or agent naming you and other members as official owners of the LLC and resigning themselves from any ownership. This shows the bank that you are the real owner and that they can deal directly with you for the management of your LLC’s business accounts.
Meet with an Accountant
The final step to take while awaiting the approval of your LLC is to meet with an accountant to determine your tax structure and discuss necessary steps that will simplify your accounting process and aid in the financial success of your new business. Our Incfile formation service offers a free tax consultation call that can help you get started and provide answers to some of your initial questions. Diving in deeper can help you get a handle on how to manage your accounting as you continue to grow.
A Little Preparation Goes a Long Way
We know that you’re excited to get moving and serve your first customers, and by following these steps, you’ll be fully equipped to begin your business on a solid footing. The effort that you put into preparation now will help save you from a rough start and set you on a course for stable success.
Incfile is always here to provide support and help you navigate the LLC formation process. If you’re ever feeling stuck, reach out to us! We’re never more than a click or a phone call away.Prev chapter 5