Filing an LLC is exciting — your business is coming to life! But to protect your new venture and ensure you don’t accidentally run afoul of the law, you need to make sure to complete the necessary next steps.
A business attorney for LLC owners can take a look at your situation and help you complete the process. Below is a general overview of what these crucial steps often look like.
Follow State-Specific Formation Procedures
Different states have different requirements you have to fulfill before your LLC is considered legitimate.
In New York, your county clerk will assign you two newspapers. For six weeks in a row, you must publish a notice of your LLC’s incorporation. After you have met that requirement, you have to file a certificate of publication with the New York Department of State.
Create an Operating Agreement
An operating agreement makes sense if your LLC includes multiple people. However, it’s also wise to create one if you have a single-person LLC. The main reason is that, in many cases, the operating agreement is necessary if you want to separate your business assets from your personal assets.
Why is that important? If someone comes after your business and you have not taken steps to legally separate your business’s assets from your personal assets, they might be able to recover damages from your personal assets.
In addition, many banks ask to see your LLC’s operating agreement before you open a business bank account. If you hope to approach investors for funds, investors will also usually want to see an agreement as proof that you own the LLC.
Get an EIN
An EIN (employee identification number) is a number issued to businesses by the IRS so they can pay taxes — it works like a Social Security number for a business. If your LLC includes multiple people, you are legally required to obtain an EIN. If you are a single-person LLC, you can file business taxes with your Social Security number.
However, many single-person LLCs obtain an EIN anyway. Many banks require one to open a business bank account.
Open Your Business Bank Account
If you want the peace of mind that comes from knowing your personal assets are protected, it isn’t enough to simply file an LLC.
Opening a business bank account creates evidence that your personal and business assets are separate. It also makes handling business finances significantly easier, as there’s no risk of accidentally mixing personal and business finances.
When you open your business bank account, consider applying for a business credit card as well. Even if you don’t see an immediate need for one, opening a business credit card helps you build your business credit.
Business credit works similarly to personal credit, and it’s a good idea to start building it now if you think you might apply for business loans down the line. Additionally, if your business requires you to make purchases from suppliers or vendors, those companies may want to check your business’s credit.
Protect Your Interests With a Business Attorney for LLC Owners
Filing an LLC is one of the more straightforward ways to establish a business. But if you aren’t certain what you’re doing, it can be very difficult to make sure you’ve tied up all the loose ends in the process.
When you work with the commercial litigation attorneys at Levy Goldenberg in New York, you’ll be able to benefit from our years of experience. Our lawyers have helped countless people like you build, grow, and protect their businesses. If you’ve just filed your LLC or are considering doing so, please don’t hesitate to contact us.