7 Essential Steps to Take After Starting an LLC

Starting a limited liability company (LLC) can be daunting, especially the first time. Now that you've gotten your documents in order, paid the fees, applied for the Certificate, now what?

Once you obtain your Certificate of Formation, there are additional steps to take before you can conduct your business. Here are seven critical "next steps" to take after forming your LLC.

1. Get an EIN and a DUNS Number

If you have not already done so, the first step you need to take is to get an Employer Identification Number (EIN). It's like a Social Security Number for businesses.

If you are the only member of your LLC — a single member LLC — you can use your SSN or obtain an EIN. However, if hiring employees is in your business plan, you'll need an EIN. Applying online for your EIN is the fastest and easiest way to get one.

You'll also need a data universal numbering system number, or simply, a DUNS number. Similar to an EIN, it is referenced by credit agencies — like Dun & Bradstreet (D&B) and Experian; lenders, and even some grant programs. Your DUNS number is used to assess your business's stability and creditworthiness, and can take up to 6 weeks to process your request, so obtain one soon.

2. Write an Operating Agreement

An LLC operating agreement is a formal agreement and legal document that outlines several aspects of your LLC — including the roles and responsibilities of the members (business owners), their ownership in the business, when meetings will occur, and more. While operating agreements are not required in most states, it is a good idea to have one, especially if you have a multi-member LLC.

3. Open a Business Bank Account

Once you have your EIN and official documents in order, opening a bank account for your business is critical. Doing so will keep your business and personal finances separate, which is one of the best ways to maintain your liability protection.

If you do not have a separate account for your business, it will be very difficult — if not impossible — to make a distinction between your assets and your business’s assets. BlueVine is one of our partners that offers free online business checking accounts for small businesses if you're in need of one.

If you want to start building credit right away, ask your bank or another financial institution about a business credit card. Using it wisely can build your business credit and make you more eligible for other loans and lines of credit in the future.

📌 Pro tip: Join Skip premium today and we can help you get the funding you need for your business.

4. Apply for Business Licenses and Permits

You will need to apply for a business license and/or permit in order to conduct business. This is largely based on what you do and where you're located. Here are the three main levels of business licensing.

Federal Licenses

You may not need a federal license, but here are a few common examples of industries that will:

• Agriculture. If you transport plants or animals across state lines, you need a permit from the U.S. Department of Agriculture (USDA).
• Alcohol. If you manufacture, import, or sell alcoholic beverages, you need various permits from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
• Firearms, ammunition, or explosives. If you import, manufacture, or deal with firearms, ammunition, or explosives, you need to ensure your business is compliant with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

State Licenses

State requirements vary greatly, but nearly every state will require a seller’s permit — sometimes called a sales tax permit or a vendor license — in order to sell your products and services in the state. Additionally, there are other state licenses that you may need, like the following:

• Liquor licenses
• Health permits
• Food Handling or Service permits
• Real estate licenses
• Electrical permits
• Others

The best way to find out which state permits or licenses you need is by contacting your Secretary of State or equivalent business office.

City or County Licenses

Depending on your industry, you may not need a license or permit from a federal or state agency, but you will almost assuredly need a local license or permit. Even if you intend to have (or already have) a home-based business, you’ll likely need a general permit for business operations. Some cities have a home-based business permit.

Check with your city or county business office to ensure you have the right licenses and permits to operate.

5. Insure Your Small Business

Whether you run an online business or have a brick-and-mortar store, you need business insurance. Having insurance safeguards against lawsuits, liability, and other types of damages — so every responsible owner should consider insuring their business. Depending on your location, you may be required to have business insurance. Here are a few common types:

• General Liability. General Liability Insurance protects you and your business should someone — a client, customer, vendor, etc. — sustain an injury on your business property, or from using your products and services.
• Commercial Property. Commercial Property Insurance protects a business against accidental damages, vandalism, or loss of the physical building and assets.
• Liquor Liability Insurance. Liquor Liability Insurance can help cover the legal fees, settlements, and medical costs if your business is found responsible for serving a visibly intoxicated person, who then goes on to cause injury, damage, or death to others.

Read more about business insurance in our ultimate guide to selecting business insurance.

6. Create a Website

64% of small business owners have a website, but if you are part of the 36% that does not, it’s time to make one. 55% of customers search for online recommendations or reviews and 47% will visit a company’s website before making a purchase. There are numerous other benefits to having a business website. Even if you think you’re too small — having one is better than not.

7. Find a Reputable Bookkeeper

One of the best ways to save yourself time, stress, and hassle is to stay on top of your books from the beginning. Whether you own a large enterprise or are self-employed, there's an option for you. You can certainly do it yourself, but here are a couple of advantages of hiring someone else to take care of your books:

• It Saves you time. You have plenty of other aspects of the business to worry about, let someone else worry about your books.
• It can save you money. If you are not an expert in this area, you may end up paying too much estimated tax — or not enough and then pay penalties to the IRS. Additionally, professional bookkeepers can find deductions for your business you may not know about.

If you are in the market for a bookkeeping service, we have partnered with Bench and Quickbooks to help you get your books organized. Use our partner links to get special offers.

Get Help With Your Business

Do you need help forming or funding your business? Skip can help with your formation, SBA loans, grants, or other business financing options. Get ongoing personalized help from our team. Join Skip Premium today and get 1-1 support for your business.

How Else Can Skip Help? Whether you need assistance navigating funding for your small business — like SBA loans, grants, or other financing options, or guidance with government-related services — like TSA PreCheck or DMV appointments, we’re ready to help. Become a member and skip the red tape.