Sedes

Post-Formation Guide

What to Do After Forming Your LLC

Your LLC is formed — congratulations! Here are the essential next steps to set your business up for success.

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Step 1

Open a Business Bank Account

Separate your personal and business finances. This is critical for maintaining your LLC's liability protection. Most banks require your EIN, Articles of Organization, and Operating Agreement.

Tips

  • Never mix personal and business funds
  • Look for no-fee accounts designed for small businesses
  • Choose a bank that integrates with your accounting software
  • Some banks offer sign-up bonuses for new business accounts

Step 2

Get Business Insurance

Protect your business and personal assets. General liability insurance covers third-party claims of bodily injury, property damage, and advertising injury. Many clients and landlords require proof of insurance.

Tips

  • General liability is the most common starting policy
  • Professional liability (E&O) if you provide services or advice
  • Workers comp is required in most states if you have employees
  • Many policies can be started online in minutes

Step 3

Set Up Accounting

Track income and expenses from day one. Good bookkeeping saves you time and money at tax time, and helps you understand your business's financial health.

Tips

  • Use accounting software (QuickBooks, Wave, or FreshBooks)
  • Track every business expense with receipts
  • Set aside 25-30% of income for taxes
  • Consider hiring a CPA for your first year's taxes

Step 4

Get Required Business Licenses

Depending on your industry and location, you may need federal, state, or local business licenses or permits. Requirements vary widely by business type and municipality.

Tips

  • Check your city and county website for local license requirements
  • Some professions require state-level licenses (contractors, real estate, etc.)
  • Home-based businesses may need a home occupation permit
  • Renew licenses on time to avoid penalties

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