Fourteen Steps for a New LLC
  • Obtain an employer identification number from the IRS and open a bank account.
  • Determine how the LLC will be taxed. The IRS has a “Check the Box” procedure for declaring how an entity will be taxed.
  • Determine which assets and liabilities are to be turned over to the LLC.
  • Register with the local tax authority.
  • Establish a Worker’s Compensation account.
  • Obtain a business license, if required by the local jurisdiction.
  • Register with the local unemployment authority.
  • Create employment agreements with any employees.
  • Procure insurance for property and for individual liability of managers and owners.
  • Develop a strategy for developing accident and health insurance plans, wage continuation plans, medical reimbursement plans, group term life insurance plans, death benefit plans or pension and profit-sharing plans.
  • Learn when the LLC is required to file reports with the local jurisdiction.
  • Determine whether operations outside the LLC’s local jurisdiction will require registration in those jurisdictions.
  • Review the LLC’s operating agreement at least annually to ensure that it continues to serve the LLC’s needs.
  • Maintain open and regular communications with your accountant and lawyer.
This is not an exhaustive list, but is a start to creating a business framework necessary for success…