Fourteen Steps for a New LLC

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…