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…