You Formed Your LLC.
Now What?
Most formation services make filing easy — then leave you on your own. Here's the complete checklist of everything you need to do after your LLC is formed.
The Complete Post-Formation Checklist
10 steps every LLC owner needs to complete — in order of priority
Get Your EIN from the IRS
Your Employer Identification Number is your business's Social Security number. You'll need it for nearly everything — opening a bank account, filing taxes, hiring employees, and setting up payroll.
- Apply online at IRS.gov — it's instant and free
- You'll need your SSN and LLC formation date
- Keep your EIN confirmation letter in a safe place
- Even single-member LLCs should get one to avoid using your SSN on business documents
Open a Business Bank Account
Mixing personal and business funds is the fastest way to lose your LLC's liability protection. A dedicated business account creates the legal separation you need.
- Bring your EIN, Articles of Organization, and operating agreement
- Compare fees across banks — many offer free business checking
- Consider online banks like Mercury or Relay for lower fees
- Set up a business credit card to start building business credit
Draft Your Operating Agreement
Even if your state doesn't require one, an operating agreement defines how your LLC runs. Without it, your state's default rules apply — and those probably don't match your intentions.
- Required by law in some states (New York, Missouri, Maine)
- Defines ownership percentages and voting rights
- Outlines how profits and losses are distributed
- Covers what happens if a member leaves, dies, or wants to sell
- Banks often require one to open a business account
Register for State & Local Taxes
Your LLC formation doesn't automatically register you for taxes. Depending on your state and business type, you may need separate registrations for sales tax, income tax withholding, and unemployment insurance.
- Register for a sales tax permit if you sell taxable goods or services
- Some states require a separate state tax ID number
- If hiring employees, register for state unemployment insurance
- Check if your city or county has a local business tax
- Some states (like California) charge an annual franchise tax ($800) regardless of revenue
Get Business Licenses & Permits
Forming your LLC gives you legal entity status — it doesn't give you permission to operate. Most businesses need at least one license or permit, and many need several.
- General business license from your city or county
- Professional licenses for regulated industries (contractors, healthcare, finance)
- Home occupation permits if you're running a home-based business
- Health permits for food-related businesses
- Zoning permits depending on your location and business type
Set Up Business Insurance
Your LLC provides liability protection, but insurance provides the real safety net. If you work with other businesses or have a commercial lease, you'll need Certificates of Insurance (COIs) before you can start.
- General liability insurance is the baseline — most businesses need it
- Professional liability (E&O) if you provide advice or services
- Workers' compensation is required in most states once you hire
- Commercial auto if vehicles are used for business
- Clients and landlords will ask for COIs — have them ready
Set Up Accounting & Bookkeeping
Good bookkeeping from day one saves you thousands at tax time and keeps you out of trouble with the IRS. Don't wait until you have 'enough transactions' — start immediately.
- Choose accounting software (QuickBooks, Xero, or Wave for free)
- Separate every business transaction from personal spending
- Track all expenses with receipts — the IRS requires documentation
- Set aside 25-30% of revenue for taxes (self-employment + income)
- Consider hiring a CPA who specializes in small businesses
Understand Annual Filing Requirements
Your LLC has recurring obligations that, if missed, can result in penalties, loss of good standing, or even involuntary dissolution. These deadlines vary by state and are easy to forget.
- Annual reports (or biennial in some states) — deadlines and fees vary
- Franchise tax payments where applicable
- Registered agent renewal
- Business license renewals at city, county, and state levels
- Missing deadlines can result in late fees of $50-$500+ and loss of good standing
Separate Personal & Business Finances
The biggest mistake new LLC owners make is treating business and personal money as interchangeable. This is called 'piercing the corporate veil' and it can eliminate your liability protection entirely.
- Never pay personal expenses from your business account
- Pay yourself a consistent salary or distribution
- Document every inter-company transfer
- Keep business credit cards separate from personal ones
- Maintain adequate capitalization — don't drain the business account
Build Your Vendor Compliance System
If you hire contractors, subcontractors, or work with vendors, you need a system to verify their insurance and credentials. One uninsured vendor can expose your LLC to massive liability.
- Collect Certificates of Insurance (COIs) from every vendor before work begins
- Verify coverage limits meet your requirements
- Track expiration dates and follow up for renewals
- Maintain a compliance file for audits and legal protection
- Consider outsourcing this — it's time-consuming but critical
Formation Is Day One.
Compliance Is Every Day After.
BusyWork picks up exactly where formation services leave off. We handle the ongoing operational compliance that keeps your LLC in good standing — COI collection, license tracking, vendor verification, and deadline management.
COI Collection & Verification
We contact your vendors, collect their insurance certificates, verify coverage, and deliver a compliance report. $5 per COI.
License & Renewal Tracking
Never miss a deadline. We track every business license, permit, and registration renewal across all jurisdictions.
Vendor Compliance Management
Ongoing monitoring of vendor insurance status. When certificates expire, we follow up automatically.
Frequently Asked Questions
Common questions about what to do after forming your LLC
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Post-Formation Compliance?
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