What to do after forming an LLC

You did it — you formed an LLC. It’s a major milestone in the journey of building a strong, compliant and financially sound business. Now, it’s time to figure out what to do after getting LLC status. Once your paperwork is approved, you’ll need to take important steps to set up your operations, protect your assets and keep your company in good standing. Get started with this post-LLC checklist:

 

Get an EIN

An employer identification number (EIN) is a unique number issued by the IRS. Think of it like a Social Security number for your LLC. Even if you don’t plan to hire employees right away, getting an EIN can be a smart move.

You’ll need an EIN to:

• Open a business bank account
• Apply for business licenses and permits
• File federal and state taxes
• Hire employees (now or in the future)

Applying for an EIN is free and can be done online through the IRS website. It typically takes only a few minutes, and if your application is approved, you’ll receive your number immediately after submitting the application.

 

Apply for required business licenses and permits

Forming an LLC gives your business a legal structure, but depending on what you do and where you operate, you may still need licenses or permits to run your business legally.

Start by checking requirements at the local, state and federal levels. These can vary based on your industry, location and business model. For example, you may need a general business license, a professional license (for services like cosmetology or accounting) or a sales tax permit.

 

Separate your business and personal finances

Wondering what to do after registering an LLC? One of the most important first steps is to clearly separate your business finances from your personal ones. This helps protect your limited liability status and helps make taxes, bookkeeping and budgeting easier.

 

Open a business checking account

Using a business checking account is the first step in establishing financial separation. It helps you manage income and expenses cleanly and presents a more professional image to clients and partners. To open one, you’ll typically need your LLC formation documents, EIN and a business license. Learn more about what you need to open a business account.

 

Set up a business savings account

A business savings account can help you set aside money for taxes, future investments or emergency expenses. Keeping funds in a separate account ensures they’re not mixed with personal finances.

 

Use your business accounts correctly

To maintain your LLC’s liability protection, it’s important to use your business accounts only for business purposes. That means avoiding personal charges on your business card, paying yourself via transfers rather than withdrawing cash and keeping clear records of every transaction. These habits will also make tax time smoother and strengthen your business’s financial credibility.

There are additional types of business accounts that you may consider opening, based on your business needs.

 

Get business insurance

Even with the liability protection of an LLC, business insurance adds an important layer of security. It helps cover costs related to accidents, property damage, legal claims and other unexpected events that could impact your operations.

Common types of business insurance include:

• General liability insurance: Covers third-party injuries, property damage and legal defense
• Professional liability insurance: Protects against claims of negligence or service-related errors
• Commercial property insurance: Covers your business equipment, inventory or workspace
• Workers’ compensation insurance: Covers employees who suffer job-related illness or injury (required in most states if you have employees)

Talk with a licensed insurance agent to assess your risks and determine the right coverage for your LLC.

 

Open a merchant account to accept payments

 

Whether you do business online, in person or both, you’ll need a way to accept payments for your products or services. A merchant account allows your business to process debit and credit card transactions securely and efficiently.

There are many tools and platforms available to help you accept payments, from traditional point-of-sale systems to mobile payment apps and eCommerce integrations. Choosing the right setup depends on your business model and customer preferences.

To get started with accepting payments, explore Chase for Business solutions to find the option that best fits your needs.

 

Build a business credit profile

Establishing business credit early can help your LLC qualify for loans, secure better financing terms and build credibility with vendors and suppliers. Just like personal credit, your business credit profile reflects the business’s financial responsibility — but it’s associated with your EIN instead of your Social Security number.

Here’s how to start building your business credit.

• Apply for a business credit card tied to your LLC.
• Open accounts with vendors who report payments to business credit bureaus.
• Pay all bills and credit obligations on time (or early).

Explore options like a dedicated LLC business credit card to begin building your financial track record.

 

Set up a bookkeeping or accounting system

Once your LLC is up and running, accurate bookkeeping becomes essential. A well-organized accounting system helps you track income and expenses, prepare for taxes, make informed financial decisions and demonstrate professionalism to lenders or investors.

Depending on your comfort level and business complexity, you have a few options:

• DIY software: Small business owners who want to handle bookkeeping or accounting on their own can choose from a range of popular ready-to-use tools.
• Hire a professional: An accountant or bookkeeper can help with setup, ongoing support or tax preparation.
• Automated solutions: Some banks and platforms offer integrated tools for invoicing, tracking and reporting.

The key is to stay consistent. Log transactions regularly and reconcile your accounts monthly to help catch errors early and stay audit-ready.

 

Plan for taxes

Forming an LLC doesn’t automatically mean your taxes are simple. Planning ahead can help you avoid surprises and stay compliant with federal, state and local requirements.

Here are a few key considerations:

• Understand your tax classification. By default, single-member LLCs are taxed as sole proprietorships and multi-member LLCs as partnerships, but you have the option to elect to be taxed as an S corporation or C corporation if that’s more beneficial.
• Know your filing deadlines. Depending on your classification, you may need to file estimated quarterly taxes, sales tax returns or state-specific forms.
• Track and categorize expenses. Good recordkeeping helps you claim deductions and avoid errors. Many small business expenses (such as home office costs, travel or equipment) may be deductible.
• Consult a tax professional. A CPA or tax advisor can help you understand your obligations, especially as your business grows or becomes more complex.

Proactive planning now can help save you time, money and stress when tax season arrives.

 

FAQs on what to do after forming an LLC

 

How do I keep an LLC in good standing?

To keep your LLC in good standing, make sure to file any required annual reports, pay state fees on time, maintain proper records and keep your personal and business finances separate.

 

How do I know if my LLC is approved?

After you file your formation documents, your state will typically send a confirmation (often by email or mail) once your LLC is approved. You can also check your approval status through your state’s business portal.

 

What is the next step after getting an LLC?

The next step is to set up your business bank account, EIN and any required licenses. From there, you’ll want to focus on things like insurance, bookkeeping and taxes.

 

Should I pay myself a salary from my LLC?

It depends on how your LLC is taxed. It’s typical for those in a single-member LLC or a partnership to take an owner’s draw. If your LLC is taxed as an S corp, you’ll likely pay yourself a salary through payroll. A tax advisor can help you determine the right approach.

 

Can my LLC use my personal bank account?

It’s strongly recommended that your LLC use a separate business checking account. Mixing personal and business funds can compromise your liability protection and create accounting headaches.