Top 10 First Steps After Forming an LLC

1. Apply for an EIN

Once your state approves your LLC, apply for an Employer Identification Number from the IRS. It's free directly from the IRS and typically issued immediately through the online application. You'll need your LLC's exact legal name and formation date, so this comes right after state approval, not before.

2. Open a Dedicated Business Bank Account

Use your EIN and formation documents to open a bank account in your LLC's name, and run all business income and expenses through it from day one. Keeping business and personal money separate isn't just convenient for bookkeeping; it's one of the practical facts courts look at when deciding whether to respect an LLC's liability protection.

3. Sign an Operating Agreement

Write and sign an operating agreement, even if you're the only member and your state doesn't legally require one. It documents how the LLC is owned and managed, which helps establish it as a real, separate entity, and it's often requested by banks or needed later if you add a member or seek financing.

4. Register for State and Local Taxes That Apply to You

Check whether you need to register with your state's Department of Revenue for sales tax, which generally applies if you sell taxable goods or certain services, and register separately as an employer for state withholding and unemployment insurance once you hire your first employee.

5. Get Required Business Licenses and Permits

Beyond your state LLC filing, many cities and counties require a general business license, and specific industries, like food service, construction, or professional services, require their own permits. The SBA recommends checking your state, county, and city requirements directly, since they vary significantly by location and industry.

6. Set Up Bookkeeping

Put a system in place to track income and expenses from the start, whether that's accounting software or a simple spreadsheet to begin with. Accurate records make tax filing easier and are what support any business deductions you claim.

7. Get Business Insurance

An LLC's liability protection and business insurance cover different things: the LLC structure is generally meant to protect your personal assets from business debts and lawsuits, while insurance covers specific risks like property damage, client claims over your professional work, or an injury on your premises. Review what coverage fits your specific business rather than assuming the LLC itself is enough protection.

8. Decide Whether a Tax Election Fits Your Situation

A default LLC is taxed as a disregarded entity or partnership, but it can elect S corporation or C corporation tax treatment instead. This isn't necessary for most new LLCs right away, but it's worth discussing with a tax professional once your business is consistently profitable, since the right election depends on your specific numbers.

9. Mark Your Annual Report Deadline

Most states require a recurring annual report, biennial statement, or similar filing, with fees from $0 to $500 a year, to keep your LLC in good standing. Add this deadline to your calendar as soon as your LLC is formed, since it's easy to lose track of in the first year when there's no state-sent reminder to rely on in every state.

10. Confirm Your Federal Reporting Status

As of a 2026 federal rule change, U.S.-formed companies, including domestic LLCs, are exempt from the beneficial ownership information reporting that FinCEN previously required of many small businesses. This exemption doesn't apply the same way to a foreign entity registered to do business in the U.S., so a foreign-owned structure should confirm its current status with FinCEN's guidance directly rather than assume the same exemption applies.

Do These Roughly in Order

Applying for a bank account before you have an EIN, or skipping the operating agreement because you're the only member, are common reasons new owners have to redo a step. Working through the list in order keeps each step from depending on one you haven't finished yet.

Not Every Step Applies Immediately to Every Business

If you won't hire an employee for a while, you can hold off on employer tax registrations until you're closer to actually hiring. Prioritize the steps that match where your business actually is right now rather than registering for everything a hypothetical larger business might need.

A Missed Early Step Can Resurface Later

A skipped operating agreement or a commingled bank account can become a real problem years later if the LLC is ever sued or a member dispute arises, even if nothing went wrong in the meantime. Early steps are easier to do right the first time than to fix retroactively.

Keep a Simple Compliance Calendar From Day One

Beyond the annual report, track any license renewal dates, insurance renewal dates, and tax filing deadlines in one place from the start, rather than building this system only after you've already missed something.

This Is General Information, Not Legal or Tax Advice

Which of these steps apply to you, and in what order, depends on your state and your specific business. Talk to a tax professional and, for a multi-member LLC or a regulated industry, a business attorney as you work through these steps.