Important Next Steps After You Form an LLC or Corporation

Important Next Steps After You Form an LLC or Corporation

The primary reason for incorporating a business or setting it up as a limited liability company (LLC) is the limited liability protection these entities provide to owners. Once you have set up your corporation or LLC with the help of a qualified Florida business attorney, there are other important steps you need to take to protect this limited liability protection:

Do the proper documentation.

If your business is operating as a corporation, you will need to draft bylaws that detail how the corporation will operate. You will also need to set up a corporate minute book to record your shareholder and director meetings, as well as a file for your bylaws, certificate of incorporation, shareholder information and resolutions.

If your business is operating as an LLC, you will need to create an operating agreement setting out the rules that govern issues such as partnership arrangements, voting powers, profit sharing, management structure, and company dissolution.

Obtain an Employer Identification Number.

An Employer Identification Number (EIN) is used by the IRS to identify your business, much like a Social Security number for individuals. You can obtain your EIN online at the IRS website.

Open your business bank account.

You must keep your business finances separate from your personal finances to retain the limited liability protection of a corporation or LLC. You will typically need your certificate of incorporation and your EIN to open your business account.

Register the business with the state.

You are required to register your business with the state in order to pay state business taxes, including taxes on income, employment and sales. If your business will collect sales tax, you will also need a seller’s permit.

Get local business licenses.

You may need local business licenses from the city or county where you operate. Your business attorney can guide you on this requirement.

Get legal guidance.

It is easy for small businesses to inadvertently make costly legal mistakes. An experienced business attorney should be consulted for important things like contracts, employment agreements, intellectual property protection and more.

Get insurance.

Having the right insurance policy will help minimize the risks to your business from costly legal and liability issues.

Florida business owners can avoid unnecessary risk by consulting with a qualified Florida business attorney. Contact Jurado & Farshchian, P.L., at (305) 921-0440, or email us at info@jflawfirm.com.

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