Do this AFTER you start an LLC - 6 Critical Next Steps

[Music] great you have llc and now you have all that is required to get to work and operate your business thanks for watching i'm kidding we wish it was that easy right you see everyone talks about getting an llc but not many people talk about what to do after you get your llc which is kind of scary if you don't know what to do so this video is a step-by-step guide covering the next steps on your entrepreneurial journey that will keep your llc compliant with federal and state laws safe from liability and you more knowledgeable and confident if you have any questions leave a comment below and be sure to give this video a like for me so others can see it and benefit from it just like you will the first thing i want you to do if you haven't already is to create an operating agreement an operating agreement is a legal document that outlines the rights the rules and obligations for the internal operations of your llc it's there to lay the ground rules and procedures for how the business owners and the managers of the business will handle decisions such as how ownership is divided how profits will be split how often you will meet what happens if a member wants to lead the llc or passes away and much much more note that most states don't require you to have one but i highly highly highly y'all i can't recommend it any higher than this that you create one regardless if it's required or not to minimize misunderstandings and disputes if you do not have a llc operating agreement the default llc rules of your state will apply which may differ from what you want for your business and there isn't a one-size-fits-all type of llc operating agreement but most will contain six important sections organization management and voting capital contributions distributions membership changes and dissolution i would shy away from using a cookie cutter template for your operating agreement as it is binding by law and you may not agree with what you find online instead i'll link a video i made in the description that literally walks you through how to set up your own llc operating agreement to fit your preferences and best part is it's absolutely free be sure to check it out second i want you to get an ein an ein is a nine digit number used to identify your llc you can think of an ein number like your llc's social security number and the same way you need your social security number to do certain things personally you need your ein numbers to perform necessary business activities for example most banks require an llc's ein number to open a business bank account get a business credit card or get a business loan additionally if you plan to have employees you will need an ein number to file your payroll taxes but the biggest reason you need an ein is to file your business taxes you can choose not to have a business bank account you can choose not to have employees but i wouldn't even dare you to choose not to pay your business taxes uncle sam don't play you can obtain an ein number for free by visiting irs.gov backslash node backslash 17090 this will redirect you to the irs's site specifically for ein numbers once there click apply for ein online if you apply online you will get an ein number immediately next i want you to open a business bank account you see using your personal bank account as your business bank account can have some legal consequences instead open a business bank account by doing so you reap a few major benefits you protect your personal asset you separate business and personal finances you simplify your taxes you can enter a partnership you can sell your business and you satisfy a prerequisite for building business credit in general there are three types of business bank accounts a checking account a savings account and a merchant account when deciding between business bank accounts pay attention to these following things for me sign up bonuses transaction limits access transaction fees transfer limits wire limits daily balance requirements online and mobile banking atm access interest and nearby branches depending on your needs some of those items will be a priority and you want to make sure you are getting the best deal if you want to know the best business checking accounts there are right now be sure to visit the video i made on our page that goes over the best business checking accounts after that i want you to start building business credit business credit is a company's ability to buy something today and pay for it later by building business credit you enjoy the following benefits as a llc higher limits on business lines of credit and loans which provides increased purchasing power utilization freedom which provides more leverage no effect whatsoever on your personal credit better approval chances terms and prices which means cheaper financing in the short term and long term that leaves more money in your business to start building business credit for your llc do the following step one incorporate your llc step two get an ein which was the second point in this video on what to do after you start your llc step number three is to open a business bank which was the third point in this video step four is to get a business phone number step number five is to register with dunan bradstreet to get a duns number you see dun in bradstreet is one of the three top business credit bureaus to get a dunes number go to done in brassy's website at dmb.com click on duns number in the menu then click get a duns number easy right step number six is to establish trade lines with vendors and suppliers who report popular options with net 30 payments include schertzy uline and quill you could also apply for a business credit card now i made an entire video on the best business credit cards that you can check out to cut down on your research time for the best business credit be sure to pay your vendors and credit issuers early business credit is calculated based on your company's payment history negative marks and business information like how long you've been in business alright once you've done that i want you to register with your state and obtain a sales permit if necessary in most states you will need to register to pay state-specific business taxes including income taxes employment taxes and sales taxes this is typically done online via your state-specific tax portal also you may need to obtain a seller's permit if you have an online business or have a service that needs to collect sales tax as well now the last thing i want you to do and this is a big one so lean in for me i want you to budget for taxes yes where there is revenue there are taxes to be paid i can't tell you how many business owners i've worked with who are shocked at the end of the year when it was time to pay federal and state income taxes they completely forgot to budget for them i suggest building taxes into your business's budget wait even better account for them in the margins of your products or services so taxes are always accounted for at the very least be aware that they exist and their respective deadlines so you avoid paying late penalties depending on your business and the states you do business in the taxes you are responsible for will differ but here are the six most common you have income taxes self-employment taxes estimated taxes payroll taxes excess tax and sales tax keep these in mind as you grow your business well there you have it the six things you need to do after you start your llc if you found this video helpful do me a favor and hit that like button for me it helps others find this video on youtube and subscribe to the channel to see more videos like this i'm quran from life accounting until next time [Music] you

Channel: LYFE Accounting

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Keywords: how to form an llc, how to start an llc, form an llc, starting a business, single member llc, LLC, limited liability company, what is an llc, llc vs s corp, starting an llc, how to start a business, llc vs sole proprietorship, how to pay yourself as a business owner, how to pay yourself llc, how to pay yourself as a business owner llc, starting an llc in Georgia, llc vs corporation, lyfe accounting, llc, llc tips, start an llc, llc help, llc formation, llc explained

Id: OhJIamj8dyU

Length: 8min 4sec (484 seconds)

Published: Tue Jul 20 2021