I filed my LLC now what [No Fluff]

Last updated : Aug 28, 2022

What do I do after I get my EIN number?

After you have an EIN, you can open a bank account for your business. This allows you to accept checks and payments in your business's name. In addition, you're legally required to keep your personal and business finances separated once you incorporate or form an LLC.

Do you have to pay the $800 California LLC fee the first year?

Every LLC that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC. You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.

Can the IRS go after an LLC?

For state purposes, an LLC is a business separate from its owner in which the owner is protected from the LLC's acts and debts, such as bankruptcy and lawsuits. For federal tax purposes, an LLC is disregarded as separate from its owner, therefore is liable for taxes.

What happens if my LLC doesn't make money?

All corporations are required to file a corporate tax return, even if they do not have any income. If an LLC has elected to be treated as a corporation for tax purposes, it must file a federal income tax return even if the LLC did not engage in any business during the year.

Should I get my EIN or LLC first?

We recommend you form your LLC before you get your EIN. One of the main reasons is that when you apply for your EIN, the IRS application asks you to submit the approved legal name of your business and the date it was formed. So, it is helpful to have your LLC formed and registered before you try to get your EIN.

Can I buy a car with my EIN number?

Yes, it is possible to buy a car with an EIN number, you just need to be sure to clarify with the sales team that this is your intention. When buying the car, make it clear that it's a business purchase of the vehicle, not a personal one as this impacts which credit application you'll have to fill out.

Can LLC Get tax Refund?

Do LLCs get tax refunds? Generally, no. However, LLCs can elect to be treated like C corporations for tax purposes by filing Form 8832. If an LLC elects C corporation status and makes quarterly estimated payments higher than its tax liability for the year, the LLC can receive a tax refund.

How can I avoid $800 franchise tax?

Thus, the only way to avoid the tax is to dissolve the company. Additionally, another important detail to note is that if you change your business structure during the year–for instance, from an LLC to a C corporation–you would then be subject to the minimum franchise tax on both entities for that year.

How long does it take for an LLC to be approved in California?

Mail filings: In total, mail filing approvals for California LLCs take 2-3 weeks. This accounts for the 3-5 business day processing time, plus the time your documents are in the mail. Online filings: In total, online filing approvals for California LLCs take 3-5 business days.

How does the IRS view an LLC?

The IRS treats one-member LLCs as sole proprietorships for tax purposes. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on your 1040 tax return.

What money Can the IRS not touch?

Federal law requires a person to report cash transactions of more than $10,000 to the IRS.

Can the IRS take money from my business bank account?

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.

How do you make money with an LLC?

As a member of the LLC, you can receive profits from the company throughout the year or at the end of the year. When you set up the LLC, you and the other members create what is called a capital account. The amount you invest in the company goes into the capital account, as do any profits that belong to you.

Do I file my personal and LLC taxes together?

Single member LLCs are typically treated the same as sole proprietorships. The IRS disregards the LLC entity as being separate and distinct from the owner. Essentially, this means that the LLC typically files the business tax information with your personal tax returns on Schedule C.

Do I need to file taxes for my business if I made no money?

It is mandatory for all corporations to file annual tax returns, even if the business was inactive or did not receive income.

Do I need a business license if I have an LLC?

In most states, forming an LLC doesn't require a business license, but you'll need to follow your state's procedures. An LLC requires registering with the state and filing the appropriate forms. But even though you don't need a business license to form an LLC, you probably need one to operate the LLC as a business.

Can I apply for EIN while LLC is pending?

Also, in the IRS's EIN online application, you'll need to enter your LLC's date of formation, so naturally, this information would be confirmed after your LLC is formed. However, you can also get an EIN for your LLC before your LLC is approved, but we do not recommend doing this.

Do I need a separate bank account for each LLC?

As the owner of an LLC or a corporation, you will have to pay bills that you normally would not have to deal with as a sole proprietor. As a result, the law requires you to open multiple business bank accounts for each separate business.

Does a LLC have its own credit?

An LLC is a passthrough entity, and while it is its own thing, it's still tied to you as an individual. There are certain ways in which an LLC helps to reduce personal liability, but it still has a tie to your own credit score.

Does your EIN have a credit score?

Updated October 30, 2020: Checking your Employer Identification Number (EIN) credit provides you with insight into your business's creditworthiness. Like a personal credit score, your business credit score reflects the likelihood of your company providing timely payments on its debts.

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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

Thanks for your comment Dorsey Saurez, have a nice day.
- Ron Genous, Staff Member

hey gang jim hart back at you here from hawthorne law are you operating your business as an llc did you form an llc recently and are you wondering whether or not you're handling everything properly now that you've started your llc today's video i'm going to share with you all the things that you need to do once you start your llc to make sure you don't mess everything up with your business moving forward hey my name is jim hart i'm the founding attorney here at hawthorne law we help online businesses and entrepreneurs to get their legal house in order so that they can focus on doing what they do best and that's helping other people and building their business and building something that is truly magical and wonderful in the world that is going to really change lives and today i'm here to talk with you about the things that you need to do after you have started your llc to make sure that your business is protected moving forward now most online entrepreneurs will start out as a sole proprietorship and if you're not making any money and you don't have any clients that's probably the best way to go because god forbid i don't want you going out there and spending you know any money forming an llc if you don't have any money coming in yet and that's a big question that people ask me about when i get on calls with people is how to when to form that llc should they do it and i've talked to a number of people who are just not at that point in their business yet where they're ready to start an llc and and that's fine and and not everyone is at that point but what we want to talk about today is if you've just formed that llc and you're wondering okay now what do i need to do this video is going to be for you all right so there's a number of things that you need to do when you are starting out with a brand new business with a brand new llc probably the first thing you need to do is make sure that you have an operating agreement drafted and that's something that that you can do for yourself you can find something online for free we offer an operating agreement you can check it out here or if you use my services to sign up for your own llc or if you did use my services to sign up for your own llc then you'll get an operating agreement through that service as well but having an operating agreement in place is vital to making sure that if anything would ever happen with your business if you were to get sued and i've talked to a lot of people who are in very high risk businesses where it's very possible that they could get sued in their business and you need to have a good operating agreement because that is going to show that you're following the proper procedures the following the proper legalities to make sure that your business can be protected so that that plaintiff's attorney that's trying to sue you can't come in and say judge you know what they don't even have an operating agreement so clearly this is just a big you know this is just them and they formed an llc they formed some articles of incorporation or excuse me articles of organization that's what they're called for llcs and they form that and they really haven't done anything they're not operating as an llc so disregard the llc and let's get at those personal assets shall we anyway an operating agreement is going to help protect you from that so you definitely want to make sure you get an operating agreement in place number two and again this is something we do for you if you sign up through our service but you need to apply for your ein to apply for an ein you need a tax id number or social security number all in existence right now and there are services that will obtain an ein number for you if you're a foreign or if you're from out of the country and you do not have a social security number there's ways to go about that it takes a little bit more time that's not something we offer right now but i've thought about it in the future and but you need to get your ein number for your business this is vitally important because you need it before you can go to step number three and step number three is you need to go and open up a bank account for the llc so maybe you've been operating as a sole proprietorship up until now and you're switching to an llc and so you need to make sure you transfer all the funds and all the money from the bank accounts you've been using for your sole proprietorship which hopefully is segregated against your personal bank account that's very important to maintain that distinction between the two hopefully you've done that and but you transfer all the funds from your personal business account into the account for the llc but to do that you need the social security number which i just talked about so open another bank account that's very important and you might want to open more than one check out my video on profit first for entrepreneurs and you might want to open two or three or four in my case i've if i had to count on one i probably got like six or seven once i'm not sure i i've got a lot because they all have a purpose right so do that number fourth thing you need to do is you need to apply or reapply if you've already got them as a sole proprietorship for your personal business license and permits now in some states in some municipalities you're going to apply for those on a personal level anyway like for me for instance i've talked about this before as an attorney i have to get what's called a privileged license in north carolina well specifically in in wake county or or cary north carolina where i practice as an attorney we need to have a privileged license and that's something that i apply for it's for me personally as a lawyer so if i were to leave my firm and go join another firm then i would take that privileged license with me to the new firm it has nothing to do with my llc so but in other cases you need to have an actual license for the llc so make sure you apply for the proper things as again as part of the business formation package that we offer we have an upgrade that you can get which will basically we will do a search in your local area for all the different business licenses and permits you need and prepare a report for you so you can go and apply for all those and make sure you've got everything you need for your business all right number five you need to make sure that you've got your contracts in place for your vendors and your clients or whoever you work with and so if you had contracts in place previously for them with you personally you need to just that's pretty simple you just change them all and substitute for your name the llc name and then making sure that when you sign those contracts you sign it the proper way you want to sign it as the llc by your name as member of the of of the or owner of the llc something like that so that you make sure that every contract you enter into with either clients or vendors or service providers whatever that it's between that entity or person and your llc as opposed to you personally now you may need to go back with old clients and all vendors and say hey i just formed an llc we need to redo our

Thanks hugzpleaz9 your participation is very much appreciated
- Ron Genous

About the author

Ron Genous

I've studied argentine history at Emmanuel College in Boston and I am an expert in administrative law. I usually feel depressed. My previous job was property managers I held this position for 24 years, I love talking about philosophy and kart racing. Huge fan of Bradley Cooper I practice tennis and collect beanie babies.