3 Things to Do After You Start Your LLC

Starting an LLC is a significant milestone for any business owner, marking the official launch of a new venture. However, the journey doesn't end with registration. To ensure long-term success and stability, it's crucial to take specific steps immediately after forming your LLC. Let's go over three essential actions to take right after you start your LLC, helping you build a solid foundation for your business.

1. File your Business Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN).

In 2021, the U.S. Congress passed the Corporate Transparency Act (CTA). This legislative action resulted in significant changes to the regulations concerning financial integrity and requires action by the vast majority of LLCs and Corporations.

Under the CTA, most business owners are obligated to provide their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury Department. Beneficial Ownership Information includes details of who owns the company or exercises substantial control over the business.

New entities are required to submit a BOI Report to FinCEN within 30 days of receiving their formation paperwork. To learn more, visit our blog post here. You can file your BOI Report with FinCEN directly, or for a more personalized walk through, you can file your BOI Report with our partners at FinCEN Reports.

2. Determine where you’ll store your business’s most important documents.

If you’ve just started your LLC, you received an official document called the Articles of Formation. This document is essentially the birth certificate for your business. It is proof that your LLC exists and is registered with the secretary of state.

These days this document is often in digital format only. If you form your LLC with The Incorporators and select one of our e-kits, you'll receive the document as an attachment directly to your email.

Consider where you will store this document and ensure that those who need access to it, know where to find it. If you want to be extra cautious, print it out and store it as you would other important identifying documents.

3. Begin tracking your business finances and ensure that they are separate from your personal finances. 

Good record-keeping is essential for every business. Banks typically require a copy of your Articles of Formation for your LLC in order to open a business bank account. Once your business bank account is set up, establish a system to track business income, expenses, and distributions. Popular choices include QuickBooks, QuickBooks Online, HoneyBook, and FreshBooks.

Keeping business finances separate from personal finances is crucial for LLC owners to maintain clear and accurate financial records. This separation ensures proper accounting, making it easier to track business expenses, income, and profitability. Additionally, it helps protect personal assets by reinforcing the limited liability protection provided by the LLC structure, reducing the risk of personal liability for business debts and legal issues.

Taking these steps right after starting your LLC will set you up for success. Filing your Business Ownership Information Report with FinCEN ensures you’re compliant with federal regulations, and properly storing key documents like your Articles of Formation keeps your business's legal foundation secure. Separating your business and personal finances not only keeps your records clear but also protects your personal assets. With these basics covered, your LLC will be ready to thrive.