Your business is officially a limited liability company (LLC) in Florida. Congratulations! Forming an LLC is an important first step toward business success. Accounting firms know that there are some important steps they need to take next. Hiring a good Certified Public Accountant for your company is crucial. They can help you come up with an accounting and tax strategy for your business overall and also guide you through what you need to do after forming an LLC in 6 easy steps.
In this article, we will look at what steps you need to take after establishing your Florida LLC.
1. Apply for an EIN
Your company will need an EIN. What is that? It is a 9-digit number that serves to identify your LLC. Think of it this way, you have a social security number to identify you for tax and financial purposes. Your LLC’s EIN identifies it. It is used in a number of business activities. An EIN is used when starting a business bank account, applying for a business loan, and applying for a business credit card. It is used for filing business taxes and payroll taxes.
You can apply for an EIN at. From there you will be redirected to an IRS page specifically for EIN numbers. You simply click “Apply for an EIN online” to get started. Of course, you can look for one of the best Certified Public Accountants near your area in Florida and find someone to help you get an EIN!
2. Set up an Operating Agreement
When starting an LLC, it is crucial to have an operating agreement. An operating agreement is a legal document that spells out the rules, rights, and obligations for your business’ internal operations. It provides a framework and sets up procedures for the way in which the owners make decisions about the business. It typically covers organization, management, and voting, capital contributions, distributions, membership changes, and dissolution.
If you find a good small business CPA for your LLCs near my area, they will tell you that an Operating Agreement is not required for an LLC in Florida (unlike in other states), but it is highly advisable to have one.
3. Start a New Business Account
Florida’s business accounting firms will tell you that it is important to have a company account for your LLC. You don’t want to mix personal and business banking in your personal accounting. A business account protects you from potential legal issues.
It protects your personal assets, makes your taxes less complex, allows you to enter into a partnership, lets you sell the business, and helps you start building credit for your business.
4. Speaking of Building Credit
To thrive and grow, your company needs good credit. If you look into hiring a accountant for LLC, they will advise you on how to do that. Some ways to build credit includes: incorporate the business, get and EIN (which we have covered), opening a business back account (also covered), get a business phone number, and registering with Dun & Bradstreet to get a D-U-N-S number.
5. Get a Sales Permit from the State
In order to set up your LLC to pay taxes to the state, you will need to register through the state portal and be given a sales permit from the state. This will let you pay business taxes, income taxes, employment taxes, and sales taxes.
6. Be Prepared to Pay Taxes
In the excitement of starting a new business and starting to make a profit, it can be all too easy to forget that some of those profits have to be set aside to pay state and federal taxes. Small business accounting firms strongly advise that you build your tax liability into your LLC’s budget. Being aware of the taxes you owe and the deadlines for paying them is crucial to the growth and success of your business.
Conclusion
Congratulations once again on establishing your LLC in The Sunshine State! Now that the initial steps are completed focusing on post-formation tasks is essential. From obtaining an EIN and building credit to setting up an operating agreement and handling accounting and taxes, enlisting the expertise of a reliable CPA is vital for navigating these critical processes effectively. Call us today to schedule your complimentary meeting with our expert!
