Congratulations! Of course, you took the right decision incorporating your company in the States. But now, what next? After forming an LLC or Corporation, you still need to do some things to keep it legitimate and in compliance as maintenance and filings don’t end after your formation. We break down the process of getting your new entity compliant and ready for business into five simple steps. However, to fully understand your responsibilities, it’s important to research what’s required at your business’s local, state, and federal levels. Consulting a business attorney and accountant or tax advisor will help. Goodnews! Legal Trunk offers a 15 min free consultation. Take advantage of it here.
1. Get an EIN
Employer Identification Number or EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. An LLC or Corporation must obtain a federal tax ID number from the IRS. The unique 9-digit number is also known as the Federal Employer Identification Number or the Federal Tax Identification Number. Its primary purpose is to identify a company when filing tax returns. Even if you don’t hire employees as an LLC or Corporation owner, you will still need an EIN. The EIN is a legal requirement and many banks will ask for it before opening a business bank account for your company.
Businesses that previously had an EIN as a Sole proprietorship or Partnership must obtain a new federal tax ID number when they form their LLC or Corporation. You can learn more details on the IRS.gov website. The application process is generally straightforward. However, if you would like to employ a professional hand to handle the entire process, contact Legal Trunk.
2. Business Licenses and Permits
Depending on entity type, location, and industry, there may be federal, state, and local requirements. Licenses and permits are required to operate legally. Because licenses and permits are unique to different types of business, you may need to consult with a professional who can help you pin down exactly what you need.
3. Protect your Brand
File for trademark protection and don’t forget to buy a domain name as soon as possible. When you create a corporation or LLC, your name is protected in your state, which means that no other business can file as a corporation or LLC in the same state. However, if you want to legally protect your company name in all 50 US states, you may need to register a trademark.
4. Stay compliant
File your annual report with your state each year and keep up with your business taxes – federal and state. Also ensure you document any changes in the corporation or LLC – for example, if you brought on new owners or investors. Generally, stay on top of your annual maintenance.
5. Foreign Qualification
If you plan to operate your LLC or Corporation in any other states aside from the one you registered in, you will need to apply for permission to do business there. It has to go through a process called “foreign qualification” (i.e., qualify as a foreign entity in the state). However you don’t have to apply for foreign qualification just because you make revenue from another state. You may need foreign qualification if:
- The company (The LLC or corporation) has a physical presence in the state.
- The company has a bank account in the state.
- The company has applied for a business license in the state.
- The company has employees that work in the state.
- Much of the company’s revenue comes from the state.
Please note that the information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
