Forming a Limited Liability Company (LLC) is a major step toward realizing your business idea. You've filed the paperwork, received your Articles of Organization, and are officially recognized by your state — congratulations! But now that your LLC has been formed, you may wonder: What will come next?

The truth is, forming an LLC is just the beginning. To truly operate as a legitimate, tax-compliant, and high-functioning business, there are critical steps you need to take right away. This comprehensive guide will walk you through the first five things you must do after forming your LLC to ensure your business is built on a strong foundation.

Why Your LLC Formation Is Just the Beginning

Filing for an LLC provides legal protection, tax flexibility, and enhanced credibility, but it doesn't automatically mean your business is ready to operate. Many new entrepreneurs assume that they're set to go once they get approval from the state. However, without completing these next steps, you could risk mixing personal and business finances, missing tax deadlines, or operating without proper licenses.

Let's make sure you don't fall into that trap. Here are the first five critical steps to take after forming your LLC.

Step 1: Get an Employer Identification Number (EIN)

What Is an EIN and Why You Need It

The IRS issues an EIN (Employer Identification Number), also called a Federal Tax Identification Number. Think of it as your business's Social Security number. You'll need it for:

• Opening a business bank account

• Filing taxes

• Hiring employees

• Applying for business credit

How to Get One

You can apply directly through the IRS website or use services like LegalZoom or IncFile to get your EIN during the LLC formation process.

🔒 Tip: Never use your personal SSN for business accounts. Always use your EIN to separate your business identity from your one.

Step 2: Open a Business Bank Account

Why It Matters

Opening a dedicated business bank account is essential to separate your business and personal finances. This helps with accounting and tax time and protects your personal assets in case of legal issues.

Without a separate business account, your LLC's legal protection could be invalidated — a concept called "piercing the corporate veil."

What You'll Need

• Your LLC's Articles of Organization

• EIN

• Operating Agreement (in some cases)

• Valid photo ID

Best Banks to Consider

We recommend using Mercury Bank for online businesses or tech startups. It's free, user-friendly, and designed for digital-first entrepreneurs.

Open your business bank account today and stay legally compliant!

Step 3: Set Up a CRM System

What's a CRM and Why You Need One

A Customer Relationship Management (CRM) system helps you manage your leads, clients, and communications. Whether you run a service-based or e-commerce store, a CRM keeps your business organized.

Popular CRM tools include:

• HubSpot (free for beginners)

• GoHighLevel (automation-focused)

• Zoho CRM (budget-friendly)

Benefits of Using a CRM Early On

• Centralized customer data

• Improved sales tracking

• Automated follow-ups

• Easier team collaboration

📣 CTA: Get a CRM tool now and streamline your business operations from day one.

🔗 Check out our CRM Basics guide to help you choose the right CRM for your business.

Step 4: Create an Operating Agreement

What Is It?

An Operating Agreement outlines how your LLC will be run, including member roles, voting rights, profit distribution, and what happens if someone leaves the business.

Why It's Important (Even for Single-Member LLCs)

• Helps prevent internal disputes

• Shows credibility to banks and investors

• Some states legally require it

• Keeps your LLC in good standing

What to Include

• Ownership breakdown

• Member responsibilities

• Decision-making process

• Rules for adding/removing members

• Profit distribution

Use LegalZoom or IncFile to create a legally sound Operating Agreement customized for your LLC structure.

Step 5: Get Business Licenses and Permits

Don't Operate Illegally

Depending on your industry and location, you may need local, state, or federal licenses and permits to legally run your business.

Common Licenses

• Local business license

• Sales tax permit (for selling goods)

• Health permits (for food businesses)

• Professional licenses (for industries like real estate or beauty)

Where to Check

• Your city/county clerk's office

• Your state's business portal

• The Small Business Administration (SBA) website

Tip: Ignoring licensing requirements can result in hefty fines and even shutdowns. Make this a priority.

Bonus Step: Set Up a Bookkeeping System

Why It Matters Now

Waiting until tax time to sort out your books is a huge mistake. Start tracking your income, expenses, and receipts from day one.

Tools That Can Help

• QuickBooks – industry leader for bookkeeping

• Wave–free software for small businesses

• Bench – done-for-you bookkeeping service

Download our bookkeeping checklist to stay audit-ready from day one.

Frequently Asked Questions (FAQs)

Can I use my bank account to create my LLC?

Technically, yes, but it's a bad idea. Mixing funds jeopardizes your LLC's legal protections and makes taxes a nightmare.

How much does it cost to get an EIN?

It's free through the IRS website, but paid services (like LegalZoom or IncFile) often bundle EIN filing with other startup services.

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

Yes! LLC formation is separate from local licensing requirements. Always check with your city and state.

What happens if I skip these steps?

You risk fines, audits, legal trouble, and business failure. Think of these steps as your business's seatbelt — you don't skip them.

Conclusion: Take Action Now

Forming your LLC is just the beginning. To protect your new business and set it up for long-term success, take the next steps seriously:

1. Get your EIN

2. Open a business bank account

3. Set up a CRM

4. Draft your Operating Agreement

5. Secure the right licenses and permits

📣 Ready to launch the right way?

Open your business bank account and get a CRM tool today to separate business and personal finances and grow efficiently.