The approval notice feels like the finish line. It is really the starting line. Your state now recognizes your LLC as a legal entity, but a handful of setup tasks decide whether it works the way you want: whether the liability protection holds up, whether a bank will open an account for it, and whether it stays in good standing next year.
Here is a practical order of operations for the first month. Most of it takes an afternoon or two at a time. None of it can wait for long.
Week 1: Lock down the paperwork
Check your approved documents for errors
Open your approved articles of organization (some states call it a certificate of formation) and read every line. Confirm:
- The exact legal name, including punctuation and the "LLC" ending
- The principal and mailing addresses
- The registered agent's name and address
- Whether the LLC is member-managed or manager-managed
Small mistakes are cheap to fix now and annoying to fix later, because the exact name on this document needs to match your EIN, your bank account and your contracts. If something is wrong, most states let you file an amendment.
Save a PDF in a dedicated folder. That folder becomes your company's record book, and everything else on this list goes into it.
Get your EIN
An Employer Identification Number is your business's federal tax ID. It is free from the IRS, and the online application issues the number as soon as you complete it. Be cautious of any website that charges for "IRS registration" without making clear it is a paid filing service.
A single-member LLC with no employees can use the owner's Social Security number for some federal tax purposes, but most banks ask for an EIN to open a business account, and you will need one the moment you hire. It is simplest to get it now. Our guide on what an EIN is and how to get one walks through the application step by step.
Download the confirmation notice the IRS shows at the end. Banks often ask to see it.
Sign an operating agreement
Your operating agreement is the LLC's internal rulebook: who owns what percentage, who makes decisions, how profits are split, and what happens if a member leaves, dies or wants to sell. A few states require one. Every LLC benefits from one, including single-member LLCs, because it is evidence that the business is a separate entity rather than just you under a new name.
If you have co-owners, this is the document that prevents the worst arguments. Write it while everyone still agrees. Here is what to put in an LLC operating agreement.
Week 2: Separate the money
Open a business bank account
Run every dollar of business income and spending through an account in the LLC's name. Mixing personal and business money is one of the factors courts look at when deciding whether to ignore an LLC's liability protection, and it makes bookkeeping and taxes harder too.
Most banks will ask for your approved formation document, your EIN confirmation, your operating agreement and a photo ID for each signer. Bring all four and the appointment usually goes smoothly.
Set up bookkeeping from day one
Pick a system before transactions pile up. Accounting software works for most new businesses; a careful spreadsheet can work if volume is tiny. Connect your business bank account, set up expense categories, and save receipts as you go.
Track money the owners put in (contributions) and take out (draws or distributions) separately from ordinary expenses. Your tax preparer will thank you.
Decide how the LLC will be taxed
By default, the IRS treats a single-member LLC as a disregarded entity, with profit reported on the owner's personal return, and a multi-member LLC as a partnership. An LLC can instead elect to be taxed as a C corporation (Form 8832) or an S corporation (Form 2553).
The S-Corp election runs on a clock. Form 2553 is generally due no more than 2 months and 15 days after the beginning of the tax year the election is to take effect. For a new company, that first tax year begins when it first has members, acquires assets or begins doing business, whichever comes first, so the window can open almost immediately. If S-Corp treatment might fit, raise it with a tax professional this month rather than at tax time.
Weeks 3 and 4: Registrations, licenses and the calendar
Register for state taxes you will owe
Two registrations catch new owners most often:
- Sales tax. If you sell taxable goods or services, most states expect you to register for a sales tax permit before your first taxable sale. The permit's name varies by state.
- Payroll. If you will hire employees, you generally need state withholding and unemployment insurance accounts, and most states require workers' compensation coverage. Each new hire fills out Form W-4, you complete Form I-9 with them, and employers report new hires to the state.
If it is just you and you sell a service that is not taxable in your state, you may have nothing to register here yet. Check anyway.
Get local licenses and permits
Your city or county may require a general business license, and some locations require a home occupation permit for businesses run from home. Certain industries need more: health permits for food, occupational licenses for trades and professions, zoning approval for a storefront. Your city and county websites are the place to start.
If you plan to sell under a brand name that differs from the LLC's legal name, you may also need to register that name. Here is what a DBA is and when your business needs one.
Look for follow-up filings in your state
Some states require an initial report or statement of information within the first few months after formation. A few states require newly formed LLCs to publish a notice of formation in local newspapers within a set period. Missing either can cause problems with your good standing. Your state's page in our LLC state guides lists what applies where you formed.
Put recurring deadlines on a calendar
Most states require an annual or biennial report, and many charge an annual fee or franchise tax. Delaware LLCs, for example, owe a flat $300 annual tax due June 1. Add your state's report date, your federal tax return due date, any sales tax filing schedule, local license renewals and your registered agent renewal, each with a reminder a month ahead.
If you would rather not track this yourself, our Premium plan includes worry-free compliance, which tracks state deadlines and files annual reports for you. It is also available as an add-on.
Get basic insurance
An LLC protects your personal assets from business debts. Insurance protects the business's assets. General liability coverage is a common starting point; professional liability matters if clients rely on your advice or work product. If you work from home, note that homeowner's policies often limit coverage for business activity.
Watch for official-looking mail
New business filings are public record, so new owners often receive letters that look like government notices, offering to file an annual report, supply a certificate of good standing or sell compliance posters for a fee. Some are legitimate paid services. Some are misleading. Before paying anything, check the sender and compare it against your state's official website.
The checklist at a glance
| Task | When | Why it matters |
|---|---|---|
| Review approved formation documents | Days 1 to 3 | The legal name and details must match everywhere |
| Get an EIN (free from the IRS) | Week 1 | Needed for banking, hiring and most tax filings |
| Sign an operating agreement | Week 1 | Sets ownership and rules; supports liability protection |
| Open a business bank account | Week 2 | Keeps business money separate |
| Set up bookkeeping | Week 2 | Clean records for taxes and decisions |
| Review tax classification | Week 2 | The S-Corp election window is time-limited |
| Register for sales tax and payroll, if needed | Weeks 3 to 4 | Required before taxable sales or first payroll |
| Get local licenses and permits | Weeks 3 to 4 | Operating without them can mean fines |
| Check initial report and publication rules | Weeks 3 to 4 | Some states require them soon after formation |
| Calendar annual report and tax deadlines | Week 4 | Missed filings can cost you good standing |
| Get insurance | Week 4 | Protects the business's own assets |
The short version
In the first week, check your approved documents, get your free EIN and sign an operating agreement. In the second, open a business bank account, set up bookkeeping and decide whether the default tax treatment is right for you. In weeks three and four, handle state tax registrations, local licenses, any initial report or publication requirement, insurance, and a calendar of every recurring deadline. Do these once, do them properly, and your LLC is ready to do real business.
This article is general information, not legal or tax advice. For decisions about your situation, talk to an attorney or a tax professional.