10 ESSENTIAL STEPS AFTER STARTING AN LLC IN WISCONSIN
Okay, so you have launched your LLC in Wisconsin. Now what other tasks need to be performed? Our firm has helped many entrepreneurs form and start an LLC in Wisconsin and we have found that many of our clients also needed help with post LLC formation tasks. Since, we experience this so frequently, we thought it would be helpful to provide online readers with 10 essential steps every entrepreneur should take after forming and starting an LLC in Wisconsin including:
Step 1 – OBTAIN A FEDERAL TAX ID OR EIN
A federal tax ID is like the Social Security Number for your business. An LLC’s federal tax ID number is used for reporting taxes, opening a bank account, and hiring employees. It is also called an Employer Identification Number (EIN). An LLC obtains its federal tax ID number from the IRS by filing FORM SS-4. You can file the form online at www.irs.gov. Subhan Law Office, LLC, includes obtaining your LLC’s EIN with our Business Success LLC Formation Package.
Step 2 – OPEN BANK ACCOUNTS AND APPLY FOR BUSINESS CREDIT CARD
Once you have formed your LLC, and after obtaining all required business licenses and or permits, you will be prepared to open your LLC’s bank accounts and apply for a business credit card. This will allow you to accept checks in your business’s name and if you put all business expenses on the business’s credit card, you will have an instant audit trail when its tax time. Also, keeping your personal and business accounts separate is an absolute must to avoid any legal pitfalls. This makes recordkeeping and tax preparation easier and helps preserve your business’s separate identity. Also, a business credit card helps your business begin to develop its own credit history. Note that some banks also require that in addition to your federal tax ID or EIN, you also submit the LLC’s operating agreement.
Step 3 – ARRANGE FOR ALL MEMBERS TO SIGN THE OPERATING AGREEMENT
After the articles of organization are filed with the Wisconsin Department of Financial Institutions, all the members should sign an operating agreement. With all of our LLC online formation packages, we include a comprehensive operating agreement.
Step 4 – SET UP AN ACCOUNTING SYSTEM
You will need to choose an accounting software to track revenue and expenses. We use QuickBooks, but you may also want to review FreshBooks, Xero, and other accounting software that may fit your needs.
Step 5 – CONSULT WITH A TAX ADVISOR
Consult with a tax advisor soon after forming your new LLC. There are four ways an LLC can be taxed and because certain tax classifications are subject to deadlines, it’s important to discuss with your tax advisor sooner than later, which tax election would be the best choice for your business. An accountant can also recommend business deductions and ways to save money at tax time.
Step 6 – DECIDE ON THE LLC’S TAX ELECTION STATUS
File IRS Form 8832 or 2253, if recommended by the LLC’s tax advisor.
Step 7 – RECORD ANY DEEDS (if applicable)
Many of our clients use LLCs as an asset protection tool to protect their real estate. Numerous entrepreneurs hold their real estate in one LLC and the business assets in another LLC for maximum asset protection. For LLCs that will own real estate, you will need to transfer the real property to the LLC by recording a deed at the registrar’s office in the county where the property is located.
Step 8 – PURCHASE INSURANCE
You will need to purchase insurance for your business, and depending on your profession, other professional insurance may also be required. You should consider getting a general liability insurance policy or a Business Owners Policy (BOP). These policies will broadly cover your business against accidents, injuries, and negligence claims. In addition, if you’re selling a product, you’ll need product liability insurance. Shop around for a number of quotes to make an informed decision.
Step 9 – REGISTER A FEDERAL TRADEMARK
Protecting your business’s brand is very important. Your LLC’s name, product names, logos, and slogans are essential for communicating product value, establishing a solid reputation and building brand loyalty. Trademarks are among the most valuable intellectual property assets for a business. Businesses turn to our firm to develop and protect key assets that help distinguish them from the competition: their identities, trademarks and reputations. We help you create and protect your brand.
Step 10 – GET LEGAL ADVICE AND GUIDANCE
It’s easy for entrepreneurs to make expensive legal mistakes when starting out. We are here to help and guide entrepreneurs through the business formation process. We are an entrepreneurial and innovative law firm that began as a startup company. We understand the challenges that entrepreneurs, startups, and small businesses encounter. That is why we developed our online legal services to help them through the business formation process. We can help you form an LLC in Wisconsin, draft a comprehensive operating agreement, draft and review contracts, and negotiate more favorable terms. We can also advise you on how to protect your business’s intellectual property like logos or slogans. We make forming an LLC in Wisconsin easy, convenient, and affordable.