What Comes Next

Posted Sunday, July 13, 2025

tax advisoryWe’ve found that there can be just as many questions after incorporating a business or forming an LLC as there were before launch. So, to help you jumpstart your new business and create the proper legal foundation, we’ve put together a list of the 12 essential steps to take after you have incorporated or formed an LLC. Keep in mind that we’re here to help!

1. Execute Your Organizational Documents

A Corporation has Bylaws and an LLC has an Operating Agreement. These documents define a company’s internal governing rules. For example, a corporation’s bylaws address how meetings are held, what votes are required to take action, how stock should be issued, the officers and their duties, etc. An LLC’s Operating Agreement defines the relationship of members and their responsibilities, how membership interests can be transferred, how profits and losses are allocated, and more. A Shareholder Agreement is similar to an Operating Agreement, but is designed for shareholders of a corporation (versus members of an LLC). At times you’ll see Partnership Agreements as well.

WCG recommends the electronic storage of these documents either within your Sharefile folder or some other secure cloud-based storage.

2. Apply For A Federal EIN (Employer Identification Number)

An LLC or corporation is its own separate entity, and as such, it needs its own federal tax ID number, also known as an Employer Identification Number (EIN). As an LLC or corporation, you’ll need this EIN to open a business bank account or file your business tax returns properly (should your entity file a partnership tax return on Form 1065 or elect to be taxed as an S corporation and file Form 1120S).

If you haven’t already obtained an EIN during your formation process through our service, you’ll need to get one now. We will gladly assist with preparing and filing the necessary paperwork and obtain your business’s EIN.

Also! If you historically have received 1099’s in your individual name and social security number, you’ll need to update a W-9 form and provide this to your clients and other people who pay you a fee. Line 3 can be a bit confusing and we can easily help. The W-9 will (should) change how the 1099 is issued at the end of the year.

3. File Any Fictitious Business Names (DBA Filings)

Fictitious is one of those terms of art in the legal and accounting industries, but here we are just the same.

If your business is going to be operating under any variation of your official entity name filed on your formation paperwork, you will need to file DBAs, also called fictitious business names, for each of the variations. You should file the DBAs so they operate under the umbrella of your corporation or LLC. And if you previously had a DBA as a sole proprietorship, you can cancel that DBA or just let it lapse, depending on your state’s requirements (they can be picky).

Sidebar: Theoretically, if you don’t register these DBAs, upon a lawsuit or some problem, an argument could be made that you are acting as a sole proprietorship and not as an LLC. Thin, sure, but you add up enough cracks in the armor and you have a real problem.

You can also file for DBAs if you’re going to operate multiple ventures under the same company. You can establish one main entity (i.e. Susy’s Corp) and then have Susy’s Corp file multiple DBAs for each of the specialized brands (i.e. Susy’s Soaps, Susy’s Knits…). This way each of the smaller business units can reflect the branding and name best for their specific market, yet still enjoy the protection of the primary entity. However, DBAs cannot have their own EIN and some banks have limits on how many DBAs can open separate checking accounts.

If your entity will be conducting business under multiple names, we can help with these filings.

4. Open A Business Bank Account

You will need to create a separate business bank account to keep all business transactions separate from your personal transactions. This step not only will streamline your business accounting and tax reporting, but it’s essential to maintaining the “corporate veil” that might help to reduce your personal liability. Most banks will require the business’ formation / organizational documents and an EIN to open the bank account. Some banks will want to see your Operating Agreement but that is rare (although they do seem to demand one when you are obtaining loans or securing credit).

If you previously had a business bank account as a sole proprietorship or partnership, you’ll need to close that account and then open a new bank account under the Corporation or LLC (unless your bank can make a switch-a-roo, which frankly is rare given the rules banks operate under).

5. Apply For Business Licenses, Permits, And Sales Tax Registrations

The accounting industry likes to say that incorporating or forming an LLC provides the legal foundation for your business, and a business license gives you the legal right to operate your business. Most types of businesses require federal and/or local licenses to operate (the specifics will depend on your type of business and location). Unfortunately, we do not automatically apply for licenses, permits and other registrations unless requested to do so (and in some cases we are unable to, but we can chat about it).

llc formattionAlso, keep in mind regulated industries. Those who provide legal services as a law firm will usually have to register with their State’s Bar Association. Going from a sole practitioner tax accountant to having an LLC will require both you, the tax professional, and the entity to register with the State. Financial advisors, same thing. Insurance agents, Yup. Just because you, the human, are registered and good to go doesn’t mean adding an LLC to operate under is compliant without registration.

These two really have no idea what they got themselves into. Let’s not ruin it for them.

6. Apply For Payroll Accounts

If you anticipate hiring employees right away or you are electing to be taxed as an S corporation, you will need payroll accounts at the IRS and state levels, and possibly at the local / city level. Even if you operate in an income tax free state such as AK, WA, NV, TX, WY, SD, TN, FL or NH, you might still need state payroll accounts for unemployment insurance. Yes, it seems silly, but it’s true.

Sidebar: We often get the “do I really need payroll as an S Corp shareholder? I mean, it’s just little ol’ me.” Yes, little ol’ you needs to be have proper payroll processing including paystubs, quarterly payroll tax filings and a W-2.

We can help!

7. Maintain Your Corporate / LLC Compliance

Your work isn’t done after you submit that initial paperwork. For both the LLC and Corporation, you’ll need to keep up with Secretary of State paperwork (typically on an annual basis). For example, we typically file any initial report that is required, but then you’ll need to continue filing an Annual Statement with the state each year. We can also help with this too.

Sidebar: Many business owners handle their own annual Secretary of State filings even if WCG CPAs & Advisors did the original formation. Given the ease and simplicity, most opt just to handle directly. Having said, if you want us to keep up with your annual filings, please let us know (since we are assuming you will).

Corporations will need to formally document their Annual Meeting Minutes for their board of director and shareholder meetings. However, these are not filed with any state or government agency. LLCs do not have annual corporate governance like annual meetings. At times, a lender or creditor will require a Resolution or some sort of document that authorizes the LLC to take on debt.

Important: Annual reports filed with the Secretary of State are not the same as Annual Meetings. As such, any entity registered might have an annual report filing that is separate from any type of internal annual meeting to comply with the Bylaws or Operating Agreement of the entity.

If your entity is operating in another state, either physically or through economic presence (revenue or payroll based), you might have a foreign qualification requirement. This is basically another registration in the second state. A common example is a consultant sitting in Illinois whose only client is in California. Illinois will easily consider you doing business in their state because that is where your butt is. California will do the same since your only client is in their state.

Foreign qualification and state income apportionment is tricky stuff!

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8. Apply For Trademark Protection

When you incorporate, or form an LLC, you prevent another company from filing under the same name in the same state. But, this is far different than federal trademark protection which can protect your name in all 50 states. By officially registering your trademark with the USPTO (U.S. Patent and Trademark Office), you’ll help prevent others from choosing your name in the future (since there’s a public record of your trademark), and it will be easier to bring a suit in federal court in case someone else does begin using your name.

9. Get Your Documentation To Work With Third Parties

If you plan on frequently working with third parties (employees, contractors, customers), you should get your paperwork to document each of these relationships. For example, you may want to have a non-compete or non-disclosure form in place before hiring any employees. Or, you might need an Independent Contractor Agreement before using independent consultants. Anticipate these needs, consult with a qualified attorney and get these documents in order up front so they’ll be ready to send and sign as soon as you need them.

You might also consider an Employee Handbook or other human resource materials.

10. Re-paper Agreements, Contracts And Loans In Entity Name

Now that you have formed an LLC or Corporation, it’s critical that you sign all important contracts under the official entity name. For example, if you lease an office and pay for utilities separately, all these obligations should be in the LLC / Corporation name.

We will repeat your need to send a updated W-9 with your business name and EIN to anyone who will be issuing a 1099-NEC or 1099-MISC to you.

11. Get Business Liability Insurance Coverage

Creating an LLC or Corporation is an important step toward minimizing your personal liability. However, it’s not a substitute for insurance. That’s because a corporation or LLC won’t protect you unconditionally from personal liability (for example, if your personal actions result in an injury, you can be personally liable). In addition, you will probably want to protect your business from personal injury or property damages in the event of a lawsuit. Insurance comes in different forms depending on your business needs, so you should discuss your specific business risks with an insurance agent or broker who’s familiar with small business, plus discuss the same with your attorney.

12. Adjust Your Will or Trust

A business is an asset like a home, automobile or retirement account. It might have some value after your death, and it will need to be properly handled within your estate plan. Having said this, an Operating Agreement can act like a mini Will and transfer your interests to others upon your passing.

Either way, consult with a qualified estate planning attorney to fully understand how your business dovetails into your estate plan.

Other Important Information

Once again, thank you for choosing our firm as your business filing service. We want to help you in any way we can as you grow your business. Please feel free to contact us with any questions or if we can assist you with any of your future business filing needs!

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