Top three mistakes to avoid making after registering an LLC

Here are 3 crucial steps that you must take after registering an LLC to ensure that you're protected and set up correctly. First, you must make sure to get the EIN number for the LLC. The EIN number is basically the Social Security number for the business, and it's required to open up a business bank account. You can get the EIN number for free from the IRS website, but before doing so, make sure that the state accepts the name of the LLC. Also, when getting the EIN, you'll want to make sure to tell the IRS that this is for a limited liability company, if that's the entity choice that you went with, and you'll want to make sure to enter the proper number of owners. Second, you'll want to make sure to sign all business-related contracts as the representative of the LLC. There's a lot of case law suggesting that if you sign business-related contracts personally, then you can be personally liable for the contract rather than the LLC being liable. When signing business-related contracts, the idea is to let the other party know that the entity, the LLC, is the party to the contract rather than you personally. And third, you'll want to make sure that the LLC has a good operating agreement in place. The operating agreement, while not technically required by law in many states, is the document that's going to set forth the rules of your business. If your business faces legal trouble and you don't have an operating agreement, then that could be used against you. And if you don't have an operating agreement, then the state's LLC laws will typically automatically apply to your business. And two more bonus tips would be make sure that your website has a terms of service section and a privacy policy. And you'll also want to consider business insurance to have a added layer of protection for the business.