LLC Record Keeping
After forming an LLC, a business owner should complete tasks like obtaining an EIN, opening a business bank account, creating an operating agreement, and fulfilling any state-specific requirements to legally operate the business.
Starts at $0 + state fees and only takes 5-10 minutes
Last Updated: March 30, 2026
Deciding what to do after forming a limited liability company (LLC) can be overwhelming and confusing if a business owner isn’t sure where to look for the correct information. With the right knowledge and a few steps in the right direction, entrepreneurs can start their businesses off on the right foot. This guide walks through some of the top steps that new LLC owners should consider once they’ve set up their business.
One of the major benefits of owning an LLC is the flexible tax requirements. While an LLC (limited liability company) is a type of business entity, the S corp status is actually a tax classification option for LLC business owners. Businesses taxed as S corporations have pass-through taxation, but an LLC already has this by default. So why would an LLC want to be taxed as an S corporation?
The members of a standard LLC are considered self-employed. They’re compensated by receiving their share of profits from the LLC, but they can’t be employed by the LLC. Being self-employed means paying self-employment taxes (about 15.3%) on all profits they receive from the LLC. This is more than the taxes they’d pay when working for someone else because their employer would pay part of them.
When the members elect S corp status, though, they can be compensated in two ways: by receiving their share of the profits and by being paid as employees. Once they do that, they only pay self-employment taxes on their salary and not the profits they receive (of course, this only applies to self-employment taxes; LLC members still must pay income and other applicable taxes on their profits). This savings can add up to quite a lot for certain profitable LLCs.
One caveat to this is that the IRS expects an S corporation owner to pay themselves a “reasonable salary” as an employee of the LLC. Otherwise, a member could pay themselves an annual salary of $1 and avoid contributing anything to Social Security and Medicare. The IRS considers “reasonable” to be something similar to what others in the same field are earning.
Learn more about S corporations (please see the What is an S Corp? page).
Getting an LLC helps establish a business’s credibility and provides personal liability protection for the owners. To legally operate a business, an entrepreneur may need to acquire LLC business licenses, such as federal, state, and local business licenses.
Depending on factors like the business’s industry, professional services it offers, and location, an LLC may require other federal, state, or local business licenses and permits to operate. These could include things like building permits, health permits, signage permits, and other additional permits and licensing requirements. There’s no central place to check to see every license or permit the LLC might need, so a business owner will have to do some research.
If a business owner doesn’t have the time or inclination to do all this research, or if they just want the peace of mind to know that they have all the business licenses and permits they’re legally required to have, the ZenBusiness business license report service is the perfect tool.
If an entrepreneur applied for an Employer Identification Number (EIN) with the IRS, they will be able to open a business bank account. Having separate accounts for the business’s activities and the owner’s personal banking is critical for sorting out the finances at tax time. It also helps a business owner avoid commingling funds.
Commingling funds makes personal and business taxes more difficult, and it could also be used against the owner if someone takes them to court to challenge whether the owner and their LLC are truly separate entities (that is, they want to go after the owner’s personal assets, not just the company’s).
ZenBusiness offers a bank account for qualifying new business owners. This account allows for unlimited transactions, online banking, a debit card, and more.
When an entrepreneur opens a business bank account, they may also want to get a business credit card. Not only is this convenient for small purchases for the business, but it also establishes a credit history for the business, which could be helpful if the LLC ever seeks out a business loan.
If an entrepreneur doesn’t have a lot of startup capital for their LLC, they may want to seek ways to fund their business. This includes using personal savings, venture capital, government grants, money from family and friends, or an SBA loan or other business loans from a bank.
Using an accountant or bookkeeper to manage day-to-day business operations and handle business taxes will help ensure the company remains legally compliant and does not fall behind on annual reports and registration requirements.
In addition to filing taxes, an accountant or bookkeeper can follow the operating agreement guidelines to ensure the business payroll is handled effectively. Having a professional handle the financial side of the business will help ensure legal compliance and free up time to manage the rest of the company’s operations throughout the entirety of its business life cycle.
The ZenBusiness Money Pro platform keeps a business’s finances organized throughout the year, so the owner is already prepared for tax time and won’t miss out on deductions.
Getting business insurance can be costly, but it will help ensure the business’s long-term success even if it faces legal troubles. General liability insurance can provide protection for a business from a variety of legal dangers. For many business owners, insurance is essential and practical.
In addition to general liability insurance, other types of insurance, such as workers’ compensation, commercial property/auto, and professional liability insurance, can all be acquired to protect different aspects of a business. Some, like workers’ compensation, are a legal requirement in nearly all states.
In order to have the business recognized and establish a memorable brand, it’s important to create a logo that consumers can remember the company by. A logo creates a brand identity for the business and gives customers a visual reference point to associate with it.
Using a website builder to put a business online is crucial in this digital era. Having a business online raises brand awareness, brings in more customers, and acts as an extension of the company’s branding.
A business website can include essential contact information, such as a phone number or business email, so customers can reach out if they need help or have questions about the brand’s products or services.
Recommended articles:
In addition to helping anyone start an LLC, ZenBusiness also offers a variety of services to help any entrepreneur on their business journey. The ZenBusiness team of experts can help any entrepreneur establish an LLC today, starting at $0 plus state fees.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
ZenBusiness is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. The ZenBusiness Visa (or Mastercard) debit card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. (or Mastercard U.S.A. Inc.) and may be used anywhere Visa (or Mastercard) cards are accepted. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.
Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions on the sweep program. Pass-through insurance coverage is subject to conditions.
The first step to reaching company goals is establishing a business plan to effectively strategize the best way to make money for the business. Every single business is different, and so are the ways they make money. In addition to business operations, other ways to make money include funding capital through loans, investors, government financing, and family/friend donations or loans in order to get business operations up and running to start earning more capital.
Establishing a business as a legal entity by forming an LLC can sometimes offer business owners a variety of tax benefits and write-offs. LLC write-offs can include office space deductions, production costs, equipment, and other large purchases. Learn more about LLC tax write-offs.
An entrepreneur can use their business’s EIN to open business bank accounts, hire employees, apply for business permits and licenses, apply for business loans and credit cards, and so much more.
Taxes are still a part of running an LLC, but the structure does give a business owner the perk of tax flexibility. A single-member LLC can choose to be taxed as a sole proprietorship or corporation, whereas a multi-member LLC can be taxed as a partnership or corporation. Different tax structures offer a variety of benefits and deductions. Depending on the business’s activities, any of these statuses could be beneficial for different tax purposes.
LLC Resources
Start an LLC in Your State
When it comes to compliance, costs, and other factors, these are popular states for forming an LLC.
Ready to Start Your LLC?
Scan to download
the ZenBusiness app
