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Steps To Take After Forming Your Company

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Step 1: Open a Business Bank Account

The reason for opening an LLC is to protect your individual assets from litigation. To be fully protected you need a business bank account to keep your personal and business transactions separate. We recommend opening a business checking account as well as a business credit card. Depending on your credit history, the card may be secured. Opening a business credit card will allow the business to begin building credit history immediately. We also advise setting up a savings account to put money aside for end of year taxes and large equipment purchases.

Step 2: Accounting

Setting up your company books early on, is a must for running a profitable business. You only manage what your measure, and you must measure your business’ financial health from accounting information. At the very least an accounting system should track your businesses income, expenses, assets, liabilities and equity. For a small startup, QuickBooks offers a variety of products that can meet your industry specific needs.

Step 3: Register for State and Federal Tax

Depending on the nature of your business, you may be required to register for one or more forms of state and federal tax. If you are selling a physical product, you will need a seller’s permit in order to collect sales tax from your customers. This can be done through the South Carolina Department of Revenue. If you have employees, you will need to register for Unemployment Insurance tax through the Department of Employment and Workforce and Employee Withholding Tax through the Department of Revenue on behalf of your employees. On the Federal side, you will be required to file for Federal Withholding through the Treasury Department. Withholding taxes can be paid through the EFTPS, the Federal Governments electronic payment system.

Step 4: Business Permits and Licenses

Depending on the type of business you are operating, you may need additional licenses and permits. These can include federal, state, and local licenses and permits. Some licenses and permits may require you to pay a fee, take a class or pass an exam.

Step 5: Get Insurance

Business insurance helps you manage risks and focus on doing what you do best, growing your business. Common types of business insurance are General Liability, Professional Liability and Workers Compensation Insurance.

Step 6: Hiring Employees

The first step to hiring employees is to verify they are eligible to work. E-Verify is the online service used by the U.S. government to facilitate this verification. You will then need to report the “new hire” to South Carolina via online or by mail. If your organization employees more than four individuals, you are required by law to provide workers’ compensation insurance. You are also required to withhold employee taxes for the federal and state government. Last step is to print off compliance posters and place them in visible areas of your work space.

Conclusion:

Gain a leg up on your competition by getting off on the right foot. It is much easier to start doing business with the right processes, instead of fixing broken ones down the road. Still Water Financial Operations is glad to assist entrepreneurs during the start up process. We will leverage our network to put you in touch with the individuals needed to complete the above list. Contact us today!

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