Key Takeaways

  • An LLC checklist helps ensure compliance with all formation and ongoing business requirements.
  • Key formation tasks include choosing a business name, filing Articles of Organization, and creating an Operating Agreement.
  • Essential documents include an EIN, business licenses, and state-specific permits.
  • Maintaining an LLC requires proper record keeping, filing annual reports, and renewing licenses.
  • Having a separate business bank account protects personal assets and supports limited liability protection.
  • Following ongoing LLC formalities like keeping minutes, updating members, and maintaining records helps preserve liability protection.

An LLC checklist is a list of tasks that need to be completed when forming a limited liability company (LLC).

Business Startup Checklist

When you have decided to start your own business, either solo or with a partner or several, you'll want to be sure to follow a checklist, so you don't miss any important details. Following these instructions will help to get your business started on the right foot. 

Step One: Business Structure and Name

First, you'll want to choose a name and business structure. There are four different types of businesses when it comes to legal structure:

  • Sole proprietorship 
  • Partnership 
  • Limited liability company (LLC) 
  • Corporation (C-corp or S-corp)

Coming up with the name for your business can be tough, so here are a few resources available for startups:

  • Software for business names 
  • Brainstorming websites 
  • Search agencies for domain names (especially helpful if you plan to launch a website for your business)

Step Two: Business Plan, FEIN, and Bank Account

Once you have the basics laid out, you'll want to move on to the more complicated tasks:

  1. Create a business plan that will explain your vision for the company, its purpose, and even the values you want to see it uphold. 
  2. Before you can open a company bank account, apply for any business loans, or begin a payroll, you'll need to get an FEIN (Federal Employer Identification Number) through the IRS (Internal Revenue Service). 
  3. Start a bank account for the business so you can be sure to keep your personal and professional finances separated for tax and organizational purposes. 

Step Three: Leasing, Licensing, and Permits

If you are not planning to run the business out of your home, you'll want to lease the space you'll use for the startup, maybe offices or a warehouse or shop. Commercial realtors are a great resource when searching for company space. They can help make sure you'll have everything you need in place for day one of doing business. 

Another very important part of a startup is making sure you have all the proper licenses and permits for the type of business you plan to run. You'll want to inquire with the proper agency related to your business in order to find out exactly what you need and what requirements you may need to meet. The following types of companies require federal permits:

If your business doesn't require a federal permit or license, it might still require one from the state. Any businesses planning to offer the following services should contact the appropriate state agency to learn of requirements:

  • Accounting
  • Appraisals
  • Auctioning
  • Banking
  • Bill collecting
  • Building contracting
  • Cosmetology or barbering
  • Funeral home directing
  • Insurance
  • Any kind of medical service
  • Private investigating or security
  • Real estate sales

Sometimes the licensure required is based on the types of products that are sold through the business, rather than the services provided. Companies dealing in the following goods will need to meet state requirements:

  • Guns
  • Alcohol
  • Gas 
  • Lottery tickets

If a business plans to buy and sell goods, the owner will need to make sure they charge the appropriate sales tax for their state and therefore obtain a Resale Permit or State Seller's Permit. 

Check to see if your city or state requires you to have a business license in order to conduct business within the state. Even if you're operating out of the comfort of your own home, you might still need a license. 

Step Four: Employees, Insurance, and Record-Keeping

Companies that plan to have employees have a few extra steps to follow. First, you'll want to hire a few employees to get ready for opening day. As soon as you have employees working under you, you'll need to make sure both you and your employees have proper coverage. 

You'll probably need the following:

  • Workers' compensation insurance
  • Unemployment Insurance
  • Business insurance 

To make sure you don't lose any money or miss payment on any bills amid the chaos of a startup, you'll want to start some kind of accounting or record-keeping system. 

Fill out the proper paperwork and be sure to keep copies of everything in an organized system. These types of documents include the following:

Starting an LLC or any form of business can be scary, but with the proper assistance and good resources, you can do it right. 

LLC Corporate Formalities and Recordkeeping Tips

Even though LLCs have fewer formalities than corporations, maintaining basic records and governance practices strengthens your business credibility and helps avoid legal complications:

  • Keep a Corporate Records Book with your Articles of Organization, Operating Agreement, tax filings, and minutes from major decisions.
  • Document Member Actions such as approving loans, admitting new members, or changing registered agents.
  • Retain Key Contracts including leases, vendor agreements, and employment contracts for audit protection.
  • Use Written Resolutions for important decisions, even in single-member LLCs, to demonstrate proper business conduct.

These formalities show that your LLC operates independently of its members, preserving its limited liability shield.

LLC Maintenance and Compliance Checklist

Once your LLC is up and running, maintaining compliance is essential to preserve your limited liability protection. Include the following ongoing responsibilities in your LLC checklist:

  • File Annual or Biennial Reports – Many states require updates on ownership, addresses, and business activities. Missing deadlines can result in penalties or administrative dissolution.
  • Renew Licenses and Permits – Business licenses often expire annually and must be renewed to stay compliant.
  • Maintain Accurate Financial Records – Track income, expenses, and distributions to members.
  • Hold Regular Member Meetings – Even if not mandatory, documenting major decisions protects members’ liability status.
  • Update Your Operating Agreement – Reflect any major changes in ownership, management, or profit-sharing.
  • File Taxes Properly – Ensure accurate filings at both the federal and state levels, especially if you’ve elected S Corp status for tax purposes.
  • Separate Business and Personal Finances – Maintain a distinct business bank account and accounting records to uphold liability protection.

Following these maintenance steps ensures your LLC remains in good standing and compliant with all state and federal requirements.

Essential LLC Formation Documents

Every LLC formation begins with a set of critical documents that establish the business as a legal entity. Your LLC checklist should include:

  1. Articles of Organization – Filed with the Secretary of State to legally form your LLC. It includes the business name, address, registered agent, and management structure.
  2. Operating Agreement – Outlines member roles, voting rights, capital contributions, and procedures for adding or removing members.
  3. EIN (Employer Identification Number) – Issued by the IRS for tax filing, hiring employees, and opening a business bank account.
  4. Business Licenses and Permits – Depending on your industry and location, you may need state, local, or federal permits.
  5. Initial Report or Statement of Information – Required in some states shortly after formation to confirm business details.
  6. Membership Certificates – While optional, they serve as proof of ownership interest in the LLC.

Keep these documents securely filed, as they form the backbone of your LLC’s legal and financial foundation.

Post-Formation LLC Checklist

After formation, several steps help transition your LLC from a legal entity into a functioning business:

  1. Open a Business Bank Account – Keeps your finances separate and simplifies tax reporting.
  2. Set Up Accounting Software – Track expenses, payroll, and tax deductions efficiently.
  3. Create an Operating Budget – Establish a financial plan for expenses, marketing, and growth.
  4. Register for State Taxes – Depending on your location, register for sales tax or employment taxes.
  5. Get Business Insurance – Consider general liability, professional liability, and property coverage.
  6. Create a Business Website and Branding – Register your domain name and establish a professional online presence.

These post-formation actions help you operate smoothly while ensuring your LLC remains compliant and financially organized.

Common Mistakes to Avoid on Your LLC Checklist

Many entrepreneurs overlook small but critical steps during and after LLC formation. Avoid these common pitfalls:

  • Using a Non-Compliant Business Name – Always perform a name availability search before filing.
  • Skipping an Operating Agreement – Even for single-member LLCs, this document helps prevent disputes and legal issues.
  • Mixing Personal and Business Finances – This can lead to “piercing the corporate veil,” risking your personal assets.
  • Missing State Filings or Renewals – Neglecting to file annual reports or pay franchise taxes can result in dissolution.
  • Ignoring Ongoing Recordkeeping – Failing to document business decisions or transactions can harm your liability protection.

By keeping these points in mind, your LLC will remain compliant and well-prepared for growth.

Frequently Asked Questions

  1. What is included in an LLC checklist?
    An LLC checklist includes all steps for forming, operating, and maintaining an LLC — from filing Articles of Organization to obtaining licenses and filing annual reports.
  2. Do I need an Operating Agreement for a single-member LLC?
    Yes. It defines your business structure, clarifies ownership, and helps maintain limited liability protection even if you’re the only member.
  3. How often should I update my LLC information with the state?
    Most states require annual or biennial reports. You should also update your information whenever ownership, address, or management changes.
  4. What documents should I keep in my LLC records?
    Keep your Articles of Organization, Operating Agreement, EIN confirmation, licenses, contracts, and meeting records in one secure place.
  5. What happens if I don’t follow LLC maintenance requirements?
    Neglecting ongoing compliance tasks can result in penalties, loss of good standing, or even dissolution of your LLC by the state.

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