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Bowman & Company has merged with Howard Howard and Hodges Certified Public Accountants and Small Business Consultants.

Do This If You Have Started an LLC in Maryland

Your business is officially an LLC. Congratulations! Forming an LLC is an important first step toward in business success. Business accounting firms know that there are some important steps they need to take next. Hiring a good local Maryland CPA for your LLC is crucial. They can help you come up with an accounting strategy for your business overall and also guide you through what you need to do after forming an LLC.

Started an LLC

In this article, we will take a look at what you need to do to get your LLC started right.

1. Apply for an EIN

Your LLC will need an EIN. What is that? It is a 9-digit number that serves to identify your LLC. Think of it this way, you have a social security number to identify you for tax and financial purposes. Your LLC’s EIN identifies it. It is used in a number of business activities. An EIN is used when starting a business bank account, applying for a business loan, and applying for a business credit card. It is used for filing business taxes and payroll taxes. You can apply for an EIN at irs.gov/node/17090. From there you will be redirected to an IRS page specifically for EIN numbers. You simply click “Apply for an EIN online” to get started. Of course, you can look for one of the best certified public accountants near me in Maryland and find someone to help you get an EIN!

2. Set up an Operating Agreement

When starting an LLC, it is crucial to have an operating agreement. An operating agreement is a legal document that spells out the rules, rights, and obligations for your business’s internal operations. It provides a framework and sets up procedures for the way in which the owners make decisions about the business. It typically covers organization, management, and voting, capital contributions, distributions, membership changes, and dissolution. If you find a good small business CPA for LLCs near me, they will tell you that an Operating Agreement is not required for an LLC in Maryland (unlike in other states), but it is highly advisable to have one.

3. Start a New Business Account for your LLC

Business accounting firms will tell you that it is important to have a business account for your LLC. You don’t want to mix personal and business banking in your personal accounting. A business account protects you from potential legal issues. It protects your personal assets, makes your taxes less complex, allows you to enter into a partnership, lets you sell the business, and helps you start building credit for your business.

4. Speaking of Building Credit

To thrive and grow, your LLC needs good credit. If you look into hiring a CPA for LLC, they will advise you on how to do that. Some ways to build credit includes: incorporating the business, get an EIN (which we have covered), opening a business bank account (also covered), getting a business phone number, and registering with Dun & Bradstreet to get a D-U-N-S number.

5. Get a Sales Permit from the State

In order to set up your LLC to pay taxes to the state, you will need to register through the state portal and be given a sales permit from the state. This will let you pay business taxes, income taxes, employment taxes, and sales taxes.

6. Be Prepared to Pay Taxes

In the excitement of starting a new business and starting to make a profit, it can be all too easy to forget that some of those profits have to be set aside to pay state and federal taxes. Business accounting firms strongly advise that you build your tax liability into your LLC’s budget. Being aware of the taxes you owe and the deadlines for paying them is crucial to the growth and success of your business.

Bowman & Company provides professional accounting and bookkeeping services to clients throughout the Washington, D.C. metropolitan area, including Maryland and Baltimore County, Columbia, and Howard County. Contact with us online or call us at 410-381-8121 to learn more about our offerings.

This entry was posted on Thursday, November 10th, 2022 at 12:55 am. Both comments and pings are currently closed.