After Forming Your LLC: 5 Essential Steps to Stay Compliant
Congratulations! You have successfully taken the major step of forming your Limited Liability Company . This is a huge milestone that protects your personal assets and establishes your business as a legitimate entity. However, the job isn’t finished just because the paperwork is filed. To keep those legal protections intact and avoid hefty fines—or even the forced closure of your business—you must take proactive steps to maintain your compliance. Think of this as the "housekeeping" phase of business management . Failing to maintain these formalities can cause a court to "pierce the corporate veil," making you personally liable for business debts. Here are the five essential steps to ensure your LLC remains in good standing. 1. Adopt an Operating Agreement Even if your state does not legally require it, adopting an operating agreement is perhaps the most important internal step you can take. This document serves as the "constitution" of your company. It ou...