You filed your formation documents, received approval from the state, and your new company officially exists. So, what comes next? Incorporating your business is an important milestone, but it is only the beginning. Before you start signing contracts, hiring employees, or accepting payments, there are several practical and compliance-related tasks you should address. The exact requirements depend on your business structure, state, location, industry, and whether you have employees. However, most new business owners should focus on six key steps after incorporating their business: obtaining an EIN, organizing their internal company documents, opening a business bank account, setting up accounting and taxes, obtaining required licenses and permits, and creating a system for ongoing compliance. Here is how each step works and why it matters.

Step 1: Get an Employer Identification Number (EIN)

One of the first steps to take after incorporating your business is determining whether you need an Employer Identification Number (EIN). An EIN is a nine-digit federal tax identification number issued by the Internal Revenue Service (IRS). Think of it as an identification number the federal government uses to recognize your business for tax purposes. The IRS includes applying for an EIN, when applicable, on its checklist for starting a business.

Why Does Your Business Need an EIN?

An EIN is commonly associated with hiring employees, but that is not its only purpose. Depending on your business structure and circumstances, you may use an EIN to file federal tax returns, manage payroll taxes, open financial accounts, or complete other business paperwork. Corporations generally need an EIN. EIN requirements for LLCs are more complicated because the federal tax treatment of an LLC depends on factors such as the number of members and elections the LLC makes. Even when an EIN is not strictly required for a particular business, obtaining one may make it easier to keep business and personal financial matters separate.

When Should You Apply for an EIN?

Generally, you should form your legal entity with the state before applying for its EIN. This helps ensure that the legal business name and other information you provide to the IRS match your formation records. You can apply for an EIN directly through the IRS. Be cautious of websites that make an EIN application look like a government service while charging unnecessary fees.

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Step 2: Put Your Company’s Internal Documents in Order

State approval creates the legal entity, but you may still need documents explaining how that entity will actually operate. For an LLC, this usually means preparing an operating agreement. For a corporation, it typically means establishing corporate bylaws and completing the initial organizational actions needed to put the corporation’s governance structure into practice. These documents may not always be filed with the state, but that does not make them unimportant.

Why an Operating Agreement Matters for an LLC

An operating agreement establishes rules for how an LLC operates and how its owners interact with the company. Depending on the LLC, it can address issues such as:

• ownership percentages
• management responsibilities
• voting rights
• distribution of profits and losses
• adding or removing members
• transferring ownership interests
• what happens if the company closes

Consider a two-member LLC in which one person contributed 70% of the initial capital while the other contributed 30%. If they have different expectations about voting rights or distributions, those disagreements can become a serious problem later. A well-prepared operating agreement gives them a framework for handling those issues before a conflict occurs. Requirements and legal effects vary by state, so business owners should check the law governing their LLC.

What Should a New Corporation Do?

Corporations generally have more formal governance procedures. After incorporation, the corporation may need to adopt bylaws, appoint or confirm directors and officers, authorize the issuance of shares, document initial organizational decisions, and establish appropriate corporate records. For example, simply filing Articles of Incorporation does not by itself document who received the company’s shares or what major actions the board authorized. Maintaining those records from the beginning makes future corporate administration much easier, particularly when the company adds investors, changes ownership, applies for financing, or undergoes due diligence.

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Step 3: Open a Business Bank Account and Separate Your Finances

Once your company exists and you have its tax identification information, the next practical step is usually to establish dedicated business finances. That generally starts with a business bank account. Instead of having customer payments deposited into your personal checking account and paying business bills from whichever card happens to be available, route business income and expenses through accounts dedicated to the company.

Why Is Separating Business and Personal Money Important?

There is a simple practical reason: it makes your company’s financial activity much easier to understand. Imagine you receive $8,000 from customers during the month. You then pay software subscriptions, office expenses, groceries, your mortgage, advertising expenses, and a family vacation from the same account. At the end of the month, determining what belongs to the business becomes unnecessarily complicated. Separate accounts create a cleaner financial trail. That helps with bookkeeping, tax preparation, financial reporting, and demonstrating that the business is being operated separately from its owners. The IRS emphasizes that businesses need records that clearly show income and expenses and support amounts reported on tax returns.

What Do You Usually Need to Open a Business Bank Account?

Requirements vary between financial institutions and business structures. A bank may ask for documents such as your formation documents, EIN, identification, ownership information, and operating agreement or corporate documents. Check the requirements of the bank or financial institution before applying rather than assuming every provider requests the same documentation. Once the account is active, consider using it consistently for business transactions. If you need to contribute personal money to the company or take money out, record the transaction appropriately rather than treating the business account like a second personal checking account.

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Step 4: Set Up Accounting and Understand Your Tax Responsibilities

Do not wait until your first tax return is due to figure out how you are going to track the company’s finances. A basic accounting and recordkeeping system should be established as early as possible. According to the IRS, good business records help you monitor the progress of the business, prepare financial statements, identify income, track deductible expenses, determine the basis of property, prepare tax returns, and support information reported on those returns.

Start Recording Transactions From Day One

Your accounting system does not necessarily have to be complicated. What matters is that it creates an accurate record of what the business earns and spends. For example, you should be able to identify:

• money received from customers
• business purchases and operating expenses
• payments to contractors or employees
• owner contributions and distributions
• loans and repayments
• purchases of business assets

The IRS does not generally require businesses to use one particular recordkeeping system. Businesses can choose a system appropriate for their circumstances as long as it clearly shows income and expenses. That could mean accounting software, a professional bookkeeper, or another organized system appropriate for the size and complexity of the company.

Understand How Your Business Will Be Taxed

Creating an LLC or corporation also raises an important question: How will the business be treated for federal tax purposes? Legal structure and federal tax classification are related, but they are not always the same thing. For example, an LLC is a legal structure created under state law, but its federal tax treatment can depend on the number of owners and elections made with the IRS. A corporation may also qualify to elect S corporation tax treatment if it meets IRS requirements.

If an eligible business wants an S corporation election to apply from the beginning of a tax year, timing matters. The IRS generally requires Form 2553 to be filed no more than two months and 15 days after the beginning of the tax year in which the election is intended to take effect, although exceptions and late-election relief may apply. This is one area where talking to a qualified tax professional early can prevent expensive mistakes later.

Don’t Forget State and Local Taxes

Federal taxes are only one part of the picture. Depending on where and how your company operates, it may also face state or local income taxes, franchise taxes, sales and use taxes, payroll-related taxes, or other business taxes.The requirements differ substantially from one jurisdiction to another. Check the tax agencies in every state and locality where your company conducts activities that may create a filing or registration obligation.

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Step 5: Obtain the Business Licenses and Permits You Need

Incorporating a company does not automatically give it permission to conduct every type of business activity. Business formation and business licensing are separate processes. According to the U.S. Small Business Administration (SBA), licensing and permit requirements depend on factors including your business activities, location, and applicable government rules. Businesses may need licenses or permits from federal, state, county, or municipal authorities.

Which Licenses Does Your Business Need?

There is no single nationwide business license that covers every U.S. company. Requirements depend heavily on what your company does and where it operates. For example, a consulting company operating from an office will have very different licensing requirements from a restaurant, construction company, childcare facility, transportation business, or company operating in a federally regulated industry. Some businesses may need:

• state business or professional licenses
• city or county business licenses
• zoning or home-occupation permits
• sales tax registration
• health or safety permits
• industry-specific licenses
• federal licenses or permits

The SBA notes that businesses engaged in activities regulated by federal agencies may also need federal licenses or permits. This is why checking only the Secretary of State’s website is not necessarily enough. The agency that formed your company may not be the same agency responsible for licensing its activities.

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Step 6: Create a System for Ongoing Business Compliance

Once the initial setup is complete, your focus shifts from forming the company to keeping it compliant. A corporation or LLC does not simply remain in good standing forever because its formation documents were approved. States can impose ongoing reporting, fee, tax, registered agent, licensing, and other requirements.

Track Annual and Initial State Filings

Some states require filings relatively soon after a business is registered. The SBA notes that certain states require additional documents, often called Initial Reports or tax board registrations, and that these requirements commonly arise within 30 to 90 days after state registration. The exact rules and deadlines depend on the state. After that, businesses may have annual, biennial, or other periodic filings. Create a compliance calendar that tracks the requirements applying specifically to your company rather than relying on memory.

Maintain Your Registered Agent

Corporations and LLCs generally must maintain a registered agent in their state of formation. If you register the company to do business in another state, you will generally need a registered agent there as well. The registered agent provides an official location for receiving service of process and certain government communications. If your registered agent resigns or you change providers, make sure the appropriate state records are updated.

Keep Licenses and Permits Current

Licensing is not necessarily a one-time task. Some licenses require periodic renewals, fees, continuing education, inspections, or updated information. Missing a renewal can affect your ability to legally conduct a regulated activity. Add those deadlines to the same compliance calendar you use for state filings and taxes.

What About Beneficial Ownership Information Reporting?

This is an area where outdated business checklists can create confusion. Under current FinCEN rules, entities created in the United States are exempt from federal Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act. FinCEN changed the rules in March 2025 so that the federal reporting requirement generally applies to certain entities formed under foreign law and registered to do business in the United States.

In other words, a newly created domestic U.S. LLC or corporation should not follow older guides that automatically instruct every new company to submit a BOI report. Foreign entities registered in the United States should check the current FinCEN requirements because different rules may apply. Because federal reporting rules can change, always verify the current requirements directly with FinCEN rather than relying on an old formation checklist.

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What Should You Do If You Plan to Hire Employees?

Hiring your first employee introduces another set of responsibilities, so it is worth planning for them before the employee’s first day. Federal requirements can include employment eligibility verification, federal income tax withholding, Social Security and Medicare taxes, federal unemployment taxes, payroll reporting, and employment tax records. State requirements may include additional registrations, unemployment insurance, workers’ compensation, payroll taxes, and new-hire reporting. The IRS instructs employers to keep employment tax records for at least four years after filing the fourth quarter for the year. If you expect to hire soon, consider setting up payroll and confirming your federal and state employer registrations before issuing your first paycheck.

Frequently Asked Questions About What to Do After Incorporating

Forming the company is only the first legal step. These common questions address some of the practical issues new business owners often encounter once their LLC or corporation has been approved.

Can I Start Doing Business Immediately After Incorporating?

Not necessarily. State approval means your legal entity has been created, but you may still need licenses, permits, tax registrations, or other approvals before conducting particular activities. Requirements depend on your industry and location.

Do I Need an Accountant After Incorporating?

Not every business is legally required to hire an accountant, but professional tax advice can be valuable. This is especially true when choosing tax treatment, hiring employees, operating in multiple states, handling sales tax, or making an S corporation election.

What Happens If I Miss an Annual Report?

The consequences depend on the state. A missed filing may lead to late fees, loss of good standing, administrative dissolution or revocation, or other consequences under state law. Check the requirements and deadlines of the state where your company was formed and any other states where it is registered to do business.

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After Incorporating Your Business, Build the Right Foundation

Incorporating your business gives your company its legal structure, but the decisions you make immediately afterward help determine how smoothly that company operates. Start by getting your tax identification and internal company records in order. Then separate your finances, establish reliable bookkeeping, check licensing requirements, and create a system for staying on top of future deadlines.

Most importantly, do not assume that forming the company automatically completes every federal, state, and local requirement. Your obligations depend on where you operate, what your business does, how it is taxed, and whether you have employees.

If you have just incorporated and are unsure what comes next, IncParadise can help you manage important post-incorporation requirements, registered agent services, and ongoing business compliance so you can focus on building your company.

Originally Published: October 2017 | Last Major Update: August 2026