Are you in the process of starting an LLC? Is it something you’ve been considering? Even if it’s just something you’re thinking about, you should research before diving head-first into the process.

Starting an LLC can be a confusing thing. Laws vary from state to state, and they can change pretty often. Forming your company is its own affair, and then you have to worry about taxes and actually build everything from the ground-up.

So, are you doomed to the trial-and-error of “winging it,” or are there things that could make the process easier? Read on to learn some tips for starting an LLC.

Do’s and Don’ts for Starting an LLC

Believe it or not, there are things you can do to make the process easier on yourself without hiring a professional (though they can make the process of starting an LLC easier). Here are a few do’s and don’ts:

Do: Create a Business Plan

Starting a business is about more than making sure you file all the necessary paperwork.

You also have to establish how it will run, which is where a business plan comes in handy. By mapping everything out before you even start, you give yourself goals to work towards and a place to ground yourself when you need it.

Creating a plan will give you something to look to when you get overwhelmed, and it’s going to keep you on track for the long haul.

Don’t: Wing It

Don’t underestimate the power of a good business plan. Whether you’ve been running your business for a long time or are just getting off the ground, you always have room to grow.

They say the best teachers are often those who are still learning. Instead of feeling like you need to seek others’ advice when things get busy, you can look back on that business plan to see what you had in mind from the start.

You may find something that you forgot about a few things, or you may see that you haven’t been implementing all that you wanted into your business.

If you still find yourself wanting or needing advice, be sure to seek it from someone knowledgeable and dependent. This can be a fellow business owner or even a trustworthy friend or family member.

Instead of running around and hoping for the best from the get-go, write down your plan, find others you can trust along the way, and stick with both until the end.

Do: Double-Check Your Business Structure

Research the differences between an LLC and S-Corp before you form your company.

Different businesses will have different needs, and you might find that an LLC isn’t even in your best interest. It’s best to do some research and ensure that an LLC is right for you.

Don’t: Research Outside Your State

As we’ve already talked about, business and tax laws vary from state-to-state. It’s important to make sure you’re looking at the correct information when forming your LLC.

While some federal laws apply across the nation (like the amount the IRS is going to tax you), the majority will vary upon your location (like whether or not you pay state taxes).

Do: Separate Finances

One of the first things you should do when starting an LLC is open a business checking and savings account. You can also get a business credit card if you wish.

When you form these business accounts, you make it easier to keep your personal finances separate from your business’s.

This is an important step to take, and it shouldn’t be skipped. It helps a lot when tax season rolls around, and it’s also a lot easier to discern your business income from personal income.

So, if you receive money for your birthday or a holiday, that should go into your personal checking account. If you make a sale or other transaction, that money should go straight into your business checking account. Your business savings account is also a great place to keep tax money for your business.

Don’t: Procrastinate Taxes

So, once you’ve established where you’re going to put your tax money, it’s time to focus on taxes themselves — don’t procrastinate.

There are different ways to pay your federal taxes, but the easiest will be making a direct payment to the IRS every quarter. The due dates for quarterly payments are usually January 15, April 15, June 15, and September 15.

This is also where it’s important to learn the percentage you’re going to owe in federal and state taxes and then add the two together. This is the amount you’re going to put into that savings account every time you get paid.

Neglecting these payments and their due dates can cost you extra penalties and late fees. It’s best to educate yourself early on and have the money you need in advance. Don’t wait until the week before they’re due to finally get everything together.

Remember This Advice for Starting an LLC

Remembering this advice when starting an LLC can mean the difference between a perfect start to your new business and its failure. By planning and attempting to scout out any potential pitfalls, you can tie up any loose ends you may have forgotten along the way.

By ensuring that you’re prepared for everything you may face, you set yourself up for success — now and in the future.

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