Once you are past the basics of forming an LLC you need to ponder other practical considerations. Your business needs a bank account. You may need additional licensing for your business. You will need to renew your business upon occasion, or at some point you may wish to let it lapse.
Business Bank Account and Employer Identification Number (“EIN”)
Once you submit the required papers to the Minnesota Secretary of State to register your business, you will want to open a bank account in your business’ name. If you have an LLC, which is a common type of business formation, and you do not keep your personal finances separate from your business finances, you may be personally liable for the actions of the corporation. Therefore, it is important to keep business finances separate from personal finances by using a business bank account.
You must call the Internal Revenue Service (“IRS”), answer a few questions, and the IRS will give you an Employer Identification Number (“EIN”). Sometimes this is also called your taxpayer identification number.
A bank will require this number before opening a business account. The bank may also want the formation documents for your business. You may open a bank account in the business’ name in any state or country you wish. It does not need to be in Minnesota.
Additional Licensing for the Business
You will also want to make sure you have, or do not need, additional licenses or registration for your business due to the type of business. For example, most health care professionals, attorneys, cosmetologists, etc. must obtain licenses before practicing or working in those areas.
Renewing Your Business Registration and Letting it Lapse
If your business is an LLC, which is a common choice, you must renew your registration every year. The process is quick, free, and may be done by filling out a form online.
If you wish to close down your LLC and you don’t have creditors or owe money, you can simply let it lapse by not renewing it when the time comes. If your business is sued and you wish to let it all just be taken, you may do so. As long as you kept separate your business records and funds from your personal records and funds you will not have any personal liability for the acts of your business. However, you are always liable for your own acts, whether engaged in the course of business or acting in a personal capacity, and in those circumstances you are always personally liable.