Start Smart: 7 Things Every Entrepreneur Should Do Before Forming an LLC
Starting your own business is an exciting step—but forming an LLC without the right preparation can create unexpected challenges down the line. At L&A Consulting Services, we’ve seen it all: rushed filings, unclear operating agreements, and entrepreneurs who didn’t realize they were on the hook for taxes they hadn’t planned for. That’s why we’re sharing this guide—to help you start smart, build a strong foundation, and avoid common missteps.
Here are 7 essential things you should do before forming your LLC.
1. Define Your Business Model & Goals
Before you register anything, get crystal clear on what you’re offering, who you’re serving, and what success looks like.
Ask yourself:
What product or service am I providing?
Who is my ideal customer?
What are my short-term and long-term goals?
This clarity will guide everything—from how you market your business to how you file your taxes.
2. Research Your State’s Requirements
Each state has its own rules for LLC formation, including fees, naming guidelines, and annual reporting requirements.
In Missouri or Kansas, for example:
Missouri has no annual franchise tax for LLCs
Kansas requires an annual report and $50 filing fee
Know what you’re signing up for. If you’re not sure, this is where professional guidance can save time (and headaches).
3. Choose a Strategic Business Name
Your name isn’t just about branding—it’s a legal decision. Make sure your chosen name:
Is available in your state’s business registry
Doesn’t infringe on a trademark
Has a matching domain name available for your website
Reflects your business vision
Tip: Check name availability with your state and do a quick domain search. Securing both early can prevent rebranding later.
4. Understand the Tax Implications of an LLC
An LLC provides liability protection, but you still need to choose how it will be taxed:
Single-member LLC: Usually taxed like a sole proprietorship
Multi-member LLC: Often taxed like a partnership
S-Corp election: May offer tax savings—but comes with extra rules
If you’re unsure which option is best, our team at L&A Consulting can help you analyze your situation.
5. Draft an Operating Agreement
Even if your state doesn’t require one (Missouri doesn’t), having an Operating Agreement is a smart move.
Why? Because it defines:
Who owns what
How decisions are made
What happens if a partner leaves
Profit-sharing structure
It’s your internal rulebook—and it can prevent disputes down the road.
6. Prepare for Business Banking
Mixing personal and business money is a common rookie mistake. Before forming your LLC, be prepared to:
Get an EIN (Employer Identification Number) from the IRS
Open a dedicated business bank account
Use accounting software or hire a bookkeeper to track finances
This not only protects your personal assets—it makes taxes and funding applications much easier.
7. Decide If You’ll Need Help
Can you file your LLC yourself? Yes. Should you? Maybe not.
Filing incorrectly, choosing the wrong structure, or forgetting a step could cost you in the long run. Hiring a consultant to guide you through the process often saves time, money, and future stress.
At L&A Consulting Services, we offer:
State-specific LLC filing
EIN registration
Operating agreement drafting
Business structure guidance
Startup consultation packages
We help you start the right way—with strategy and confidence.
Ready to Launch with Confidence?
Starting your business is a big step—but you don’t have to do it alone. Let’s make sure you have the structure, clarity, and compliance to grow.
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