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1. Draft an Operating Agreement (even for single-member LLCs)
An Operating Agreement is a legal document that lays out your
LLC’s ownership structure, member responsibilities, and operational guidelines.
Think of it as your LLC’s internal rulebook – it spells out how decisions are made, who has signing authority, and what happens if a member leaves.
Even if you’re running a single-member LLC, having this document is crucial to clearly separate your personal assets from your business.
Without an Operating Agreement, your LLC is bound by your state’s default rules, which might not align with your business needs.
More importantly, this document helps protect the corporate veil – the legal barrier that keeps your personal assets safe from business liabilities.
Courts have sometimes treated LLCs without proper agreements as sole proprietorships, putting personal
assets at risk.
Some states – California, Delaware, Maine, Missouri, Nebraska, and New York – require an Operating Agreement by law.
Even if your state doesn’t, it’s smart to create one. You can use free or low-cost templates (usually $0–$50) or hire an attorney if your situation is more complex.
When signing, make sure to do it correctly. For example, use "John Doe, as Authorized Member of Example LLC" instead of just your name to maintain liability protection.
It’s also important to update your Operating Agreement whenever you bring in new partners, adjust profit-sharing
arrangements, or make significant changes to your business model.
As Rocket Lawyer explains:Setting out rules and expectations at the development of the LLC can avoid a lot of conflicts and headaches down the road.
Keep this document alongside your Articles of Organization and other key records.
You might need it for audits, legal disputes, or even when applying for funding.
Once your Operating Agreement is in place, the next step is securing your EIN to ensure compliance and open a business bank account.
2. Get your EIN (and how to do it fast)
An Employer Identification Number (EIN) works like a Social Security number for your business. It’s a unique nine-digit code the IRS uses to identify your LLC for tax purposes.
If you have employees or multiple members in your LLC, an EIN is legally required. But even if you’re a solo founder, getting one is a smart move.
Using an EIN on forms like the W-9 instead of your personal Social Security number can simplify banking and help safeguard your personal identity.
Here’s the best part: applying for an EIN is completely free and takes just about 10 minutes if you use the IRS online application system.
Just make sure your LLC is officially approved by your state first, so the legal name matches what you submit to the IRS.
The online system is available Monday through Friday, from 7 a.m.
to 10 p.m. ET.
Be cautious of third-party websites that charge fees – some ask for $50 or even over $200 for something you can easily do yourself at no cost on the IRS website.
Once you’ve got your EIN, keep it secure. You’ll need it for opening a business bank account, filing taxes, applying for licenses, and building business credit that’s separate from your personal credit
score.
If you’d rather not handle the process yourself, BusinessAnywhere’s EIN application service can take care of the paperwork, submission, and follow-up for a flat fee of $97.
With your EIN secured, you’ll be ready to open a dedicated business bank account and keep your personal and business finances separate.
3. Open a dedicated business bank account
Setting up a business bank account is a crucial step in protecting your personal assets by keeping your LLC’s finances separate.
Without this separation, courts might "pierce the corporate veil",
potentially holding you personally liable for business debts or lawsuits, which is why understanding how to protect your personal assets is vital.
This could put your personal savings at serious risk .A dedicated account not only safeguards your personal finances but also enhances your business’s professionalism.
It allows you to accept payments under your company’s name and makes tax preparation much easier by maintaining clear financial records.
What you’ll need to open the account:
- Your EIN (from step 2)
- Articles of Organization
- A government-issued ID
Some banks might also require a banking resolution, which is a document specifying who is authorized to open and manage the account.
Many banks let you start the application process online in under 30 minutes, though final approval usually takes 1 to 3 business days.
Once you’ve gathered your documents, the next
step is choosing the right bank for your business.
Choosing the right bank:
- Online banks often offer $0 monthly fees and no minimum balance requirements, making them a good fit for freelancers or tech startups.
- Traditional banks, with fees ranging from $15–$30 per month, are better suited for businesses that handle cash deposits, such as brick-and-mortar stores.
After opening your account, link it to accounting software like Wave or QuickBooks to track every transaction from the start.
When signing documents, always use your name followed by your title, such as “John Doe, as Authorized Member of Example LLC,” to reinforce the legal distinction between you and your business.
If you need help with the setup, check out our bank account opening service.
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Our mailing address is:
BusinessAnywhere LLC, 1740 Dell Range Blvd, Ste H 13, Cheyenne, WYOMING (WY) 82009, United States
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