Once you have claimed your LLC, you will realise that there are many opportunities that can come with an LLC. However, you also have to keep track of how to keep your LLC active. Here are some tips to consider for keeping your LLC active.
Follow the right rules
There are four clear rules that you need to follow when it comes to maintaining the LLC status:
You need to be transparent
You cannot deceive the federal government and state government in any way. You have to be ethical with your business and be responsible for actions and decisions that you take. If you do deceive the government or fail to comply with rules, you will face consequences.
Keep the cash flowing
There needs to be consistency when it comes to the cash flow for your company. Do not let your company have debts stacking up, because it will crash your company and cause bankruptcy. Having a good business means that there is steady cash flow that can maintain the future of your company.
Keep the assets separate
You cannot mix your personal assets with your business assets, nor your member’s. You have to set up a business bank account, get a business credit card and get an EIN. If you do mix both assets together, it can become a very messy situation, especially if you are getting sued.
Manage it well
You have to have a clear organisation when it comes to your LLC business. You need to make sure that the operating agreement has a clear structure and that you stick to it, so that everything is managed well. This has to be decided between you and your members if you are more than one.
How long does it stay active for?
Depending on the state that you have applied in, you just simply need to pay every year to two years. For example, in the state of California in order to keep it active you need to pay the state’s LLC taxes and fees, as well as file the LLC tax return. You also need to keep the statement of information up to date and renew the business licenses.
When filing your article of organisation as an LLC company, you need to state when you want to LLC to expire. If you do not state when you want it to expire, you just need to pay for it annually. If your business is inactive and you do not have any transactions under the business, it then means that your LLC has become inactive, since you failed to comply with the rules. If you do not pay your LLC fee when required, you will have to face the consequence of penalties from the federal government. Even if you do not receive any income you still need to file a tax return for your LLC.
When running a business you need to be responsible for every sector, including the LLC. When you have registered agents, they can help you keep track of your annual filing for taxes, as well as all the legal paperwork needed in order to handle your LLC correctly. Having an LLC can be beneficial for you in many ways, such as giving you flexible taxes, separating your business assets to your personal assets, as well as legitimizing your name.
Maintaining your LLC can be easy and straightforward, just like any other sector in your business. If you want to keep a good reputation and maintain the professionalism of your business, then you need to have good time management and make sure that you are paying everything on time. If you are having trouble maintaining this by yourself, you can hire professional help such as an accountant who can maintain everything for you. You shouldn’t ever feel like you are alone, for there are professional organisations that can help you every step of the way.