Now we want to start spending the company's money. For that, we are going to need a tax id, a checking account, and possibly a credit card.
If you're a single member LLC, you may not need a separate tax id. However, Legal Zoom says the following:
You might also want to get an employer identification number for security reasons. Always using your Social Security number opens you up to identity theft while an EIN is not linked to any of your bank accounts or credit cards. A federal tax ID also allows you to build up your business’s credit rating.
I went ahead and applied for one online.
When you get your EIN PDF, put it in your Google Workspace Drive, and add the EIN to your Business Facts document. I said I wasn't going to nag you about this any more, but I lied: this is your penultimate last nudge.
With your Certificate of Organization and EIN in hand (if you are a single member LLC you can usually use your personal SSN), get a checking account. It's harder than you would think to open up a business checking account online, so you might want to visit with a human banker. Depending on your state, you me need additional documents besides your Certificate of Organization -- that's just one reason to talk to a human. If you want to be picky about what bank you're using, you might consider recommendations here and here. You may be able to apply for a debit card at the same time.
You will have to put some money into the account; I deposited $1000 to avoid monthly charges. [Nudge: budget]
You would be surprised at the number of things that cannot be purchased without a credit card, so you may want to get a business card.
Will you be receiving Protected Health Information by postal mail? If you have even one client that wants to communicate this way, you are going to either have a secure and controlled mailbox or use a postal mail service that will sign a HIPAA BAA. I've listed a couple of options in the resources. You might not think this is necessary, but what an auditor wants to see is that mail is delivered in such a way that it can't be stolen either by someone from the outside, or from an employee. Additionally, they want to see secure mail paths within the company: They don't want to see mail lying in an "out" box in a reception area.
Have an EIN (might be optional)
Opened a Business Checking Account
Started a Business Credit Card (probably optional)
| Item | Amount |
|---|---|
| Balance | $414 |
| Deposit to checking | $1000 |
| Total for this part | $100 |
| Total so far | $1414 |
No. But now we can pay for some things that will establish a perimeter.