The Legal Steps to Take After Forming Your LLC or C-Corp
Establishing an LLC or C-Corporation is a critical first step in launching a legally compliant and scalable startup. However, many founders mistakenly believe that forming an entity is the end of the process. In reality, incorporation is just the beginning of a broader legal framework necessary to operate a business successfully—especially in Miami's fast-paced, startup-driven market.
This guide outlines the essential post-formation legal steps for startup founders and venture capital professionals to protect their business, attract investors, and ensure regulatory compliance.
1. Obtain an Employer Identification Number (EIN)
An EIN functions like a Social Security number for your business and is required to open a bank account, file taxes, and hire employees.
Action Steps:
Apply for an EIN through the IRS website.
Use the EIN for all federal and state filings.
2. Draft and Execute Organizational Documents
Each entity type has required internal governance documents that formalize how the company will operate.
LLCs:
Draft an Operating Agreement detailing ownership percentages, voting rights, profit distributions, and management structure.
C-Corps:
Prepare Bylaws and issue stock to founders.
Hold an initial board of directors meeting and adopt resolutions.
Action Steps:
Ensure all documents are signed and stored securely.
Customize templates to reflect your startup's needs.
3. File for Necessary Business Licenses and Permits
Failure to secure proper licenses can lead to fines, legal challenges, or a halt in operations.
Action Steps:
Check local, state, and federal requirements depending on your industry.
In Miami, use the Miami-Dade County Business License portal to research local permits.
4. Open a Business Bank Account
Separating personal and business finances is essential for liability protection and financial clarity.
Action Steps:
Choose a bank experienced in servicing startups or early-stage businesses.
Provide your EIN, formation documents, and ownership agreements when opening the account.
5. Set Up a Cap Table and Issue Equity
Cap tables track equity ownership and are vital for current and future investors.
Action Steps:
Use a cap table management tool like Carta or Pulley.
Document founder stock issuances and investor shares.
Implement vesting schedules and 83(b) election filings within 30 days of stock issuance.
6. Implement Intellectual Property Protections
Ownership of your startup's IP must be clear from day one.
Action Steps:
Use invention assignment and confidentiality agreements with all employees and contractors.
File trademarks, patents, and copyrights as appropriate.
Ensure your company—not the founders—owns the IP.
7. Register for State and Local Taxes
Compliance with state and local tax authorities is non-negotiable.
Action Steps:
Register for Florida state taxes via the Florida Department of Revenue.
Check local tax obligations within the City of Miami and Miami-Dade County.
8. Comply with Ongoing Filing Requirements
Failure to maintain good standing can result in administrative dissolution.
Action Steps:
File annual reports with the Florida Division of Corporations.
Maintain minutes of board meetings and updated records.
Renew licenses and permits annually.
Establish Legal Infrastructure for Long-Term Success
Taking the right legal steps after forming your LLC or C-Corp is crucial to protecting your startup's future. From organizational documents to equity structuring and tax compliance, founders who proactively address these legal requirements build trust with investors, regulators, and partners.
For personalized legal guidance in post-formation compliance, equity issuance, and ongoing governance, contact our experienced Miami startup attorneys at 786.461.1617. We’ll help ensure your business is legally sound and positioned for sustainable growth.