How to Register an LLC for Catering
Introduction
Whether you’re new to catering or a seasoned professional, it can be tricky to know what to do when it comes to registering your LLC. You’ll make sure to follow all of the rules and regulations that apply to your business. In this article, we’ll walk through the steps of how to register an LLC in the catering business so that it is set up properly from the very start.
Choose a name for your business
When choosing a name for your business, consider what you want the company to be known for. Do you want it to be memorable or easy to spell?
Avoid using names that are too long or short; they can make it difficult for people to remember who your business is and how they should pronounce it correctly when talking with them on social media platforms like Facebook, Twitter, LinkedIn, and Instagram.
Get all the permits you need
After you register your LLC, you’ll need to get all the permits you need. This includes a food handler’s permit.
You’ll also need an Employer Identification Number (EIN), which is basically a tax ID number for your company. You can apply for this in person or online at IRS.gov/EIN.
To complete the process of getting your business license, visit the city where your restaurant is located and ask about their specific requirements for starting a catering business
File paperwork with your state government
This can include:
- A certificate of organization. In some states, this is also called a charter or article of the corporation.
- A business license or permit. Depending on the type of business you’re running and its location, you may need to obtain a sales tax permit or employer identification number (EIN). You’ll also want to look into whether your city has any special requirements for catering businesses—see our article on licensing and permits for more information about what those might be in different places across the country!
Obtain an Employer Identification Number (EIN) from the IRS
In order to obtain an EIN, you’ll need to fill out Form SS-4 and mail it to the IRS. The form is available online at irs.gov or at your local library. You can also use the Ask a Question tool on that site if you have questions about how to obtain an EIN or report other kinds of tax-related issues.
Once you have an EIN, keep it on hand for all future business dealings with vendors and contractors. They’ll want this number as well as proof of identity before entering into any agreements with your company.
Apply for state sales and use tax permits
An LLC is legally required to obtain state sales tax permits in order to conduct business. The same applies to use tax permits, which are issued by the state’s Department of Taxation.
What you need for your application:
- A completed Application for State Sales and Use Tax Permits (Form ST-1).
- Proof that you’re a business entity (e.g., articles of organization) or evidence that you’ve applied for an EIN number from the IRS
- Your social security number (SSN) or federal employer identification number (FEIN)
Consider obtaining a General Liability Insurance Policy
There are several types of insurance that will be important for your business. You should consider obtaining a general liability insurance policy, commercial auto insurance, business income/extra expense insurance, and property or crime coverage (if applicable).
- General Liability Insurance: This type of policy protects your business in case an injured person sues you for damages. If someone gets hurt on your premises, their medical costs could be astronomical and the resulting legal fees can quickly reach into the tens of thousands. It can help protect your assets from lawsuits by paying out if the court decides in favor of the plaintiff.
- Commercial Auto Insurance: This type of insurance is required by law when you operate any kind of vehicle owned by an LLC; however, it also gives you financial protection against damage or injury caused by one of those vehicles—like when one crashes into another car or injures pedestrians on the road. It’s important to understand which vehicles need commercial auto coverage because only those vehicles will qualify under this kind of policy—so even though most states allow LLCs to purchase personal policies through their state-issued Department Of Motor Vehicles (DMV), they won’t cover all motorized modes used by people within those organizations unless they purchase additional commercial policies instead! Make sure every vehicle used on behalf of an LLC qualifies before investing in either kind between both types because otherwise there might not be any coverage available whatsoever!
Draft and sign an Operating Agreement
You should have your operating agreement drafted by a lawyer if you have any questions about whether or not it’s necessary, what type of business structure is right for you, or how to structure profit sharing. It’s also important to get all partners on board with signing the document before you file it with the state; otherwise, there could be problems later down the line as one partner claims they didn’t know what they were signing off on when they agreed to be part owners in your company!
Set up a business bank account as well as accounting software for your company
There are many reasons why it’s important to have a business bank account. First, the IRS will detect about where all the money has come from. Second, this is how people outside of your company can pay bills for services rendered—either by check or online. Thirdly, it allows people within your company who are part of different departments to get easy access when they need extra funds on hand in order to give clients discounts during special promotions.
If there is no paperwork involved with opening up an LLC then everyone is able to do it themselves! However, since there are certain requirements standards then most likely only those who want their businesses taken seriously will go through this process.
File for any required local business licenses
Once you have filed for an LLC, next file for local business licenses permits from municipal governments. This can include a business license, zoning permit, health permit, and fire permit.
Conclusion
The process of registering an LLC in the catering business is not a complicated one. It simply requires information that you can get from your accountant or online. There are many benefits to having an LLC, including liability protection and the ability to open multiple bank accounts. If you need help setting up your company, contact our experts today!
