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Big Four Firms are huge and not restricted to Chartered Accountants alone.Initially, Big Four Firms provided accounting and auditing services, however, with time, they expanded horizontally and today they hire Professionals across various qualifications and experiences. This is because of the services that they provide today. This is the major reason why the Big Four Firms are becoming ‘too big to fall’, the reason why Price Waterhouse Coopers still holds strong globally, even after the Satyam scam and many more unheard cases. An organisation organises itself in such a way to make provision of services easier and therefore, understanding the departmental structure is the best way of understanding the nature of services.The structure is a little complex and unique, owing to the Service-oriented business catering variety of services across various industries.The classification in the Big Four firms is a little complex and you are not just known by your department but also the industry you work in and the services that you provide. So a person is known by his Service Line, Industry, Sub-industry sector, Department, Location and the Designation.E.g. Rahul Desai (Manager, Assurance - Auditing, Mumbai, A&T - Transportation)Here, Rahul works in Assurance service line, his industry would be Automotive & Transportation, and sub-industry sector in Transportation companies. He works at the Mumbai Office of his company and his department is Auditing, designation Manager.The following flowchart will explain the usual structure of Big Four Firms:Usual Service Lines -Assurance ServicesTaxation ServicesAdvisory ServicesTransaction Advisory ServicesBusiness Support Services (Non-revenue department, internal administration purposes only)These departments are further divided into various categories as you can see in the image as well.Usual Service Industries -At the same time, the Big Four firms are also further divided into various industries. This is a recent change and while some firms have already completed it, some are in the transition phase.Automotive and TransportationTechnology, Media and TelecomGovernment and Public SectorFinancial ServicesPower and UtilitiesConsumer Products and RetailBanking and Capital MarketsReal Estate, Hospitality and CommunicationEach of these industries is further categorized into various sub-sectors e.g. Technology, Media and Telecommunication would have three sub-sectors as it appears in the name. The sub-sectors are not very strict, a person may be involved in different sub-sectors, however, the service industry remains the same in all cases.Assurance Services -This is where the most of the Chartered Accountants work and CA Students work as it is a legal requirement for the purpose of auditing. However, the assurance department is not exclusively about Auditing. Areas like Accounting Advisory,The major subdivisions are:Statutory Auditing - They provide auditing and allied services including Income Tax Audits, Transfer pricing audit and Other Certifications. They also do Group Reporting and Audits of Consolidated Financial Statements.Accounting Advisory - They help companies resolve complex accounting issues like accounting in case of mergers and acquisitions, accounting in case of the First-time adoption of IndAS. This department majorly consists of experienced professionals.Assurance Services - Various other types of other Auditing and Certifications where independence is a requirement e.g. SOX audit. This does not include Internal Auditing.Fraud Investigation and Dispute Resolution - This is an emerging area and as the name goes, they help investigate financial and accounting frauds or resolve disputes between companies or within companies.Taxation Services -This is also a department where the majority of employees have Chartered Accountant qualification, however, the number of Articled trainees is very low as compared to the Auditing department.The major subdivisions are:Business Taxation - They provide services in relation to Income Tax and other direct taxes to Corporates and even to individuals. They also provide services in relation to Appeals and Assessments.Indirect Taxation - They provide services in relation to Goods and Service Tax, and erstwhile Excise, Service Tax and other local sales tax. All indirect taxation related services including appeals and assessments are handled by this department.International Taxation - The companies which have a multi-national presence or if there are individual assignments in relation to taxation of cross-border transactions, the same is handled by this department.Transfer Pricing - Transfer pricing study reports are prepared by this department. They also evaluate and confirm various transfer pricing transactions and assessments of the same. The Transfer Pricing audit is not conducted by this department.Transactional Taxation - Taxation services in relation to specific transactions like corporate restructuring, mergers and acquisitions, complex purchasing arrangements, etc.Global Employer Services - Taxation services for the companies in relation to its payroll and other contractual employees.Advisory Services -This a department where people from different educational backgrounds work together to provide all kinds of services. This is the most growing sector of the Big Four firms and definitely the biggest source of revenues for the firms. The auditing clients are lured into these services so that even after rotation, the firm can still generate revenue on the basis of relations developed.The major subdivisions are:Internal Audit - Yes, against the common misconception, internal auditing is a part of Advisory services and not Assurance services. Assurance services require Auditors’ independence, however, internal auditing does not require the same, as auditors report to the management. It is interesting to note here that this department includes Chartered Accountants and Software Engineers working in same teams.IT Advisory - This department provides services in relation to Accounting ERPs. They help companies in the implementation of ERPs in the company and also furtherance of the same or resolving issues in relation to the same.Risk Advisory - As simple as its name, the risk advisory department identifies risks and advises ways to mitigate the same, sometimes even implement the solutions. These risks primarily relate to accounting and finance or the reporting processes.Cyber Crime and Security - A very emerging area and growing at a very high rate given the increase in the inclusion of internet in multinational accounting and reporting. However, accounting is not the only angle as this department also conducts cyber security audits.Performance Improvement - They dig deep and identify issues which may impede the performance of the daily functioning of the company and its processes. E.g. Trade receivables department is sluggish and the sales entries are posted two days after the actual sale. This department will help them improve this timing.Transaction Advisory Services -This service line does not regularly deal with the client, it only provides one time services in relation to specific changes that are occurring in the company. However, these are important transactions and therefore, the company seeks professional pieces of advice which this department provides, from the Financial angle.Mergers and Acquisitions - All the top mergers and acquisitions that you hear about every day in the news are actually being handled or performed under the guidance of this department. The accounting and taxation angle is already handled by the Assurance and Tax departments; this department looks after the core financial issues and the arrangements made. They advise companies in relation to the valuation and share exchange/issue ratio.Corporate Restructuring - When there is restructuring, this department helps to handle the financial end, while accounting and taxation angle is already handled by the Assurance and Tax departments. They advise the various ways of improving the company’s financial structure and the divisions, whether to spinoff, sell or expand.Project Finance - If the company is taking up new projects, this department helps it to understand the finance that might be required, the way to finance the need and the future course of action thereon including the working capital management thereon, in relation to the project. This involves a lot of forecasting financial numbers.Valuation and Business Modelling - Valuations of companies are useful at the time of initial public offering or subsequent offerings. The same is also helpful at the time of mergers and acquisitions or sometimes while selling off an arm or assets of the company. This department values the assets and net worth of the company, the value of shares or the value of the investment.Due Diligence - Investors often request due diligence to be conducted before they invest in the company. Due diligence ensures that the company is clean from all angles and it is safe to invest in the company. This department evaluates the company and provides due diligence certificates to the investment company or the venture capitalists.Business Support Services -This department does not provide any services to external clients, but this is just the administration wing of the Big Four Firms. There are so many departments, offices and employees in the company, and thereby, so many needs of each department. This is a central department (at each location) which helps the functioning of all the other departments mentioned above.So just like a normal company has Finance department, Human Resources department, Procurement department, etc. the Big Four firms also have these departments.Human Resources - People who hire, recruit, organise training, address issues, execute increments, bonuses, promotions and also the separations.Information Technology - To solve all IT related issues that employees face, including the internal development of softwareRisk Management - This department evaluates the processes of its firm, especially the Assurance department where the independence and other educational qualification are mandated by the company. This department ensures that the firm complies with all its requirements.Brand Management and Communication - This is kind of internal Public Relations department (usually located in one or two offices like Delhi and Mumbai in India) which ensures that the public appearances of its partners and employees are seen through, managing campaigns - both internal and external and even the social media management, all are included in this department.Accounting - Accounting of the firm itself.Payroll - Handling the payroll processing and payments, the tax deductions and compliance with labour laws.Knowledge Management - These teamsTrade Payables - Managing the payments to the vendors providing services to the firm itself.Trade Receivables - Managing the invoicing to the client and the receipt thereon, of the firm itself.Finance - All banking transactions, payment processing and other financial needs or analysis of the firm itself.Procurement - Purchasing assets like laptops, furniture, etc. or routine purchases like cafeteria supplies, stationery supplies, etc. or business requirements like books, software, etc.Administration - Managing the office, housekeeping, front desks, telephones, business cards, letterheads, etc.Travel Desks - Since the Big Four firms provide services which involve visiting client locations and also internal travelling across the firms' offices, it also has a department which handles all travel books.Resource Management - This team looks after allocation of employees to various teams/projects/assignments, since this is a service-oriented business and the teams usually change after every assignment.ConclusionBig Four Firms are big, very big! Not sure if ‘too big to fall’, still they are mammoth firms which ensure their survival very well. Their competition isn’t with the local firms, that would be an absolute misconception. The way these firms have widened the scope of their services, while they provide opportunities to the professionals from various backgrounds, they also pose a threat to the business of the existing companies providing those services.

Over the past few decades, employers have dramatically shifted their attitudes toward employees. Today, most corporate executives and business owners will give the same answer if asked to describe their workforce: they’ll say payroll is their biggest expense.This may be true, but it reveals that their employees aren’t an investment: they’re basically a drain on potential profits. A necessary evil.Once upon a time, employers valued their workforce as the engine driving the business. Each employee’s professional trajectory was anticipated and enabled by employers, and those who wished could join a firm out of school and eventually retire from a single employer. A job meant you could afford to own a home, provide comfortably for a family, and live well.The seminal example is Eastman Kodak — virtually every person who lived in Rochester, NY (Kodak’s global headquarters) either worked for the company, was related to an employee or depended on Kodak employees to provide revenue for their businesses.In the early ‘80s, a janitor at Eastman Kodak would earn around $16/hour (adjusted to 2018 dollars).Janitors were full-time employees of Kodak; they received four weeks of paid vacation like every other Kodak employee, as well as a generous bonus paid each year in March to the entire workforce.Employees were pushed by managers to take advantage of Kodak’s tuition assistance program, which paid for training, classes, college courses and obtaining advanced degrees. The company had no requirements for the education to be job-related or beneficial to Kodak.One janitor at Kodak in the ‘80s was named Gail Evans. She had been cleaning Building 326 on the corporate campus for a few years, until the company decided to shutter that office. Evans wasn’t fired.She was a valued asset, and all workers in the closed building found new jobs within Kodak. The ethos and corporate culture — give employees skills, then advance them where those skills are valuable — meant Evans wasn’t limited to janitorial work, or unskilled jobs.Kodak trained Evans to be a film-cutter, which is a skilled trade. She moved upward.Managers knew which parts of the business were growing or in high demand, and at the time Kodak was selling a lot of high end 70mm film and processing "theatrical prints" of Hollywood movies: a print is a copy of the film master cut into reels, which are sent to theaters and projected on the screen.They taught her, then advanced her to a position that utilized what she'd learned.While working full-time, Evans took night school classes (paid by Kodak) to learn how to create spreadsheets using the curious new devices called “personal computers” that were starting to show up in accounting and distribution in big companies.Her manager — following the corporate culture of engaged management and being proactive in advancing their employees’ — knew she was learning about PCs and spreadsheets, and asked Evans if she could teach other employees how to use spreadsheet software to track inventory.She did, and when she graduated from (Kodak-sponsored) college in 1987, the company promoted her to join Kodak’s IT department.Evans new job was a career-track information technology professional — the company groomed employees at this level to develop the skills and knowledge they’d need as Kodak executives.The career track to the top of Kodak’s org chart wasn’t a pipe dream or an empty promise: it was the default assumption. Put in the time and effort, get promoted, develop skills, join the leadership. Duh.Within a decade, Gail Evans was named Chief Technology Officer (CTO) of Eastman Kodak’s global operations. She eventually moved on to larger executive roles at even bigger companies, and by every measure lived the American Dream.Starting as a janitor and becoming CTO for one of the biggest companies in the world was only possible because Kodak paid her well, provided generous benefits, and (most importantly) fostered a culture where managers had an obligation to move people upward and train them so they had the skills to succeed.Kodak's management style is all but forgotten in corporate America today: managers were trained to identify opportunities for their employees; recognize under-utilized skills and find ways to utilize them; and open doors to everyone.Once upon a time, a janitor could become a film-cutter if given the chance and training under good managers. And a film-cutter could learn to operate corporate IT systems, which means in time they could be the person in charge of an entire corporate IT division.A janitor doesn't become CTO by force of will, and this isn't a natural career path. But when a company treats every employee with respect and promotes a culture of growth, opportunity and employees as investments, the path upward reveals itself: unskilled worker becomes skilled. Skilled becomes specialized. Specialized becomes professional. Professional become executive and a leader is made.(The story above owes much to this excellent article in the New York Times: To Understand Rising Inequality, Consider the Janitors at Two Top Companies, Then and Now)Kodak was one of the biggest companies in the world 35 years ago.Today, its equivalent is Apple. Apple dominates the smallish Bay Area city of Cupertino, CA, where its HQ has been since the beginning. Apple pays its professionals well, and provides stock options to many worth a ton.But while many businesses and non-Apple employees inside Cupertino depend on Apple and Apple employees to earn a living, Apple has very little civic integration with Cupertino and the city’s leaders.Steve Jobs famously appeared before the Cupertino City Council, where he presented early concepts for the company’s planned giant ‘Ring’ HQ expansion. Jobs described the wonders of the $5 billion expansion, which covers 175 acres of Cupertino.When Jobs finished, a traffic consultant for Cupertino warned that the impact on traffic from 12,000 employees hadn’t been considered by Apple’s architects. He predicted catastrophic traffic jams, dangerous burdens on the adjacent Highway 280 on-ramps, and heavy burdens on the city infrastructure that would require issuance of bonds or higher taxes to cover.The City Council told Jobs that Apple needed to fix the traffic problems and present them with a revised design before the city would approve it.Steve Jobs, in his last public appearance before his death, told the City Council that if Cupertino didn’t like his building, Apple would leave Cupertino and find a city that did.Cupertino dropped the matter, and taxpayers will bear the burden of repairing city infrastructure that Apple could have preserved by changing the configuration of its employee parking lots. Steve Jobs said no. Apple, unlike Kodak, saw its power and influence in their HQ city as a weapon: give us what we want, or lose everything.This hardball mindset may make Apple a trillion dollar company, but nobody will be telling stories 40 years from now about Apple's legendary civic involvement. And they won't have any stories about janitors becoming chief executives. Here's why:Janitorial staff at Apple actually earn the same as Kodak’s janitors did, $16.10 an hour. But janitorial services are contracted through an outside company, so janitors aren’t Apple employees.Apple awards the service contract to the lowest bidder, so the company that employs Apple’s janitors offers them no vacations, no vacation pay, no tuition reimbursement, no chance for opportunities within Apple, and absolutely no job security.They are invisible, replaceable and an expense to be minimized. If Apple managers aren't even aware of janitors as individual people, they aren't spending any time finding them new opportunities.The janitors, to be fair, do have a path to higher pay: Those who work a certain number of hours and miss zero shifts will eventually qualify for their pay to jump from $16.10 to $16.60 per hour.That's an advancement horizon of 50 cents. Before taxes. Just don't get sick or miss your bus, and the world is your janitorial oyster.

LLCs are similar to corporations in that they offer limited liability protection to their owners. LLCs also have fewer corporate formalities and greater tax flexibility. However, one of the disadvantages is that profits may be subject to self-employment taxes. Compared to limited partnerships.What Is a Business Account?by K.A. Francis[A business needs a system to manage its money. Business accounts are used to track the cash balance, money owed to the business, money owed to creditors and payroll paid to employees. The number of accounts a business needs will vary, but business accounts are universal for all businesses.Checking AccountThe business checking account is the backbone of a business. From this account payroll is deducted, bills are paid and sales are deposited. This account is also generally the first relationship business will have with a bank. Proper maintenance of this account can forge a relationship that could prove beneficial if the business needs funding for expansion or a line of credit.Merchant AccountsBusinesses that accept credit cards will need a merchant account for payments made via credit cards. Merchant accounts also accept online payments that might be made through a credit card or PayPal. A merchant account allows the business to accept all forms of payment, an attractive and convenient benefit to customers. Accounts are set up through a bank and a third-party processor. A business with an online presence will find a merchant account especially helpful.Accounts PayableAccounts payable are a listing of accounts the business owes to its creditors. Examples of these types of accounts include mortgages, car notes and lines of credit extended to the business by other businesses. This account is different from typical business expenses because they are long-term or revolving accounts. Payments on these accounts are typically disbursed from the business' checking account.Receivable AccountsReceivable accounts are the opposite of payable accounts; these accounts represent money owed to the business by other businesses. For example, if the business extends credit to its customers, the amounts owed to the business are receivable. Money is not credited to this account, instead, payments on a receivable are deposited into the business' checking account. This account, along with the payable account, is informational accounts.Payroll AccountWhen a business has employees, money from the business checking account is moved into the payroll account. Using separate accounts to pay employees makes tracking the amounts easier for general accounting and tax purposes. Not all businesses use a specific payroll account but instead, elect to deduct the total amount of payroll from the business account, but from an accounting standpoint, using the payroll account makes things easier.]How to Form an LLC:What is an LLC, Advantages, Disadvantages & MoreBy Heather Huston, Assistant Service Manager, BizFilings[A limited liability company (LLC) is a popular choice among small business owners for liability protection, management flexibility, and tax advantages this form of business entity often provides. Understanding the benefits and disadvantages of an LLC, how to start an LLC, where to form your LLC and other key topics is essential for business success.What is an LLC?A Limited liability company (LLC) is a business structure that offers limited liability protection and pass-through taxation. As with corporations, the LLC legally exists as a separate entity from its owners. Therefore, owners cannot typically be held personally responsible for business debts and liabilities.The LLC allows for pass-through taxation, as its income is not taxed at the entity level; however, a tax return for the LLC must be completed if the LLC has more than one owner. Any LLC income or loss as shown on this return is passed through to the owner(s). The owners also called members, must then report the income or loss on their personal tax returns and pay any necessary tax.Benefits of Forming an LLCThe benefits of creating an LLC—as opposed to operating as a sole proprietorship or general partnership, or forming a corporation—typically outweigh any perceived disadvantages.Limited liability: Members (which is what the owners of an LLC are called) are shielded from personal liability for acts of the LLC and its other members. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. The personal assets of sole proprietors and general partners, on the other hand, can be pursued against the business’ debts. Note: It is possible for an LLC (as well as a corporation) to lose its limited liability. This is known as “piercing the veil”. For more information, see How to Avoid Piercing the Corporate Veil.Flexible membership: Members can be individuals, partnerships, trusts, or corporations, and there is no limit on the number of members. S corporations (which is a corporation that has elected to be taxed as a pass-through entity under Subchapter S of the Internal Revenue Code) are much more restricted in who can be a shareholder, and there is a maximum limit on the number.Management: Members can manage the LLC or elect a management group to do so. Corporations, on the other hand, are managed by a board of directors, not shareholders.Pass-through taxation: LLCs typically do not pay taxes at the business entity level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level. Corporations that cannot or choose not to be taxed as an S corporation (these are known as C corporations because they are taxed under Subchapter C of the IRC) are taxed at the business entity level and their shareholders are taxed on the income distributed to them.Heightened credibility: Starting an LLC may help a new business establish credibility more so than if the business is operated as a sole proprietorship or partnership.Limited compliance requirements: LLCs face fewer state-imposed compliance requirements and ongoing formalities than sole proprietorships, general partnerships, or corporations (whether taxed as S corporations or C corporations).Disadvantages of Creating an LLCThere are a few disadvantages to creating an LLC too, although in many cases the advantages outweigh the drawbacks.Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual reports and/or franchise tax fees. Check with your Secretary of State's office.Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation. With corporations, shares of stock can be sold by the corporation to increase ownership and, unless there is a shareholder agreement to the contrary, the shareholders can sell their shares to someone else. Typically, with LLCs, unless the members agree otherwise, all members must approve adding new members or altering the ownership percentages of existing members.How to Form an LLCAlthough generally easier to form than a corporation, there are some administrative and compliance tasks to be done. To help you form an LLC successfully and in compliance with state law, follow these eight steps.Step 1: Choose a State in Which to Form Your LLCAlthough you can choose to form an LLC in any state—even if the LLC won’t be doing any business there —most LLC owners choose to form an LLC in the state in which they plan to do business—which in many cases is the state they live in. One reason for that is that if the LLC is formed in a state where it is not doing business—Delaware is the usual choice for these LLCs—the LLC will have to register as a foreign LLC (aka foreign qualify) to do business in the state where it is doing business, which can increase formation and administrative costs.It’s important to note that the cost, taxation, and LLC laws vary from state to state, making some states more advantageous for certain small business owners. Read more about how to select a state for LLC formation.Step 2: Choose a Name for Your LLCIn order to form an LLC, you’ll have to choose a name that is not already on the Secretary of State’s records as being the name of another domestic or qualified LLC or other business entity. Many sole proprietors operate under a registered “doing business as” (DBA) name or trade name and may want to use that as their LLC’s legal name. To ensure the availability of the name you want for your LLC, whether it’s registered as your DBA name or not, you should conduct an LLC name search on your formation state’s website to determine whether your desired name is available. If you’re not ready to file your LLC formation document quite yet, it is a very good idea to reserve the name. Many states allow you to do that for a small fee and a short time period.It’s also a good idea to conduct a trademark search of the name you want to avoid intellectual property infringement or confusing your customers.Step 3: Choose a Registered AgentInforming an LLC or registering an existing LLC to transact business in a foreign state, you are required to have a registered agent in the state of formation or qualification. Many new business owners are either unfamiliar with the term registered agent or do not know the purpose of a registered agent.A registered agent, also known as an agent for service of process, receives important legal notices and tax documents on behalf of an LLC. These include important legal documents, notices, and communications mailed by the Secretary of State (such as annual reports or statements) and tax documents sent by the state’s department of taxation. A registered agent also must be available to receive service of process (sometimes called Notice of Litigation), which are legal documents—typically a summons and complaint, that provide notice that a lawsuit has been filed against the LLC. Other court documents such as garnishment orders and subpoenas are also served on the registered agent.While the owner of an LLC can choose to serve as the LLC’s registered agent, there are a number of compelling reasons why business owners—even the smallest ones—choose a registered agent service provider to assist with this important requirement. Among other things, if the registered agent is not available when these time-sensitive documents are delivered, or if the person receiving them mishandles them, it can cause the LLC serious problems. The registered agent must also have a physical address in the state, and cannot use a PO Box.Step 4: Prepare an LLC Operating AgreementAn LLC operating agreement is required in nearly every state. And although in most states it can be oral, it is highly recommended that every LLC has a written operating agreement. As the name implies it is an agreement among the members and between the LLC and the member or members as to how the LLC will be operated. Even if you are the only member it is important to have an operating agreement. It shows you respect the LLC’s separate existence (and can help avoid piercing the veil), it gives you a chance to put in writing what you want to happen in certain circumstances such as if you can no longer manage the business and allows you to opt-out of certain default provisions of the LLC statute that you might not want the LLC to be governed by.It is particularly important for multi-member LLCs to have a well-drafted operating agreement. This document will clearly spell out the division of ownership, labor, and profits, and often heads off disputes among the owners. It should detail, among things, who has the authority to do what, what vote is required to approve certain transactions, how membership interests can be transferred, how new members can be added, how distributions, profits, and losses will be split, and more. It is recommended that the operating agreement be reviewed by your attorney to be sure that all the bases are covered. Read more about the issues an operating agreement can address.Step 5: File Your LLC with Your StateTo make your new LLC officially exist you must file LLC formation documents (also known as a Certificate of Organization, Certificate of Formation, or Articles of Organization) with the Secretary of State’s office or whichever department handles business filings in the state in which you are forming. Filing fees vary across the U.S.Did You Know?What about the LLC Articles of Organization?Although it may be common to hear of an LLC being “incorporated”, the correct way to describe the creation of an LLC (or any entity type other than a corporation) is to say that it has been “formed” or “organized”. “Incorporation” and “Articles of Incorporation” are terms that apply to a corporation (regardless of whether it is taxed as a C corporation or S corporation).While each state’s LLC formation document is different to some extent, there are several common elements. These include the following:Name, principal location and purpose of the businessRegistered agent’s name and physical addressWhether the LLC will be member-managed or manager-managedStandard forms for the articles of organization for an LLC are generally available from each state. The person who formed the LLC must sign the paperwork. In most cases that do not have to be a member or manager. In some states, the registered agent’s consent to act as a registered agent is also required.Once approved and filed, the state will issue a certificate or other confirmation document. The certificate serves as legal proof of the LLC’s status and can be used to open a business bank account, obtain an EIN, and so on. Some states may also require that you publish a notice, often in a local newspaper, confirming the formation of the LLC.Step 6: Obtain an EINAfter establishing the business entity, you must apply to the Internal Revenue Service for an employer identification number (EIN). This is the identification number your LLC will use on all its bank accounts, as well as income and employment tax filings. In addition, in each state in which the LLC will be doing business, you must apply to the state's tax department for a sales tax identification number and register with the state's labor department.Step 7: Open a Business Bank AccountThis step is not a legal requirement but is a key best practice for anyone who is creating an LLC and is one of the steps outlined in our guide: 10 Steps to Starting a Business. It is crucial to separate business finances from personal ones. This is one of the main factors courts consider when deciding whether to pierce an LLC’s veil and hold the member liable for the LLC’s debts. Most banks require company details, such as formation date, business type, and owner names and addresses. Contact your bank about requirements prior to opening an account.Step 8: Register to Do Business in the Other States (If Necessary)If the LLC you formed is going to be doing business in more than just the formation state, you will have to register—or foreign qualify—in each “foreign” state. That generally requires filing an application for authority with the Secretary of State. A Certificate of Good Standing is often required as well. The LLC will also have to appoint and maintain a registered agent.Many factors are used to determine whether a company is transacting business in a state, and therefore needs to foreign qualify. Some of the common criteria include whether your company -has a physical presence in the statehas employees in the stateaccepts orders in the stateNote that different states have different criteria. To determine whether your LLC needs to foreign qualify in a certain state, it is best to seek the legal advice of an attorney.]