Bookkeeping for New LLCs: Your First 90 Days

You just formed your LLC. Congratulations! You're officially a business owner. Now what? The first 90 days of your LLC's financial life set the tone for everything that follows. Here's exactly what to do, in order.

Day 1 through 7: Get the Basics Set Up

• Get an EIN from the IRS Go to IRS.gov and apply for an Employer Identification Number. It's free, takes about 5 minutes, and you'll need it for everything from opening bank accounts to filing taxes to paying contractors.

• Open a Business Bank Account Use your EIN and LLC paperwork to open a checking account at a local bank or credit union. This is non-negotiable. Every business transaction goes through this account. If you mix personal and business money, you can lose the liability protection that makes an LLC worth having in the first place.

• Get a Business Credit Card Apply for a business credit card (or a personal card you designate for business only). use it for every business purchase. This makes expenses tracking 10x easier.

• Register for State and Local Taxes If your state has a sales tax, franchise tax, or business license requirement, get registered. In Tennessee, you'll likely need to register for the franchise and excise tax if your LLC has more than $0 in gross receipts.

Day 8 though 30: Set Up Your Books

• Choosing Accounting Software QuickBooks Online is the standard, but Wave (free) and Xero work fine for new businesses. The key is using something, not spreadsheets.

• Set Up your Chart of Accounts This is the backbone of your bookkeeping. Every income and expense category lives here. A basic setup includes:

  • Income: Sales, Services, Other Income

  • COGS: Materials, Subcontractors, Direct Labor

  • Expenses: Rent, Utilities, Insurance, Office Supplies, Marketing, Professional Fees, Travel, Software

  • Assets: Bank Accounts, Equipment, Vehicles

  • Liabilities: Credit Cards, Loans

• Enter Your Starting Balances Record what's in your business bank account on day one. If you contributed personal funds to start the business, record it as an owner contribution, not income.

• Connect Your Bank and Credit Card Link your accounts to your accounting software so transactions import automatically. This saves you from manual entry and makes reconciliation easier.

Day 31 through 60: Build Your Routine

• Reconcile Your First Month Match every transaction on your bank statement to your books. This is your first reconciliation. Get it right, and the habit is set.

• Categorize Every Transaction Go through every expense and assign it to the right category. Be consistent. If "gas for the truck: goes in Vehicle Expenses in January, it goes there the rest of the year too.

• Set Aside Money for Taxes Transfer 25 to 30% of your profit to a separate savings account each month. When quarterly tax payments come due, the money is there. No scrambling.

• Track Your Mileage If you drive for business, start tracking now. Day one. Use an app or write it down. Every mile is worth 76 cents per mile, as of July 1, 2026.

Day 61 though 90: Review and Adjust

• Review Your First Quarter Look at your P&L for the first 90 days. Are you making money? Are your expenses in line with what you expected? And category that surprises you? Investigate it.

• Review Your Entity Classification By default, your LLC is taxed as a sole proprietorship (or partnership if there are multiple owners). As your income grows, you might want to elect S-Corp taxation to save on self-employment taxes. Talk to your CPA when you're consistently clearing $50,000+ in profit.

• Set Up a Filing System Even if it's just folders in a Google Drive, have a place for receipts, invoices, tax documents, and contracts. Start the habit now so tax season isn't a paper chase.

• Evaluate Whether You Need A Bookkeeper If you're spending more than 2 to 3 hours a month on bookkeeping, or if you're not confident your numbers are right, it's time to outsource. The cost of a bookkeeper is always less than the cost of fixing bookkeeper mistakes.

The Bottom Line

Your first 90 days don't need to be perfect. They need to be organized. Get the accounts open, the books set up, and the routine established. Everything else builds on this foundation.

Just formed an LLC? A. Bryson Bookkeeping helps new businesses in the region get set up right from day one. Let's build your foundation together.