When forming a limited liability company (LLC), there are a number of important things to keep in mind in order to ensure that your company is properly formed and protected. Unfortunately, many people make mistakes when forming their LLC, which can lead to a number of problems down the road. Here are five of the biggest mistakes people make when forming an LLC:
Not Hiring an Attorney
One of the biggest mistakes people make when forming an LLC is not hiring an attorney. Many people think that they can save money by forming the LLC themselves, but this is a huge mistake. There are a number of important legal documents that need to be filed when forming an LLC, and if these documents are not properly completed, it could cause a number of problems for the company down the road.
Not Filing the Proper Documents
Another big mistake people make when forming an LLC is not filing the proper documents. In order to form an LLC, there are a number of different documents that need to be filed, including the Articles of Organization and the Operating Agreement. If these documents are not filed properly, it could cause a number of problems for the company.
Not Complying with State Laws
Another mistake people make when forming an LLC is not complying with state laws. Each state has different laws regarding LLCs, and it is important to make sure that you are complying with the laws in your state. If you are not complying with the laws in your state, it could cause a number of problems for your company.
Not Having the Proper Insurance
Another mistake people make when forming an LLC is not having the proper insurance. LLCs are legally required to have liability insurance, and if your company does not have this insurance, it could be held liable for any damages that occur.
Not Keeping Good Records
Another mistake people make when forming an LLC is not keeping good records. It is important to keep track of all of the important documents for your company, as well as to keep track of the meeting minutes and other important information. If you do not keep good records, it could cause a number of problems for your company.
