(DailyThrive.com) – Are you trying to get your business up and established? One of the first actions you need to take is to get an LLC, but you could be at risk for a few pitfalls if you aren’t prepared. Hawthorn Law explains it here:
Here are some ways to not make these common mistakes with your LLC:
- Not having an operating agreement in place. TRUiC explains that you need a clear view of what your business goals are. Sort of like a business plan. It should include where the business is located, where funds will be dispersed, and how much profit you expect to make from your transactions of sales.
- Misplacing meeting documentation. Keep track of your meeting minutes. Whether it’s for one or 20 employees, always take notes on necessary expenses. Document the costs and why you need to use funds from your business to pay for them.
- Doing your own books. Even if you took a year of accounting in high school, you should still hire a good bookkeeper. They will be able to advise you along the way on how to pay taxes and how to set specific amounts of money aside for every expense.
- Don’t combine accounts. Venturize advises to keep business and personal bank accounts separate. Have two different accounts, one for your LLC and one for your personal bank account, which will make expenses easier to sift through should you ever get audited.
The main purpose of an LLC is to protect yourself, your business and personal assets from a lawsuit. It’s important to do things properly by the books. The right start will ensure a prosperous business plan for years to come.
~Here’s to Your Success!
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