Mark Kohler explains that an LLC requires far more than filing one page with the state. You need an operating agreement, corporate book, meeting minutes, an EIN, and a manager-managed structure for privacy. He stresses consistent bookkeeping, regular meetings with accountants and lawyers, and timing an S-corp election for tax optimization.
Chapters
An LLC is not one sheet of paper. And I know some of you like, well, I can go to the state and do it for $50. Yes, you can. But that's only about a fifth of an LLC. You've got to have a corporate book, you have to have an operating agreement, you have to do regular minutes. You got to get a tax ID number, and heaven forbid, you did it. Member managed. That's the last thing you want. You have no privacy. We set up our llc manager managed. We want to make sure it's set up in the right state. You've got all the pieces and parts in your minutes to write off home, office, your car, equipment, and make an s election when the time's right. These are provisions that have to be in your LLC. And I know LegalZoom and other companies make it sound so freaking simple. And it is simple on the face of it. But successful business owners and you guys that are doing masterminds using mentors, you know, they can pull up their books and look at their profit right there. They know what their expenses are. They have a phone number to an accountant that they meet with regularly. They meet with their lawyer once a year. They have an estate plan. They're buying rental properties. They're investing in their Roth. People will get you there. I want you there.
