Mark Kohler explains that inactive LLCs don't automatically disappear. Some states let them linger indefinitely, racking up annual fees, penalties, and tax notices even when you've stopped using them. You need to formally dissolve an LLC or it keeps generating costs.
Now, here's another fallacy. You may not be using that LLC that you set up years ago. Well, this is great news, Mark, because that LLC died on its own. Hmm, not necessarily. And I see this constantly. Some states don't let LLCs die. Others will automatically kill them if you don't keep them updated. It's a grab bag here. This could be a problem. Let's say you had a side hustle or an old rental or a failed partnership or a business idea that you abandoned. You stopped operating the LLC, so you thought I thought the LLC was over. Well, in your state, that doesn't mean anything at all. If you didn't actively dissolve the LLC, it's still there and could be racking up fees to surprise you later. It could actually create annual reports you missed filing and penalties for those, state fees, tax notices, compliance obligations. The headaches later start when you didn't realize the LLC was dissolved because you just ignored it.
The secret to managing your family's future #financialfreedom #estateplanning #shorts
Moving Property to an LLC: What They Don't Tell You #realestate #investing #tips
