Your LLC Could Be Completely Illegal Right Now #entrepreneur #tax

This is actually the single most common broken LLC I see. Mistake number 1, you formed the LLC in the wrong state because the internet, AI, or some guru told you to. But it happens when someone watches a video, sees an ad, it sounds great and they do it, but without asking the one question that actually matters most. Where are you doing business? That's the first question. Here's an example of the trap. You live in Arizona, you work in Arizona, your clients are in Arizona, and you form an LLC in Wyoming for $300 because it sounded great, it was a better price, it was simpler, it was easier, someone told you to do it. Then Arizona says, "Great, now register here too as a foreign LLC because this is where you're doing business." Maybe surprised, and then you say, "Okay, so now I've got 2 state filings, 2 annual fees, 2 registered agents, 2 layers of compliance, and what did it get me?" So that $300 hack quietly becomes a $500, $800, $1,200 mistake and a lot of paperwork for zero extra protection.