Why Proper LLC Setup is Vital for Protections and Benefits (+ Top Mistakes)

Here are 6 detrimental mistakes that I see new and existing business owners make when operating their business under an LLC. The first is that they're operating their LLC without an operating agreement. An operating agreement is required by law in some states, and even if it's not required by law in your state, it's still strongly recommended because it will avoid the state's LLC laws from automatically applying to your business. And if you have partners, it's even more important because it's going to essentially act as a partnership agreement to make sure that all of the partners are on the same page. The second mistake is not having an EIN number for your business, which is required if you have employees. And even if you don't have employees, it's strongly recommended so that you don't have to use your social security number everywhere. The third mistake is choosing to have your LLC taxed as an S corporation. Too soon and before your LLC is making enough money. There's a lot of hype out there about having your LLC taxed