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Deadly Mistakes To Avoid When Setting Up Your LLC

Deadly Mistakes To Avoid When Setting Up Your LLC

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Just because you have an LLC doesn't mean you're fully protected. Many business owners assume their LLC shields them from legal and financial risks---but small mistakes in setup and management can leave them vulnerable. Are you making these costly errors?


On this episode of Become Sensible, I break down the most common LLC mistakes entrepreneurs make and how to avoid them. We'll also cover tax-saving strategies, how to protect your business assets, and the key documents you MUST have in place.


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Timestamps
  • 1:12 - The #1 mistake: misunderstanding member-managed vs. manager-managed LLCs
  • 4:38 - The financial risk of not separating business and personal accounts
  • 7:52 - Why your LLC's operating agreement needs a profit distribution plan
  • 10:27 - LLC tax classifications and how choosing the wrong one can cost you
  • 14:05 - The benefits of using an LLC to own real estate
  • 16:48 - Why assigning yourself an officer title in your LLC matters
  • 18:33 - Smart tax strategies: business reimbursements, the Augusta Rule, and more
  • 22:14 - The biggest tax filing mistakes LLC owners make

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