This article is a summary of a YouTube video "Don't Make These 8 LLC Mistakes! (Updated for 2023)" by Jim Hart

Eight Common Mistakes When Setting Up an LLC

TLDRLearn about the eight most common mistakes people make when setting up their own LLC and how to avoid them.

Key insights

:warning:Filing your LLC in the wrong state can cause unnecessary fees and issues.

:house:Using your home address as the business address can compromise your privacy.

:man-office-worker:Not using a registered agent can lead to missed legal documents and problems.

:calendar:Filing for S Corp election too soon or too late can have financial implications.

:file_folder:Filing articles of organization is just the first step; there are other important tasks to complete.

Q&A

Can I file my LLC in a different state from where I live?

Technically, yes, but it's usually best to file in the state where you reside.

Can I use my home address as the business address?

You can, but it's recommended to use a virtual address for privacy and convenience.

Do I need a registered agent for my LLC?

Having a registered agent ensures that you don't miss important legal documents and helps maintain privacy.

When should I file for S Corp election?

File for S Corp election when your business is generating enough income to justify the additional costs.

Is filing the articles of organization enough to set up an LLC?

No, there are other important tasks like getting an EIN, setting up a bank account, and creating an operating agreement.

Timestamped Summary

00:00In this video, Jim Hart shares the eight most common mistakes people make when setting up their own LLC.

10:50Jim showcases his new coffee mug from the Azores Islands and shares some pictures from his recent trip.

10:59The first mistake is filing the LLC in the wrong state. Jim advises against this practice to avoid unnecessary fees and issues.

11:59Using your home address as the business address can compromise privacy. Jim recommends using a virtual address instead.

12:59Having a registered agent is crucial to ensure important legal documents are properly received. Jim explains the role of a registered agent.

16:29Filing for S Corp election too soon or too late can have financial implications. Jim advises filing at the right time based on your business's income.

20:20Filing the articles of organization is just the first step. Jim emphasizes the importance of other tasks, such as getting an EIN and setting up a bank account.