Top 6 LLC Setup Mistakes || How to avoid mistakes when setting up your Limited Liability Company

Are you creating a new Limited Liability Company (LLC) or did you just set up your LLC? It is common for people to just do the initial filing (the Articles of Organization or the Certificate of Formation) and think they are done.
While yes, you have an LLC even just with that one filing, there are other requirements you must do and items you should do to keep your LLC valid and running smoothly.
In this video I share the top 6 mistakes people make when setting up their LLC, and how to avoid them.
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Legal Disclosure: Elizabeth is licensed to practice in the state of California and before the United States Patent and Trademark Office. Information contained in this video is not legal advice - please seek advice of counsel. This video and description may contain attorney advertising.
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[@ElizabethPW]

Do you have a one-owner LLC? Here are the top mistakes in your particular situation: kzbin.info/www/bejne/Z3eXqIiQadJ9qtk

[@enekneya7378]

This was so helpful!!! Would you merely go to your state to find out the required initial documents? If you use a service, would they file all the required documents for you at the beginning?

[@ElizabethPW]

Typically yes your state's website should have the documents you can use to file (or an online filing system). Services would file the first documents, but whether they do everything required depends on what package you get

[@angeltorracaofficial]

Great info. Thank you!

[@ElizabethPW]

Welcome!

[@EverettDiego]

When and how do we pick an attorney? How important are logistics in this decision? Should I try to hire an attorney in San Francisco, if I'm in San Diego?

[@ElizabethPW]

All depends in you want somoeone in person (that's a personal preference) and if you have needs that are hyper-local (like if someone is opening a restaurant)

[@zshn]

Awesome! Thank you very much. One of the mistakes I made is choosing the wrong NAICS code for my LLC. Is there a way to correct or add more NAICS code to existing LLCs?

[@ElizabethPW]

Really you have to just go back to where ever you submitted the code and either update your account or amend the filing. For example, NAICS code tends to matter for business licenses, where the fee can be different for certain types of businesses. In that case, I'd email or call the agency where you got the license and ask them how to change the code.

[@garyhayes8311]

Really appreciate your videos. I am a trucker changing the legal status from sole proprietorship to an LLC. I have a commercial vehicle that I use in my business. Do you have a video on transferring assets to your LLC? I'm wondering how to do it and what are the pros and cons.

[@ElizabethPW]

I talk about sole prop to LLC here: kzbin.info/www/bejne/n3qaqKyNd6drr7s should have some info on transferring the assets

[@bethbrown2060]

How can you modify LLC setup to be taxed as an Scorp?

[@ElizabethPW]

kzbin.info/www/bejne/Y3S7eHyCia56o6s

[@generic_official]

How do you add digital assets to your LLC? KZbin, Twitter, Instagram? So that the LLC owns them. Would this be another document, similar to the operating agreement?

[@ElizabethPW]

Sometimes we include it in the operating agreement as your contribution to the LLC (transferring the digital assets to "buy" your membership shares) but yes you can also have a contract between you (personally) and the LLC to transfer them. If you start the channels after the LLC is created, you can just have the LLC own them by it being the user (linked to your business email, name, etc.).

[@davidevans3175]

I'm in California, can I set up my LLC with S-Corp filing status now, then change that to filing as a Sole Prop. in the future? Say in year two?

[@ElizabethPW]

Yes you can change the tax filing status with the IRS once per year.

[@funwithAri]

❤ ty great news beautiful

[@TreyHoward-fi6cf]

Can a P.O. Box be submitted as an address for a LLC?

[@ElizabethPW]

as the mailing address

[@NyLundan]

So I have a formation in Ga live in Houston, doing wholesale Land Acquisitions, so I need to have a LLC in Tx as well and Operating Agreement? A foreign entity?

[@ElizabethPW]

Sounds like you have an LLC that is formed in Georgia, right? So if you are also operating the business in person in Texas then yes you could either form a separate entity LLC or just file the foreign entity registration in Texas. Either way, you'd want an operating agreement for the LLC(s).

[@valenemadrid1238]

Can you put multiple businesses under one LLC, if so, is there any issues that can come from that?

[@ElizabethPW]

I saw you found the video w/ the answer, but for anyone else who reads this comment: kzbin.info/www/bejne/pl7NloRtiaZpb6M

[@kamelleziane]

Thank you for this video, I know this was posted about a year ago but I have a question, I am starting a business and I decided that it would be best for me to start with the legal stuff before everything else, I know what I am going to sell and I have a name but I was wondering if that is the way you think I should go and also let's say I set up my llc and I don't get to start my business until the middle or beginning of next year will I have to do something with taxes if I didn't actually start this business yet. I hope this makes, please feel free to ask me any questions if you don't understand something

[@ElizabethPW]

Well if you set up the LLC and you might not actually start the business until next year, you might want to create it to be "effective" as of Jan 1st, so you don't have to file tax stuff etc and get next year (2023) to be the year you don't have to pay minimum franchise fees.

[@show_your_teeth]

any info on anonymity for your LLC's ?

[@ElizabethPW]

Here's an article about that www.upcounsel.com/anonymous-llc-states generally it can be difficult to maintain anonymity but for some businesses it can work.

[@tenahenry6257]

When founding a llc can it freeze your bank account?

[@ElizabethPW]

Hm I have not heard of anything like that

[@gmx5051]

Operating agreement for creditor protection?

[@ElizabethPW]

If you have an adequate paper trail showing that you have a legit LLC (including an operating agreement), it will help protect you personally from creditors -- makes it less likely they can "pierce the corporate veil."