There are a few key mistakes that are commonly made by new LLCs. These can often be fatal to the business, so it's important to be aware of them and take steps to avoid them.
1. Not having a clear business purpose. LLCs need to have a clear purpose or mission in order to be successful. This should be something that is clearly defined from the outset.
2. Not having a good operating agreement. This document outlines the roles and responsibilities of the members of the LLC and how the business will be run. Without a good operating agreement, there can be a lot of confusion and conflict within the LLC.
3. Not complying with state and federal laws. LLCs need to make sure they are complying with all the relevant laws, both at the state and federal levels. This includes things like filing the correct paperwork and paying taxes.
4. Not keeping good financial records. It's important for LLCs to keep accurate financial records so that they can track their progress and make sound business decisions.
5. Not having adequate insurance. This is a mistake that can be costly if something goes wrong. LLCs need to make sure they have the right insurance in place to protect themselves from potential liabilities.