Forming an LLC is actually a fairly simple and affordable process, and it really makes sense for many small business owners. However, there are some pitfalls to watch out for if you’ve never done this kind of thing before. Here are 3 common mistakes that are made involving LLC formation.
#1 Not Understanding the Online Form
It seems like a very straightforward process to fill out the online form and start your LLC. However, when someone with limited legal knowledge is the filling the form out alone, there may be some questions about which options to select. Choosing the wrong options by accident won’t be a legitimate defense in court if something goes wrong, so it’s best to get help filling it out right the first time.
#2 Thinking the Online Application Is the Entire Process
In California, LLCs are also required to have an Operating Agreement. It’s not something that has to be filed with the state, but you do have to have it completed and in your records in case a government agency ever asks for it.
#3 Thinking a Business Lawyer Is a Waste of Money
Only the wrong business lawyer is a waste. The right lawyer can help you to make smart business decisions and protect your personal and business assets. If you are a small business owner, you should be with a small business lawyer. Pokala Law understands what it is like to be a small business, and that’s why we offer affordable options that help protect you without breaking the bank. To learn more, call us at 1-844-695-1487.