Seven Common Business Formation Errors

 

Many new business owners make several mistakes during and after the registration process that can come back and bite them later.

One common formation error is that the registering agent fails to include an entity identifier in the name, such as LLC or Inc.

Once registered, many LLCs fail to produce an operating agreement.

Many S-corps fail to adopt bylaws, appoint a board of directors, or conduct annual meetings.They may even forget to issue stock.

Regardless of the entity type, many businesses fail to move assets into the new business, such as intellectual property (patents, copyrights, etc.), as well as physical assets (real estate, fleet vehicles, etc.).

Failure to form your business entity properly can result in serious and costly problems down the road.

When was the last time you had a business checkup?


Be sure to sign up for our free email delivery so you can get future inspirational blog posts deliver directly to your email each morning.

Follow us on Twitter @SteveImke
If you like our post “Like” us on Facebook LikeUs

Leave a Reply

Your email address will not be published. Required fields are marked *