#592 The 10 Biggest LLC Mistakes (And How to Avoid Them!)
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Sep 5, 2025
Learn how to set up your LLC effectively and avoid costly mistakes. Discover the importance of choosing the right state for registration and the right entity structure to save on taxes. Find out why having proper documentation like operating agreements is crucial for protecting personal assets. Get tips on selecting a registered agent to keep your information safe and maintain professionalism. Plus, streamline your business operations with expert advice on delegating tasks and legal compliance!
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question_answer ANECDOTE
Home Depot DIY Lesson
Mark shares a Home Depot story about doing DIY fixes twice instead of hiring a handyman.
He uses it to illustrate how DIY shortcuts on legal setup can cost more time and money than hiring professionals.
volunteer_activism ADVICE
Form Your LLC Where You Operate
Set up your LLC in the state where you actually do business or where the property is located.
Avoid choosing Delaware, Nevada, or Wyoming unless you have advanced, level-two reasons to do so.
volunteer_activism ADVICE
Use A Professional Registered Agent
Use a professional registered agent instead of listing yourself or a family member.
A registered agent protects your privacy and ensures you receive legal notices promptly and professionally.
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Why risk your business and hard-earned money with the wrong setup when you could be protecting yourself and saving on taxes? In this episode of the Main Street Business Podcast, Mark J. Kohler and Mat Sorensen break down the critical steps every small business owner and new LLC owner must take to avoid costly mistakes. From choosing the right entity structure to understanding tax advantages, they reveal the insider strategies that keep more money in your pocket and safeguard your future.
Discover how to set up your LLC the right way, when an S Corp might make sense, and how to keep your business compliant without overspending on fees. Learn practical legal and tax moves that help you reduce liability, maximize deductions, and protect your assets — so you can focus on growing your business with confidence.
If you’re serious about building a strong foundation for your company, this is an episode you can’t afford to miss! Subscribe for more real-world strategies from Mark J. Kohler and Mat Sorensen, and get expert support for your business today through KKOS Lawyers and Main Street Business Services.
You’ll learn:
Why setting up your LLC in the wrong state (like Nevada, Delaware, or Wyoming) can cost you extra fees and headaches — and where you really should file
How to avoid exposing your home address by properly using a registered agent and company address
The critical documents every LLC needs beyond the one-page state filing, including an operating agreement, membership certificates, and minutes
Why your LLC must have its own bank account, tax ID, and records to be treated as a separate legal entity
How the right tax election (like electing S Corp status) can save business owners thousands in self-employment taxes each year
The importance of annual compliance — renewals, meetings, and minutes — and why outsourcing this can save time, stress, and penalties
Real-world “cleanup” strategies for fixing LLCs that were set up wrong or neglected, so you can get back on track
Get a comprehensive tax consultation with one of our Main Street tax lawyers that can build a tax strategy plan with an affordable consultation that will leave you speechless!!
Here’s the link - https://kkoslawyers.com/services/comprehensive-bus-tax-consult/?utm_source=buzzsprout&utm_medium=description&utm_campaign=10-LLC-mistakes
Main Street Business