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  • Article Check - Three Dumbest LLC Formation Mistakes

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    I see a lot of dumb LLC formation mistakes. Maybe more than most people because I regularly teach a graduate tax class on LLC formation.

    Some of the mistakes are made by entrepreneurs and investors trying to save money on accountants and attorney fees. And I guess that’s okay--albeit penny- wise and pound-foolish.

    But you know what really irks me? Some of these mistakes in fact, most of them are made by attorneys and paralegal services… Professionals who should know better.

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    But enough whining. Without further fanfare, here are the three dumbest mistakes that I see people make again, and again, and again.

    Mistake #1: Forgetting about Foreign LLC Registration Rules

    Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn’t use out-of-state llcs or

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