Many new business owners make several formation errors during and after the registration process that can come back and bite them later.
1, One common formation error is that the registering agent fails to include an entity identifier in the name, such as LLC or Inc.
2, Once registered, many LLCs fail to produce an operating agreement.
Many S-corps
3, fail to adopt bylaws
4, appoint a board of directors
5, or conduct annual meetings.
6, They may even forget to issue stock.
7, 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?
