I sat through a very interesting webinar today discussing how 95% of the LLC's out there are not correctly set up to protect the owners, provide the proper tax environment, or protect the company itself. If you don't set up the LLC correctly, and maintain it properly, a judge can strip your company's status as an LLC and make it a partnership. Now you are personally liable, and everything you've worked so hard for can be taken away.

I. like many of you, have gone online and set up an LLC in a matter of minutes by filling out some basic forms and registered an LLC. Sure, you have an LLC now, but without the Operating Agreement and a lot of other paperwork to support it, the LLC is practically worthless as an entity. So you hired a lawyer to set up the LLC. Did the lawyer hand you a stack of paperwork to support the LLC including the Operating Agreement, Resolutions, and other supporting paperwork? Did he let you know about the annual filings, AGM minutes, and other supporting resolutions you need to have to maintain that LLC? My bet is no.

I'll list some of the questions you need to ask your lawyer in a future post, as well as some more details about what you need to help make your LLC bulletproof. I am not a lawyer, and everything I post here is my view on the subject and you must consult your own legal and financial professionals to confirm everything that you plan to do for your own LLC. Do your research, and get informed, as it could mean the difference between a retirement on the beach, and a retirement scraping by on a pension cheque.


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