Most people think it's easy to begin a limited liability company. And they're right. It is very simple and inexpensive to set up. However, starting an LLC involves so many more responsibilities that just simply opening an S-corp account won't take care of. Here are the five major responsibilities you'll face as the Limited Liability Company owner:
Collecting taxes. All businesses have to pay Uncle Sam on their annual income taxes. If you don't collect these taxes, you're liable for them. Therefore, you'll be in a great deal of hot water if you don't know how to start an LLC to handle these pesky tax bills.
Failing to file all of your tax returns. Another responsibility of owning an LLC comes with being required to file all federal, state, and local tax returns during your business operations. Like all businesses, there can be a lot of stuff that gets left out because of a lack of time or a flawed effort. When you own an LLC, you'll need to ensure that all of your tax returns are filed on time and submitted on the correct form with the IRS.
How Do I Start an LLC?
Failure to keep up with paperwork. If you're not the owner of the business but rather merely the director or secretary, you'll have to handle the vast majority of the paperwork on your own. This means not only doing all the filing but keeping up with everything from answering customer questions to filing your personal financial papers. If you fail to do this, you'll be accountable for legal fees and penalties that may result if found in violation of some IRS regulations.
Not keeping up with who's calling. You'll need to know who's calling you at work, your cellular phone, your email address, your landline, and any number of other means by which you can be contacted. By keeping up with all of these, you can assure yourself that all of your communications are appropriate and that no business correspondence goes through the trash. If you neglect to do this, you could find yourself and your company in serious trouble with the IRS.
Being unaware of the regulations regarding your business. As part of How Do I Start An Llc, you'll have to be aware of the rules the IRS has regarding how you can use your private financial resources (e.g., business loans, income, and so on). Failure to abide by these may lead to fines and even penalties, so it's important that you learn about the rules and regulations before you begin.
Ignoring legal advice. You'll need to seek help when you're confused or overwhelmed by certain aspects of running a business, and an LLC may not be exempt from that. While many attorneys will gladly offer their services when you need them, you should consider asking at least three different attorneys for their opinion before filing your papers.
Filing too soon. It's important that you give yourself a reasonable amount of time to learn how do i start an llc. This is especially true if you want to save money on the fees you'll need when incorporating. A good rule of thumb is to file your papers at least a year before you want to take the next step.
Not having the right paperwork. There are a few other things that you'll need in order to set up your business, including notice of its presence, its registered office, and the exact legal name of the business. If you don't have these properly in place, you won't be able to do anything, short of lying about your intentions! So make sure that you get all the necessary paperwork in place and ready to go before you put your LLC up for public notice.
Not having the correct forms. You'll need to fill out a set of papers called the "agents' agreement". This lets everyone involved in the Limited Liability Company know who each of its owners is and what they have to do with the LLC. Without this, there'll be nothing to stop any of the LLC's directors or owners from taking steps that could terminate the Limited Liability Company or LLC. So make sure that you have everything in order.
Not knowing the basics. The best way to start an LLC is to start with a good idea and build from there. You don't want to start with a grand idea and then spend months trying to figure out how to start an LLC in Connecticut. While this might seem like a good idea, it can quickly turn into a nightmare. Learn how to start an LLC first, and then you'll have no problem figuring out how to start an LLC in CT and doing what you need to do to get your business going.
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