LLC Basics
The people who own an LLC are called these.
Members
This mistake happens when personal and business money are mixed together.
sole proprietorship
This is an advantage that lets owners choose how the business is managed.
flexible management
This protects LLC owners from usually being personally responsible for business debts.
Limited Liability
An LLC with multiple owners is usually taxed like this.
partnership
This is a disadvantage because an LLC may have more paperwork and rules than these types of businesses.
sole proprietorships and partnerships
These people handle the day-to-day operations of an LLC.
managers
An LLC can sometimes choose to be taxed as this type of business.
corporation
This mistake involves not completing the filings required by the state.
missing required state filings
This is a manager who also owns part of the LLC.
dual role
This is one way an LLC can get money by borrowing from a bank and paying it back later.
loans
This mistake involves not keeping the proper business records and paperwork.
failing to maintain proper documentation
LLCs don't have these two groups that corporations have.
shareholders and a board of directors
These can provide funding to an LLC through government programs.
grants
This mistake happens when personal and business money are mixed together.
commingling personal and business finances