Avoid These MISTAKES Before Starting an LLC!

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Unfortunately, many new business owners make a number of key LLC mistakes before starting their LLCs. If you open an LLC and if you make some of these mistakes, it can cost you severely. This is because it can slow down the growth of your business while exposing you to potential fines and other penalties from the IRS.

In this video, tax expert Karlton Dennis explains the top 5 LLC mistakes that all new business owners need to avoid before starting their LLCs. These mistakes involve EIN numbers, tax forms, income types, and more. Karlton also answers a question about LLCs asked by a subscriber to his channel.

When it comes to setting up an LLC it is far better to avoid making mistakes in the first place as opposed to making them and then trying to fix them afterward. For this reason, this video can be highly beneficial for anyone who will be setting up an LLC in the near future, but who wants to avoid making key LLC mistakes.

CHAPTERS:
0:00 Intro
0:36 Mistake #1: Not Using Your EIN Number
2:59 Mistake #2: Not Understanding Your Income Type
6:16 Mistake #3: Not Establishing an LLC Prior to Buying Real Estate
8:11 Mistake #4: Not Knowing Which Tax Forms to Use
12:19 Mistake #5: Not Knowing How to Reimburse Yourself as an LLC
13:27 Subscriber Question!
15:10 Outro

*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

#llcmistakes #businesstax #startup

[karltondennis]

Subscribe to the channel for more tax tips and insights from an expert. Help us reach 1 million subscribers!

[tatianastarcic]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[sooma-ai]

The video discusses five key mistakes to avoid when starting an LLC: not using an EIN, misunderstanding income types, not establishing an LLC before buying real estate, not knowing which tax forms to use, and not knowing how to reimburse yourself properly.

[Mark-wim]

Biggest mistake in terms of LLC? Choosing attorney instead of dedicated services like Nexalic which costs 39 bucks lol

[jonnitawalker]

I made sure to return to this channel, as i recently started my own LLC in December as an Independent Trucking Dispatcher. Nice to know which form(s) would work best for my business moving forward. The video I wacthed right before this, was around LLC taxes and what deductions can b claimed. Again VERY helpful. Thank you for the time you commit to these videos to help many of us out.

[chasingdreamsnow]

Everyone in this country needs to subscribe to this channel. This is the best taxes explaining professional on YouTube. So much knowledge and so clear to understand. Thank you for your amazing work. Hope one day I can team up with you and your team.

[Thebravemovement]

The absolute best tax and business channel on YouTube, hands down

[Jupiterxice]

Omg you are now my new go to for information because I am thinking about starting a business. This information is awesome for a new person like me.

[dmath]

Great points. I have an LLC owned by a holding comp. My wife and I are member/managers. Great stuff!

[aprendelearnespanolspanish]

The question you anwered is a diamond, the rest is gold obviously. Thanks for amazing easy to understand content!

[TouchstoneMPWD]

Watched a couple of your videos great information i started a Mobile Detailing Business in March 2023. I quit my job in August 2024. I'm full time with my business. I have not set up the LLC yet wife and i have been talking about it, but whats held me back is that my detailing income has been coming in and going out. Both personal ( bills ) and business expenses. So I'm like on a rock and a hard place when it comes to the whole tax stuff

[Layla-rx]

My husband just LLC his trucking business. It's just his truck, but he's thinking about running just a small 2 or 3 truck business. Things are so up and down in the industry, but it's never left him without work for the past 35 yrs. But his own small trucking business is scary.

[steveburkland]

Hi there, this was a great and informative video! My comment is really just to give you props for being a fantastic presenter and give your video editing team props for such clean and effective work. That kind of attention to detail conveys the message more effectively, and helps the viewer internalize it. Bravo!

Video design aside, I'm thinking about starting an LLC with a partner and I didn't know these pitfalls existed! You got my subscription.

[Jr_Bar]

Excellently done; thorough, clear, & to-the-point. ❤

[ScottJLetourneau]

Great tips, Karlton; I would also add that it is not the LLC management structure, who the member should be (owner), capitalization, partnership concerns, out-of-state LLC formations and nexus issues, and matching the correct operating agreement to taxation type, and membership.

[HighMXHubby]

Thank you, Karlton for explaining about an Accountable Plan!

[JAYXNE]

Thanks, confirms what I been reading about. Motivation to make business grow more than 50k. Trying to get on that S CORP status one day.

[melbahayes]

This video was just for me. Right, on time. Great info to start doing research on. Thanks 👍🏽

[johnroy]

Thank you Karlton for the excellent information! Your services are very informative and needed.

[lucasamorimporto]

congrats with this content, I just opened my llc to manage my stocks portifolio and get some benefits on the income tax.