Starting a business is a serious endeavor. Though being an entrepreneur may have been a life-long dream of yours, you still need to put in a lot of work to bring that dream to fruition. You may have already started taking the necessary steps of business formation, including deciding to create a limited liability company. LLCs are popular business structures because they have a number of benefits. However, it is important to remember that you could still make various mistakes on your business formation journey that could prove costly to you. Mistakes to avoid It can be easy to make mistakes as a new business owner because you likely do not have experience with many of the responsibilities that you have taken on. Some mistakes you want to watch out for and avoid include the following:
- Underpricing your services: When starting out, you may not want to seem greedy or like you are otherwise asking too much, but you need to remember that you will have a lot of costs to cover. As a result, the rate that you charge needs to be enough to cover your expenses and provide you with a profit.
- Not documenting your financial activity: As a business owner, you could easily come under the scrutiny of the IRS if something seems amiss with your taxes. If you do not keep up with all of your financial transactions, you could end up in hot water should an audit take place.
- Not having the right help: You may think that you can start your own business on your own, but just because you understand your vision best does not mean that you understand everything about the business world.
- Commingling your bank accounts: Though you own the business, you should keep your business assets and personal assets separate. If you commingle your assets, your LLC structure may not be able to protect you from certain legal ramifications.
These examples are only a few of the many mistakes that could take place if you are not careful as a new business owner. Fortunately, you can help yourself avoid as many errors as possible by having the right help. Reaching out to an Ohio business law attorney could better ensure that you take the correct steps to create your company and to limit your personal liability.