💰Avoid commingling personal and business funds to maintain the separation between the LLC and yourself.
📝Adhere to all necessary paperwork and annual filings to ensure the legitimacy of your single owner LLC.
💼Properly capitalize your LLC to show that it is a legitimate business entity.
What is a single owner LLC?
—A single owner LLC is a limited liability company that is owned and operated by a single individual.
What is commingling of funds?
—Commingling of funds refers to mixing personal and business funds, which is a mistake that should be avoided in a single owner LLC.
What are the necessary paperwork and annual filings for a single owner LLC?
—The necessary paperwork and annual filings for a single owner LLC vary based on location and business type, but typically include annual reports, statements of information, and business licenses.
Why is it important to properly capitalize a single owner LLC?
—Properly capitalizing a single owner LLC demonstrates that the business has sufficient funds to operate and helps maintain the separation between personal and business finances.
Can I use my personal bank account for my single owner LLC?
—To maintain the separation between personal and business finances, it is recommended to have a separate bank account for your single owner LLC.
00:00Introduction to the top three mistakes of single owner LLCs.
01:37Mistake #1: Commingle money - Keep personal and business funds separate.
03:58Mistake #2: Neglect necessary paperwork and annual filings.
06:07Mistake #3: Improper capitalization of the single owner LLC.
07:16Conclusion and invitation to ask questions about single owner LLCs.
