{"id":207,"date":"2008-10-21T10:14:34","date_gmt":"2008-10-21T18:14:34","guid":{"rendered":"http:\/\/www.tripinsurancestore.com\/blog\/three-dumb-llc-formation-mistakes\/"},"modified":"2008-10-21T10:14:34","modified_gmt":"2008-10-21T18:14:34","slug":"three-dumb-llc-formation-mistakes","status":"publish","type":"post","link":"https:\/\/tripinsurancestore.com\/blog\/three-dumb-llc-formation-mistakes\/","title":{"rendered":"Three Dumb LLC Formation Mistakes"},"content":{"rendered":"<div align=\"right\"><a href=\"http:\/\/eepurl.com\/wCXYr\" target=\"_blank\" rel=\"noopener noreferrer\">Subscribe<\/a><\/div>\n<p><strong>The Three Dumbest LLC Formation Mistakes<\/strong><\/p>\n<p>by <a href=\"http:\/\/www.businessknowhow.com\/startup\/llc-mistakes.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Stephen L. Nelson, CPA<\/a><\/p>\n<p><strong>Mistake #1: Forgetting about Foreign LLC Registration Rules<\/strong><br \/>\nRead those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn&#8217;t use out-of-state LLCs or for that matter out-of-state corporations.<\/p>\n<p><strong>Mistake #2: Electing to be Treated as a C Corporation<\/strong><br \/>\nAn LLC is a chameleon for tax purposes. Which is great. An LLC with a single owner can be treated as a sole proprietorship, a C corporation or an S corporation (assuming eligibility requirements are met.) An LLC with multiple owners can be treated as a partnership, a C corporation or an S corporation (again, assuming eligibility requirements are met.)<\/p>\n<p><strong>Mistake #3: Electing to be Treated as an S Corporation Too Early<\/strong><br \/>\nLLCs can also elect to be treated as S corporations-as noted in the preceding paragraphs. And once a business generates profits well in excess of the amounts paid to owners for salaries, an S corporation election saves the owners big money.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe The Three Dumbest LLC Formation Mistakes by Stephen L. Nelson, CPA Mistake #1: Forgetting about Foreign LLC Registration Rules Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn&#8217;t use out-of-state LLCs or for that matter out-of-state corporations. Mistake #2: Electing to be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-207","post","type-post","status-publish","format-standard","hentry","category-helpful-information"],"_links":{"self":[{"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/posts\/207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/comments?post=207"}],"version-history":[{"count":0,"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/posts\/207\/revisions"}],"wp:attachment":[{"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/media?parent=207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/categories?post=207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tripinsurancestore.com\/blog\/wp-json\/wp\/v2\/tags?post=207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}