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Don’t make LLC formation a DIY project

On Behalf of Latrobe Law Associates, LLC | Jul 28, 2017 | blog, Firm News |

When forming an LLC, the common wisdom is that doing it yourself is the less expensive option. Because it’s cheaper, people assume that it’s better to set up their LLC on their own rather than work with a business organization attorney.

It’s true that you may pay less initially. However, people frequently make mistakes when trying to set up their own LLC. These mistakes can come with significant long-term costs. These errors can wind up costing you more over the long run than if you had worked with a specialist in the first place.

These are three of the common mistakes entrepreneurs make when they try turning LLC formation into a DIY project.

Ignoring key state laws

When filing your LLC with the Pennsylvania Bureau of Corporations and Charitable Organizations (BCCO), there are a number of regulations that need to be followed. To ensure there’s compliance with tax laws, LLCs will generally need an Employer Identification Number (EIN) from the IRS. Pennsylvania also has a number of workplace safety regulations that you should be aware of when starting an LLC.

Not completing key documents

In addition to following those regulations, there are a number of documents that need to be completed. Two of the more important documents needed are the Certificate of Organization and a Docking Statement form. Additionally, LLCs may need to file a Certificate of Annual Registration every year and pay an annual registration fee by April 15.

Leaving your ideas vulnerable

It’s not enough to simply have a great idea or to build an outstanding brand. You also need to protect your intellectual property.

Getting your logo trademarked can help prevent someone else from profiting off of your business. Just because you’ve gotten a trademark doesn’t mean the process is over. Trademarks require regular maintenance, including reporting possible infringement. Failing to follow trademark regulation could cause you to lose exclusive use of your company’s name, logo or products.

At first glance, it may seem that it’s an easy task for someone to set up their own LLC. The truth is that there’s a lot of complexity involved when setting up a business. Working with an attorney experienced in business formation can help you avoid making these costly mistakes.

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