Always keep yourself separate from your LLC, no matter how small or informal the business. Make sure that the LLC has its own bank account in the company name for LLC funds. Never use company funds for personal reasons. Document al transactions if you spend your own money on behalf of the corporation. This can protect against complaints or litigation that could threaten you and the company.

Some states levy high initial and annual filing fees to establish an LLC and maintain its LLC status. States can also require an LLC to pay franchise taxes on top of what the LLC members will pay as income tax. A good attorney should offer assistance with both personal and business income tax filings.

Leonard W. Stitz, P.C.

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