Are you a small business owner looking to set up your business? If so, then you might be interested in setting up your own LLC. This, of course, can be incredibly exciting. However, setting an LLC up is incredibly challenging, and you might just be incredibly anxious about how to achieve it.

That being said, one way you can definitely ensure your LLC doesn’t end in ruins is to know the mistakes that other people have made and avoid them! Today, we’re going to talk about those mistakes to help you successfully set up yours:

Mistake 1. Not Forming the LLC Locally

Setting up an LLC requires a lot of paperwork. Whether you’re forming your LLC in Arizona, California, or Florida, you need many different forms in order to do so. Additionally, you’re going to have to file several permits and registrations.

What does this mean to you? Well, it is going to be a lot of work trying to set up your LLC in an area that isn’t local to you. In fact, the hassles of doing this far outweigh the benefits you get out of it, so unless you’re already a big business, you’re much better off setting up an LLC locally!

Mistake 2. Not Getting the Proper Business Licenses

Another thing that’s incredibly important is to make sure you get the proper business licenses. In the United States, there are many different types of licenses you can get.

For example, there are food licenses that you need, tax licenses that you need, and the list goes on and on. If you don’t have the correct ones, you could be fined, shut down by the authorities, and even go to jail!

Mistake 3. Not Having a Business Plan

Your business plan is your roadmap to success and continued growth. However, you don’t want to just go and start writing one out of the blue! This is why it’s important to thoroughly research what you’ll need to include in your plan and then make sure that you follow this plan.

Mistake 4. Not Having Solid Business Credit

If you’re looking to do business on credit, then you’re going to want to make sure you’ve got a solid business credit rating. This will be extremely important, no matter what type of business you do.

It is going to be much easier for you to get business credit if you’ve got a solid business credit rating, so make sure you do this!

Mistake 5. Not Using a Law Firm

If you’re doing business in the US, you’re going to need to use a law firm. This is because of the several tax laws you have to follow. Additionally, you can often find a law firm that will let you consult with them for cheap, so you shouldn’t worry about breaking the bank!


If you make these mistakes, you might just end up having your LLC set up improperly! Worse, you could get shut down for good. That’s why it’s important that you avoid them at all costs. So, take your time and ensure that you take the right steps to avoid the above mistakes and do the things you need to do to properly set up your LLC. For more help, always make sure to reach out to professionals such as lawyers who can help ensure you’re doing things the right way.

Doola is your go-to trusted partner to help you confidently start your business in the US. If you are looking to form a company in the US, be sure to reach out to us today to achieve success!

Arjun Mahadevan
Arjun Mahadevan
Founder & CEO
Doola's website is for general information purposes only and doesn't provide official law or tax advice. For tax or legal advice we are happy to connect you to a professional in our network! Please see our terms and privacy policy. Thank you and please don't hesitate to reach out with any questions.
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