Contributed by: Michael Jacobson
If your business is an LLC, then you get protection so your personal assets are not seized in the unfortunate event your business is bankrupt or otherwise unable to meet its obligations. Unfortunately, many LLCs lose this advantage because they did not keep these five things in mind:
- Engaging in fraud such as closing your business to escape debts and then reopening under a different name.
- Not maintaining separate identities such as using LLC company assets for personal expenses (commingling funds).
- No customized operating agreement tailored to the LLC’s rights and duties.
- Creating a company without adequate capital/funding.
- Lack of company contracts, agreements and other records that detail the creation of the LLC.
If your business needs assistance to keep assets separate, reviews of accounts to ensure proper accounting procedures, or other matters involving your LLC’s financial procedures, call BRP today.
We will review your books in order to ensure your company is following proper policies and procedures.