Forming a Limited Liability Company Duluth MN

Many business owners delay incorporating or forming a Limited Liability Company (LLC) because they are apprehensive about the documentation required to keep their company in compliance. Incorporating or forming an LLC helps protect personal assets and provides tax-deductible benefits for employees and owners. It's unwise to forgo these benefits simply due to a healthy fear of paperwork.



While state-by-state requirements vary, here are three important tips to help you keep your company in compliance and protect your personal assets in the event of legal action against your company:



• Avoid co-mingling your personal funds and identity with that of your company

• Document your corporate/LLC activities

• Be on time when paying your state franchise taxes and submitting your company's annual report



Keeping your personal identity separate from your company includes signing business documents not only with your name but also with your business title and the name of your company. Other tips: avoid using personal checks or funds for business expenses and visa versa; avoid using personal stationary for business communications and company letterhead for personal matters.

Equally important is documentation of company activities. This includes keeping company records such as articles of incorporation, annual meeting minutes, sales of company shares, bylaws and business contracts in an organized format like a corporate binder or

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