September 5, 2025 • 26 mins
Why risk your business and hard-earned money with the wrong setup when you could be protecting yourself and saving on taxes? In this episode of the Main Street Business Podcast, Mark J. Kohler and Mat Sorensen break down the critical steps every small business owner and new LLC owner must take to avoid costly mistakes. From choosing the right entity structure to understanding tax advantages, they reveal the insider strategies that keep more money in your pocket and safeguard your future.
Discover how to set up your LLC the right way, when an S Corp might make sense, and how to keep your business compliant without overspending on fees. Learn practical legal and tax moves that help you reduce liability, maximize deductions, and protect your assets — so you can focus on growing your business with confidence.
If you’re serious about building a strong foundation for your company, this is an episode you can’t afford to miss! Subscribe for more real-world strategies from Mark J. Kohler and Mat Sorensen, and get expert support for your business today through KKOS Lawyers and Main Street Business Services.
You’ll learn:
- Why setting up your LLC in the wrong state (like Nevada, Delaware, or Wyoming) can cost you extra fees and headaches — and where you really should file
- How to avoid exposing your home address by properly using a registered agent and company address
- The critical documents every LLC needs beyond the one-page state filing, including an operating agreement, membership certificates, and minutes
- Why your LLC must have its own bank account, tax ID, and records to be treated as a separate legal entity
- How the right tax election (like electing S Corp status) can save business owners thousands in self-employment taxes each year
- The importance of annual compliance — renewals, meetings, and minutes — and why outsourcing this can save time, stress, and penalties
- Real-world “cleanup” strategies for fixing LLCs that were set up wrong or neglected, so you can get back on track
Get a comprehensive tax consultation with one of our Main Street tax lawyers that can build a tax strategy plan with an affordable consultation that will leave you speechless!!
Here’s the link - https://kkoslawyers.com/services/comprehensive-bus-tax-consult/?utm_source=buzzsprout&utm_medium=description&utm_campaign=10-LLC-mistakes
- Grab my eBook 30 Unique Strategies Every Business Owner Should Know!
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Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
You set this up with the state.
You waved your flag, you putyour stake in the ground and
said I'm going to set up thisLLC.
Speaker 2 (00:05):
It's like they, you know, did chat GPT now, or they
Googled like what state should Iset up my LLC in?
And they got the answer If youwant to be a fortune 500 company
and be listed on the New Yorkstock exchange, what does that
have to do with your rentalproperty in Oklahoma?
Speaker 1 (00:19):
You may think you're saving money.
You're like, well, I'm doing itbecause I'm saving money.
No, the penalty and the cost toget back in good graces with
the state.
It can be three times what itcosts to just pay someone to do
it in the first place.
This is going to be a themetoday.
Sometimes you just can't polisha turd.
Speaker 2 (00:40):
Welcome everyone to the Main Street Business Podcast
.
This is Matt Sorensen.
I'm joined by the incredibleMark J Kohler, and we are here,
two lawyers wanting to help younot make mistakes with your LLCs
.
Speaker 1 (00:51):
Yeah, top 10 mistakes in setting up your LLC.
And all of these are repairableand we are here for you.
So do not feel shame, feelguilt.
You're're embarrassed, you'vegot an llc, you are on the right
track.
We love you, we appreciate you,you're okay.
(01:12):
It was you like that, a littlemore feeling, yeah if you want
to, yeah, I like it.
Speaker 2 (01:15):
We're.
Speaker 1 (01:16):
Yes, we are here for you, okay all right, but we've
got to give you some bad newstoo.
There could be a mistake made,and we want you to rock and roll
, so yeah, and it's easy to fix.
Speaker 2 (01:25):
So we're going to go through some of these things
that we see every day.
Mark and I have done the 10,000consults with clients across
the country, from businessowners to real estate investors.
We've seen it all and we seesome common things that we want
you to get right, cause we wantyou to have that asset
protection you're planning on.
We want to make sure you've gotthe right tax planning in place
, because, at the end of the day, it's all about building wealth
(01:46):
and protecting it, and your LLCis a great place to start.
So, yeah, yeah.
Speaker 1 (01:50):
One quick example I was at Home Depot last night
fixing a mistake.
I had to go twice to Home Depot.
Now I could have hired ahandyman and done it right, paid
a little bit more, but I wantedto DIY it.
That's cool.
So again, we're okay with thatand we do have the full service
handyman type relationship.
That's me.
Speaker 2 (02:12):
Yeah, you're the guy at Home Depot, twice You're home
watching TV.
Speaker 1 (02:19):
Fair enough, but I enjoyed my experience.
I met a new guy on Depot.
That was just a wonderfulgentleman.
Okay, yeah, he shamed me.
Okay, now was just a wonderfulgentleman.
Okay, great, yeah, he shamed me.
Okay, now I'm going to go withthe setup itself.
Let's just go there first.
Number one mistake people makeand these might be in order of
priority.
We could even try that.
I think number one is peopleset up in the wrong state.
(02:40):
They get sold this Wyomingthing, the Nevada thing,
delaware, delaware, yeah, wrongstate.
Um, they get sold this wyomingthing, that nevada thing, and
any delaware, delaware, yeah,but they've been sold this can
of goods, ball of wax, what doyou call it?
Speaker 2 (02:53):
I don't know yeah, they've been sold the wrong
thing.
Yeah, you know, it's like they.
They, you know, did chat gptnow.
Or they googled like what stateshould I set up my LLC in?
And they got the answer If youwant to be a fortune 500 company
and be listed on the New Yorkstock exchange or like, what
does that have to do with yourrental property in Oklahoma?
Nothing, yeah, nothing, okay.
(03:15):
You're going to pay way toomuch money, you're going to have
a administratively pain in thebutt structure when you don't
need it and it does nothing tohelp you at all.
Speaker 1 (03:23):
And here's the general rule.
Now, on these 10 mistakes,we're going to give you a quick
answer as to what the propermethodology is, or mindset and
we've got other podcasts on this.
You may need to consult withone.
We have a.
We have a cleanup special we doevery year where we just help
people clean up their entitiesand we'll give you some
resources for that so you canget it done right.
But the general approach is youset up an entity where you're
(03:48):
doing business as a side hustle,a main street store or a rental
property.
You set up where you're doingbusiness, where the property is
located, where the employees arelocated, where you're located.
Now there can be someadditional strategies by adding
a layer in Wyoming, nevada,delaware, wherever.
But that's level two type stuffand most people don't need that
(04:10):
but they get kind of badinformation.
So the remedy we move theentity.
It's called domestication.
We can move it to the rightstate.
We could register it foreign.
Sometimes you just this isgoing to be a theme today
Sometimes you just can't polisha turd.
Speaker 2 (04:25):
Yeah, yeah, yeah, they have proven that myth
busters actually.
Speaker 1 (04:28):
All right.
Speaker 2 (04:30):
So, and when that is the case, what we like to do is
just start over and we will justset up a new LLC and do it
right.
But we can't a lot of timesjust fix it with the
domestication we're removing itfrom one state to another.
And let me just say this likelet's say that you're in
California and someone told youwell, you just set up a Nevada
LLC, so you don't have to paythe California $800 fee every
(04:52):
year and your butt's sitting inCalifornia doing business in
California.
Yeah, you need to getregistered into California and I
know it's painful and you'relike, but I don't want to send
the state of California thisfranchise tax.
That's BS.
I know you got to get your buttout of California.
Okay, it's not the LLC problem,it's you.
You're staying in California,so, or this could be the rental
property example we gave.
But here's one thing, an optionsome people think of as well
(05:14):
just register the Nevada entityinto California.
Okay, now you're paying fees toNevada and California.
Let's just start and get theentity in the state it needs to
be in.
Speaker 1 (05:23):
Yep, all right Now.
Number two is on the formationprocess.
We're just going to stay therefor a moment.
When you're setting up your LLC, there's more than just what
button you push, if you will.
There's a lot to this.
The second mistake we see iswhere people list themselves as
their own registered agent.
Every state requires that a newentity, new LLC or corporation
(05:44):
has a registered agent.
Every state requires that a newentity, new LLC or corporation
has a registered agent.
This is the person that's goingto receive mail service of
process when it comes toofficial notices for a potential
lawsuit or governmentinteraction of some sort.
So you have to put down aregistered agent that is public
record.
You may not want your home,your name, your personal address
(06:05):
out there for the world to knowwhere you're at if they're
pissed off.
I consider that a mistake.
I don't think people should dothat.
Speaker 2 (06:13):
Right, yeah, just use a registered agent company.
We happen to have one that's inall 50 states.
You don't have to use us.
But there's a couple otherreasons of just that privacy
element that Mark talked aboutis, when you get a legal notice,
you need to know what to dowith it.
Also, do you want some processserver serving your kid at your
house or your spouse?
Do they understand howimportant that thing is and are
(06:35):
they going to make sure that itgets to you properly and timely?
Is it going to be sitting on adresser somewhere?
I don't know, it's like this isimportant stuff, dresser
somewhere, or I don't know.
I just it's like this isimportant stuff and so when
something happens with theregistered agent, you need to
know what's happening, um, andyou want to make sure it's
handled professionally.
Speaker 1 (06:50):
So and it's something easy to fix we file an
amendment with the state andchange the registered agent.
Now, if I may, number three,I'm feeling it, I'm feeling
rolling here.
Number three is related to thatand that is choosing the wrong
registered agent.
Not only did you not putyourself you may have put
yourself as a registered agentyou don't want that privacy
(07:12):
exposure but you may have chosensomeone to be your registered
agent and they are too damnexpensive.
Speaker 2 (07:17):
It is crazy out there , yeah like LegalZoom, will
charge you like $300, $400 ayear to be a registered agent.
Our company, mainstreambusiness services, where we have
registered agent service on all50 States, one, 25 a year.
Okay, total bargain compared tothe legal zooms.
Those are places that you thinkare the cheaper, discounted
version, like like a legal zoom,right?
No, it's actually moreexpensive.
(07:39):
So.
So you should probably shopthat too, because that is an
annual cost, and make just makesure it's competitive.
It might be worth changing andyou can change and no one's
going to be offended.
Speaker 1 (07:51):
Legalzoom is not going to know Until you cancel.
Speaker 2 (07:56):
Yeah, yeah, I mean they're going to know, but what
are they going to do?
Speaker 1 (07:59):
I mean you know, save some money.
So here's our.
Obviously I'm going to justsummarize it here.
If you are the registered agentor you're paying someone too
much, it is a simple fix.
It's going to save you moneyand give you privacy.
Get a change done Again.
We'll have all the resourcesyou need here at the end in the
description.
You can go there now to getsome help there.
I'm going to go with this setupstill, matt, if I could.
(08:21):
Number four mistake is usingokay, every company again
nationwide not only needs aregistered agent, they need a
company address.
Speaker 2 (08:32):
We can screw that one up, yeah, and the states have
some different rules on this.
Some companies' addresses in astate that address must be a
physical address.
Some states allow it to be a PObox.
This is again like a privacycomponent.
You may not want your personaladdress.
Let's say you're a landlordwith LLCs for rental properties.
(08:52):
You may not want your personaladdress.
Let's say you're a landlord,okay, with LLCs for rental
properties.
Speaker 1 (08:58):
You may not want your personal address listed on here
because you don't want a grumpytenant showing up at your home.
All right, yeah.
And you may have thought oh, Iwas a genius, I'm not my
registered agent.
And then three lines downwhat's the company address?
Oh, that's mine.
Little do you know that that'spublic record too.
So if you're wondering, whataddress did I freaking use?
You can easily go to your statesecretary of state website,
(09:19):
wherever you set your entity up,and pull up the entity and just
see what everybody in the worldcan see.
And you may have made the rightmove with the registered agent,
but made the wrong move withthe company address itself.
So again, easy fix.
You can tidy both those up inone quick change.
We have a mail forwardingservice.
Speaker 2 (09:38):
Yeah, we have a privacy address service that you
can use our address and ourUtah office because the
registered agent and theregistered address must be in
the state of the LLC, but yourcompany address for most states
there's a couple exceptions yourcompany address does not have
to be in the state where the LLCis located, All right, so, for
example, if I have an LLC inUtah, I'm in Arizona, I can use
(10:00):
my Arizona address on that.
Now, the opposite I can't do.
Arizona makes you have anArizona address for the company
address, but for the most partyou can use that and that
address will work.
So then we scan your mail, scanyour your mail in, we get the
junk out, we scan your mail andas part of that privacy address
service and again, we're notmeaning to this be like a whole
advertisement about our services, but I'm just saying these
(10:23):
mistakes we've realized are verycommon.
So we actually have servicesfor them and most lawyers or
companies in this space do so.
I hate to say it but, like,sometimes the solution is engage
a service provider.
One thing you might think abouton the company address is a PO
box Super cheap.
Yeah, Not so much as you mightthink what we found from clients
(10:44):
over the years is when theyshop a PO box because they're
like, well, I'll just use a PObox is particularly in like more
metropolitan or suburban areas.
It's going to cost you over 500, even a thousand bucks a year.
If you're in a more rural area,the postal service, whatever
subsidizes those because of themail delivery system out there.
So they're a lot more, they'rea lot cheaper.
So just know that PO boxprobably isn't as cheap as
(11:09):
you're thinking and you mightknow what you're paying now and
compare that to a privacyaddress service.
Speaker 1 (11:14):
But, Matt, it's so fun to have to go to the post
office three or four times aweek and find parking and go
into the post office and dealwith those wonderful post office
employees that are just thebackbone of our country.
Speaker 2 (11:25):
It really is.
It really is Super fun, so theyshould be paying you to go do
that.
Speaker 1 (11:33):
That's right.
Okay Now, where do we go next?
I mean, this is kind of thesetup mistakes in the online
process you may have used if youDIY it now, but there's other
pieces of parts.
Where would you go next?
As in that setup?
I think it's going to be maybethe book, the operating
agreement, the guts.
Yeah, it's going to be maybethe book, the operating
agreement, the guts.
Yeah, go to the guts.
Speaker 2 (11:52):
Yeah, let's talk about the documents that you
might not have done.
If you DIY this or you usesomeone else to help you set
this up that didn't know whatthey were doing.
You mean, you don't just needone sheet of paper.
Yeah, you need that one sheetof paper, but just not that one
sheet of paper.
There's like nine pieces to agood.
Yeah, and I and I think it'sinteresting, just as lawyers
(12:12):
where we'll have clients runinto this, you know as they'll
they'll be like hey, I bought a,I bought a rental property, and
the title company says I needan operating agreement.
Or I'm trying to set up a bankaccount and the the bank wants
my operating agreement and mytax id.
What's that?
Like I, I set up the llc online, I used llc filings online and
you know, and and there was $99and I have my piece of paper
(12:35):
from the state.
I am an LLC.
Guys, that's not what the bankthinks, that's not what the
title company thinks.
That's not what a judge isgoing to think when you're in
court trying to defend yourselfand use the asset protection of
the LLC.
There are other pieces to it.
Speaker 1 (12:48):
Yeah, I liked that last point you made.
I was going to go there If it'snot the banker, pieces to it.
Yeah, I liked that last pointyou made.
I was going to go there If it'snot the banker or just trying
to operate with one sheet ofpaper.
It's really.
Why are we setting this thing up?
It's for asset protection.
I don't want to get suedpersonally if my tenant falls
down the stairs or has abrouhaha this weekend and
they're going to sue thelandlord for some problem.
(13:08):
I don't want to be suedpersonally.
So I set up an LLC.
Oh, I got my one sheet of paper.
Do you have a separate bankaccount?
Do you have separate checking?
Has the title been transferred?
Oh, big one.
Yeah, what are we doing to showthat we are respecting the LLC
we set up?
Well the guts.
Do you have a corporate book?
Do you have an operatingagreement?
(13:30):
Do you have membershipcertificates or stock
certificates?
Do you have minutes?
Do you have an operatingagreement?
Do you have membershipcertificates or stock
certificates?
Do you have minutes?
Do you have all those thingsthat go into the setup of the
LLC?
And you can't just chat GBTthat You've got to actually get
something mailed to you from acompany that's going to create
that book.
It's an actual paper, a pieceof paper.
(13:52):
I'm sorry, it's just notdigital yet.
Speaker 2 (13:55):
Yeah, yeah, I mean, you can keep it in a digital
record.
But, yeah, we're actuallysetting out a physical book and
we can actually keep a digitalcopy on top of that when our
record is, when we're workingwith you.
But that one piece of paperthat you get from the state,
that is the one piece of paperthat you have to file and get
approved with the state.
But that's not the only pieceto having an LLC.
That's a piece the one that thestate approves and puts their
(14:18):
stamp on it to say, hey, no oneelse using this LLC, you've got
this, this is your name, this isyour LLC.
So make sure you remember toget the operating agreement.
This is what says how the LLCoperates Really important,
particularly if you havepartners, because that operates
as your partnership agreementtoo.
But even if you don't, youstill need to have an operating
agreement and then the initialminutes when you set it up,
(14:39):
membership certificates and thatall comes in a corporate book,
and so if you don't have thoseextra pieces, you can clean up
the LLC A lot of times.
What you did file with thestate is actually okay, it
doesn't need to be changed.
But you've missed all theseother parts and so these other
pieces can be added in later on.
I love that.
Speaker 1 (14:56):
And we're going to call that number five, the guts
of this LLC, the backbone of theLLC.
Number six and you alluded toit and I think is a really good
point is the EIN and the banking.
If you're going to set up anLLC, it is a separate entity.
It is a separate thing and ithas to have it be.
Kind of you got to wave yourflag with the IRS and go, hey, I
(15:17):
set up an LLC and so that'scalled an SS4 form and you're
going to get a tax ID numberthat's important for your
digital payment services and theVenmos and the Zells of the
world and Apple Pay and all that.
You're going to have to fillout a W-9 for vendors that are
customers that are going to payyou.
So you've got this tax piece.
(15:38):
You are creating somethingthat's going to make you money.
Well, you've got to setting upthe LLC and again, just thinking
you're done and shoving thatone sheet of paper in the drawer
is not enough, and so I knowit's just so important.
You mentioned the EIN too.
What would you have to do?
Speaker 2 (15:52):
Yeah, and so I know, it's just so important.
You mentioned the EIN too.
What would you add to it?
Yeah, yeah, it's called tax IDEIN.
That is the same thing you know.
Let's say you're a business,you have payroll, you're going
to need to be using that.
Obviously, you want to separatethis.
If you're going to have a salespartnership tax or, yeah, your
sales tax reporting, maybeyou're going to do an S corp
election, this tax ID becomessomething that's used for your
(16:12):
tax filings and it's whatseparates your personal return
from your company return.
Is this EIN?
And identifies those things asseparate.
So really important, even forthe rental property or the side
hustle.
You need to get that at aminimum for your banking and
just your vendor management.
Speaker 1 (16:30):
Yeah, no, I love it and I'd like to go there.
I like what you're saying.
The S-corp election yeah, no, Ilove it and you, I think you,
I'd like to go there.
I like what you're saying.
The S-corp election yeah, doyou want to explain that?
I guess?
Speaker 2 (16:40):
Yeah, I think one of the biggest mistakes people make
with an LLC is having the wrongtax election and not doing an
S-election on it.
A lot of people, when they setup an LLC, they are a sole
proprietorship by default andeven if you got a tax ID, if you
didn't elect any other taxstatus and you're just the only
owner, you are a soleproprietorship.
What does that mean?
(17:00):
That means you pay income taxon the income you get.
Plus, if this is an operatingbusiness, you're providing
services or goods, you'redriving Uber, you got a
storefront consulting commissionincome, service income whatever
that income, you're payingincome tax.
And you're payingself-employment tax, which is
Medicare and Social Security.
That's 15.3%.
Well, when you're a soleproprietorship because you just
(17:23):
set up an LLC and you didn't doanything else, that's all coming
down to regular ordinary incomerates plus the 15.3%.
If you add an S selection tothe LLC, you get this S
corporation tax treatment on ahundred grand of income.
It can save you up to ninegrand in tax savings and
basically what you're able to do.
The gist of it.
We've got other stuff on this,but I'll just want to say the
(17:45):
gist of it is when you have an Scorp.
You can pay yourself a salary,which you have to pay a
reasonable salary to yourself,and you pay into Medicare and
Social Security.
The other portion of the incomeyou pay to yourself is just the
profit out of an S-corp that isnot subject to self-employment
tax.
It's exempt, meaning I'm notpaying that 15.3% on this bucket
(18:05):
of money.
You're not doing that in a soleprompt, but you can do that in
an S-corp.
We have other podcast episodeson that and videos on it.
But that tax election is onethat, if you did that wrong and
you're making let's say you'remaking a hundred grand a year,
that's costing you probably$9,000 a year, like every year
until you fix that thing.
Speaker 1 (18:23):
Great point, and you summarized that perfectly.
I love it.
Common mistake.
Now for our last two, andthey're somewhat related in.
This is the moving forward.
You got your LLC set up.
Maybe you checked all theseother boxes off and you're like,
hey, I did all these things, oryou call us up and clean up
these few things.
Am I done forever?
(18:43):
No, there's some maintenancethings that need to happen, and
the first thing is keeping yourin good standing with the state.
You set this up with the state.
You waved your flag, you putyour stake in the ground and
said I'm going to set up thisLLC.
Most states are going torequire you to pay an annual
renewal fee to file a form ofsome sort to keep you in good
(19:07):
standing or registered with thestate.
It's easy to forget.
I mean, this is something thatI don't.
You know.
You can't remember when you setthese things up.
Speaker 2 (19:16):
I know I I have, you know I don't know 15 to 20
companies.
I can't tell you which onerenews and when, and I don't
want to.
That's the last thing youshould be worrying about as a
business owner.
Focus on making money and thethings that really matter in
your business.
If you want to playadministrative assistant forever
, good luck in having anysuccess in your business.
So you should sub that out, soto speak.
(19:39):
Get someone else to handle itfor you.
Our company, mainstreetBusiness Services, which does
registered agent by the way, wecan be a registered agent.
We have that privacy addressservice.
We do our company complianceservice called CCS, where we
hand you your annual renewal andyour annual minutes.
It's just something you need toget off your plate there.
I do not know a successfulbusiness person that is still
(19:59):
doing their annual report.
That is, their own registeredagent.
Yeah, like, why are you doingthat?
Yeah, like, start focusing onmaking more money in your
business and growing it, notbeing the secretary handling all
these administrative things.
And here's the important thing.
Speaker 1 (20:13):
You may think you're saving money.
You're like, well, I'm doing itbecause I'm saving money.
No, what happens is, when youmiss one of these deadlines, the
penalty and the cost to getback in good graces with the
state.
It can be three times what itcosts to just pay someone to do
it in the first place, and soit's one of those deceptive
(20:34):
things that last night I was atHome Depot, driving there twice,
taking time to go figure outthis methodology to hang my
daughter's TV on the wall, and Icould have called Thumbtack or
some handyman and been done withit.
I spent more time and moneydoing it.
No, I enjoyed it.
You were probably doingsomething.
Speaker 2 (20:50):
This is where I make fun of Mark for doing this stuff
.
He's always doing stuff likethis, but it's like therapy for
me.
Yes, it is.
This is like Mark's version ofyoga.
Yes, yes.
Put a tool belt on.
Speaker 1 (21:01):
It's his peaceful place, even if he's going back
and forth to Home Depot in110-degree weather in Phoenix
you know you can try to twist itinto a miserable experience all
you want, but I enjoyed it.
I was using my hands making theworld a better place.
I was hanging a TV on the wall.
Speaker 2 (21:17):
You're that guy that you know has a calendar and
remembers when his renewal hitsfor the state LLC.
I don't want to go that far,I'm just saying if the shoe fits
.
Speaker 1 (21:27):
Yeah, I do not do my own annual maintenance either.
Oh my gosh.
Well, and it can be superaffordable.
We're a couple hundred bucks ayear to take care of all this
and all these BOI rumors ofreports that you might have to
file with the state and the fed.
We're on top of that.
You don't have to worry aboutthat crap.
And so I'm going to bring it tohome all together with number
10, the company maintenanceitself, doing that annual
(21:50):
meeting.
And this is one of my favorite,favorite topics, because when
you set up an LLC, you should besetting up your own board of
directors, your own board ofadvisors.
You now get to have you don'thave to.
You get to have an annualmeeting.
You get to have a meeting withyour family, your friends, the
people that you mastermind with.
This LLC is now your cruciblefor building your American dream
(22:14):
, and so when you go have thosemeetings, it's a tax write-off.
You get to go to dinner, go on atrip, go to Cabo, I don't care
have your juggernaut for yourcompany meeting, and so that is
a process that actuallysolidifies the asset protection
of your entity.
It gives you audit protectionwith the IRS, it makes your
(22:35):
entity more legitimate.
So you may look at it as a haveto.
I look at company maintenanceas an opportunity, an
opportunity to engage with yourfamily, have this amazing board
meeting and we will give you thelist of questions to discuss.
We will do the minutes.
We want you to come, lookpretty and, at the same time,
double check with the state thatyou're clean and organized and
(22:56):
you're off to the races.
That, my friends, is ourcompany maintenance program.
We love it and it's just sopowerful.
Speaker 2 (23:03):
Yeah, and I think the impetus for today and hitting
these topics was we just see alot of LLCs, a lot of people
doing the DIY, or they're usingservice providers who don't know
what they're doing.
They're not thinking about thecomplexity that they're
structuring.
Sometimes they've set up toomany entities, they got the
wrong tax election, they didn'tthink of the privacy
ramifications.
They're doing all themaintenance themselves when they
(23:24):
should be focusing on thebusiness.
Whatever your problem is, wehave a solution.
Right now we're trying to helpyou with this, not just with
some of this education, but alsothe services.
So at our law firm, organizedfirm, kqs Lawyers, we have a
cleanup special and we helpclean up your LLC.
If you're like guys, I'm one ofthose people that set this up.
I barely know what the heck Ihave.
I could use some advice on this.
(23:45):
A consult with a lawyer.
Let's clean up the documents.
Speaker 1 (23:55):
We've got that for you.
Get over to kqslawyerscom.
Also, if I may add, main StreetBusiness Services is that
ongoing maintenance servicewhere we could be a registered
agent or provide those minutesand all that.
And in all of these servicesthis month we've got like 25
bucks off here, 100 bucks offthere, 200 bucks off there
because there's differentservices.
We don't know what you need.
Give us a call.
Paralegals on the phone willhelp you figure out what you
need.
There's no charge for that.
Just call, say here's what Igot and they'll go.
(24:15):
You're set or let's help you.
So, whatever the case may be,give us a call.
Down below you can set up adiscovery call at KKOS, lawyers
or Main Street Business Services.
We tried to list some of thethings you may already know you
need and who to call.
It's down there below.
Check it out and let's get youdialed in so you can get out and
(24:36):
live your best life All right.
Speaker 2 (24:37):
Well, thanks everybody for tuning in the Main
Street Business Podcast.
Please share this with yourfriends and family.
Give it five stars, thumbs up,I don't know.
Subscribe kudos anything, we'lltake it Whatever you can give
us.
That's positive, it's negative.
Speaker 1 (24:52):
Go do something with that energy.
Speaker 2 (24:55):
Yeah, send it somewhere else.
Go down to the.
Speaker 1 (24:57):
Verizon store, the DMV, and just yell at someone
randomly.
I mean it happens all the time.
I don't know if it's worth itfor Verizon to get a new cell
phone or go to renew my driver'slicense Either one.
Speaker 2 (25:07):
Either one Did you have a bad experience at.
Speaker 1 (25:09):
Verizon.
Oh my gosh, have you tried tobuy a cell phone in the last you
know 10 years?
It's at least a two-hourprocess, am I right?
I mean I just I could buy aused car faster than get a new
cell phone.
I swear Interesting.
Speaker 2 (25:21):
Okay, I'm up for.
I'm due for an upgrade, so Imight have to test this, no
offense.
Speaker 1 (25:25):
Verizon.
It's just streamline thisprocess, yeah yeah, Use promo
code MarkJ Kohler.
Speaker 2 (25:35):
Dude, that means my name.
It's code Verizoncom.
Verizoncom slash Mark J Kohlerto get 10% off.
We know that guy Actually we'reT-Mobile guys or Sprint.
Speaker 1 (25:46):
They're all the same.
Speaker 2 (25:50):
All right, well, thanks everyone, we'll see you
next week.
See you.
You set this up with the state.
You waved your flag, you putyour stake in the ground and
said I'm going to set up thisLLC.
Speaker 2 (00:05):
It's like they, you know, did chat GPT now, or they
Googled like what state should Iset up my LLC in?
And they got the answer If youwant to be a fortune 500 company
and be listed on the New Yorkstock exchange, what does that
have to do with your rentalproperty in Oklahoma?
Speaker 1 (00:19):
You may think you're saving money.
You're like, well, I'm doing itbecause I'm saving money.
No, the penalty and the cost toget back in good graces with
the state.
It can be three times what itcosts to just pay someone to do
it in the first place.
This is going to be a themetoday.
Sometimes you just can't polisha turd.
Speaker 2 (00:40):
Welcome everyone to the Main Street Business Podcast
.
This is Matt Sorensen.
I'm joined by the incredibleMark J Kohler, and we are here,
two lawyers wanting to help younot make mistakes with your LLCs
.
Speaker 1 (00:51):
Yeah, top 10 mistakes in setting up your LLC.
And all of these are repairableand we are here for you.
So do not feel shame, feelguilt.
You're're embarrassed, you'vegot an llc, you are on the right
track.
We love you, we appreciate you,you're okay.
(01:12):
It was you like that, a littlemore feeling, yeah if you want
to, yeah, I like it.
Speaker 2 (01:15):
We're.
Speaker 1 (01:16):
Yes, we are here for you, okay all right, but we've
got to give you some bad newstoo.
There could be a mistake made,and we want you to rock and roll
, so yeah, and it's easy to fix.
Speaker 2 (01:25):
So we're going to go through some of these things
that we see every day.
Mark and I have done the 10,000consults with clients across
the country, from businessowners to real estate investors.
We've seen it all and we seesome common things that we want
you to get right, cause we wantyou to have that asset
protection you're planning on.
We want to make sure you've gotthe right tax planning in place
, because, at the end of the day, it's all about building wealth
(01:46):
and protecting it, and your LLCis a great place to start.
So, yeah, yeah.
Speaker 1 (01:50):
One quick example I was at Home Depot last night
fixing a mistake.
I had to go twice to Home Depot.
Now I could have hired ahandyman and done it right, paid
a little bit more, but I wantedto DIY it.
That's cool.
So again, we're okay with thatand we do have the full service
handyman type relationship.
That's me.
Speaker 2 (02:12):
Yeah, you're the guy at Home Depot, twice You're home
watching TV.
Speaker 1 (02:19):
Fair enough, but I enjoyed my experience.
I met a new guy on Depot.
That was just a wonderfulgentleman.
Okay, yeah, he shamed me.
Okay, now was just a wonderfulgentleman.
Okay, great, yeah, he shamed me.
Okay, now I'm going to go withthe setup itself.
Let's just go there first.
Number one mistake people makeand these might be in order of
priority.
We could even try that.
I think number one is peopleset up in the wrong state.
(02:40):
They get sold this Wyomingthing, the Nevada thing,
delaware, delaware, yeah, wrongstate.
Um, they get sold this wyomingthing, that nevada thing, and
any delaware, delaware, yeah,but they've been sold this can
of goods, ball of wax, what doyou call it?
Speaker 2 (02:53):
I don't know yeah, they've been sold the wrong
thing.
Yeah, you know, it's like they.
They, you know, did chat gptnow.
Or they googled like what stateshould I set up my LLC in?
And they got the answer If youwant to be a fortune 500 company
and be listed on the New Yorkstock exchange or like, what
does that have to do with yourrental property in Oklahoma?
Nothing, yeah, nothing, okay.
(03:15):
You're going to pay way toomuch money, you're going to have
a administratively pain in thebutt structure when you don't
need it and it does nothing tohelp you at all.
Speaker 1 (03:23):
And here's the general rule.
Now, on these 10 mistakes,we're going to give you a quick
answer as to what the propermethodology is, or mindset and
we've got other podcasts on this.
You may need to consult withone.
We have a.
We have a cleanup special we doevery year where we just help
people clean up their entitiesand we'll give you some
resources for that so you canget it done right.
But the general approach is youset up an entity where you're
(03:48):
doing business as a side hustle,a main street store or a rental
property.
You set up where you're doingbusiness, where the property is
located, where the employees arelocated, where you're located.
Now there can be someadditional strategies by adding
a layer in Wyoming, nevada,delaware, wherever.
But that's level two type stuffand most people don't need that
(04:10):
but they get kind of badinformation.
So the remedy we move theentity.
It's called domestication.
We can move it to the rightstate.
We could register it foreign.
Sometimes you just this isgoing to be a theme today
Sometimes you just can't polisha turd.
Speaker 2 (04:25):
Yeah, yeah, yeah, they have proven that myth
busters actually.
Speaker 1 (04:28):
All right.
Speaker 2 (04:30):
So, and when that is the case, what we like to do is
just start over and we will justset up a new LLC and do it
right.
But we can't a lot of timesjust fix it with the
domestication we're removing itfrom one state to another.
And let me just say this likelet's say that you're in
California and someone told youwell, you just set up a Nevada
LLC, so you don't have to paythe California $800 fee every
(04:52):
year and your butt's sitting inCalifornia doing business in
California.
Yeah, you need to getregistered into California and I
know it's painful and you'relike, but I don't want to send
the state of California thisfranchise tax.
That's BS.
I know you got to get your buttout of California.
Okay, it's not the LLC problem,it's you.
You're staying in California,so, or this could be the rental
property example we gave.
But here's one thing, an optionsome people think of as well
(05:14):
just register the Nevada entityinto California.
Okay, now you're paying fees toNevada and California.
Let's just start and get theentity in the state it needs to
be in.
Speaker 1 (05:23):
Yep, all right Now.
Number two is on the formationprocess.
We're just going to stay therefor a moment.
When you're setting up your LLC, there's more than just what
button you push, if you will.
There's a lot to this.
The second mistake we see iswhere people list themselves as
their own registered agent.
Every state requires that a newentity, new LLC or corporation
(05:44):
has a registered agent.
Every state requires that a newentity, new LLC or corporation
has a registered agent.
This is the person that's goingto receive mail service of
process when it comes toofficial notices for a potential
lawsuit or governmentinteraction of some sort.
So you have to put down aregistered agent that is public
record.
You may not want your home,your name, your personal address
(06:05):
out there for the world to knowwhere you're at if they're
pissed off.
I consider that a mistake.
I don't think people should dothat.
Speaker 2 (06:13):
Right, yeah, just use a registered agent company.
We happen to have one that's inall 50 states.
You don't have to use us.
But there's a couple otherreasons of just that privacy
element that Mark talked aboutis, when you get a legal notice,
you need to know what to dowith it.
Also, do you want some processserver serving your kid at your
house or your spouse?
Do they understand howimportant that thing is and are
(06:35):
they going to make sure that itgets to you properly and timely?
Is it going to be sitting on adresser somewhere?
I don't know, it's like this isimportant stuff, dresser
somewhere, or I don't know.
I just it's like this isimportant stuff and so when
something happens with theregistered agent, you need to
know what's happening, um, andyou want to make sure it's
handled professionally.
Speaker 1 (06:50):
So and it's something easy to fix we file an
amendment with the state andchange the registered agent.
Now, if I may, number three,I'm feeling it, I'm feeling
rolling here.
Number three is related to thatand that is choosing the wrong
registered agent.
Not only did you not putyourself you may have put
yourself as a registered agentyou don't want that privacy
(07:12):
exposure but you may have chosensomeone to be your registered
agent and they are too damnexpensive.
Speaker 2 (07:17):
It is crazy out there , yeah like LegalZoom, will
charge you like $300, $400 ayear to be a registered agent.
Our company, mainstreambusiness services, where we have
registered agent service on all50 States, one, 25 a year.
Okay, total bargain compared tothe legal zooms.
Those are places that you thinkare the cheaper, discounted
version, like like a legal zoom,right?
No, it's actually moreexpensive.
(07:39):
So.
So you should probably shopthat too, because that is an
annual cost, and make just makesure it's competitive.
It might be worth changing andyou can change and no one's
going to be offended.
Speaker 1 (07:51):
Legalzoom is not going to know Until you cancel.
Speaker 2 (07:56):
Yeah, yeah, I mean they're going to know, but what
are they going to do?
Speaker 1 (07:59):
I mean you know, save some money.
So here's our.
Obviously I'm going to justsummarize it here.
If you are the registered agentor you're paying someone too
much, it is a simple fix.
It's going to save you moneyand give you privacy.
Get a change done Again.
We'll have all the resourcesyou need here at the end in the
description.
You can go there now to getsome help there.
I'm going to go with this setupstill, matt, if I could.
(08:21):
Number four mistake is usingokay, every company again
nationwide not only needs aregistered agent, they need a
company address.
Speaker 2 (08:32):
We can screw that one up, yeah, and the states have
some different rules on this.
Some companies' addresses in astate that address must be a
physical address.
Some states allow it to be a PObox.
This is again like a privacycomponent.
You may not want your personaladdress.
Let's say you're a landlordwith LLCs for rental properties.
(08:52):
You may not want your personaladdress.
Let's say you're a landlord,okay, with LLCs for rental
properties.
Speaker 1 (08:58):
You may not want your personal address listed on here
because you don't want a grumpytenant showing up at your home.
All right, yeah.
And you may have thought oh, Iwas a genius, I'm not my
registered agent.
And then three lines downwhat's the company address?
Oh, that's mine.
Little do you know that that'spublic record too.
So if you're wondering, whataddress did I freaking use?
You can easily go to your statesecretary of state website,
(09:19):
wherever you set your entity up,and pull up the entity and just
see what everybody in the worldcan see.
And you may have made the rightmove with the registered agent,
but made the wrong move withthe company address itself.
So again, easy fix.
You can tidy both those up inone quick change.
We have a mail forwardingservice.
Speaker 2 (09:38):
Yeah, we have a privacy address service that you
can use our address and ourUtah office because the
registered agent and theregistered address must be in
the state of the LLC, but yourcompany address for most states
there's a couple exceptions yourcompany address does not have
to be in the state where the LLCis located, All right, so, for
example, if I have an LLC inUtah, I'm in Arizona, I can use
(10:00):
my Arizona address on that.
Now, the opposite I can't do.
Arizona makes you have anArizona address for the company
address, but for the most partyou can use that and that
address will work.
So then we scan your mail, scanyour your mail in, we get the
junk out, we scan your mail andas part of that privacy address
service and again, we're notmeaning to this be like a whole
advertisement about our services, but I'm just saying these
(10:23):
mistakes we've realized are verycommon.
So we actually have servicesfor them and most lawyers or
companies in this space do so.
I hate to say it but, like,sometimes the solution is engage
a service provider.
One thing you might think abouton the company address is a PO
box Super cheap.
Yeah, Not so much as you mightthink what we found from clients
(10:44):
over the years is when theyshop a PO box because they're
like, well, I'll just use a PObox is particularly in like more
metropolitan or suburban areas.
It's going to cost you over 500, even a thousand bucks a year.
If you're in a more rural area,the postal service, whatever
subsidizes those because of themail delivery system out there.
So they're a lot more, they'rea lot cheaper.
So just know that PO boxprobably isn't as cheap as
(11:09):
you're thinking and you mightknow what you're paying now and
compare that to a privacyaddress service.
Speaker 1 (11:14):
But, Matt, it's so fun to have to go to the post
office three or four times aweek and find parking and go
into the post office and dealwith those wonderful post office
employees that are just thebackbone of our country.
Speaker 2 (11:25):
It really is.
It really is Super fun, so theyshould be paying you to go do
that.
Speaker 1 (11:33):
That's right.
Okay Now, where do we go next?
I mean, this is kind of thesetup mistakes in the online
process you may have used if youDIY it now, but there's other
pieces of parts.
Where would you go next?
As in that setup?
I think it's going to be maybethe book, the operating
agreement, the guts.
Yeah, it's going to be maybethe book, the operating
agreement, the guts.
Yeah, go to the guts.
Speaker 2 (11:52):
Yeah, let's talk about the documents that you
might not have done.
If you DIY this or you usesomeone else to help you set
this up that didn't know whatthey were doing.
You mean, you don't just needone sheet of paper.
Yeah, you need that one sheetof paper, but just not that one
sheet of paper.
There's like nine pieces to agood.
Yeah, and I and I think it'sinteresting, just as lawyers
(12:12):
where we'll have clients runinto this, you know as they'll
they'll be like hey, I bought a,I bought a rental property, and
the title company says I needan operating agreement.
Or I'm trying to set up a bankaccount and the the bank wants
my operating agreement and mytax id.
What's that?
Like I, I set up the llc online, I used llc filings online and
you know, and and there was $99and I have my piece of paper
(12:35):
from the state.
I am an LLC.
Guys, that's not what the bankthinks, that's not what the
title company thinks.
That's not what a judge isgoing to think when you're in
court trying to defend yourselfand use the asset protection of
the LLC.
There are other pieces to it.
Speaker 1 (12:48):
Yeah, I liked that last point you made.
I was going to go there If it'snot the banker, pieces to it.
Yeah, I liked that last pointyou made.
I was going to go there If it'snot the banker or just trying
to operate with one sheet ofpaper.
It's really.
Why are we setting this thing up?
It's for asset protection.
I don't want to get suedpersonally if my tenant falls
down the stairs or has abrouhaha this weekend and
they're going to sue thelandlord for some problem.
(13:08):
I don't want to be suedpersonally.
So I set up an LLC.
Oh, I got my one sheet of paper.
Do you have a separate bankaccount?
Do you have separate checking?
Has the title been transferred?
Oh, big one.
Yeah, what are we doing to showthat we are respecting the LLC
we set up?
Well the guts.
Do you have a corporate book?
Do you have an operatingagreement?
(13:30):
Do you have membershipcertificates or stock
certificates?
Do you have minutes?
Do you have an operatingagreement?
Do you have membershipcertificates or stock
certificates?
Do you have minutes?
Do you have all those thingsthat go into the setup of the
LLC?
And you can't just chat GBTthat You've got to actually get
something mailed to you from acompany that's going to create
that book.
It's an actual paper, a pieceof paper.
(13:52):
I'm sorry, it's just notdigital yet.
Speaker 2 (13:55):
Yeah, yeah, I mean, you can keep it in a digital
record.
But, yeah, we're actuallysetting out a physical book and
we can actually keep a digitalcopy on top of that when our
record is, when we're workingwith you.
But that one piece of paperthat you get from the state,
that is the one piece of paperthat you have to file and get
approved with the state.
But that's not the only pieceto having an LLC.
That's a piece the one that thestate approves and puts their
(14:18):
stamp on it to say, hey, no oneelse using this LLC, you've got
this, this is your name, this isyour LLC.
So make sure you remember toget the operating agreement.
This is what says how the LLCoperates Really important,
particularly if you havepartners, because that operates
as your partnership agreementtoo.
But even if you don't, youstill need to have an operating
agreement and then the initialminutes when you set it up,
(14:39):
membership certificates and thatall comes in a corporate book,
and so if you don't have thoseextra pieces, you can clean up
the LLC A lot of times.
What you did file with thestate is actually okay, it
doesn't need to be changed.
But you've missed all theseother parts and so these other
pieces can be added in later on.
I love that.
Speaker 1 (14:56):
And we're going to call that number five, the guts
of this LLC, the backbone of theLLC.
Number six and you alluded toit and I think is a really good
point is the EIN and the banking.
If you're going to set up anLLC, it is a separate entity.
It is a separate thing and ithas to have it be.
Kind of you got to wave yourflag with the IRS and go, hey, I
(15:17):
set up an LLC and so that'scalled an SS4 form and you're
going to get a tax ID numberthat's important for your
digital payment services and theVenmos and the Zells of the
world and Apple Pay and all that.
You're going to have to fillout a W-9 for vendors that are
customers that are going to payyou.
So you've got this tax piece.
(15:38):
You are creating somethingthat's going to make you money.
Well, you've got to setting upthe LLC and again, just thinking
you're done and shoving thatone sheet of paper in the drawer
is not enough, and so I knowit's just so important.
You mentioned the EIN too.
What would you have to do?
Speaker 2 (15:52):
Yeah, and so I know, it's just so important.
You mentioned the EIN too.
What would you add to it?
Yeah, yeah, it's called tax IDEIN.
That is the same thing you know.
Let's say you're a business,you have payroll, you're going
to need to be using that.
Obviously, you want to separatethis.
If you're going to have a salespartnership tax or, yeah, your
sales tax reporting, maybeyou're going to do an S corp
election, this tax ID becomessomething that's used for your
(16:12):
tax filings and it's whatseparates your personal return
from your company return.
Is this EIN?
And identifies those things asseparate.
So really important, even forthe rental property or the side
hustle.
You need to get that at aminimum for your banking and
just your vendor management.
Speaker 1 (16:30):
Yeah, no, I love it and I'd like to go there.
I like what you're saying.
The S-corp election yeah, no, Ilove it and you, I think you,
I'd like to go there.
I like what you're saying.
The S-corp election yeah, doyou want to explain that?
I guess?
Speaker 2 (16:40):
Yeah, I think one of the biggest mistakes people make
with an LLC is having the wrongtax election and not doing an
S-election on it.
A lot of people, when they setup an LLC, they are a sole
proprietorship by default andeven if you got a tax ID, if you
didn't elect any other taxstatus and you're just the only
owner, you are a soleproprietorship.
What does that mean?
(17:00):
That means you pay income taxon the income you get.
Plus, if this is an operatingbusiness, you're providing
services or goods, you'redriving Uber, you got a
storefront consulting commissionincome, service income whatever
that income, you're payingincome tax.
And you're payingself-employment tax, which is
Medicare and Social Security.
That's 15.3%.
Well, when you're a soleproprietorship because you just
(17:23):
set up an LLC and you didn't doanything else, that's all coming
down to regular ordinary incomerates plus the 15.3%.
If you add an S selection tothe LLC, you get this S
corporation tax treatment on ahundred grand of income.
It can save you up to ninegrand in tax savings and
basically what you're able to do.
The gist of it.
We've got other stuff on this,but I'll just want to say the
(17:45):
gist of it is when you have an Scorp.
You can pay yourself a salary,which you have to pay a
reasonable salary to yourself,and you pay into Medicare and
Social Security.
The other portion of the incomeyou pay to yourself is just the
profit out of an S-corp that isnot subject to self-employment
tax.
It's exempt, meaning I'm notpaying that 15.3% on this bucket
(18:05):
of money.
You're not doing that in a soleprompt, but you can do that in
an S-corp.
We have other podcast episodeson that and videos on it.
But that tax election is onethat, if you did that wrong and
you're making let's say you'remaking a hundred grand a year,
that's costing you probably$9,000 a year, like every year
until you fix that thing.
Speaker 1 (18:23):
Great point, and you summarized that perfectly.
I love it.
Common mistake.
Now for our last two, andthey're somewhat related in.
This is the moving forward.
You got your LLC set up.
Maybe you checked all theseother boxes off and you're like,
hey, I did all these things, oryou call us up and clean up
these few things.
Am I done forever?
(18:43):
No, there's some maintenancethings that need to happen, and
the first thing is keeping yourin good standing with the state.
You set this up with the state.
You waved your flag, you putyour stake in the ground and
said I'm going to set up thisLLC.
Most states are going torequire you to pay an annual
renewal fee to file a form ofsome sort to keep you in good
(19:07):
standing or registered with thestate.
It's easy to forget.
I mean, this is something thatI don't.
You know.
You can't remember when you setthese things up.
Speaker 2 (19:16):
I know I I have, you know I don't know 15 to 20
companies.
I can't tell you which onerenews and when, and I don't
want to.
That's the last thing youshould be worrying about as a
business owner.
Focus on making money and thethings that really matter in
your business.
If you want to playadministrative assistant forever
, good luck in having anysuccess in your business.
So you should sub that out, soto speak.
(19:39):
Get someone else to handle itfor you.
Our company, mainstreetBusiness Services, which does
registered agent by the way, wecan be a registered agent.
We have that privacy addressservice.
We do our company complianceservice called CCS, where we
hand you your annual renewal andyour annual minutes.
It's just something you need toget off your plate there.
I do not know a successfulbusiness person that is still
(19:59):
doing their annual report.
That is, their own registeredagent.
Yeah, like, why are you doingthat?
Yeah, like, start focusing onmaking more money in your
business and growing it, notbeing the secretary handling all
these administrative things.
And here's the important thing.
Speaker 1 (20:13):
You may think you're saving money.
You're like, well, I'm doing itbecause I'm saving money.
No, what happens is, when youmiss one of these deadlines, the
penalty and the cost to getback in good graces with the
state.
It can be three times what itcosts to just pay someone to do
it in the first place, and soit's one of those deceptive
(20:34):
things that last night I was atHome Depot, driving there twice,
taking time to go figure outthis methodology to hang my
daughter's TV on the wall, and Icould have called Thumbtack or
some handyman and been done withit.
I spent more time and moneydoing it.
No, I enjoyed it.
You were probably doingsomething.
Speaker 2 (20:50):
This is where I make fun of Mark for doing this stuff
.
He's always doing stuff likethis, but it's like therapy for
me.
Yes, it is.
This is like Mark's version ofyoga.
Yes, yes.
Put a tool belt on.
Speaker 1 (21:01):
It's his peaceful place, even if he's going back
and forth to Home Depot in110-degree weather in Phoenix
you know you can try to twist itinto a miserable experience all
you want, but I enjoyed it.
I was using my hands making theworld a better place.
I was hanging a TV on the wall.
Speaker 2 (21:17):
You're that guy that you know has a calendar and
remembers when his renewal hitsfor the state LLC.
I don't want to go that far,I'm just saying if the shoe fits
.
Speaker 1 (21:27):
Yeah, I do not do my own annual maintenance either.
Oh my gosh.
Well, and it can be superaffordable.
We're a couple hundred bucks ayear to take care of all this
and all these BOI rumors ofreports that you might have to
file with the state and the fed.
We're on top of that.
You don't have to worry aboutthat crap.
And so I'm going to bring it tohome all together with number
10, the company maintenanceitself, doing that annual
(21:50):
meeting.
And this is one of my favorite,favorite topics, because when
you set up an LLC, you should besetting up your own board of
directors, your own board ofadvisors.
You now get to have you don'thave to.
You get to have an annualmeeting.
You get to have a meeting withyour family, your friends, the
people that you mastermind with.
This LLC is now your cruciblefor building your American dream
(22:14):
, and so when you go have thosemeetings, it's a tax write-off.
You get to go to dinner, go on atrip, go to Cabo, I don't care
have your juggernaut for yourcompany meeting, and so that is
a process that actuallysolidifies the asset protection
of your entity.
It gives you audit protectionwith the IRS, it makes your
(22:35):
entity more legitimate.
So you may look at it as a haveto.
I look at company maintenanceas an opportunity, an
opportunity to engage with yourfamily, have this amazing board
meeting and we will give you thelist of questions to discuss.
We will do the minutes.
We want you to come, lookpretty and, at the same time,
double check with the state thatyou're clean and organized and
(22:56):
you're off to the races.
That, my friends, is ourcompany maintenance program.
We love it and it's just sopowerful.
Speaker 2 (23:03):
Yeah, and I think the impetus for today and hitting
these topics was we just see alot of LLCs, a lot of people
doing the DIY, or they're usingservice providers who don't know
what they're doing.
They're not thinking about thecomplexity that they're
structuring.
Sometimes they've set up toomany entities, they got the
wrong tax election, they didn'tthink of the privacy
ramifications.
They're doing all themaintenance themselves when they
(23:24):
should be focusing on thebusiness.
Whatever your problem is, wehave a solution.
Right now we're trying to helpyou with this, not just with
some of this education, but alsothe services.
So at our law firm, organizedfirm, kqs Lawyers, we have a
cleanup special and we helpclean up your LLC.
If you're like guys, I'm one ofthose people that set this up.
I barely know what the heck Ihave.
I could use some advice on this.
(23:45):
A consult with a lawyer.
Let's clean up the documents.
Speaker 1 (23:55):
We've got that for you.
Get over to kqslawyerscom.
Also, if I may add, main StreetBusiness Services is that
ongoing maintenance servicewhere we could be a registered
agent or provide those minutesand all that.
And in all of these servicesthis month we've got like 25
bucks off here, 100 bucks offthere, 200 bucks off there
because there's differentservices.
We don't know what you need.
Give us a call.
Paralegals on the phone willhelp you figure out what you
need.
There's no charge for that.
Just call, say here's what Igot and they'll go.
(24:15):
You're set or let's help you.
So, whatever the case may be,give us a call.
Down below you can set up adiscovery call at KKOS, lawyers
or Main Street Business Services.
We tried to list some of thethings you may already know you
need and who to call.
It's down there below.
Check it out and let's get youdialed in so you can get out and
(24:36):
live your best life All right.
Speaker 2 (24:37):
Well, thanks everybody for tuning in the Main
Street Business Podcast.
Please share this with yourfriends and family.
Give it five stars, thumbs up,I don't know.
Subscribe kudos anything, we'lltake it Whatever you can give
us.
That's positive, it's negative.
Speaker 1 (24:52):
Go do something with that energy.
Speaker 2 (24:55):
Yeah, send it somewhere else.
Go down to the.
Speaker 1 (24:57):
Verizon store, the DMV, and just yell at someone
randomly.
I mean it happens all the time.
I don't know if it's worth itfor Verizon to get a new cell
phone or go to renew my driver'slicense Either one.
Speaker 2 (25:07):
Either one Did you have a bad experience at.
Speaker 1 (25:09):
Verizon.
Oh my gosh, have you tried tobuy a cell phone in the last you
know 10 years?
It's at least a two-hourprocess, am I right?
I mean I just I could buy aused car faster than get a new
cell phone.
I swear Interesting.
Speaker 2 (25:21):
Okay, I'm up for.
I'm due for an upgrade, so Imight have to test this, no
offense.
Speaker 1 (25:25):
Verizon.
It's just streamline thisprocess, yeah yeah, Use promo
code MarkJ Kohler.
Speaker 2 (25:35):
Dude, that means my name.
It's code Verizoncom.
Verizoncom slash Mark J Kohlerto get 10% off.
We know that guy Actually we'reT-Mobile guys or Sprint.
Speaker 1 (25:46):
They're all the same.
Speaker 2 (25:50):
All right, well, thanks everyone, we'll see you
next week.
See you.
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