New LLC? Here's What to Do Before You Make a Costly Mistake

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The first year of your LLC sets the tone for everything that follows — and most business owners get it wrong without even knowing it. From tax elections to business credit, the decisions you make early on can either protect your assets and reduce your tax burden, or quietly cost you thousands.

In this video, tax expert Karlton Dennis breaks down 7 critical steps every LLC owner should take in year one. He walks through why an operating agreement matters even for single-member LLCs, how to obtain your EIN, why separating personal and business finances is non-negotiable for liability protection, and what you need to understand about your tax election before it defaults to the wrong classification. He also covers paying yourself properly through an owner's draw, building business credit under your LLC, and setting up bookkeeping that keeps you out of trouble at tax time.

If you recently formed an LLC or are planning to, this is the roadmap you need before you make a costly mistake that's hard to undo. Watch this to build a foundation that actually holds up - financially, legally, and when it counts most.

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*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.