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    Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn’t use out-of-s

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    I see a lot of dumb LLC formation mistakes. Maybe more than most people because I regularly teach a graduate tax class on LLC formation.

    Some of the mistakes are made by entrepreneurs and investors trying to save money on accountants and attorney fees. And I guess that’s okay--albeit penny- wise and pound-foolish.

    But you know what really irks me? Some of these mistakes in fact, most of them are made by attorneys and paralegal services… Professionals who should know better.

    But enough whining. Without further fanfare, here are the three dumbest mistakes that I see people make again, and again, and again.

    Mistake #1: Forgetting about Foreign LLC Registration Rules

    Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn’t use out-of-st

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    epreneurs and investors trying to save money on accountants and attorney fees. And I guess that’s okay--albeit penny- wise and pound-foolish.

    But you know what really irks me? Some of these mistakes in fact, most of them are made by attorneys and paralegal services… Professionals who should know better.

    But enough whining. Without further fanfare, here are the three dumbest mistakes that I see people make again, and again, and again.

    Mistake #1: Forgetting about Foreign LLC Registration Rules

    Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn’t use out-of-s

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    me? Some of these mistakes in fact, most of them are made by attorneys and paralegal services… Professionals who should know better.

    But enough whining. Without further fanfare, here are the three dumbest mistakes that I see people make again, and again, and again.

    Mistake #1: Forgetting about Foreign LLC Registration Rules

    Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn’t use out-of-s

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    rther fanfare, here are the three dumbest mistakes that I see people make again, and again, and again.

    Mistake #1: Forgetting about Foreign LLC Registration Rules

    Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn’t use out-of-s

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    Read those tempting advertisements for Delaware or Nevada limited liability companies? The advertisements sound pretty good, but most small businesses shouldn’t use out-of-state llcs or for that matter out-of-state corporations.

    Here’s why: If you’re doing in business in, say, New York, you’re not going to be able to avoid state taxes by forming your llc in, say, Nevada. The tax and corporation laws in your state will require you to register your out-of- state, or foreign, llc in the states where your business operates. Those same laws will require you to pay state income taxes in the states where you earn your income.

    A couple more quick points: Large businesses do like Delaware for a variety of reasons—mostly having to with how sophisticated the Delaware chancellery courts are. But this applies to really big businesses that will litigate in Delaware—n

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