What are the Disadvantages of Forming an LLC?
• Existence is not perpetual in a few states; • Newer type of business entity so there is less case law; • Ownership is not as easily transferable. With a corporation, a stock certificate can be sold and transferred without the need for more complex agreements and amendment of an Operating Agreement; • C-Corporations have many tax write off’s that an LLC does not. One example of this is the Medical Reimbursement Plan that a C-Corporation can utilize while LLC members are not allowed to. • LLCs may be treated a little differently from state to state. • Q: Can I keep the same bank account or do I need to open a new one once I have the LLC formed? A: It is necessary to open a new bank account for your new entity. Do not commingle cash. Always operate your LLC as a separate entity distinct from yourself in every respect. By using the same bank account for personal and corporate purposes, you increase the likelihood of allowing someone to pierce your corporate veil and allow creditors to ch
