Businesses fail! It’s a well-known fact. The reasons LLCs fail are countless, but sometimes it has nothing to do with management. The unexpected happens and the business is saddled with an enormous debt that it can’t pay. The doors close and operations cease, but the debt collectors and attorneys just keep coming. In order to collect, they go to the owners or members of the LLC.
Every year there are more and more court cases where the LLC that was supposed to protect the personal assets of the business owner breaks down with the entrepreneur’s assets handed over to the bill collectors and attorneys. Shock sets in as the business owner
1. Your LLC Is At Risk – You don’t know what you are doing!
Sorry to be blunt, but it’s true. Lawyers know far more about the law than the typical business owner. Until the LLC is needed for a shield to protect the personal assets, the owner/member just assumes everything is just fine. Like the turkey who the farmer feeds every morning at 6 a.m. The turkey just keeps getting fatter and all the while oblivious to what’s about to happen. Life seems great! The same guy comes every morning with the food pail. When the turkey’s last day on this earth arrives, he is clueless about what’s about to happen.
2. Your LLC Wasn’t Set Up Correctly
It wasn’t set up correctly from the start. We see businesses all the time that genuinely believe the company is operating as an LLC. After all, they have the paper back from the State showing the LLC’s name. It’s not fun bursting people’s bubbles. If you think because the Secretary of State sent you a certificate that you have a valid, legitimate LLC, you’re simply not aware of the world around you.
3. Your LLC Isn’t Getting Proper Maintenance
You aren’t taking proper care of your LLC and are allowing it to decay. An LLC requires maintenance. If you aren’t inspecting the LLC and taking care to make repairs and keep it tuned up and smoothly operational, then it’s going to turn out badly for you when you need its protection. Your LLC can fail when you need it the most!
4. You’re Too Busy To Do Everything
Maybe you know what to do and how to maintain your LLC, but you’re going 90 mph. Let’s face it, a successful business is built through hard work, sweat, and managing the company! The details of the LLC and its needs get shoved to the side. Sure you plan to get around to it; you just never find the time. Neglecting your LLC is one reason LLCs aren’t there and leave your personal net worth up for grabs.
5. LLC’s Fall Flat When You Don’t Have Systems In Place
Sure you knew what you should do and even did it for a few years. But, as time passed, it wasn’t on your radar like it used to be. There wasn’t a system in place to keep things well-maintained and working. You wouldn’t ignore your other tools this way, but the LLC isn’t a tangible object so you let it go without keeping up with the details.
The good news is that there are ways to learn how to run your LLC the way the law requires. You can learn about safeguards that can be set up to make sure your LLC is there when you really need it. It’s not hard! It’s not expensive! And it’s available to you right now! Don’t risk letting your LLC fail!