Making business growth easier
Avoid costly mistakes in business formation with Moton Legal Group
This 10 minute read can save you from Common mistakes millionaires make that cost them hundreds of thousands of dollars & time when forming their empire...Read this and save hours, headaches, and your money
Risks you should know of forming your business without a knowledgeable business lawyer
Financial Costs
Refiling and correction fees could cost your business thousands of dollars and time that you could be spending on running your business. If your business name, structure, or registration details are incorrect, you may need to refile with your state’s Secretary of State. This could mean paying additional filing fees, delays in approval or activation losing your original filing date (which can affect tax or legal status). You may be subject to additional tax penalties if you register under the wrong entity type (e.g., LLC vs. sole proprietorship vs. S corporation), you might owe unexpected self-employment taxes, miss deductions that can lower your tax liability available to other entity types, or file the wrong tax forms, triggering IRS penalties or audits, costing you peace of mind and time. Ensuring that you have the proper licensing and permit costs because Incorrectly formed businesses may have to reapply for state or city business licenses, which means more time and fees.
Legal Risks
If your LLC or corporation wasn’t properly filed or maintained, you could lose personal asset protection. That means: Creditors could go after your personal savings, home, or vehicle Courts might “pierce the corporate veil” and hold you personally liable b. Invalid contracts or agreements If your business is not legally recognized, contracts you sign might be unenforceable — leaving you with no legal recourse in disputes. c. Intellectual property exposure Using a name not properly registered could lead to: Trademark infringement lawsuits Forced rebranding (which can cost thousands in new logos, domains, and marketing)
Tax & Compliance Risks
Tab Content
Operational Risks
Tab Content
