Mistakes of Do It Yourselfers – Incorporation/LLC

Not too long ago a few attorneys and I got together and created the following list of mistakes Do It Yourselfers make.


    1.       Not doing a name check or reservation (website is not real time)

    2.       No organizational meeting & minutes

    3.       Not keeping up with annual meeting minutes and resolutions

    4.       Not filing 25102(f) securities exemption (when necessary)

    5.       Not filing Statement of Information on a timely basis (very minor filing, very major consequences)

    6.       Not maintaining active corporate statute

    7.       No treating the Company as a separate entity (commingling funds, etc.)

    8.       Never issuing stock certificates (much less making the appropriate filings).

    9.       Borrowing money from shareholders without issuing a promissory note or drafting appropriate corporate resolutions.

    10.   Not assigning intangible assets to the entity.

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