Seven Deadly Legal Mistakes in Starting and Running an LLC

Shield Your LLC Without Going to Law School

Seven Deadly Legal Mistakes in Starting and Running an LLC
Many business owners form an LLC believing they’ve solved their legal risk problem.
They haven’t.
A Limited Liability Company can be a powerful tool—but only if it’s formed and operated correctly. Too often, business owners rely on the label “LLC” itself, assuming it provides automatic and permanent protection. In practice, that assumption quietly undermines the very protection they were trying to create.
Seven Deadly Legal Mistakes in Starting and Running an LLC is part of the Seven Deadly Legal Mistakes series and is written for entrepreneurs who have formed—or are considering forming—an LLC and want to understand how the structure actually works in the real world.
This book focuses on the mistakes that most often weaken or destroy LLC protection—not because business owners act recklessly, but because critical legal and operational details are misunderstood, overlooked, or treated as mere formalities.
Inside, you’ll learn how to avoid common LLC mistakes such as:

• Treating the LLC as a magic shield against personal liability
• Forming an LLC without clearly defining the real business relationship
• Relying on generic or incomplete operating agreements
• Mixing personal and business finances and affairs
• Ignoring tax classification and unexpected tax consequences
• Failing to plan for change, conflict, or exit
• Treating ongoing compliance as a technicality

Each chapter breaks down one deadly mistake, explains why it matters, shows how it typically plays out when things go wrong, and highlights the judgment calls that determine whether an LLC actually provides protection—or simply creates a false sense of security.
This book is not a law school textbook.
It’s not a checklist for filing paperwork.
And it’s not written to sell legal services.
It’s a practical, fast-reading guide designed to help business owners understand how LLCs function in practice, recognize where protection is lost, and make smarter decisions before problems become expensive or irreversible.
About the Series
The Seven Deadly Legal Mistakes Series provides a practical legal framework for business owners. Each book can be read on its own, but together they clarify how legal risk arises in everyday business—and how to manage it before it turns into litigation, regulatory trouble, or personal exposure.
If you formed an LLC to protect yourself, this book will help you make sure it actually does.