Forming a LLC Does Not Mean You Have a Business

You mean there’s more to do?!?

There’s no business like show business, but there are several businesses like accounting.
–David Letterman

I would need to take off my shoes (and that might not even be enough) to count the number of times that I have had this conversation with people who ask me for business advice:

Me: Have you started your business?

Them: I formed a LLC!

The only folks who win when you form a LLC without a real business behind it are lawyers and the state where you filed.

Forming a LLC doesn’t mean you have a business.

It means that you have a legal entity that could conduct business.

The advice about forming a legal entity, getting a bank account, etc. are backwards.

Go get customers.

Get them to pay you for something, a service or a product.

THEN do the legal stuff.

Until then, you don’t have a business.

When you have customers and revenue, you have a business.

Before that point, you have a pipe dream.

Want to know more? Check out my interview with my former corporate counsel and M&A attorney, Patrick Asplin.

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Jason Hull was the co-founder of Broadtree Partners, a firm that acquires $1-5MM EBITDA companies. He also was the co-founder of open source search consultancy OpenSource Connections, a premier Solr and ElasticSearch firm. He and his wife FIREd (financial independence retire early) at 46 and 45, respectively. He has a BS from the United States Military Academy at West Point and a MBA from the University of Virginia Darden Graduate School of Business. He held a CFP certification from 2015 - 2021. You can read more about him in the About Page. If you live in Johnson County, Texas or the surrounding areas, he and his wife are cash buyers of Johnson County, Texas houses.

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