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Thread: I've made some mistakes, is it best to amend my LLC or dissolve it & start over?

  1. #1

    Unhappy I've made some mistakes, is it best to amend my LLC or dissolve it & start over?

    Hi Everyone! I'm new to the forum!

    I've been doing more research into LLCs and believe that I have made several mistakes in creating and managing mine. I've heard and read stories about it being possible to establish business credit or tradelines, even without a personal guarantee, immediately but I have yet to be approved. I believe it's due to the way I have set up my LLC and I also believe that it's because I've been signing documents & applications incorrectly. So because of this, I have been wondering if I should just dissolve it and start over. I know I can amend it but I'm wondering if it's worth doing it since my information and name is attached to it. I would like to be seen as a legitimate business but believe my mistakes might make creditors leery. I've also decided that I no longer want the name that I've chosen and the business has also been inactive for over a year now.

    Is it just best to dissolve it & start over since I now have a little bit of a better understanding of how an LLC should work?

    Any help on this would be greatly appreciated!! Thanks!

  2. #2

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    I registered my LLC with the city and made a bank account for it. Beyond that thereís nothing else required. You can open a loan or do whatever as the company LLC once all thatís done. I wouldnít dissolve it.

    An LLC has lots of benefits. Especially if itís just you in the company.

    Hopefully that answers your question. If not, a little clarification might be needed.

  3. #3
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    It is possible to establish credit, but that doesn't mean that anyone will instantly give you credit just because you opened an LLC. Especially if you're the only person in it. They may still check your personal credit, and also the LLC has no credit history and you have no history running an LLC with good credit. I don't think restarting is going to change that. I could be wrong though...I'm sure someone else will chime in.

  4. #4

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    Thanks for your feedback! A bit more info on my issue may help-
    I did open a business checking account and deposited a large sum. At the time I was adding money and withdrawing to show activity. Where I think I went wrong is setting up the LLC is here:
    1) I was not happy about the name but went with it anyways (wouldn't mind changing it now)
    2) I didn't know much about member-managed or manager- managed so I'm sure it's member-managed now. So I don't have an operating agreement
    3) I never gave myself a title so I've just been signing everything as my personal name and not as someone that "works for the business" per say- on top of that I had no idea how to even pay myself correctly.
    4) I don't believe I even set it up as an S corp
    5) I understand that no one is going to give you business credit right out the door. I've used Quill to start but things happened and I haven't got back around to ordering from more NET30 vendors. However, I am definitely willing/wanting to go back to establishing credit through the NET30 vendors
    6) I just feel like after some of the mistakes I made early on because I was unaware, it would be best to just start with a new (with the new name). I feel like my personal name is attached to my LLC now (sole member) and that it will follow me when I do try again for business credit. And I really want to keep my business separate from my personal

    I'm just learning so much more about how things work and was just wondering if it's best to start over. Again, I want my business to stand alone and be separate from me.
    Thanks again for your responses!!

  5. #5
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    Thanks for the additional info.
    I don't think it's too late to give yourself a title as either an employee or managing partner. I remember when I did it in NV I could go back and add people or change my status in the corp.
    As for vendors, that's generally between you and them. Most will give you at least one shot and if you mess that up will require payment up front.

    It doesn't sound like you messed up that bad and that you can fix things with the existing LLC, but I'm probably not the right person to give accurate advice in this situation since I've never experienced it, but I'm sure some others will chime in.

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