The biggest and most important tip you’ll ever hear regarding your LLC is to treat it separately from your personal assets. Your business bank account is not your bank account; the LLC owns it. You just so happen to own 100% of that LLC, but you cannot DIRECTLY use the business money for personal purchases and expenses.

You need to make sure you take the extra step to transfer money from the business bank account to your personal account and then spend the money from your personal bank account. If anyone sues you and looks at your bank statements and sees personal purchases within the business bank account, that is enough for them to claim that the LLC is not in good standing because there is no separation between personal assets and business assets. With that, they will be able to come after your personal assets as well.

Obviously, this is the worst-case scenario, and I hope no one EVER sues you, but you always have to plan for the worst-case scenario. And once you spend business money on personal purchases, there is no way to “undo” it.

Based on where the entity is registered, ensure that you understand the LLC’s annual requirements, if any. This will vary by state, so make sure you check in with your Secretary of State’s website if aren’t already aware of any annual requirements.

Is there an annual fee due? Is there a filing due (in addition to your federal, state, and local income tax returns)? If your LLC is not in good standing with the state, that can mean additional penalties and possibly even losing your right to do business in the state.