# Build a formation decision file

First complete the record using this book’s fictional case, marking each field as known, assumed or unresolved. Explain one conclusion using the supporting amounts or documents. Then compare your reasoning with the discussion below. For personal use, keep private financial details in secure records; this worksheet needs no account numbers or credentials.

| Record field | Your observation |
|---|---|
| Business activity and operating states |  |
| Reason for an LLC |  |
| Owners and management |  |
| Name checks and rights questions |  |
| Registered agent and public addresses |  |
| Accepted formation document |  |
| Operating agreement |  |
| Federal tax classification / EIN |  |
| Licenses, insurance and calendar |  |

### Questions worth checking

Nina receives an offer to form in another state for a low advertised fee. Before comparing price, identify whether she would still need registration and recurring obligations where she works. A cheap first filing may create two sets of responsibilities.

A state accepts the LLC, but no S election has been made. Do not label the business an S corporation merely because an online service bundled the words together. Determine the actual federal classification and any valid election separately.

A reminder demands payment for a filing that sounds official. Verify the duty and current fee through the government's record before paying. Optional assistance can be legitimate, but the service charge should not be confused with the government obligation.