_________________________________________________________

An LLC is a business structure similar to a sole-proprietorship or a general partnership. According to the IRS, "It is designed to provide the limited liability features of a corporate and the tax efficiencies and operational flexibility of a partnership." As a pass-through entity, all profits and losses pass through the business to the LLC owner (aka "member"). Similiar to partnerships, the member himself reports the profits/losses on their federal tax returns but not the LLC.

Companies often make mistakes when rushing to meet regulatory compliance deadlines. You should be careful to ensure you don't weaken your company's security in the process. Below are 5 of the most common ways companies make these security missteps: