I was watching two guys digging a hole to locate a pipe in my yard this morning. They were tossing the dirt out of the hole and directly onto the ground beside it. They went four feet down and dug a hole that was about 8 feet long by three feet across. Then, one of them found a pipe…and the elbow joining it to the pipe they really wanted to find. Anyone want to guess where the new pipe was? Under that massive pile of dirt. This brings me to a great business principle:

Don’t move the same dirt twice.

When you start a new task, take some time to plan things out so you can do the job right the first time. You don’t want to find that you’ve gone in the wrong direction and will have to re-do hours of work. I’m sure the guys in my side yard are wishing they would have tossed their dirt into a few wheelbarrows right about now. Then, they could have just dumped those wheelbarrows back into the old hole instead of slowly shoveling it back in.

If the thought of forming a corporation is overwhelming, but you are concerned about protecting some of your personal assets, you may want to start a limited liability company, affectionately known as a LLC. (When I first looked into starting a LLC, I called my state government to find out what I needed to do and made the mistake of calling it a limited liability corporation. Don’t make the same mistake I did. Apparently, it really upsets some people. The woman I was talking to literally yelled “No!” into the phone. It took me a minute to figure out that her loud response was to the use of the word corporation.)

A LLC requires very little paperwork and, with a bit of patience, you can file it yourself. However, as with anything that has any legal ramifications, you should take a minute to call your lawyer to be sure this is the right thing for you and your business. Most LLC’s can be formed cheaply. However, in Maryland at least, you will need to pay three times that amount each year to keep your LLC active. I’d say it’s a good idea to ask for a breakdown of what you will need to pay to establish the company and what fees are required next year so you don’t end up with any nasty surprises.