Unlike common misconceptions, passive investors are not laying by the beach, drinking margaritas, and enjoying the sun.

It's actually a misconception that turning off the a/c or heater all day saves on electricity. 

People have some pretty wild misconceptions about high voltage power lines. 

The misconception with auction sites is that you will always get a great deal. 

People have such a misconception of it. 

tons of people get that misconception and it gets me really frustrated because they try to call me the donkeyi would try connecting with a cash buyer through craigslist ( or if you have another source) to see what he thinks . 

Similarly, if you make promises about your product or service that are not true, the first claim may be against the LLC for breach of contract, but if the LLC cannot perform or pay damages, the injured party may come after you for fraud or a similar claim based upon your own action.From an Arizona law firm:[url]http://azcorporatelaw.com/entity-formation/tips-for-maximizing-the-protection-of-a-limited-liability-entity/Negligence, Fraud, Illegal Conduct of a Member: One of the common misconceptions regarding forming an LLC for business purposes is that the LLC shields a member from personal liability arising from certain acts or omissions of the member.

I think one of the other typically ignored drivers of the misconceptions that newbies have deals with their time estimates and exit plans.  

There is also the misconception that billing tenants for all utilities increases your cash flow.

This is a common misconception.