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Written by : Andres Goggins
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hi everyone I'm attorney Aiden Kramer with the law office of Aiden Kramer in Colorado and you're watching all up in your business I've made a few videos recently talking about locations of LLC's and where you should form an LLC talking about Delaware Nevada Wyoming and how to choose the proper location to form your LLC and those videos brought up questions from you guys about certain types of businesses like e-commerce business or virtual businesses where you don't really have a location for your business and your clients are all over the place and a lot of you were wondering where do I form my LLC in this instance when I don't have an office or an actual physical location if you don't have a real physical location for your office or if you work all over the place you travel around a lot go to clients a lot or you just travel and work from different states then the first place to start is with your home state the state that you consider to be a residence of that's typically going to be the state where you want to form your LLC and this applies even if you have a home office just because you don't have an actual physical formal office in an office building but your office is in your home your home is still your office so that's where your business is physically located or if you travel around a lot for work but most of the administrative work is done at your home office or if your physical files are kept at your home office then that's your office and that's where your LLC is physically located if you truly have no home maybe you're just a nomad and you're constantly on the go living out of your car then I guess in that instance you can really just pick a state whatever state works best for you whether the Delaware Wyoming the state that you were recently in whichever one you prefer that would be fine you would still for most states need a physical location address though so you would need to get either like a virtual office setup or maybe a p.o box a mailbox something like that so you have an address but for most virtual or e-commerce businesses you're gonna have some base somewhere somewhere that you go back to and do a good deal of your work whether it's your home or a coffee shop down the road if that's where you do most to your business and that's the state that your business is in that doesn't mean that your business is located at the coffee shop down the road but in that state is where you get most of your business done and so forming the LLC in that state would be appropriate and you would use either your home address or a mailbox or post office address something like that so you have a location registered with the state and in any of those instances if you really do travel around a hundred percent of the time and you pick a random state to form the LLC in make sure that with whatever option you go with you will need a registered agent in that state that you form in so if you travel around all the time but you form your LLC and Delaware Delaware is gonna require that you have a registered agent who's physically located in Delaware so you would need to find a registered agent service or someone that offers registered agent services in Delaware to use them as your registered agent so the easiest way to put it is if you don't have a physical location for your business start with your home start with wherever you live the state that you live in that's often the best place to begin if you are starting a business in Colorado and would like some assistance figuring out if you need to form in Colorado or somewhere else feel free to contact me my contact info is right here be sure to subscribe to my channel so you don't miss the next dramatic episode of all up in your business and thank you all so much for watching I'm Aiden Kramer and I'll see you next time
Thanks for your comment Charles Enslinger, have a nice day.
- Andres Goggins, Staff Member
hey guys welcome back to the channel so a question that i get all the time is charlie what is the best way to start an llc so in this video i'm going to show you the best easiest and most affordable way to start your llc today this is exactly how i've created my business entities and it's crazy because you guys can literally set up your llc in like five or ten minutes so the first part of the video is me just going over what llc's are and why they may be beneficial to you as an entrepreneur or small business owner the second part is going to be me taking you step by step through inc file which is the website that i use to set up all my business entities so if you do want to skip directly to that part i will put the time code down below right now so without further ado let's get started so firstly what is an llc an llc is a type of business structure that stands for limited liability company it's perfect for startups and entrepreneurs and i always tell people if you want to take your business seriously it may be good to start an llc because there's so many benefits first of all they limit your personal liability what this means is that if your company gets sued they can't come after your personal assets creating an llc also allows you to raise capital from investors and of course they do carry some big tax advantages yeah diving a little bit more deeply into the whole limited liability part if your business does something wrong and they actually get sued by someone then only the assets that are inside that llc are at stake so this means that things like your house your cars and any other personal assets are safe that's where the term limited liability comes from now if you are creating a business and you are looking for outside funding llcs allow you to raise the outside capital and of course llcs can have very specific tax advantages rather than starting a c corporation which actually gets double taxed with an llc this is called a pass-through entity so you're only getting taxed one time now i'm not going to go into too many of the details about the whole taxation of llcs because you can be taxed as an lc or as an s corp but just know that when it comes to this tax stuff i recommend talking to your accountant and figuring out what works best for you yeah for 99 of you guys out there who are starting your own business i'd say an llc or an lc uh taxed as an s corp is going to be right for you it's very easy and affordable to set one up so in the next section i'm going to actually walk you through the whole setup process so i'm here in ink files main page you guys can get to this link by clicking on the link in the description below and what i'm going to do is i'm going to come up here and click start my business so it's going to take us this page where it's going to allow you to actually register your business entities so first i'm going to click entity type and i'm going to select which one i want we're going to be doing an llc and then you're going to select your state of formation so it's going to be a little bit different for each state but most of things are going to be the same i'm in california so i'm going to click on that here it's going to take us to the different i guess plans that they have so you have the silver one which is 75 this is basically completely free because you're only paying the state fee of 75 bucks no matter what you do you will have to pay the state fee so if you do want to you know not pay anything then you guys can choose this one and it's gonna come with pairing and filing the articles of organization it's going to allow you to do unlimited name searches and it's going to give you a free registered agent service for one year now that is not the most popular plan it's actually not the plan that i recommend so when i set up my business entities i always used the gold plan this one is a little bit more comprehensive and it just makes the whole thing a lot lot easier so especially if you're just doing this like this is your first time making a business entity then you know this one's probably going to save you a lot of time and headache so yeah this one is 224 and the package fee is 149 so that's basically what you're paying to inc file to set this up for you and then the state fee is about 75 which you have to pay this one's going to include the same things as the silver except it's going to actually automatically create an ein business tax number for you so that's going to save you some time it's going to file the irs form 2553 it's going to actually give you a bunch of these like documents like the operating agreement the banking resolution all these things are pretty cool to have and they just save you a lot of time so honestly in my opinion i think this one is probably the best for most of you if you're down to do all this stuff by yourself and figure it out then yes you can save that extra 149 package fee but as a business owner you want to focus on on building your business not all this really boring stuff and of course they have their platinum plan this is their most expensive plan but also most comprehensive this one's 374 dollars at the moment and that includes the package fee of 299 dollars and the mandatory 75 dollar state fee this one's going to be just like the gold plan except that you're going to have a little bit more support you're going to have expedited filing and you're going to get that domain name and business email so for this one i'm just going to go ahead and select the gold package because i think that's going to be the right one for a 95 percent of you guys watching this video so it's going to have you enter in your contact information as well as your mailing address so i'm going to do that right now but so after all that is entered in i'm going to click next it's going to process the information and now in the next section it's going to allow you to select your state filing time now the original time it takes for california is around four weeks it might change a little bit for depending on what state you guys are in but they are going to have an expedited filing option that you can add on as well so if i want to just keep the four weeks filing time with the estimated formation date that is right here then i can just select that or if i want the faster five day business filing time i can go ahead and select that so assuming that i don't care too much about the filing time then i'll select that but if you are in a rush then i would go ahead and select the faster one here it's going to allow you to enter in your company information so this is stuff that you'll want to at least brainstorm beforehand so i'm just going to enter in a biz entity prep services just as an example since i'm not actually setting up this llc right now then i'm going to select the designators so you can choose any of these does not matter but i'm just going to select this one and it's going to give you a preview of what your company name will display as so in this case biz entity prep services llc then it's going to have you select your business type or industry so for this one let's just say it's account acc
Thanks RafnarG your participation is very much appreciated
- Andres Goggins
About the author
I've studied print journalism at Berea College in Berea and I am an expert in chinese history. I usually feel calm. My previous job was hospital administrator I held this position for 2 years, I love talking about minimalism and trekkie. Huge fan of McFly I practice balance beam and collect coca-cola.
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