Good day. I am looking to form an LLC for sole member for a service based new business (Negotiation / Finding Deals - online, or phone) and working out of my home in Ohio. I am looking to do a startup as my company has been laying people off so trying to diversify into something else. I am looking to keep my LLC ownership anonymous and also have asset protection for the LLC. I am not looking to bypass any laws or rules and am more of an introvert so not looking to have my name freely out there. I know for lawsuits/IRS, etc.. the door is open to identity which is fine. I read that Wyoming has both anonymity and asset protection for LLCs. Does it make sense to set up an LLC in Wyoming and do I need to register still as a foreign LLC in Ohio? If I begin my business in Wyoming LLC and I lose my job in Ohio, I'd like to be able to continue trying to generate revenue and build my new business, and keep it away from personal creditors, if things take a turn for the worse for me. I am hoping for the best, but planning for the worse, if that makes sense. I did read that there is more complexity to doing it the way I mentioned, but I am okay with a little more complexity if I can obtain some anonymity and stronger asset protection for the LLC assets if my personal situation happens to take a dive. Also, I am guessing I would meet the definition of 'transacting business in 'Ohio', right? I hope this next question isn't a LOL question, but would Quickbooks work well in this situation from both a low cost and effectiveness structure with the Wyoming / Ohio set-up?
Form LLC in Wyoming and Foreign LLC in Ohio. Right way to do it? And suggestions for accounting software.
You studied this topic carefully and are able to identify what you do not know.
One thing first, the last thing you need now is to spend money for things you do not need. You are looking for "asset protection" under a "corporate umbrella". Registering an LLC in your State of residence, and you acting as the Registered Agent is the the most cost effective way to proceed. As long as you do your filings properly and keep "business" transactions strictly from "personal expenses", you are protected. That means, all assets you are having in that LLC cannot be accessed by your personal creditors. You may want to research the term "piercing the corporate veil", to give you more information on this issue.
You heard of the "secrete shareholder" features of LLC's incorporate in Delaware, Wyoming, and or Nevada. It's a myth. If the chips are down, there is not "secrecy" about the actual owner of the company. Those were the days. If I should be wrong on this, I gladly be convinced by one of the experts in those States.
As far as the accounting software is concerned, yes. Quick books is a good software, but you do not need it. Rolls Royce's are great cars, but if you do not know the traffic rules, you are not able to actually drive them. All you need are two things. A bank account in the name of your LLC and a credit card in the name of the LLC. Customer payments must go into this account and all business expenses are paid by this company Credit Card. Do not use it for any personal expenses. At the end of the year, any Credit Card company will give you an annual statement of your transactions, broken down by expense categories.
Since you do not need a Balance Sheet or a Profit and Loss Statement for your LLC as a small business entity, you have the information need to complete your IRS filings.
Wishing you good luck