Ok, so I've seen a rather false narrative floating around #CT that I'd like to address/dispel really quick.
I have seen a number of tweets talking about how difficult it is to start an LLC in the US. As a result, I see a lot of praise handed to protocols that do so.
🧵/1
I have seen a number of tweets talking about how difficult it is to start an LLC in the US. As a result, I see a lot of praise handed to protocols that do so.
🧵/1
Not saying that a protocol that legitimizes themselves in the eyes of the US tax authorities is a bad thing...just that if anyone claims it is a difficult/arduous task to start an LLC, this is NOT TRUE.
I can quickly walk you through the steps:
🧵/2
I can quickly walk you through the steps:
🧵/2
Step 1:
Use a registered agent to start your LLC.
If your business is digital, you don't have to create the LLC in your home state. You can use a representative agent. My personal favorite is wyomingagents.com since WY has favorable biz taxes.
🧵/3
Use a registered agent to start your LLC.
If your business is digital, you don't have to create the LLC in your home state. You can use a representative agent. My personal favorite is wyomingagents.com since WY has favorable biz taxes.
🧵/3
A registered agent will not only register your business in the state, but also gives your business an address.
You can also pay for a "virtual mailbox" which will allow your address to receive mail that will be scanned and emailed to you.
Prices start at $150 per year.
🧵/4
You can also pay for a "virtual mailbox" which will allow your address to receive mail that will be scanned and emailed to you.
Prices start at $150 per year.
🧵/4
Step 2: Get an EIN (your biz tax ID).
The IRS requires all biz activities that generate revenue to be taxed. As such, EINs are free for the taking. Even for foreign businesses.
Simply go to sa.www4.irs.gov/modiein/indivi… and apply.
Price is FREE
🧵/5
The IRS requires all biz activities that generate revenue to be taxed. As such, EINs are free for the taking. Even for foreign businesses.
Simply go to sa.www4.irs.gov/modiein/indivi… and apply.
Price is FREE
🧵/5
Step 3: Get a business bank account.
This used to be difficult since you could only do it in person...especially challenging for foreign businesses.
However, with companies like Mercury.com even business bank accounts can be set up online.
🧵/6
This used to be difficult since you could only do it in person...especially challenging for foreign businesses.
However, with companies like Mercury.com even business bank accounts can be set up online.
🧵/6
That's essentially it. There are likely licensing steps for financial services, but those are separate from the incorporation.
Also, if you are trying to set up a tax haven in Belize or Cayman Islands, this isn't the structure for you.
🧵/7
Also, if you are trying to set up a tax haven in Belize or Cayman Islands, this isn't the structure for you.
🧵/7
So no, it is very simple to start an LLC in the US.
Even for foreign entities.
Now, if this step legitimizes a protocol in the eyes of potential investors, perhaps they should start taking it earlier on.
🧵/8
Even for foreign entities.
Now, if this step legitimizes a protocol in the eyes of potential investors, perhaps they should start taking it earlier on.
🧵/8
As a disclaimer, I am not a tax professional. Any tax related questions or concerns should be taken up with your CPA or tax adviser.
#NFA #DYOR #LLC
🧵/9
#NFA #DYOR #LLC
🧵/9
Information source:
I have owned at least a half a dozen LLCs, one C Corp (all tax designated as S Corps).
I've also partnered with people from the Ukraine, China, and UK in American business entities.
Cheers
🧵/end rant
I have owned at least a half a dozen LLCs, one C Corp (all tax designated as S Corps).
I've also partnered with people from the Ukraine, China, and UK in American business entities.
Cheers
🧵/end rant
• • •
Missing some Tweet in this thread? You can try to
force a refresh
