diff --git a/operation-get-a-job/entity-setup.md b/operation-get-a-job/entity-setup.md new file mode 100644 index 0000000..d41d45c --- /dev/null +++ b/operation-get-a-job/entity-setup.md @@ -0,0 +1,203 @@ +# Entity Setup — Wyoming LLC Formation Checklist + +## Why Wyoming? + +- No state income tax +- Strong privacy protections (no public member disclosure required) +- Low annual fees ($60/year registered agent + $60 annual report) +- Business-friendly courts +- Fast online filing + +--- + +## Step 1: Choose Your LLC Name + +- [ ] Decide on firm name (suggestions below) +- [ ] Search Wyoming Secretary of State name availability + - Link: https://wyobiz.wyo.gov/Business/FilingSearch.aspx +- [ ] Ensure matching domain is available + +### Name Suggestions +- Whitestone Engineering LLC +- Whitestone Labs LLC +- Hermes Systems LLC +- Whitestone & Fleet LLC +- Sovereign Stack LLC + +--- + +## Step 2: Appoint a Registered Agent + +You need a Wyoming registered agent (physical address in WY for legal mail). + +### Recommended Registered Agent Services +- **Wyoming Registered Agent LLC** — $60/year (cheapest, reliable) + - Link: https://www.wyomingagents.com +- **Northwest Registered Agent** — $125/year (premium service) + - Link: https://www.northwestregisteredagent.com +- **ZenBusiness** — $199/year (bundled with formation) + - Link: https://www.zenbusiness.com + +**Recommendation:** Wyoming Registered Agent LLC at $60/year. No frills, gets the job done. + +--- + +## Step 3: File Articles of Organization + +- [ ] File online with Wyoming Secretary of State + - Link: https://wyobiz.wyo.gov/Business/FilingSearch.aspx + - Click "File a New Business" +- [ ] Filing fee: **$100** (online) or $102 (mail) +- [ ] Processing time: 1-2 business days (online), 2-3 weeks (mail) + +### Information Needed +- LLC name +- Registered agent name and address +- Organizer name and address (can be the registered agent) +- Management structure: Member-managed (choose this) + +--- + +## Step 4: Get Your EIN (Employer Identification Number) + +- [ ] Apply online with the IRS (free, instant) + - Link: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online +- [ ] Available Monday-Friday, 7am-10pm Eastern +- [ ] You'll get your EIN immediately upon completion +- [ ] Download and save the confirmation letter (CP 575) + +--- + +## Step 5: Draft Operating Agreement + +- [ ] Create a single-member LLC operating agreement +- [ ] This is not filed with the state but is essential for: + - Bank account opening + - Liability protection (piercing the corporate veil prevention) + - Tax elections + +### Free Template Sources +- Northwest Registered Agent provides one free +- LawDepot: https://www.lawdepot.com +- Or have an attorney draft one ($300-500) + +--- + +## Step 6: Open Business Bank Account + +### Recommended: Mercury Banking +- Link: https://mercury.com +- [ ] Apply online (takes 1-3 business days) +- [ ] Documents needed: + - EIN confirmation (CP 575) + - Articles of Organization + - Operating Agreement + - Government-issued ID +- [ ] Benefits: + - No monthly fees + - No minimum balance + - API access for automation + - Virtual debit cards + - Built-in invoicing + - Treasury for idle cash + +### Alternative: Relay Financial +- Link: https://relayfi.com +- Similar features, also startup-friendly + +--- + +## Step 7: Set Up Invoicing & Payments + +### Option A: Stripe (Recommended) +- [ ] Create Stripe account linked to Mercury +- [ ] Set up Stripe Invoicing +- [ ] Accept ACH (lower fees) and credit cards +- Fees: 2.9% + 30¢ (card), 0.8% capped at $5 (ACH) + +### Option B: Invoice Ninja (Self-Hosted) +- [ ] Deploy on your VPS (you already have the infrastructure) +- [ ] Connect to Stripe for payment processing +- [ ] Full control, no SaaS fees + +--- + +## Step 8: Get E&O Insurance (Errors & Omissions) + +This protects you if a client claims your work caused them harm. + +### Recommended Providers +- **Hiscox** — ~$100-150/month for tech consulting + - Link: https://www.hiscox.com +- **Hartford** — Similar pricing + - Link: https://www.thehartford.com +- **Embroker** — Tech-focused, may be cheaper + - Link: https://www.embroker.com + +### Coverage to Get +- [ ] Professional Liability / E&O: $1M per occurrence / $2M aggregate +- [ ] General Liability: $1M per occurrence / $2M aggregate +- [ ] Cyber Liability: Optional but recommended given the AI work + +**Budget: ~$150/month ($1,800/year)** + +--- + +## Step 9: Tax Setup + +- [ ] Elect S-Corp taxation (Form 2553) if revenue exceeds ~$40k/year + - Saves on self-employment tax + - Must pay yourself "reasonable salary" via payroll + - Use Gusto ($40/mo) or similar for payroll +- [ ] Set aside 30% of revenue for taxes quarterly +- [ ] File estimated quarterly taxes (Form 1040-ES) +- [ ] Get a CPA familiar with LLCs ($200-500/year for filing) + +### Recommended CPA Services +- Bench.co — Bookkeeping + tax filing ($300-500/mo) +- Collective.com — Designed for solo businesses ($349/mo, includes S-Corp) +- Local CPA — Shop around, $1-2k/year for everything + +--- + +## Step 10: Professional Presence + +- [ ] Get a business phone number (Google Voice — free, or OpenPhone — $15/mo) +- [ ] Set up professional email (Google Workspace $6/mo or self-hosted) +- [ ] Order business cards (optional, Moo.com or similar) +- [ ] Create LinkedIn company page +- [ ] Update personal LinkedIn with firm title (Managing Partner / Principal) + +--- + +## Total Startup Costs Estimate + +| Item | Cost | +|------|------| +| Wyoming LLC filing | $100 | +| Registered agent (annual) | $60 | +| EIN | Free | +| Mercury bank account | Free | +| E&O insurance (first month) | $150 | +| Domain + email | $12 + $6/mo | +| **Total to launch** | **~$330** | +| **Monthly ongoing** | **~$160/mo** | + +--- + +## Timeline + +| Day | Action | +|-----|--------| +| Day 1 | File LLC + order registered agent | +| Day 2-3 | Receive LLC confirmation | +| Day 3 | Get EIN (same day) | +| Day 3 | Apply for Mercury account | +| Day 4-5 | Mercury approved | +| Day 5 | Set up Stripe, get insurance quote | +| Day 6-7 | Insurance bound, invoicing live | +| **Day 7** | **Ready to bill clients** | + +--- + +*You can go from zero to invoicing in under a week. Don't let entity setup be a blocker — you can start conversations immediately and have the entity ready before you need to send the first invoice.*