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the-nexus/operation-get-a-job/entity-setup.md
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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

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).

Recommendation: Wyoming Registered Agent LLC at $60/year. No frills, gets the job done.


Step 3: File Articles of Organization

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)


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

  • 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


Step 7: Set Up Invoicing & Payments

  • 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.

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)
  • 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.