Common question I'm sure, but . . . .

[New Texico]

. . . but I think this one has nuances that might make it more "state-specific".

I am at the point where I need to form my LLC. I market and sell a tangible product strictly via internet.

I don't think most of this matters but in case it does . . .

The primary manufacturing occurs in Ohio. I ship my unfinished product from there to Connecticut for the secondary processing. From there I have it trucked down here to Texas, where I put the finishing touches on it, package it, and distribute it to all four corners of the world. I am currently a DBA.

Less than 1% of my sales occur in Texas. I have been researching LLCs for a few weeks now off and on, so not a complete moron but certainly no expert or even close. I like the New Mexico LLC better than any I looked at so far for several reasons. Low start up, zero maintenance fees, and no annual reporting requirment. All that is required - unless I have misinterpreted something - is to have a registered agent on file to be able to receive service.

I realize I will have to register as a foreign corp here in Texas. I will not trigger the NM state income tax requirements, nor business tax requirements since I have never, and will never sell anything in that state for this purpose alone. And they do not list, or even ask for LLC members when you file the paperwork in NM, and unless you mnake the mistake of going through one of the online "$99 LLC!" grinders, no mention of my name or actual physical address is even legally required to be on the NM LLC papers anywhere. So the main reason I like it versus Nev/Wyo/Del etc. is that it makes it harder for frivilous lawsuits to be successfully pursued by those looking for an easy buck.

Techinically I guess unless Texas SOS knew of my operation I would never need to file as a foreign corp but that would be illegal and I want to sleep at night, so I will register.

So to my long-wided question . . . what am I missing? Why should I not do this? My online business income passes directly to me, so I pay no state income tax (texas has none) yet I still remain virtually invisible to all but the most dedicated and well-funded antagonist.

[GuyBBY]

Hey bud-

My suggestion, and I have been involved in these multi-state/online LLC questions, is make your first step getting an appointment with your local SCORE counseling office (SCORE - Service Corps Of Retired Executives - East Texas Chapter pulled up East TX for you there, you can find other locations through here if you are not in east TX). They are GREAT! It is a group of active/retired business executives and owners that provide FREE advice and services for over 600 business subjects. Then they will provide you with either A. the right answer off the bat (lawyers volunteer at SCORE) or point you in the proper direction to seek legal advice and what to ask, what questions you should be prepared to answer, and so on. Then, if you do actually have to go see a lawyer, there is not time wasted being billed for round about discussion, but rather you are maximizing your time with them to get to the core of your issues and obtain a legally backed answer more quickly.

Just a suggestion. PM me if you want to talk more.

Guy

[latinolive]

As an attorney, you will definitely need to form a LLC. I have been assisting small and start up businesses for more than 15 years and these are common inquiries that you are facing. However, rather than pay me, or a fellow colleague that may charge too much, I recently had a client recommend a company named Innoventum, Inc. and its business tool kit on the "how to" for start up companies. I must admit, I was quite impressed with their website and free articles. Sorry, I can't remember the domain name now as I looked at them a couple of weeks ago. So you will need to google them.

Carlos

[New Texico]

Guy, I just put my question to the proper chapter and am awaiting a response. They seem to be a fantastic resource. Never used them - have heard of them before but totally forgot about them. Thanks for the reminder!

Latin,

Found the website will check it out. Thanks for the tip.

[GuyBBY]

No prob Tex-

Again, if you want to PM and discuss in further length I have been through this route before.

Good luck with everything, keep us posted.

Guy