U39 – Example Organizing an LLC in Colorado 0:03 Everybody, this is John Jay, thanks for joining. I’m gonna try something new this time. 0:07 I’m here with my friend Marissa, and we’re going to talk about setting up a company in Colorado instead of New Mexico. 0:13 We chose Colorado fo…

U39 – Example Organizing an LLC in Colorado
Everybody, this is John Jay, thanks for joining. I’m gonna try something new this time.
I’m here with my friend Marissa, and we’re going to talk about setting up a company in Colorado instead of New Mexico.
We chose Colorado for a couple of reasons, we’re going to cover that in just a just a moment here.
Marissa is off camera, so you’ll just hear her voice from the Beyond.
But anyways, um, so we were discussing earlier the, the interest in setting up a company, and I suggested Colorado.
Yeah. Yeah, I was, like, I live in New York, so why?
You can do one in New York, but, um, you can do it in Colorado, and the reason why you would do that is to say that there’s less regulatory compliance in Colorado. The state’s not going to really bother you.
It’s easier. It’s easier. Yeah, and the state won’t get involved in sending you all kinds of forms and documents to fill out New York, kinda get too bogged down with documents. You can ignore, and they’ll be fine. But it’s just easier to do with Colorado. There’s a few states like Colorado New, Mexico, Florida, Georgia, those.
Pretty much leave you alone, Wyoming’s good, things like that, Idaho too.
I mean, some of those states Yeah, if you’re if you’re in New York, and you want to use a company, let’s just say four Running an online business or investing.
Pick a state that doesn’t bother you and We’re just gonna use Colorado this time and we can do that, because we can We can do everything we need to for banking and contracts.
An account over the internet, oh, that’s good, yes, Do I have to have an address?
You do it because you need an agent. So, the old-school way of doing it, now, I have my unique way of doing it.
Most other people, most people that set up companies, are going to pay a registered agent.
Usually, it’s $150 a year. You can find them for free for the first year. You can find them for $25. You can find for $99 a year, it’s worth it to do it and less.
The company is not really doing anything. It’s not running a business.
If it’s just holding an account somewhere like a holding company, I would pick an address, and I’ll show you how to do that in a second.
I would pick an address in the State where I’m registering. So for our purposes, we’re going to use Colorado.
So I’m gonna switch over here, and I’m gonna, I’m going to show you the notes I made, So before this call, I went and created some notes.
Yeah, Here we go.
That’s what I recommend if you want to set up a company.
Now, we used to, long time ago. I mean, you can still do: to this day, you can form a company by announcing its existence. You announce its name.
Who’s running it? Who owns it?
How long it’s going to exist?
It can be perpetual.
It can be for a short-term, and you just put that, and then you would publish that information in a newspaper or anything.
It could be city, paper this mm It could be a business journal like you can look in your local newspaper for legal notices and you can put it in there.
Like, you’ll see notices for Divorces or foreclosures or Public Auctions, things like that. You would list the formation of a new company.
You could listen in the newspaper, Does it have to be? In New York, where it should be, where the company is going to operate, or be considered to be operating.
So, yeah, it could be really, it could be anywhere.
You don’t have to be there, in other words, All right, So as you, as you can see by my, my notes here. My file is called nuts.
There’s a couple elements to accompany.
So the first first set of documents is going to be what’s called the articles of association. So a company really has a contract between people.
Even though the states allow us to set up a company with one person, They’re just gonna go along with that for one person. So it’s called Articles of Association. The articles are the ones, the things being published in the newspaper.
In this case, we will publish those with the Secretary of State because that’s usually what the bank expects OK, with that. That is, OK, when you register that one. Yeah, that’s so easy, right, Colorado in this case, right?
So let me just um, you should be able to see my window, I think you see everything.
I’m gonna, I’m gonna do my my share screen real quick just to make sure that You can see everything.
Oh, yeah, OK, you can see everything. All right.
You guys should be able to see the search box I have here. I used …
dot go dot com So I searched on Colorado Secretary of State. This is just how I do it.
So when I search on that, I end up with, I land at the website four.
I got a search listing, and it gave me the Business organization section, OK, so you’re gonna end up doing that for your state. Now some states are more cryptic, it’s harder to find the section that I’m gonna show you right now.
So once we have this, you can see there’s all kinds of options. You can search for business.
You don’t have to have your e-mail registered with the state I do because it’s easier.
What I’m showing you right now is where it’s not registered.
I didn’t do anything to have an account with the State.
You’ll see on the third item, where it says Search and File a Company where I’m highlighting here, The third item says, File a Business Document.
And that’s all we’re doing, we click that link, it’s going to guide us through, it’s going to ask us all kinda is it?
It’s going to save file, a form to create a new, a new record, or it’s going to file a form for an existing record.
So, I want a new records on file.
That’s right.
And we’re going to put in the information from the articles.
Alright, so that I’ve done that I selected.
It’s going to be a new, limited liability company Colorado and as you can see on the left column here you can file a form and then the title of this column, this doesn’t highlight so there’s not a link.
Down below, I’ve got I can form a trade name.
If I just want to trade name, I could just make up a trade name sometimes. In this case, I want to do a limited liability company.
This is different than a professional limited liability company like like a physician would have.
It’s just a limited liability cup, So I’m gonna click on that link.
And it’s going to give me some information about the laws that set up the, this, the company.
It’s going to tell me the filing fee, it’s going to tell me the statute says under there’s a checklist, I don’t need to see that I’m just going to, I’m just going to skip to. Next, I’m going to show you the checklist. I’m going to show you my checklist.
Alright, so then it’s gonna walk me through the different categories.
Now, before I got to this page, I went and made notes for myself because I have to decide who is going to be the owner of the company and who’s going to sign for the company.
All right. So, I’d like to put those that information in a separate document. So I have a record of that.
Yeah. We’re gonna get to that in just a second.
Alright, so, the articles tell about who the owners are, how long it’s going to be, the name of the company, who the agent is, its address and things like that.
There’s another aspect of the Articles of Association, or the Articles of Association, or public record that sets forth the property rights and duties of the members. That’s what you want everyone to see when people talk about an anonymous company. But I’d just like to have the articles published so that everyone knows who owns what.
Because I get to control that, and if I, if I have it a certain way, it’s actually going to preclude my client from getting into different legal issues If creditors look at that and because that’s what they’ll do. They’ll, they’ll, they’ll see that it’s not worth doing anything to try to collect against that individual relating to that company.
That’s why I went the article to be published. The thing that’s not published is the operating agreement, which is a contract between the owners of the company.
And a lot of times, you just have one owner.
So, there’s an operating agreement, which we would call for a limited liability company. It would be a single member operating agreement. So, we’re just going to name one person like yourself, for example.
And it does set forth what rights and duties each person has regarding money and property and how things are going to be done.
And, if I have an operating Agreement and Let’s say I take on a partner and he puts up $25,000, I would write a provision in the operating agreement expressing his interest in the equity of the company, OK.
So, that’s what that’s for an Operating Agreement. So, here we get to the names.
So, you can see on this document here, I’ve got the name of the seiner, so let’s just say it’s, you know, I’m just going to use the name of Bill Smith.
OK, so I decide who that’s going to be as you can tell. I’ve got it written down here.
OK, Um, we also wanted to determine who has the beneficial interests so it could be still Bill Smith. So Bill Smith assigned for the company and Bill Smith owns the company.
That could be and that would be just fine. Unless you’re trying to have a strict strategy for protecting the company’s assets.
Which I’m going to show you here. The states mostly will ask you who the organizer is. Once you choose who the organizers and it can be anybody could be Charlie Brown.
Nobody cares, it’s just an organizer, You’ll see that in every country too, there’s an organizer, you can never change the organizer.
You can change the company name, you can change the members, You can change the agent, but not the organizer for somebody’s, it’s just how it works, It doesn’t matter anyways. The organizer has no legal rights or duties.
It’s just, it’s just what they want you to have is who set this up.
Yeah. The owner can be right. Bill Smith can be everything.
All right.
And then we have to decide the address, and that, again, depends on what your purpose is, on, what you’re willing to do. Some people don’t mind use their home address.
Um, that.
Right, that’s what appears in the articles.
Did I file at the state?
Yeah, organizing, Colorado, Colorado.
You only need a Colorado address for the registered agent, so we’ll get to that. So there’s two addresses here with they can be the same, but they at least have to be in Colorado because that’s where we’re registering it.
They will not let me complete this unless it’s in a physical address in the State of Colorado.
And so the office, the physical office, can be anywhere in the on the planet. It could be a PO box. It could be in Australia. Would it be a good idea?
It is a good idea, It’s not necessary. Whatever address you put there does not determine where you receive mail, because no one’s going to go to the Secretary of State and look up your copyright. You establish what you tell people. Exactly.
Wherever you want males, where you tell people they’ll send it, was never like an issue, like that.
You can use both. In this example here, you can use both.
Now, if you’re pinging the agent, the agents don’t generally want you to use their addresses as your office address. In fact, they ask you not.
Um, if I just use a business address, a valid one, that’s actually not under lease.
You’re not actually using it under the, like you haven’t, you don’t have an agreement to use that address. You can list the address.
It’s kinda like being rude, OK? It’s not illegal. But it’s going to save you money, and it’s convenient, right?
So, what I do, is, if you don’t wanna use your home address for anything, and you’re in New York, and this is in Colorado, I would go to Colorado on the Internet, and I searched for office space for leasing in Colorado.
And I pick an office space for these, and I pick an address, and I use that address on everything here, I will show you.
If you don’t want to do that, get a registered agent. Pay the agent. Get the approval to be your agent.
Then, use whatever address you want for the principal office and then use the agent address. In this example, I’m going to make up an address, so I’ll show you that in a second.
So I’ve chosen to have chosen William Smith, William T Smith as the authorized signatory.
The reason why I did it that way is because I don’t want William Smith.
To be the owner, I don’t want him to be the managing member. I want the managing member to be an unincorporated Association.
An example of that would be your Facebook followers, your fan club.
Your neighbors, your family, OK.
These are unincorporated associations of which you’re already a member, So I like naming them and then saying that that’s the owner of the company. So that way, it’s always legit, so I can just say, like, My e-mail, address people, in your contact list. Yeah, that is your association.
So for this example, I put the Smithy Society, P, MA, a private membership association, and people ask me, what is that?
And I say, Well, it can be anything but to be, to be very specific. Let’s just say it happens to be Bill Smith e-mail contact list.
No one can argue with you on that and I don’t need documents to prove it.
It does have property rights Speak why, because I said so, but that is.
Yeah it doesn’t have any liability to anybody just all of a sudden poof, it exists now. It does have property rights as no liability to anybody. It’s just like it arrived here from another planet that’s really what we’re doing. This is, guys, you guys like to do off shore stuff, if you’re in the states, you’d like to go to other countries.
This is even better You’re getting the better results and what are all the quagmire regulations going to, other countries by using a private association as the owner on a corporate association or, you Guys, You can even use a trust, I know. A lot of you out there would like to use a revocable trust.
You can use that as the owner, the managing member of your LLC, so you have options there. They are the alternative to a single member.
Like I’m describing here would be a two member LLC.
You only need two to get charging our protection. So like, let’s say Marissa wants to be an owner. And Bill Smith wants to be an owner.
That’s great because neither one of them is the owner, but both together are the owner.
So the only time those two as the owner together would have a debt collection or creditor claim problem is if both together had a joint liability.
And since they’re separate data, that’s all they do together, there is nothing.
So either one person can get someone fine but should not be a fad, right? You should not be espousing.
Then this ranking. But they may not really be necessary. You can do that way.
Or you can create this association.
That’s me.
Oh, With the association, Thank you.
You can either use a single member, like an association or a trust, or you can use yourself and a friend or a real business partner.
The friend can be someone who’s just there in name only just so you have charged under protection.
Charging or protection precludes a court from issuing an order or rid of attachment against any members, individual debt liability that would attached to the company assets.
The only time a member of the company’s liabilities debt would be collectable against the company assets at least 100% owner, right?
Or event, right.
Or if both members have the same exact liability, and they’re not, right. So this is an example where we have two members that have no joint liability together. If the two members signed a commercial lease agreement, more than that would be one thing that that can be attached.
So that if you don’t pay on the commercial lease agreement, I can attach to the company assets because of the team members are having joint liability, otherwise they don’t.
So you can see here, I just created a file for that.
So that’s generally, let’s walk through this process here, so I’m gonna go, and I’m gonna, I’m gonna use a PM as this example here, so. So are you forming a professional service? Like I said before, this is not a professional limited liability company, it’s just an LLC, so we’re gonna say no.
And right away, it gives me choices, OK. So what do you want to call it? You must include one of the terms, so am I going to call it XYZ company?
Limited liability company, LTV, liability company, limited liability CIO, they give all these choices, right. So I’d just like to pick LLC.
I’m going to do that.
What does it say here, OK, so here’s what we do. So let’s just call it. You want to make up a name called XYZ, or what?
Pineapple facilitate pineapple.
I spell it PI any …, right?
OK, so I’m gonna skip but come LLC’s a pineapple come LLC.
Let’s see if that’s available.
Next, it usually checks. So it’s telling me it’s already being used, right? So if I just, you, know, do this pineapple 4 or 5 6 chances are it’s not being used. Right.
What do you know?
So let’s say we have a street address.
Let’s say I went, I’m going to do this right now, but we could search for office space in California, and I can find an address, I’m sorry, Colorado, and by the way, don’t register in California, I don’t know why that slipped out of my mouth.
So we would pick an office space.
If you’re asking yourself, Gosh, that seems kind of, well, why would you, if you pick an office space address, and it’s not yours, you’re gonna get mail there? Yes. The answer is, you’re gonna get mail there, and it’s gonna be probably trying to sell you stuff.
So this is great. That is, yeah, it’s a way to dump out junk mail, and the address is an office space, and they’re used to getting this stuff anyways. So it’s not gonna really incubator.
No one cares.
And of course, when I can use this for purposes of fraud, so it’s not a problem.
So, let’s just say we found it 1 to 3 office. I’m just going to type in something.
And it’s whatever Sydney Woods folder.
And that’s going to be Colorado.
So I’m actually typing out, Oh, gosh, I don’t really know what.
What kind of zip codes are in Colorado. Let’s just see what it does.
What are they, like, 8 to 8000 range?
Let’s just try, I don’t know.
Wasn’t asked me for products, OK?
So these are the kind of things you’re gonna run into, scroll down, Mailing address, let’s just say the mailing address is same as the office address, just for demonstration purposes.
And then the agent address, OK, So it’s going to be, the agent is going to be an individual.
So the individual is going to be, let’s say it’s, it’s the individual that is going to be the authorized signatory. So would that be, Yeah, OK, yeah. Unless they have a registry.
Yeah, unless you’re gonna pay for an agent, right? So, let me write, So, let’s just pick that Bill Smith, for example.
And he’s going to be the registered agent and the authorized signatory.
Registered agent does not create a liability of any kind. You’re not the owner, you’re not liable. You’re just the agent, you’re just the messenger.
Um, no, it’s not, It’s not an entity.
Let’s just say, same as the principal address, so you guys can see, I’m not going to spend a lot of time here and mailing address.
OK, so it’s asking about consent So in some states, every state has a little bit different way of doing this, is asking me, Does this agent consent to serve as the process and being the agent for the company? And this is important. If you lie here, it’s actually a crime.
So that’s why. If you’re signing for the company, you can certainly be the agent.
You can also make up a fictitious name if you want to, because that is your fictitious name.
That is not lying, OK? She’s not using your name, but you’re still responsible for that person, that name.
So, yeah, we have consent, because it’s me, and then we have, let’s see, OK, so it’s asking me who the management and members are going to be. So it’s taking, it’s actually taking me through the article that’s forming the articles for me as I’m typing these out.
So, who manages the limited liability companies is? It’s Cates.
I would recommend using members as managers, because if you say managers, as managers, it’s presumed that the managers are third parties and then you get lots of other questions especially when you’re applying for the EIN.
So I can keep this process as simple as possible. So I say, members, it’s going to be member managed.
And then, there’s at least one member, right? Of course. So, that’s all this. So, in this case, is one member.
It’s going to be an entity.
And it’s going to be trust.
Now don’t freak out, everybody.
A private membership association is a trust when you act on its behalf.
And, no, it does not need formal documents.
Take a break, trust me.
I’m like, wait a minute, I said.
All right, if it’s Bill Smith, which I like to use commonly, I’m going to say.
But as I said before, this, what I said in my documents here, I said the smiths society, right?
So I’m just going to say the smiths society. And we’re going to use the designation of the three Letter PMA, Private Membership Association.
And then the address is just some address. I’m going to put some letters in the field.
Older, I’m probably gonna get tickets probably gonna stop on the zip code now. I’m probably gonna have to lookup.
a valid zip code for Boulder, Colorado.
You want you want to see if saving, and maybe you know, I’m going to try to guess.
Yup, I just pick that.
That’s crazy.
That’s what I just said.
I don’t know, let’s see what they do.
Did they accept it? OK, so I go to the next.
It says, You enter the following persons.
OK, the smiths society, so it’s confirming.
Person has added, Do I wanna do I want to add another person? No, I really don’t. I want the Association.
And I’m going to say, Next? We’ll seek the ticket.
It looks like it took it. All right. So it’s it’s asked me for additional information.
Now I’m given the option, do I want additional information?
Now, Some states, if it does not publish the owners, I really want the owners to be published, as much as many people want anonymity. I don’t think that’s a good idea, because if I use public records, I can show who has what interests and by doing that, I can show why there is no liability, right, That you yeah. That avoids costs of litigation because if an attorney thinks he can get something, he’ll keep doing it. He’ll file stuff and then help then later we’ll figure it out, but I want him to see right now.
So, this colorados, give me a choice or a chance here to say certain things about the articles.
OK, so I’m not, I’m not going to add anything right now, but I can add something later.
If the information that I want to appear does not appear, But just know I can add terms. Like, for example, let me just add a term here.
I’m gonna say, just see you guys for demonstration purposes.
I’m gonna say that, um, the individual members are not liable for the debts and obligations of this limited liability company.
Yeah, some in some states, we have to do that.
It’s probably not even necessary.
Because LLCs are in such a way where you’re almost not going to, the company’s not gonna get sued mostly, and the members are probably not gonna get sued. It’s very unlikely.
And even if this needed to be in here, it would take years, it would take $100,000 of litigation to get to the point where I needed to have this.
So what can you do in a year?
What can you do in that time? I mean, how would the QC to survive that, you know, so a silver moat, but still, if I want to be pragmatic, I’m just going to say, Look, the individual members are not liable, and let’s say I did that because maybe next year I’m thinking I’m gonna take on a partner. He may want to see this in the articles.
So, let’s just do, I’m going to say, I don’t want to attach anything else, but I’ll add that statement.
And then I’m gonna hit next.
Let’s see if it lets me do that, OK. So, it’s asking me, when is this going to become effective. So, am I going to when I filed this, and I hit submit? Is it effective now, or some other date? I’ll have to do it now.
So, delayed effective date, step 711. Do you want this finally to take effect immediately?
I’m going to say yes, and then follow information.
It’s asking me, too, that I agree to all these things about data retention or whatever that I said things that are peltier perjury, I told you the truth.
Now, even if I use a fictitious name, it’s OK, OK? It’s OK to use a fictitious name, you’re not lying, you are lying, but you’re not really line because you’re going to claim responsibility for that name.
That’s the whole idea if you do that, So I have, I’ve read it understand, so this is like you’re, you’re, you’re signing. And so I’m gonna put Bill Smith here.
Well, assessment for no address, I don’t think I need to even do that, let’s see if it takes it, OK. I gotta do something new, OK?
In our new address, alright, so I gotta dish.
Got it, OK, Let’s do that.
Boulder, it didn’t really check all the information I put as far as the address, so that’s cool.
All right, Colorado.
Same, zip.
And the reason why we do it this way is because the banks want to see it registered with the state before it will do business with you.
Yeah, third parties.
Otherwise, I wouldn’t do this.
There’s no legal duty to do this.
Hmm, next, And then, do you want to sign for e-mail notifications, if you’re doing this for yourself.
Yeah, you want, the state will tell you what’s going on. The state will remind you, Hey, in a month, you can renew your charter.
Oh, OK, so, maybe it’s OK, and you can always get off the list anyways. You can e-mail, you could do that, too.
Hmm, And if you’re really organized, you don’t need notifications, they will expire, in Colorado, you have to renew the charter every year at $50, so you may want to be reminded.
So, in that case, I would say, Yeah, but I’m just going to say, now, I don’t want to have notifications, and then, OK, so here’s the cool part, Many years ago, let’s go back like 10 years and before.
The banks one would want to see a certified copy of the articles. So what the information you just saw me type in, becomes the articles. It’s like, just a document with lines on it, OK?
They want a certified copy, which means that the state in which you registered would have fixed a seal to that page on paper. and it’s usually a red seal or embossed or something.
It’s like embossed or YESS standard. And then it’s unique. Sometimes litigant fold the page and stamp that OK. And they’ll mail it to you. You gotta wait for awhile. It costs $50 sometimes. And then the bank wants to actually have it in its possession.
To prove that it was registered with the State today, they will just go online and see this registered.
Oh, yeah, They will accept that too. It looks at the unofficial or let’s say a copy of the certified copy to the sort of the certified copy on the Internet will show a stamp from the state once they approve it in the issue of registration number.
And when you show me an image of that, the bankers accepted, I almost always, they do now, and your exchanges, your cryptographic exchanges, currency exchange.
So now, what I’m being prompted for is asking says, filing review, step 10 of 11, It’s asked me if I’m going to review that, what I just typed typed in, in the in the template of the articles. It’s also letting me scroll through what I just typed in, and edit anything I may have made a mistake on.
And you can see what kind of a mess I created Here is just a bunch of garbage. But you get the idea.
So if I click on this here, I get the PDF file.
And there you go. It looks all …, kind of, better than when I had, all right? So, at the very top, it just says you’re not finished.
Because, you know, people like, yeah, I didn’t know your one more step, but it does say articles of the organization. for the company. Say some laws and regurgitates, Everything I just put in there.
So, what you’ll see, are these headings here, about the principal office address, the mailing address, the agent address, all these items, OK, So then we go through, we just scroll down.
OK, so that’s a PDF file, I can download it and save it, and I can use it at the bank. Yeah, yeah. I go back and I’m gonna, I’m gonna say OK, now, the Alex good. I’m going to just say next.
And the final thing is: how would you like to pay?
OK, so if you do a lot of these, you can do a prepaid account if you didn’t one time, Just use a credit debit card. You check that box.
Oh, yeah, California’s $800, and we’re not going, no, no, no, and that’s not really your biggest expense. Your biggest expense is dealing with the California Franchise Tax Board.
Yeah, that’s a big problem there. New York is $200 by remember correctly, Washington’s $200 and those are each year. You have to pay $200 Colorado’s 50 area, it’s much better. That’s one among your lowest, lowest of all …, good, guess?
I think it’s Kentucky, $45.
North Carolina is 100, 425, Georgia 100, So yeah, it’s around there.
And the other thing I don’t really mentioned too much, but I’m just gonna, I’m gonna get out of here, but um.
If you want to let your charter expire, it takes a year and you can open up your account you want.
If you have all your accounts you want, you can let your charter expire and it will be still be accepted as valid. It will not jeopardize anything you’re doing. You do not have to keep registering, paying, and filing annual reports. It will get revoked by the State, but it’s still valid.
But you will not be able to open new accounts with banks and exchanges, maybe you can get a lease agreement.
Yeah. So if you, if it’s really a problem for you, just know that your company is still good.
And after, so many years, the penalties, or just be so high, that you’ll be, like, I don’t wanna, if I ever want to re-instate it, it’s gonna.
be it’s gonna cost me like the average act like $400 a year when it was 50.
So in that case, just set up a new company, is there any reason? Yes. Yeah.
If you’re running a brick and mortar business or an online store, and you’re going to anticipate future contracts, like with shipping companies or fulfillment centers, I would keep it valid.
If you’re just going to set up a company for banking purposes and just managing cash flow from let’s say, Real estate investments, I wouldn’t bother.
Ooh, kryptos, selling gold, wouldn’t bother, nobody cares.
I’ve been using an expired company for like 19 years now.
Nobody cares.
All right, so there’s that, you need to save that.
So, I just, No. So, that’s, you guys, get the idea, I mean, I just walked you through, That’s the state of Colorado. That’s the behind the scenes thinking.
You’ll find some states ask the purpose of the company, just notes none of their business.
Don’t say that, though, because you’ll have all kinds of problems. So, what you do is have a backstory and, I always, my backstory, is oh, it’s real estate, why do I say real estate? Because, I can make it really boring.
If someone says, oh, real estate, really, you’re a real estate investor?
My response is, Well, my brother said, it was a good investment and I’m just waiting for him to tell me what to do.
That’s a conversation ender, and that’s all I care about.
But I didn’t answer the question and it’s a reasonable use of the company.
I don’t want to say, I’m speculating in oil futures or something like nothing interesting, so whatever, that’s the idea, get out of here.
So, are you an expert now?
Well, actually, yes, OK.
OK, so we got some more experts, but have fun with the company, again, we have a recommended list of companies, states, I should say.
We’ve already covered New Mexico.
The ones that people usually prefer are New Mexico, number one, Arizona, Wyoming, Colorado, let’s say, tied for number two.
And then you got Florida, Georgia, and then Pennsylvania does not require annual fees or reports. So New Mexico and Pennsylvania are really good states for that purpose.
That bothers you, And then you can get away from that. And then Ohio is another good state.
Why is it a good state? The reason why I picked them is because the states don’t bother you that much, and the fees are reasonable, like Ohio is a $99 a year. And yeah, you do have to file an annual report.
All that means is the information that you’ve filed in the articles To form the company as you just find them again, And every time you get a chance to do another annual report, you can amend it, you can add your friend, take your name off, you can whatever, so.
Well, thanks for listening. All right.


1. John Jay and his friend Marissa discuss setting up a company in Colorado due to its lower regulatory compliance and paperwork, compared to states like New York.
2. They note that other states such as New Mexico, Florida, Georgia, and Wyoming are also favorable for similar reasons.
3. The main advantage of choosing Colorado is the ability to manage banking and contracts remotely over the internet.
4. In order to register a company, a registered agent is needed. Typically, this service costs around $150 per year.
5. A physical address in the state of registration is required. If one doesn’t wish to use their home address, a feasible strategy is to list the address of an office space for lease.
6. The process of registering involves announcing the company’s existence, including details such as who’s running it, who owns it, and its duration. Traditionally, this information was published in a newspaper or business journal.
7. The specifics of the company’s structure are defined in the Articles of Association, which includes details about property rights and duties of members. Any financial contributions from partners should be detailed in the operating agreement.
8. During the online registration process, an address in Colorado is entered, along with details of the individual registered agent and authorized signatory.
9. John Jay suggests selecting ‘members as managers’ to simplify the registration process.
10. They finalize the process by adding terms to the LLC’s articles, such as individual members not being liable for company’s debts and obligations. After agreeing to the terms and conditions, they complete the filing.

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