Hey all. I run a small local moving company (2 trucks, 3 helpers). I'm trying to set up an LLC to protect personal assets, but the filing fees and registered agent stuff are adding up. I've been reading about forming in Wyoming or New Mexico to save money, but I'm based in Ohio. Is it worth it to form out of state if I only operate locally? I don't want to pay unnecessary fees for a business that never leaves the county.
LLC Setup
I run a local moving company and want to avoid unnecessary formation fees
Forming out of state when you only operate in Ohio is a classic rookie move. You'll still have to register as a foreign entity in Ohio and pay their fees, plus keep a registered agent in the other state. You're not svaing anything.
^^ exactly. I looked into Wyoming for my Etsy shop and realized the 'savings' were a mirage once I added the foreign qualification fee and the agent. Just file in Ohio.
What's the fee in Ohio anyway? Like $99? That's not exactly a huge burden for the liability protection you're getting.
Ohio is $99 online. But the OP is talking about 'unnecessary formation fees' — maybe they mean the registered agent service? You can be your own agent in Ohio if you have a physical address there. No need to pay a service.
Also watch out for the annual report feess. Ohio charges $25/year I think? Not terrible but it's not free either.
Yeah, I meant the registered agent service and the weird upsells the online filing sites push. I'll just file dIrectly with the state. My cousin has an office address I can use.
Hold on, using a cousin's address as your registered agent might not fly. Some states require the agent to sign a consent form. And if your cousin moves, you're screwed. Just be your own agent at your home address if you have one.
I'm not a lawyer but I play one on this forum. The registered agent just needs a physical street address in the state during business hours. If the cousin's office is legit, fine, but get a written agreement. Otherwise, use your own house.
Also, don't forget the local moving business might need a sepaarte license or permit in your city. LLC formation is just one piece of the puzzle. Check with your city clerk.
Already got the city permit and insurance. This is just about the LLC paperwork. Sounds like I should just file in Ohio and skip the Wyoming fantasy.