How To Sign Minnesota Banking Document

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in today's video we're going to be talking about how to start an llc in minnesota [Music] and i'm going to be giving you three ways to do it the diy route through the state website the diy do-it-yourself route using online legal tools or hiring an attorney as far as hiring an attorney i'm also going to give you a tip on how you get a 15-minute consult for free so you're not immediately running the meter but more important than all of that is we're going to be talking about terms that are related to cracks in your llc and what i mean by that is sometimes you can set up an llc but if it's not done correctly there are cracks and it's not a legit llc and you're creating a lot of liability for yourself so if you're not familiar with terms such as piercing the corporate veil registered agents or co-mingling funds i'm going to be talking about those throughout this video and explaining what those mean and why it's so important to understand that so first why don't we look at the diy route if you're going through the state website so if you were to google minnesota llc this first listing here is going to take you to the state website as you would expect state websites are not the best as far as user experience but as far as state websites go this one's not terrible but what you're looking at here is there's two ways to go about this one is you can do the articles of organizations for an llc you fill this out you print it up and you mail it in or the other route is you can click here and then this is going to open up where you can do a online search through this route you can create an account up here and then you can pretty much go through the same steps that's on that pdf but be able to do it through an online portal so the first thing i want to talk about is this little tiny mention right here filing fee of 155 and then for expedited service in-person and online filings and then 135 dollars if by mail so if you do this whole thing by mail it is going to be 20 cheaper as if you go through the online route which to me is crazy because it should be easier going online but that's just the way they set it up and do know that that fee you're going to pay that regardless of how you do it if you go with an attorney they may bake it into their cost structure but there is going to be a 155 fee that you have to pay to the state to get set up with an llc or 135 if you mail it in now one of the things you should be aware of is this business name search right the the goal of this is that when you have a name for your llc there can't be another name similar to it you need a unique name so if we were to put like vikings in here which obviously is going to be taken in the state of minnesota uh what you're gonna see is all these listings and it's active and these are trademarked and it's going to give you all this information and details and all these names now if we were to put something crazy in and just let the fingers go wild right and you click search this is what you're looking for is no results match the criteria entered so it's nice that they have this connected to their online database and this is going to let you know if the name you have in mind is going to work and then from there you can create an account and then you can go through the steps it's pretty much going to walk you through this pdf online but one of the things that i don't like is as you go through that process is they kind of like glaze over important things and what i mean by that is in this particular case in article 2 it talks about the registered office address and agent so it's talking about a registered agent but it really doesn't explain what a registered agent is so i think at this point it's actually more important to explain exactly what an llc is and then how some of those terms i mentioned earlier in the video relate to your llc so some people think there's like a tax advantage for having an llc there's not it's simply about limiting your liability but if you think of it in this way you have your business assets so as you build your business and you have maybe an office or a retail store or location and you have these assets that you're accruing but at the same time you have your personal assets your personal home personal bank account personal car things of that nature an llc draws a division between these two asset classes and that division is called the corporate veil that is the thing that protects your personal assets if you are unfortunately to be sued if that attorney were to sue you they can only come after your business assets but what that attorney is going to try to do is pierce the corporate veil and basically what they do is they try and find a crack in your llc and if they're able to do that then what they can do is essentially erase that division and if they were to sue your business they can not only come after your business assets but your personal assets as well so that is why you're setting up the llc is to limit your liability but one of the things that people are unaware of is when you're setting up with a registered agent they're not really sure what that is and they just say i don't know that's my cousin jimmy down the street because i'm trying to save some money and i just want to get this thing set up and these services such as the state websites really don't spell out what a registered agent is there's a nice article here on ink file if you're not familiar with ink file it's an online legal tool for setting up llcs and business entities and as you scroll down a little bit it kind of gets into a bullet point list of what a registered agent is basically it's a third party it acts as like a go-between uh for your business so when you're getting official documentation or different things it's going to that registered agent who has a different address than your office and then they are forwarding you that information so official letters and correspondence from your secretary of state service of process notices so basically if you get sued to make sure you're like appearing in court official federal government correspondent information notifications tax forms and requests for payment and then request to complete permits company filings or reports so the problem is is if you just make some random person your registered agent because they live in minnesota which is required of your registered agent being a legit registered agent and making sure that your llc is up to date that you may be creating cracks in your llc because maybe you didn't do your company filings or reports because that person never told you about it because they didn't know about it so it's really important that you have an official registered agent and somebody that knows what they're doing so that you're not creating a crack in your llc so that if attorney were to sue you they can pierce the corporate fail and come after your personal assets as well so that to me is the biggest disappointing part about going through the state website yes if you want to save 20 bucks by filling this out yourself and hoping to get everything correct you can do that but what i typically recommend is going through an online tool and having something that's going to guide you and give you more access to information and resources to make sure that you're doing things correctly now there are a lot of tools out there such as like legalzoom ink files zen business rocket lawyer the reason that i personally like ink file is if you're on the home page here and we scroll down a little bit you can see business formation for as little as zero dollars plus state fee so so i always recommend this service because it's zero dollars plus state fee and they have incorporated over 500 000 businesses since 2004 and they've been around a long time and doing this a long time now if you're like me you might be wondering like all right what's the catch how are they making money so i'm going to walk you through that and explain that right now now when you're going through the process and you click entity type llc do you know that 80 of all new entities so you can see different entities here are llc's so you're in good company with that and then you'd pick your state and then there's going to be three different packages that you can choose from and in the silver package this is where you can see zero dollars and then your state fee of 155 dollars for an online filing now what you get with that is the preparing and filing of the articles of organization so pretty much this right here and then what you also get is unlimited name searches which you can do on the state website that i showed you but on top of that you get a free registered agent service for a year so that's what i want to talk about right now is it's kind of nice because you're one you're gonna have a free service but then in year two year three you are going to be charged for that registered agent service so if we scroll down on this page that we were looking at earlier you can see on this section right here it's a pre-registered agent service and then it's just 119 annually after that so year two your three your four it's going to be 119 for the registered agent service you're not locked in to having to use ink files but i always recommend it because it's free the first year it's not going to cost you anything and you know that it's somebody who's legit in your state and this is what they do for a living and for a career again i can't stress it enough don't make it your friend or family member get an official registered agent so going back to this pricing chart here if you did want to upgrade there is the option to go with gold or platinum of course you have the package fee that starts to kick in now at 149 and 299 but there are a couple things that i want to highlight on the screen here that are going to be helpful for you as you set up your business uh this one is the ein business tax number now they do this for you as part of this package when i set up my llc i did this myself it was a pain in the butt now if you want to do it yourself i can give you the link here and again this will be in the description below this is where you'd want to go there's a bunch of things you can go through do you need an ein how do you do it blah blah and then you can apply for your ein online through the irs site of course again not the best user experience and if you want inkfile to take care of this for you they will do it for you so i mentioned that i did this myself so this is a good point to bring up that i am not a cpa or an attorney i'm just somebody who's done a lot of research in this space and i want to give you all the options that are available to you and let you make an educated decision on what you want to do so going back to this uh the other thing that i wanted to talk about was the business banking account now if you recall at the beginning of the video we talked about commingling funds so that's another potential crack in your llc is if you have a personal bank account and you're running business transactions through that account as well if that's the case and you were sued an attorney that's doing this doing is going to try to find stuff like this cracks in your llc to say this is not a legit llc just look they're co-mingling funds they don't even have a business banking account now of course if you want to get this set up on your own you can set up a business bank account but they just make things easy and put it all together currently as i'm making this video through bank of america is how they set that business banking account up but even if you go through the state website or you go through the silver package make sure you get a business banking account set up and separate your funds it's not only going to just make it so that your llc is more legit when it comes to tax time it's a lot easier to just like export you know files from your business banking account and knowing that all the income coming in and income going out is all related to your business and it's not co-mingling into your personal account as well so it's going to make tax time a lot easier for you as well now the last thing i want to talk about is if you need to hire an attorney and why you would do that now if you have a business that is more complex or potentially has more liability at stake you know certain businesses are going to naturally carry more liability than others like if you were starting a company that is going to be doing roofing that's a high liability service because you could have somebody falling off of somebody's house now if you compare that to being like an online tutor business or something where you're just like tutoring people on math like that is not a high liability business the other thing to consider too is where you're making your sales if your sales are all in state or if they're in state and out of state if you're already creating a lot of income for your business i think it might also be a good idea to hire an attorney as well so just think of these things but one of the tools that i like to use is a tool called avo i'm not affiliated with them in any way but i will include the link in the description below and why i like it is you can look up minnesota limited liability company llc lawyers and you see there's 26 results here but one of the nice things about this service is if you scroll down you can click free consultation and now we're going to see these 26 results are down to seven results so these are all attorneys that operate in the state of minnesota that are llc attorneys and they will offer you a free 15-minute consult to kind of go through any initial questions that you may have so if you do want to go this route i think it's great just know that when you do get set up it may cost somewhere from like 750 up to 3 000 to get set up through an attorney so that is why some people shy away from that method so you kind of have to make some determinations about your business what you're doing and if it makes sense to go that route the last thing i want to talk about is this video on the screen right here it is in an ink file review video but at about the 230 mark is where i talk about s corpse and how you could potentially save on taxes if your business is set up as an s corp now you do need to have about 40 50 000 of annual income net income for that to work but it's good to know for the future and things to think about and again if you use my links in the description below i appreciate it especially if it's an affiliate link as you can help support my youtube channel alright guys i'll catch you in this next video right here