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Scholars Corner: What to Know About Setting Up an LLC · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J.
• 0:20
  Speaker 2: Trump's leadership.
• 0:21
  Speaker 1: I'm Christy nom the United States Secretary of Homeland Security.
• 0:25
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 0:29
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 0:33
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 0:37
  Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned,
• 0:41
  Speaker 1: and deported.
• 0:42
  Speaker 2: You will never return.
• 0:44
  Speaker 1: But if you register using our CBP home app and
• 0:47
  Speaker 1: leave now, you could be allowed to return legally.
• 0:50
  Speaker 2: Do what's right. Leave now.
• 0:53
  Speaker 1: Under President Trump, America's laws, border and families will.
• 0:57
  Speaker 3: Be protected sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 4: Now again, when you're filling out paperwork, they're gonna ask
• 1:03
  Speaker 4: you some questions about some members and you'll be like, what,
• 1:06
  Speaker 4: remember who, Well, here we go in a member managed LLC.
• 1:11
  Speaker 4: So that you know the difference. The owners have collective
• 1:15
  Speaker 4: control over the company's decisions, Okay. A manager managed LLC
• 1:23
  Speaker 4: places management authority in the hands of a professional manager
• 1:26
  Speaker 4: or one or more of the elected members. Okay. So
• 1:30
  Speaker 4: this choice goes to the heart of the company and
• 1:33
  Speaker 4: it goes into the day to day operations of it.
• 1:35
  Speaker 4: So it's a good idea to consult an attorney. Right,
• 1:38
  Speaker 4: if you're not sure, always go back and consult an attorney. Okay,
• 1:42
  Speaker 4: just so that you're putting yourself in a place where
• 1:44
  Speaker 4: you can win. You don't want to start out and
• 1:47
  Speaker 4: then put some stuff on it and you got to
• 1:49
  Speaker 4: go back and correct some mistakes and you like, ugh,
• 1:52
  Speaker 4: I gotta file papers with this state and do this
• 1:54
  Speaker 4: with that. Okay. So another key feature of a manager
• 1:59
  Speaker 4: managed company is that you can appoint either the owner
• 2:04
  Speaker 4: or a member or an outside professional manager or management
• 2:08
  Speaker 4: company to be the decision maker for the business. Now,
• 2:12
  Speaker 4: this can be relevant if you have investors in your company,
• 2:16
  Speaker 4: right and they want like a backseat role. They don't
• 2:19
  Speaker 4: want to be upfront, they don't want to make decisions,
• 2:21
  Speaker 4: they don't want to have all the responsibilities. Maybe they
• 2:24
  Speaker 4: just gave you the money and you're going to pay
• 2:26
  Speaker 4: them or whatever, and now you have to do all
• 2:28
  Speaker 4: the work. Okay, So they could just simply take a
• 2:31
  Speaker 4: pass and let somebody else do all the hard work,
• 2:33
  Speaker 4: and that person probably is gonna be you. All right,
• 2:37
  Speaker 4: be careful you know who you elect to be in
• 2:39
  Speaker 4: this position, because they have control over everything, over the finances,
• 2:45
  Speaker 4: over all the legal matters, signing contracts, buying assets like property,
• 2:52
  Speaker 4: and hiring employees. Okay, So definitely make sure that when
• 2:57
  Speaker 4: you're structuring this out you think about all those things.
• 3:00
  Speaker 4: Elect somebody who you trust or company that you know.
• 3:05
  Speaker 4: You designating this role. Make sure that you do your
• 3:07
  Speaker 4: due diligence on these people. Because they're making somebody buy
• 3:11
  Speaker 4: some property and I don't know nothing about it, and
• 3:12
  Speaker 4: I'm one of them people. I'm gonna be looking at
• 3:14
  Speaker 4: myself crazy. Okay, don't be a person. Make sure that
• 3:17
  Speaker 4: you put people in place who you trust, do your
• 3:19
  Speaker 4: due diligence. Again, if needed, consult an attorney about how
• 3:24
  Speaker 4: you should set up your company's management style. All right.
• 3:30
  Speaker 4: So LLCs must have a registered agent and the state
• 3:34
  Speaker 4: they plan to file. So if you're planning to file
• 3:38
  Speaker 4: in you tall. I know it's random but stick with me.
• 3:44
  Speaker 4: Your registered agent must file in you tall. If you're
• 3:47
  Speaker 4: filing in Washington state, Yep, you guessed it. Then you
• 3:53
  Speaker 4: must have a registered agent in Washington. Okay. Now, because
• 3:58
  Speaker 4: you need this when you file your articles of organization.
• 4:02
  Speaker 4: You need this information when you're filing your articles of organization.
• 4:08
  Speaker 4: You need to secure your registered agent before you can
• 4:10
  Speaker 4: put this on your paperwork. Okay, So don't fill out
• 4:13
  Speaker 4: the paperwork and then get to that spot and you're
• 4:14
  Speaker 4: sitting there looking goofy like, yeah, I don't know who
• 4:17
  Speaker 4: that is. Have that done first and then add that
• 4:21
  Speaker 4: to your paperwork. Okay. Now, the role of a registered
• 4:25
  Speaker 4: agent is to receive legal and or official documents for
• 4:30
  Speaker 4: your company during the business business hours. All right. Now,
• 4:35
  Speaker 4: you may accept this role. You can swear yourself into
• 4:38
  Speaker 4: this role, right because some people do it, especially if
• 4:41
  Speaker 4: their business is in the same city I'm sorry, the
• 4:43
  Speaker 4: same state that they're in. They elect to be this person,
• 4:47
  Speaker 4: or you can hire professional services to do this. Now,
• 4:50
  Speaker 4: if you take on this role, it doesn't cost you anything.
• 4:53
  Speaker 4: It's free for you to serve in this capacity. However,
• 4:58
  Speaker 4: if you are hiring a service, obviously you got to
• 5:00
  Speaker 4: pay them some coins. Okay, So it's something to think about.
• 5:05
  Speaker 4: Some people are like, yeah, I want to go to
• 5:06
  Speaker 4: a state where I gotta pay little texes. That's good,
• 5:09
  Speaker 4: but you know, you gotta have a registered agent, especially
• 5:11
  Speaker 4: if you're not in that state, and they and then
• 5:13
  Speaker 4: and then and then you gotta pay some money. Okay.
• 5:15
  Speaker 4: So just things things to think about, right. You know,
• 5:21
  Speaker 4: remember if you're starting your business in another state, again,
• 5:24
  Speaker 4: gotta have your registered agent in that state.
• 5:26
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• 5:29
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• 5:52
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• 5:56
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• 6:00
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• 6:03
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• 6:06
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• 6:15
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• 7:18
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 7:21
  Speaker 1: in Massachusetts. An MS thirteen gang member from al Salvador
• 7:25
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 7:30
  Speaker 1: filming and selling child pornography in Michigan.
• 7:33
  Speaker 2: These are just.
• 7:34
  Speaker 1: Some of the heinous migrant criminals caught because of President
• 7:37
  Speaker 1: Donald J.
• 7:38
  Speaker 2: Trump's leadership.
• 7:39
  Speaker 1: I'm Christy Noman, the United States Secretary of Homeland Security.
• 7:43
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 7:47
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 7:51
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 7:55
  Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned.
• 7:59
  Speaker 2: And deploy You will never return.
• 8:02
  Speaker 1: But if you register using our CBP home app and
• 8:05
  Speaker 1: leave now, you could be allowed.
• 8:07
  Speaker 2: To return legally. Do what's right. Leave now.
• 8:11
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 8:16
  Speaker 3: Sponsored by the United States Department of Homeland Security.
• 8:18
  Speaker 4: Texas, by the way, is very unique, right. I'm gonna
• 8:22
  Speaker 4: just read something to you about their registered agents status
• 8:25
  Speaker 4: and what it says, so excuse me. In Texas, for example,
• 8:30
  Speaker 4: it states the following about registered agents. The registered office
• 8:35
  Speaker 4: address must be located at a street address where service
• 8:39
  Speaker 4: of process may be personally served on the entities registered
• 8:43
  Speaker 4: agent during normal business hours. Although the registered office is
• 8:47
  Speaker 4: not required by the entity's principles, you know, place of business.
• 8:52
  Speaker 4: The registered office may not be solely a mailbox service
• 8:58
  Speaker 4: or a telephone answering service. So you got to have
• 9:01
  Speaker 4: a real person to be sitting there, don't business hours, okay,
• 9:07
  Speaker 4: and ready and LLC is required to maintain a registered
• 9:13
  Speaker 4: agent and a registered office address in Texas. If the
• 9:16
  Speaker 4: registered agent or registered office address changes, it's important to
• 9:21
  Speaker 4: follow a statement. Now, we got to talk about statements, okay,
• 9:25
  Speaker 4: with the Secretary of State to affect a change of
• 9:28
  Speaker 4: the certificate of formation. Still, to maintain a registered agent
• 9:34
  Speaker 4: and a registered office may result in an involuntary termination
• 9:37
  Speaker 4: of your LLC. I'm not playing with nobody, so y'all
• 9:40
  Speaker 4: better not play with them. Okay. I make lots of
• 9:44
  Speaker 4: jokes and I take light to a lot of stuff,
• 9:46
  Speaker 4: but this is big on serious, okay. And if you
• 9:49
  Speaker 4: want to read more about Texas, because we do have
• 9:51
  Speaker 4: Texas people out there, I can drop that the link
• 9:53
  Speaker 4: where I got this from inside of the study hall.
• 9:57
  Speaker 4: Now this is just one example, okay, So make sure
• 10:01
  Speaker 4: that you read the requirements of your state I cannot
• 10:04
  Speaker 4: stress it enough. Make sure that you read it. And
• 10:07
  Speaker 4: if you like me and you got a problem, get
• 10:10
  Speaker 4: a string or something and put it around your finger
• 10:12
  Speaker 4: like that right that way, when you go to start
• 10:14
  Speaker 4: clicking on stuff, you already know that you got to
• 10:16
  Speaker 4: take your time and read some things. Okay, that's just
• 10:20
  Speaker 4: how my brain is set up, all right. Another thing
• 10:23
  Speaker 4: that you're gonna need they're gonna ask you is, oh well,
• 10:25
  Speaker 4: the duration of formation that lets you state how long
• 10:29
  Speaker 4: that you plan to be in business. It could be
• 10:32
  Speaker 4: one year, two years, ten years, or if you plan
• 10:36
  Speaker 4: on being a business for AVI. Okay, they're gonna ask you.
• 10:39
  Speaker 4: So you need to make sure that you put that
• 10:41
  Speaker 4: on this form. Don't skip that all right. Now, Many
• 10:48
  Speaker 4: people choose not to set up, you know, the formation
• 10:51
  Speaker 4: of their business themselves, and that's okay, because if you
• 10:55
  Speaker 4: don't have the time, if you ain't got the patience,
• 10:57
  Speaker 4: or if you ain't got to bring with all, you
• 10:59
  Speaker 4: got to put some strings on your finger to remember stuff.
• 11:01
  Speaker 4: That's totally fine. So whoever forms let me pullum listen.
• 11:09
  Speaker 4: Whoever forms your articles, right, whoever forms the business and
• 11:15
  Speaker 4: files you know, the articles of organization will need to
• 11:18
  Speaker 4: be named on your LLC as the organizer. So if
• 11:22
  Speaker 4: you don't set this up with the state and somebody
• 11:25
  Speaker 4: else does it for you, they will be listed as
• 11:28
  Speaker 4: the LLC's organizer, right because somebody needs to be responsible
• 11:33
  Speaker 4: for putting all this together. So basically, who fouls you know,
• 11:37
  Speaker 4: fills out the form and submit it for you. That's
• 11:39
  Speaker 4: that's all that person is. Okay, and I'm gonna show
• 11:42
  Speaker 4: you a free service to get that done. You can
• 11:45
  Speaker 4: do this yourself again, or you can hire somebody. Okay,
• 11:50
  Speaker 4: it's totally up to you. Now there are whole companies
• 11:54
  Speaker 4: out there just waiting to submit these documents on your behalf. Okay,
• 11:59
  Speaker 4: So if you can learn to do this work, you
• 12:03
  Speaker 4: can actually offer it as a service. Right, So if
• 12:09
  Speaker 4: there's companies out there that are offering this as a service,
• 12:12
  Speaker 4: you don't have to have seven different streams of income.
• 12:15
  Speaker 4: You can take this one business and make this an
• 12:19
  Speaker 4: offering as a stream of income if you perfect this,
• 12:23
  Speaker 4: you know, setting up LLCs and things like that. People
• 12:26
  Speaker 4: do this all day long. Okay, so monetize what We're
• 12:30
  Speaker 4: gonna monetize everything. Okay, you definitely could do this. All
• 12:36
  Speaker 4: you gotta do is read and if you don't feel
• 12:37
  Speaker 4: like reading, your brain is scattered a little bit like mine,
• 12:40
  Speaker 4: Just tyler string around here like so and then get
• 12:43
  Speaker 4: yourself together. Okay.
• 12:44
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 12:48
  Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador
• 12:52
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 12:56
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 13:00
  Speaker 1: some of the heinous migrant criminals caught because of President
• 13:04
  Speaker 1: Donald J.
• 13:04
  Speaker 2: Trump's leadership. I'm Christy Noman, the.
• 13:07
  Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
• 13:11
  Speaker 1: illegal border crossings are at the lowest levels ever recorded,
• 13:15
  Speaker 1: and over one hundred thousand illegal aliens have been arrested.
• 13:19
  Speaker 1: If you are here illegally, your next you will be
• 13:22
  Speaker 1: fine nearly one thousand dollars a day, imprisoned and.
• 13:26
  Speaker 2: Deported, you will never return.
• 13:28
  Speaker 1: But if you register using our CBP home app and
• 13:31
  Speaker 1: leave now, you could be allowed.
• 13:33
  Speaker 2: To return legally. Do what's right. Leave now.
• 13:37
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 13:42
  Speaker 3: Sponsored by the United States Department of Homeland Security,