Formalizing my business

Hey Hackers,

So I built an ecomm website selling digital products about 3 months ago. For the first 2 months I didn't offer any products for sale, just made free products available to build up my contacts list. I started offering premium products for sale 3 weeks ago. I've made a little over $600 in the 3 weeks. It took a little under $2,000 to build the site so i'll hopefully be profitable soon.

At the moment I am operating as a sole proprietor. The idea was that if I was going to spend the money to create an LLC I needed to have proof of concept first. I want an LLC so I can protect myself and my personal assets. I will need a bank account as well. Minimizing costs is a priority for opening this LLC+bank account.

So my question is what would you guys suggest to set up a delaware LLC. This company is 100% internet based and sells completely digital product downloads via Shopify.

Here are some pros and cons I have gathered i'd love to know your thoughts.

Strip/Atlas

Pro: Easy to set up, cheap
Con: uses Silicon valley bank $25/mo charges + transaction fees

Chase Bank/Legal Zoom
-Pro: Reputable brands, will 100% get the job done
-Con: unsure, can I set up a delaware LLC and walk into a california chase bank branch and set up a business account?

Any feedback or advice would be great.

Ryan

ericlamcrypto

posted to

Ideas and Validation

on June 2, 2020

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I don't think you need to use Delaware for an LLC.

whipdancer

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5 years ago
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@ryanoskey229
Stripe Atlas also gives you an option to choose other banks. ( not just SVB )
We use Mercury Bank and have been using them for almost a year. You won't need anything more than that.

fire2030

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5 years ago
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ZenBusiness is another inexpensive way to form an LLC. It's not as cheap as filing the paperwork yourself, but they do include the Registered Agent fee in the 1st year so it's pretty close. (A registered agent is a responsible third-party in the same state the business is formed, who can receive legal notices on behalf of the corporation or LLC.)

As for banks, Chase, Azlo, Novo and Axos banks are all good online business bank accounts depending on your needs. Of those 4, Chase is the only one where you need to physically walk into a branch to set up.

cohoist

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5 years ago
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  Wow this is a great answer. Thank you. Do you have experience with Azlo, Novo or Axos?
  
  I've never heard of these banks if you have any kind of personal review based on your experience it would be great if you could share it.
  
  ericlamcrypto7
  
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  5 years ago
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    I've used Axos for a business checking account. Their business website isn't pretty, but they have everything you need for an online business. They took a long time (>30 days...) to approve the business bank account, but that may have been anomalous. Right now they offer a $50 bonus for new businesses formed in 2020. It's not much, but it's better than nothing. Axos is the only one of the 3 that lets you write checks, but that's probably not too important for an online business.
    
    Azlo and Novo are pretty similar, but I don't have first-hand experience with either. Both have ultra low fees and I believe both have Stripe integration from their log-in page so you can see your Stripe balance and business checking balance from the same page. Novo has some interesting business perks with other brands, like $20k in fee-free card processing with Stripe.
    
    The only reason I didn't go with Novo is because you can't add a Novo account to Personal Capital. Silly reason, but it's the truth! Azlo and Axos both work with PC.
    
    cohoist
    
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    5 years ago
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      Thank you for the detailed response
      
      ericlamcrypto7
      
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      5 years ago
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