So I decided to setup my new company as a Limited Liability Company. I used the internet to research the subject of setting up a company and found what seemed to be many very good recommendations. One very important recommendation about having your own business is to make sure you completely separate the business from your personal affairs. A Limited Liability Company is only protective if you do not mingle the business with your own personal finances and assets. This means the business should be a clearly separate entity with a clear paper trail of its own. Without this clear separation, the LLC may not provide the personal liability and asset protection which is one of the main reasons for me to have this type of business structure in the first place.
Getting a business address
The first thing I set out to do was to get a business address which was separate from my own personal home address. (Remember that I do not have a retail business or service location at this time so I do not have a physical business address such as a store or building) If I had an office or other physical business address then this would be a no-brainer, but I don’t. Often a U.S. Post Office box will not suffice for many transactions and doesn’t appear to be as professional as a physical street address. I had read about setting up an account at my local UPS Store which allows me to have a physical street address and not just a PO Box.
My approach to my business address
Using the UPS store approach for my business address also had other advantages. I can have someone receive packages which may require a signature without having a hit or miss approach regarding delivery times. I can then pick up any packages at a time that is more convenient for me. This service is not something I could have received from the U.S. Post Office. They have many other business services which I may utilize in the future also. Many of you may have other options or businesses with similar services to choose from. I would recommend just comparing and contrasting each of them to see which one would be better for you. In my area, the UPS Store was the best option for me.
What it cost me
I chose to rent just the smallest mailbox for the time being because at this point I do not have a need for a larger one. I also wanted to keep the expenses lower. I paid $154.00 for 12 months of rent for my mailbox. Simple math breaks this down to around $13 dollars a month.
This mission accomplished
So to recap, the goal I had set out to accomplish was available for $13 a month (not bad in my opinion). Number one, I was to get a physical address for my company separate from my personal address (this was by far the most important). Number two, I was able to now receive packages and mail requiring a signature without me being present. And number three, I have convenient access to many other small business services when the need arises.
In my next post I will go over the steps I took in getting my LLC paperwork completed.