Des Femmes Update June 2024
setting up an LLC, job opportunities, and our next in-person meetup!
Sterling here again 👋 it’s been a busy couple of months as I go through some personal and professional adjustments (all good things!). I currently have two business entities: one in the US (an LLC) and one in the Netherlands (an eenmanszaak). While the Dutch entity was a requirement for my residency visa, the US LLC was a choice I made.
I was always good at keeping my “dollar” books and my “euro” books separate when it came to accounting, but as I conducted business through my Dutch company, I saw how many benefits could come with having a formal US entity. So in 2022, I officially opened a Wyoming LLC with the help of doola (not sponsored, but it is a personal referral link).
How Starting an LLC Makes You Richer
It’s been a huge game changer not just for my business, but for my personal mindset. If you’re thinking about opening a business entity, here are some tidbits of advice from my own experience.
You don’t have to form an LLC in the state you reside in
For anyone who moves around a lot or simply wants an affordable and tax-friendly option, it’s helpful to register in a state that doesn’t require in-person appointments or local announcements. For example, New York state requires LLCs to publish an announcement in two newspapers within 120 days of formation.
When I was considering where to set up my LLC, I looked at three states: Delaware (famous for startup formations), Florida (where I’m registered to vote), and Wyoming (a crypto-friendly state). All three require a local registered agent, which is someone who has a physical address in the state and can accept legal papers. States often have an approved list of agents that LLCs can pay to act on their behalf (which I do).
My VA and I compiled Google docs for Delaware, Florida, and Wyoming when first researching where to register—feel free to take a look for your own research! Please note that, if you do not have a US tax ID number (e.g. social security number), there may be additional requirements for you to register a business.
Setting up an LLC means you can open a business bank account
For tax purposes, it’s a clear win because business expenses are clearly separate from personal spending. But receiving payments into a business bank account instead of my personal bank account was a huge mindset shift for me.
First of all, I’m now more willing to spend money on coaching and events. When I attended a client retreat and the Des Femmes meetup in 2022, I paid for my travel and accommodations without guilt. It wasn’t a question of whether I, Sterling, could afford the trip—it was a question of whether the company, Added Value Agency, could afford it.
This distinction also led me to re-evaluate my service pricing. When the money came into my personal account, it was easy to think, “Wow, I have an extra $2,000”, but that wasn’t entirely true. That money was technically for my work, not just spending money on myself. With a business bank account, I have to truly pay myself a salary, which means I have to consider how much I want to be paid as an individual, in addition to covering business expenses and making a profit.
A separate business entity provides better legal protections
If you operate your business as yourself, that means clients can come after you and your personal assets. In other words, they could potentially take your personal computer, your car, or even your home to cover costs of damages. If you operate as an LLC, debt collectors will almost always come for the LLC’s assets instead of your personal assets.
Having that safeguard can provide peace of mind not just to you as the business owner, but also to your clients. It demonstrates a level of professionalism and care towards yourself and your work.
Final Thoughts
Starting an LLC truly changed the way I operate. In addition to the money mindset shift, having an LLC also helped me separate my personal identity from my business identity. If you’re interested in learning more about my experience, or have any questions about the process, let me know in the Des Femmes Slack channel!
Note: this is not legal or financial advice. If you have further questions about setting up your own LLC, connect with a lawyer, advisor, and/or accountant to help you get started.
Community Updates
Des Femmes IRL Meetup in Nashville! If you’re coming to the Bitcoin Conference at the end of July, join us for drinks and tacos nearby on Thursday, July 25 from 6-8 pm.
YAP Global is hiring! YAP Global is an international public relations consultancy that works exclusively with organisations in the cryptocurrency, decentralised finance (DeFi) and web3 sector to build their brand. They’re growing their New York team of crypto enthusiasts. Learn more about their Account Executive or Account Manager roles!
Doing research: Can you recommend any great resources on the history of Web3?
That’s it for now! Until next time, stay curious…