I filed the Articles of Organization for Plankton Games LLC today. Not a huge step in terms of what I had to do, but a big psychological step, and one that left me $125 poorer. But if I'm producing manufactured goods, I really can't afford to be personally liable for problems or issues.
There's a $200 annual report fee for the LLC, so I guess this starts the bleeding - my games have to make more than $200 in the next year to cover that expense. Of course, I also have already paid for the web hosting, artwork, samples from TGC, etc. But some of that I'd have done anyway.
Exciting stuff. Next step (assuming my LLC application is approved) will be to get a state sales tax ID and a local business license, and then I'll need a federal EIN so I can get a business bank account. And I'll have to figure out how to collect, report, and pay state sales tax for in-state sales.
This is the part that's not so glamorous, but it's still part of the journey, and even a little fun at this point because of what it represents.
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Perhaps it's different in your state, but you shouldn't need a Federal EIN to get a commercial bank account. Unless you hire someone, a sole-proprietorship uses the owner's SSN instead of a EIN.
ReplyDeleteGood luck!
The guy I talked to with the state commerce office suggested that banks would prefer an EIN for a business account, but I guess I'll know what I need when I go to the bank. I don't expect to have any employees for a while.
ReplyDeleteFWLIW, I had no problem setting up a business account at my bank with my SSN only.
ReplyDeleteCongratulations on this big step. I'll be looking to purchase a game when they're ready to sell.
ReplyDelete