As a self-employed entrepreneur, solopreneur or freelancer, you have been planning this move for a long time. You figured that since you can work from anywhere, why not take advantage of it and become a digital nomad. You made a list of everything you need to do before you take on the world as a digital nomad.
However, before you venture off into the world, you may be forgetting one task you should highly consider adding to your list — forming a limited liability company (LLC).
Forming an LLC before you travel the world and work from these incredible, remote destinations will protect you and your business when you are preoccupied with exploring new lands and immersing yourself in different cultures. There are plenty of other reasons why forming an LLC is a smart business decision when you do not necessarily have a home base, and we are here to tell you why.
Why You Should Form an LLC as a Digital Nomad
You may be busy planning and preparing for your exciting move, but you should not be too busy that you forget to protect your business and livelihood before you go. Lucky for you, forming an LLC can be accomplished in as little as six simple steps.
An LLC is there to protect your business, as well as your personal assets. When you form an LLC, your business and your personal assets become separate in case an issue arises. This is something to consider when you are away in remote lands and a threat comes after your business. Being away could make it difficult to take care of a problem, and this is where having an LLC helps alleviate certain issues. Especially when your form your LLC with Incfile, you have customer support whenever you need it.
When you are a digital nomad, you have other things to worry about than stressing about certain aspects of your business, especially the financial and legal aspects. Having an LLC in place will ease your mind. An LLC is also simple to maintain — you do not necessarily need to hold any big meetings, but if you need to, you can do so remotely.
You also have tons of flexibility when it comes to your LLC, meaning that if you need to assign certain business items to team members, you can quickly and easily manage this without a lot of paperwork. So if you are about to go cliff jumping for fun in Costa Rica, perhaps assigning your accounting to someone is the best move to make before doing so.
And when you are busy working (a.k.a. lounging on the beach sipping a margarita) the very last thing you even want to think about is taxes. Well, filing taxes is easy when your business is incorporated as an LLC: any earned income from your LLC gets coupled with your personal tax return and is taxed as normal. You do not need to stress about coming home to file those pesky tax returns, you can do so while sitting on your balcony overlooking the rainforest.
Your Checklist to Forming an LLC
When you are about to set off for your worldly travels, you already have your own long to-do list staring at you. Another list that you will need is a checklist to forming your LLC. Here is a quick and handy checklist to help you do so:
- Set up a legal business entity
- Create an operating agreement
- Obtain Federal Employer Identification Number (EIN) / Tax ID Number
- Trademark your business name
- Register fictitious name or assumed business name (DBA), if necessary
- Get business insurance, if necessary
Those are just a few of the steps you may want to consider when forming your LLC. Here is the in-depth checklist to assist you in the formation and implementation.
Considering becoming a digital nomad in a couple of months? Well, before you go, incorporate your business with Incfile, trusted by more than 150,000 companies. Our business formation packages include a lifetime of customer support, online access to your incorporation documents and a your first year of registered agent service for free. Check out our online business formation packages — starting at $49 + state fees — to form your business today.
Latest posts by Lisa Crocco (see all)
- Poll Results: Benefits of Listening to Podcasts for Your Business - November 22, 2018
- 2018’s Top Woman-Owned Businesses Formed as LLCs - November 19, 2018
- Poll Results: The Average Age of Entrepreneurs is 42 - October 30, 2018