Formation Notes
UPDATE:
In each State where we have a travel advisor, we need to file a foreign LLC, except our current home state (Washington).
Each State has filing costs and tax considerations. For example, an LLC in California pays $800 in taxes in the first four months of operation.
Louisiana is the only State that is affordable, and where one of us lives. Debbie let’s chat next week.
OUR STRATEGY 1: It makes sense that we create groups of agents in the States where we operate.
OUR STRATEGY 2: Each of you can be owner operator, even though you are not advisors.
STRATEGY 1 EXPLAINED:
Currently we are established in Washington State. Let’s make it count and get FIVE dykes to form the office there. The median age in Seattle is 32 years old. That is not a market that I will effectively penetrate.
We will discuss this in detail in another post.
STRATEGY 2 EXPLAINED:
We are forming a cooperatively owned LLC. As with other companies, there are business owners, managers, and workers. The workers in our industry are agents/advisors.
We will discuss this in detail in another post.
SUMMARY
To summarize, it is costly and cumbersome to operate in five states, since we live in five states. Instead, we will start efforts to build a base of agents in three states, WA CA TX.
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