The LLC . . .

I am embarking on a new adventure, the Limited Liability Corporation or as commonly known, the LLC.

I am dealing with an investment in oil wells.  Each well is an individual partnership and requires its own K-1 tax document every year.  The LLC is to capture the partnerships as it initial investment value, it will be a holding company.  That way I will be dealing with one entity instead of a bunch of partnerships.

The LLC is being set up in Delaware as all big corporations are done now days.  It seems Delaware corporate laws are the easiest to deal with.

I did learn that there is a term to deal with, "foreign qualification."  At first I thought that meant foreign as like the Bahamas or Great Britain.  But no, it means each state in the Union has their own corporation rules and regulations.  So a Delaware corporation has foreign qualifications if work is being done under the LLC in another state like Texas.  But if one is not doing work, that is paying salaries, selling goods on the internet, etc. one does not need to be qualified to operate in a different state.

It turns out it cost perhaps $150 to get an LLC in Delaware, but to be foreign qualified in Texas it cost $900. a big difference.  After poking around on Google I hit upon a forum that discussed foreign qualifications.  And there is where I learned I do not need to do anything in regard to a holding company.

While the address of the company will be here in Texas, that is just an identification formality.

The new LLC will be Morrison Lippelmann, LLC.  Not a unique name, it is may last name and that of the entity as an identifier.  And I am the owner of the LLC.

A new adventure for me.