As I mentioned last week, my buddy Chris and I are working on a new project, Abroad Care. I’m hoping that, with a little extra income I can start to free myself up for bigger and better things.
The idea: to market gift baskets/care packages to students studying abroad.
We still have several kinks to work out, but Abroad Care has officially begun. Chris and I had talked several weeks ago about publicizing our experiences, and we concluded that getting our readers involved would ultimately bring our practices to a higher standard. So, welcome to our project! If, at any point you feel like chiming in, please let us know your thoughts in the comments below.
Abroad Care is an experiment in bootstrapping–starting a business without external capital. One of the first things we discussed was how to legalize the idea. You know, get our papers in order. Per the suggestion of Alex King (a veteran entrepreneur and close friend), we incorporated an LLC in Delaware.
Why Delaware, you ask? A good question. Did you know that more than half of Fortune 500 companies are incorporated in Delaware? Here are a few reasons why:
It’s Cheap. Delaware is one of the cheapest states in the country to incorporate a business. Only eight states have cheaper incorporation fees.
You don’t need to live in Delaware. In other states, you have to operate the business within the state to incorporate.
One person can hold all officer positions and serve as sole director. Many states require you to list separate people as officers and directors. This is an advantage for those running businesses alone.
You can read about some other advantages here.
For the record, here were the incorporation costs for Abroad Care:
$120/year: obtaining a registered agent.
$90: submitting a Certificate of Formation.
$250/year: Delaware state franchise fee.
So, $140 for the first year, then $370/year after that.
In my next update I’ll talk about some of the initial decisions we made, some of our very first mistakes, and how we’re moving forward.