- What is a digital entrepreneur?
- How do you register an LLC as a digital nomad?
- How to maintain an LLC when you’re away for an extended period
Q: How can I maintain my LLC if I travel a lot and spend long periods away from my business’ physical location?
A: In the age of the digital nomad, running a business often involves operating from a different geographic location. If you have an LLC but want to explore the world, you can do so with a few tips and a bit of planning. This article explains what you need to do to register your LLC and maintain it as a digital entrepreneur.
Digital entrepreneurship has been around since the advent of the internet. The ability to operate a business using online means not only adds flexibility to your life but can also help your small business grow and reach new customers.
The appeal has only increased in recent times. New technology means digital entrepreneurs can now adopt wholly nomadic lifestyles.
The freedom to travel coupled with the ability to adapt to pandemic-driven changes has led many to jump into the remote small business game.
But that said, it isn’t as simple as dropping everything to live in a van. There are certain important steps you need to take if you are to register and maintain an LLC while traveling.
Here’s what you need to know.
- What is a digital entrepreneur?
- What do you need to do to register an LLC as a digital nomad?
- Travel considerations every digital entrepreneur needs to make
- How to maintain an LLC when you’re away
What is a Digital Entrepreneur?
The definition of a digital entrepreneur is a small business owner who runs their business using digital rather than physical space.
Digital entrepreneurs typically work by selling products or services through a website, eliminating the need to be in a stable geographic location to operate.
Most small businesses have the ability to operate digitally. Consumer goods can easily be ordered online and shipped from wherever the digital entrepreneur happens to be, and many services can be performed virtually as well.
We’re seeing more digital entrepreneurs than ever, and according to Pew Research Center, technology will likely continue to make work arrangements more flexible as we step into the future.
Why Become a Digital Entrepreneur?
Perhaps you’re wondering if you should become a digital entrepreneur.
The answer in most cases is a resounding yes, for many reasons.
For example, digital entrepreneurs gain a vast amount of freedom. They are able to work flexibly, both in terms of scheduling and location, which allows you to obtain a true work-life balance.
Forbes recently declared that now is a great time to try out a digital nomad lifestyle. Such a lifestyle is made far easier and more practical when coupled with digital entrepreneurship.
This is perhaps the driving force behind the increased interest in digital entrepreneurship.
Those who launch digital businesses are free to explore various cities, save money on rent, can set their own salary, and gain tons of new life experiences.
But to make the most of it, you’ll want to register your small business as an LLC.
Registering an LLC as a Digital Nomad
Registering your business as an LLC protects your personal assets and provides an important layer of protection.
Registering as an LLC is a fairly easy process for both traditional and digital businesses.
The first thing you’ll need is a business phone number. This can be your personal phone or virtual phone service.
Next, you’ll need a name and address for your business. This is where digital entrepreneurs tend to get confused.
For a traditional business, the business address is simply the storefront or office address.
But digital businesses don’t have a physical location.
One option is to use your home address for business registration, but unfortunately, there are two major drawbacks to doing this:
- The first is that your home address becomes publicly available. Anyone who searches your business will know where you live, which can be uncomfortable and intrusive.
- The second is that you need a dedicated home address, something that’s at odds with true digital nomads.
However, there are solutions to this issue.
A virtual office address allows you to register your business without having to stay in one place, giving you the freedom you need while still allowing you to register an LLC.
Travel Considerations for the Digital Entrepreneur
If you’re going to register an LLC and plan to travel, there are a few things you should keep in mind.
The first is that you’ll need to have a reliable way to communicate with business contacts and customers.
If you’re going to be working from a completely different time zone, you should plan to have someone answer your phones for you. If that’s not an option, at least create a message that explains the situation and allows callers to connect in another way.
In addition, you’ll also want to make sure you have the ability to continue delivering your products or services to your customers.
This may seem obvious, but it’s easy to overlook.
If you start operating from a different location, that may impact your ability to ship items or receive the materials you need to make your products.
Consider your supply chain prior to scheduling extended trips. This will make it easier to maintain your LLC’s reputation and customer satisfaction while you’re away, keeping you from any business setbacks.
How to Maintain an LLC When You’re Away
As far as maintaining your LLC’s legal status while traveling, a bit of planning goes a long way.
If you’re using a virtual office address, simply maintaining your rental plan will keep your registration valid and prevent any problems. The same goes for your phone number.
However, the registered agent component of an LLC can be a bit trickier.
Your business needs to have a registered agent (RA) present in the state you’re registered in.
If you live there, you can serve as your own RA, but that goes out the window if you’re traveling.
The best way to handle this situation is typically to hire an attorney to serve as your RA. This ensures that all legal mail is properly handled while letting you travel freely.
However, if this isn’t practical, you can simply have someone you trust to serve as your RA. So long as they are staying in the same place and are reliable, this shouldn’t cause any problems.
It’s important to note that the RA must live in the state your business is registered in. For this reason, you might want to rent a virtual office in the state your potential RA lives in.
If you handle the RA requirement, keep up with your virtual office rental, and take the appropriate actions when it comes time to renew your registration, you’ll be free to travel to your heart’s content while holding onto your LLC.
Conclusion
There’s never been a better time to seek out digital entrepreneur jobs. The technological advancements and rise of remote work mean you can run a business while bouncing from city to city.
If you plan on making the jump, you should register your business as an LLC prior to hitting the road. This will make things easier in the long run and protect your personal assets.
The best way to register your business as a digital entrepreneur is with a virtual office.
Further Reading
- How to Legally Run a Business While Traveling the Globe
- Hey Digital Nomads: Form an LLC for Your Business Before You Take Off
- Looking to Become a Digital Entrepreneur? Read This First
- Mindfulness at Work: A Simple Practice That Can Increase Productivity and Promote Wellness
Alliance Virtual Offices has plans across the nation, making it easy for you to register an LLC while retaining all the freedom you need to go explore the world.
