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LLC Formation — Westside Kings & Queens

westside-llc-formation Doc

backlog
Project

Why

Westside Kings & Queens is collecting real money from parents (tryout fees, jersey orders, monthly dues via Stripe) and has 50+ accounts, 5 coaches, and multiple teams. Without an LLC, Lucas and Marcus are personally liable for everything — injuries, chargebacks, contract disputes. An LLC separates personal assets from the business.

Status

Not started. Parked here for when budget and motivation align. No rush — just capturing the steps so nothing gets forgotten.

Utah LLC Formation Steps

  • Choose a name — "Westside Kings and Queens LLC" or similar. Must be distinguishable from existing Utah entities. Search at corporations.utah.gov.
  • Appoint a Registered Agent — Person or entity with a physical Utah address (not P.O. Box) available during business hours. Lucas or Marcus can serve as their own agent.
  • File Certificate of Organization — Filed with Utah Division of Corporations. Online, mail, fax, or in person. Filing fee: $59 (one-time).
  • Draft Operating Agreement — Not legally required in Utah, but critical for a two-person LLC (Lucas + Marcus). Defines ownership split, roles, decision-making, profit distribution, what happens if someone leaves.
  • Get an EIN — Free from IRS (irs.gov/ein). Takes 5 minutes online. Required for bank accounts and tax filing.
  • Open a business bank account — Separate from personal accounts. Needed before you can properly receive Stripe payouts under the LLC entity.
  • Update Stripe — Change Stripe account from personal to the LLC entity. Connect the business bank account for payouts.
  • File annual report — $20/year to maintain good standing with Utah.

Cost Summary

Item Cost Frequency
Certificate of Organization $59 One-time
Annual Report $20 Yearly
EIN Free One-time
Operating Agreement Free (DIY) or $200-500 (lawyer) One-time
Business bank account Varies (many are free) Monthly
Minimum to get started: $59 + time.

Decisions Needed

  • Ownership structure — 50/50 Lucas/Marcus? Different split? This goes in the Operating Agreement.
  • Management structure — Member-managed (both run it) vs. manager-managed (one person has authority)?
  • Tax election — Default pass-through (Schedule C / 1065) or elect S-Corp? S-Corp makes sense once profit exceeds ~$40k/year.
  • Insurance — General liability insurance for youth sports. Separate from the LLC but should happen around the same time.
  • AAU membership — AAU requires membership cards for all players and coaches. Separate from LLC but part of formalizing the program.

What We Can Do From the Terminal

  • Search Utah entity name availability (web search)
  • Draft the Operating Agreement (text document)
  • Apply for EIN at irs.gov (browser automation possible)
  • Track all steps on the Westside board as a ticket
  • Update Stripe configuration via API once LLC is formed