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andviv

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JasonR

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Update: Now considering filing for an LLC out of state as it looks to be MUCH cheaper. Goods won't ship from the out-of-state address, but it's probably much better than starting a sole prop here. My Uncle is an attorney - will talk to him tonight.
 

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Update: Now considering filing for an LLC out of state as it looks to be MUCH cheaper. Goods won't ship from the out-of-state address, but it's probably much better than starting a sole prop here. My Uncle is an attorney - will talk to him tonight.

How do you file LLC out of state? Will it be in Nevada? I am also in CA and pondering if I should do an LLC since the yearly cost is $800.
 

JasonR

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How do you file LLC out of state? Will it be in Nevada? I am also in CA and pondering if I should do an LLC since the yearly cost is $800.

I don't know, yet.

I imagine all I need is an address in the state. I'm researching it.
 
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A foreign limited liability company (LLC) or foreign corporation is a limited liability company or corporation that is operating in a different state from the state where it was organized. The opposite of a foreign LLC or corporation is a domestic LLC or corporation, which is operating in the state in which it was organized.

The foreign LLC or corporation is registered with the state where you want to do business through the office of the Secretary of State. Read this article on How to Register as a Foreign LLC for more information.
Also Known As: Out-of-state LLC
Examples:
If an LLC is organized and registered in the state of Illinois, and the company has a store in Illinois, it is considered a "domestic" LLC. If the company is organized and registered in Illinois, but it wants to open a store in Iowa, it must register in Iowa as a "foreign" LLC.

First, register your LLC (limited liability company) in the primary state where you are doing business. If you already have an LLC, you are set for that state. You will need the information from the Articles of Organization and you will need a copy of the official LLC document from the state.
Next, determine if you are "doing business" in another state and are thus required to register as a foreign LLC in that state. The term "doing business" may differ by state, but usually it includes these activities:

Having a bank account in the state
Selling in the state through a distributor, an agent, or a manufacturer's representative
Maintaining an office, manufacturing or distribution facility, or retail store in the state[/br]
Owning real property or personal property in the state
transacting business or holding meetings in the state.

Go to the website of the Secretary of State for that state, and search for the information on that state's requirements for the information that must be included in the registration document. (It might be called a "Certificate of Authority" or an "Application for Authorization.")
From the Secretary of State website, you will also need the following:
The registration fee for foreign LLC registration in that state
The address for sending the registration.
Fill out the Certificate of Authority or Application for Authorization, or whatever this document is called in that state. Depending on the state, you will need to include:
The name of the LLC and the name you are doing business as in that state, if they are different.
The state where the LLC is originally registered, the date of formation, and the duration (perpetual or for a defined time period.).
The street address of the original LLC
The street address (not a PO Box) of the LLC in the state where you are doing the foreign LLC registration.
You may also need to comply with that state's requirements for naming your LLC, including the words "LLC" or "limited company" in the name, if you have not done so already.
Some states require you to include a copy of the original documents showing that the LLC has been registered in its "home" state, and/or a copy of the official document registering the LLC.
When you have checked your application for accuracy, send it to the Secretary of State, along with a check (from your business account) for the registration fee.


I thought about doing this for my business. It appears most states want proof that you have an proof of your domestic LLC before filing a foreign LLC. For example Delaware's says "Attached please find a form for a Certificate of Registration of a Foreign Limited
Liability Company to be filed in accordance with Section 18-902 of the Limited Liability
Company Act of the State of Delaware. A Certificate of Existence, dated within six months
prior to the filing of the Registration Certificate, from the foreign limited liability company’s
jurisdiction of formation must be submitted with the Registration Certificate." I may be wrong or misunderstanding though.
 

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Hi Jason,

Glad to see you're still full steam ahead. I've had a few setbacks of my own, mostly out of my control. I was in the direct path of hurricane Isaac. Almost lost my car due to flash flooding. Tried to leave but got trapped, had to leave it on a bridge and walk. No electricity for several days and no internet for several more after that. Nothing like a natural disaster to make you appreciate the small things. Needless to say, I'm back online and doing enough research to make my brain melt.

Thanks for the ecommercefuel tip. Since I've been back online, I read his ebook, along with everything in his blog (great info, he is definitely an inspiration). I've also done a ton of reading on seomoz. After soaking up all that info, and further researching my niche and competition, I keep coming back to the same question slapping me in the face:

"Why buy from me instead of my competition?"

The truth is, I haven't come up with a legitimate answer. I'm interested how you tackle that question yourself. From what I've read, the answer is content. I just simply don't think I could catch up to my competitors in that aspect, even if they stopped to wait for me. My angle from the beginning was how I was going to market myself, but now I'm not sure that is enough. Not only that, but all the manufacturers are already selling everything on amazon. I haven't given up on the niche yet, I'm just trying to stare reality in the face.
 

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Hey James, sorry to hear about you getting caught in Isaac's wrath. Shit happens, and you dealt with it. Good for you.

Andrew from E-Commerce Fuel is great, and SEOMoz is an extremely valuable resource.

Ah - you're talking about your USP (Unique Selling Proposition). If you want, PM me your niche and I'll probably have more insight for you. However, if you don't want to share your niche I COMPLETELY understand.

Anyways - back to your question. It's hard for me to answer, as I can't research whatever niche you're looking into. However, here's what i can tell you. Can you do what your competition does BETTER in any way, shape or form? Whether it's customer service, SEO, marketing, a better, more useful website, can you offer MORE? It doesn't have to be revolutionary or groundbreaking. Also, how many large competitors are there? If there's 3 or more LARGE competitors (get some insight by using Compete.com - although it's not super accurate), then consider a different niche. If there's only 1-2 large competitors and a few small competitors, then I believe there's room to enter. Every niche will have competition. Don't be scared of the competition.

It's always tough to compete with Amazon. Find a niche where Amazon isn't good at selling the product (ex. more complicated niches that require specific product knowledge).

The reason I've chose my niche is the field is fairly technical, has only 1-2 larger competitors (and a handful of small ones), and I can't find any competitor that knows SEO well or is even utilizing PPC effectively. This tells me there's opportunity here. Also - customer service. There are more reasons, which I'm sure I will dive into once I launch in the INSIDERS forum.

Anyways - back to solving some Magento problems, writing content, and figuring out WTH to do with my business license situation.
 
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JamesS88

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I'll show you mine if you show me yours ;)

lol I'm kidding...

Yeah, I'm beginning to think its just too crowded. Part of me wants to pursue it anyway. I know I shouldn't throw good money at bad money, but I don't stand to lose much at this point and the upside is great. At the same time, I know I shouldn't fall in love with my niche, as Andrew would say.

Eh, I'll stew over it while I research some other aspects. I hope you find a solution for business licensing. Luckily, that wasn't difficult in my location but I've ran into other issues.
 

Guest682

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I don't know, yet.

I imagine all I need is an address in the state. I'm researching it.

Hey Jason, love the thread!

Whats funny is we're about in the same phase of development on our sites and LLC's. I am actually using the same template as you after researching many I thought it was the best looking *guess we have similar taste*. We should share tips if we run into probs with the template. Also if you want to register i'd say do it in Delaware i'm also out of state and this is what I did all online and went to my local bank with the printed documents and was no problem.



1. Registered agent
Basically you need a mailbox in the state. These services will forward any legal documents to your mailbox specified. I went through Harvard Business Services it cost me $50.00 for the year. So when someone looks like my companies address it shows it listing in delaware. I'd be sure to include any physical location advertisements "Warehouse and appointment only" so people don't try to swing by.

For additional anonymity I also used a UPS Mailbox in my home state at $45 every quarter, the reason I do this is because I actually do not reside in a single location. Another benefit with using UPS is the way I can address things "Company Name Suite #1000" I think from the outside it just looks more legitimate.

2. File your certificate of formation & Cover Memo
http://corp.delaware.gov/llcform09.pdf
Division of Corporations - Expedited Services (allows your payment info and if you want expedited formation) I did the 24hour filing which only cost me an additional $50 plus the $90 for the actual formation.
Unfortunately you do need to fax these.
Heres the fee schedule http://corp.delaware.gov/Aug12Fee.pdf

3. Licensing & EIN (All online & Printable, which you can immediately take to the bank)
this is like a one stop application that will walk you through the licensing
https://onestop.delaware.gov/osbrlpublic/controller?JSPName=NEWREGISTRATION&op=continue
the EIN is free the copy of the Liscense is I believe $25.00

Even though you get a receipt from Delaware mailed to you for the name reservation and formation, the one stop service allows you to instantly print out the IRS document, and the Division of Revenue License. which you can then take to wells fargo or bank of your choosing to open your account and then get your credit card processor in order. Good Luck! Total cost for Delaware LLC / Incorporation & bank account $165.00
 

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JasonR

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Going to do a sole prop in my local city at the moment. Getting the paperwork and fees taken care of tomorrow.

Also wanted to update this thread a little bit. I've been busy fixing Magento issues (SEO, blog extension, etc.), and creating my categories and using a test product to get my product page nailed. There are always things that come up you didn't expect, and it always takes more work than you thought.

That being said, I think Magento is a solid, extremely powerful platform, BUT it is not for the beginner. I have quite a bit of experience with X-Cart, which is also complicated. So here's my advice to e-commerce newbies. Stick with e-commerce, and deal with its issues to get rolling.

However, if you realize there will be some work to tweak Magento, consider this as well. However, you will need to feel comfortable with FTP, modifying your sites theme files, modifying some PHP/CSS, and figuring out the back end. You'll also need to get comfortable with Magento's file structure, and how themes work (and also how to add to your theme as not to mess with the core code).

Also, I fixed the Magento Category H1 and Top Nav issues. If anyone needs the fix (or at least how I fixed it), I'd be happy to do a quick write up here.

Hoping to launch soon. Lots to do before I even get into marketing, which will be a full time and a half job.
 
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JasonR

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Another quick update:

Got my business license, Resellers permit, etc. Got Quickbooks up and running. Still need to record some more expenses (highly irritating, lol).

Got my logo done (Elance, $50). It's not amazing, but it works for now. Went through and took care of the transactional emails, learning more about Magento, and also stumbled upon some more Magento Issues. I'm going to keep working on them, but I'm not going to let them hold me up from opening my store.

I still have my site blocked from Google using robots.txt. I'm going to write my category descriptions (main keywords I want to rank for, etc.) and then unleash the search engines on my site while I'm adding product. So it's sort of a "soft" launch, but I don't expect much traffic, It's just to get me in the index. Once I have 100-500 products loaded, I'll launch the site and get the marketing up and running.

Now I've got to open my accounts with my dropshippers. So much work it's unbelievable. Part of it is the learning curve with Magento, and part of it is fixing Magento's issues (SEO, Layered Nav, etc.). But hey - I'll be able to launch a second store in much less time.

I'm also moving this week...so I'm crazy busy. I'm also doing this while working a full time job. So yes, I'm very busy, miss out on a lot of fun things, but I have to make sacrifices somewhere. Just letting you know it can be done even if you feel like you have no time or are working full time

Back to work!
 

andviv

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and then unleash the search engines on my site while I'm adding product.
In my experience, as soon as you post a new page/item to your site, tweet about it and the search engines will pick it up and index it rather quickly.

I don't know if that has change in the last year though.
 

JasonR

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In my experience, as soon as you post a new page/item to your site, tweet about it and the search engines will pick it up and index it rather quickly.

I don't know if that has change in the last year though.

Hmm. Interesting idea. My only problem with it, is that simply tweeting new products isn't a very good way to engage your followers. However, as I have no followers yet, no big deal.

I don't think Google has a problem picking up new products. ;)
 
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JasonR

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Sorry for the lack of updates - super busy with moving, work, etc. I'll be updating soon.
 

JasonR

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Sorry - slow to update - too much work to do.

I sent my applications out (with completed business license) to distributors - waiting to get my dealer accounts open so I can start adding product.

Started writing category descriptions (for SEO purposes), uploaded my Robots.txt file so Google can now start indexing my site. Wrote a home page description (many e-commerce sites don't have much text on the home page, IMO this is a huge advantage for those with stores. Write good, optimized copy on your home page!). I'm going to pay a firm to make a couple of code modifications on my site (ie how Magento handles sub-categories under anchor categories - you'd have to know Magento to understand this), and also going to utilize a company to add some javascript to my site (I can't find where my theme is calling the javascript files).

I'm also figuring out Quickbooks, and how to enter my expenses, etc. Also trying to figure out the easiest way to record sales, COGS, etc. in Quickbooks without having to do it manually.

Pretty soon I'll be able to start adding products! Excited to launch this damn thing already! If you have any questions, please ask!

Edit: Also thinking about purchasing a Brand extension for Magento for brand pages. If you can outbrand the actual Brand on your own site, you can rank higher for that brand search on google than the actual brand itself. Ex: Zappo's brand pages are excellent. Again, this is for SEO/Marketing. The more pages you have with valuable content, the more likely you are to rank and attract natural traffic.
 
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JasonR

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Quick update: I was traveling this weekend, sorry for the lack of updates.

Got approved for one supplier/dropshipper! I can finally start loading product - hopefully going to utilize excel for uploading products.

Paid a company to do some work on my site ($90), regarding the previously mentioned category issue. Funny, they were all over me before I sent them payment. As soon as I sent them payment, I haven't heard a WORD, and they haven't asked for any of my site files, etc. They're fairly well known in the Magento community, so I find it pretty odd. They aren't a US company. So, if they don't respond soon, I'm going to try and get my money back.

Pisses me off - I'm a paying customer, want to get the work done asap, company keeps contacting me to pay them, I pay them, then they drag their feet (or maybe bail on me altogether?).

Will update asap.

Edit: I also have a newsletter sign up on my front page. I attempted to get MailCheat(Chimp) integrated with Magento (MailCheat(Chimp) is my favorite e-mail marketing management software), however the free extension took down the whole back end of my store. I had my host (Nexcess) restore my site from the previous night's back up. Long story short, I need to get dev environment up and running, and I probably won't have time for email marketing right off the beginning. The important part is to start collecting those email addresses. I can figure out a way to import them into MailCheat(Chimp) later. I'll open a ticket with the dev to see if I can find an issue.

I'll also need to purchase an SSL Cert, and find a suitable payment gateway.
 

JasonR

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I want to apologize for the spelling and grammar errors I have been finding in my posts. I know how to spell, and am an excellent writer. However, I try to complete these posts quickly, as I'm trying to spend on my time on being productive. Sometimes re-reading my old posts make me cringe.

Haosmark: Yes, I'm running Magento (as you can tell from this thread). I don't want to give out the name of the company yet, as they very well may make it right. I'll be happy to share as soon as I know the outcome of the issue I'm having with them.
 

JasonR

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Well, shit. Looks like my distributor has a $25 drop ship fee. That's not going to work out. I'm getting more details tomorrow.

Lesson learned: find out this stuff BEFORE you start setting up a website. I didn't do this before as I had to have a business license, etc. do get this information (which I just obtained). Will keep this thread updated. I also have a back up supplier, I've got my application in and waiting to hear back from them.
 

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Good luck Jason!
Surprised will come our way! I just started dropshipping too, and I did a test order, and they sent the order with my competitor's info on it!!!

Thanks for the update!
 

JasonR

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Edit: I'm going to suck it up and call them tomorrow, and see what the $25 actually is.

And these guys don't sell direct to the public, so I shouldn't have to worry about competitor's packing slips being in the packages, hopefully.
 
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JasonR

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Good news: it's actually $5.00 charge per order for drop shipping. I can make that work. I panicked there for a second. Lesson learned: research this before spend hours and days on your website. You might need a business license to get this sort of information.
 

JasonR

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Update: looks like my developers are going to come through, albeit slower than I'd like. It is what it is.

Got my account set up with my second distributor. Now to figure out which 6,000 products to start uploading (wow).

Here's what I've got on deck for the next week or so:
-Figure out Magento's import/export (data flow) feature. I'm going to do this so I'll be able to upload products via spreadsheet. Should cut the time of uploading products at LEAST in half.
-Purchase SSL Cert
-Find a payment gateway
-Purchase Magento Brand extension and install it
-Continue writing Copy for Categories
-Write a quick Why By From Us Page (ie about us)
-Start writing articles and how to guides
-Begin to plan a marketing strategy
 

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