Creating an LLC - use my CPA or diy?

[Danielle Cage]

Hey all,

I'm finally at the point where I'm going to file for my LLC. There will be four members (all close family) involved. I'm in Illinois and the cost to fill out the paperwork myself is $500. My CPA will do it for $1250. I feel fairly confident that I can do all the paperwork without any problems, however because there are other members involved, I'm wondering if it's best to let the CPA do it.

I would prefer to have it done professionally, however since we are a small start up, capital is key right now and I keep thinking that we might be better served spending the additional $750 elsewhere.

Am I being unwise to consider doing it myself, especially since other parties will be involved or is it not that big of a deal to do it on my own?

Any thoughts or suggestions on this would be helpful.

Thanks!

Danielle

[Brandon Hall]

@Danielle Cage For me it comes down to this: who can you hold accountable if something goes wrong? Are you going to call up your CPA and say "hey I need you to defend the documents you prepared?" because, seeing as he isn't an attorney, I don't think that would work out too well.

As a CPA myself, I'll advise on the tax and accounting side all day long. I'll help the client with a risk assessment and understanding the potential financial impact of litigation. But I don't see why I'd prepare the LLC's docs/ operating agreement for two reasons: (1) it brings about too much liability for me, since I don't practice law and write contracts day in, day out and (2) if I truly have the client's best interest in mind, shouldn't I refer my client to a specialist who is truly an expert in the area instead of trying to retain that revenue? Think about that for a second...

You shouldn't have a CPA draft legal agreements the same way you shouldn't take your tax return to an attorney (unless a tax attorney). The professionals should, however, collaborate and compliment each other.

Hope this helps.