LLC: Do it alone or work with a lawyer?

Question

I've read that you should 'have a lawyer set up your LLC' for maximum protection. What are the benefits to having an attorney set it up vs doing it myself?

I've been researching the required documentation/paperwork/publications and feel that I have a handle on what is required.

Is there any more/less protection or something the lawyer can do that I cannot?

I'm not looking to cut any corners but at the same time why pay someone to do something if I can do it just as well.

Your thoughts/feedback will be greatly appreciated

Rich Baer · Answer

@John Anderson The anonymity I am referring to is not legal anonymity but personal anonymity. Many people don't want their business affairs known and wish to keep one of the remaining freedoms they have away from governmental and competing eyes. Rich Baer, Esq.

Samuel R. Harden · Answer

The problem is that we don't know what you know, and you can't know what you don't know, so no one can tell whether you know enough to file with no attorney. Whether insurance, an LLC, or a combination of both is best for you depends on your specific circumstances, so I'd think you would want to talk to a professional based on that alone. Another issue is that those cookie cutter documents you can get from filing yourself online don't always work if you actually find yourself in trouble. I'd suggest using an attorney the first time you take any legal step that is new to you. Then, if you need to do the same thing again, you're in a better position to evaluate whether you are able to do it yourself or not.

Bret Allen · Answer

Good discussion here. A good attorney that understands your goals and business can help you structure partnerships, anonymity, and separation between ventures, financing, etc. The entity itself is easy to set up, but that is just the starting point if you are trying to limit liability. The use and operation of the entity is arguably more important that buying a LLC kit online. An attorney can help you make decision that may make or break your goals. Also, a good CPA that understands real estate and business structure is critical in these areas.Good luck!*Bret is a licensed attorney in Texas and California, but he is not your attorney. You should not rely on the advice in this post for any reason. If you have legal questions then you should seek the advice of a competent professional in your area.

Jacob Pereira · Answer

In my state (Texas) it's a pretty straightforward process to set up an LLC, and a lawyer won't add much value besides perhaps peace of mind or, as mentioned above, another layer of anonymity. Since it's a partnership, however, you may still want to run your operating agreement past your CPA to make sure that your disbursements are logical and that he can easily issue your K-1s and maximize your tax advantages. Most CPAs will do this for little or no money, provided you use them for your regular taxes.

Josh C. · Answer

Attorney's can't click buttons on the state website any better than me in my opinion. So if you are just setting up one you can probably handle that. But I don't think you should be writing your own operating agreement for a 50/50 partnership. Shell out the $1500. That's what we paid for our 3 partner 38 page op agreement.

Rich Baer · Answer

@Leah Fisch One benefit is you can name your Attorney as the resident agent for the LLC. That gives you anonymity. It also allows the Attorney to receive legal documents and notices for you. Rich Baer, Esq.

Matthew Kreitzer · Answer

It would be my recommendation to pursue an attorney to help you with any plans you may want to pursue; whether that is an insurance policy or a business entity. Even if you are able to incorporate with the help of free online forms, those forms both have faults within them and are not going to educate you on proper compliance methods. Seek out a local Business Attorney for help.

Leah Fisch · Answer

I'm confused by the advice. This will be a 50/50 partnership LLC. What does the attorney know/do that I can't find by myself?Account Closed we'll be doing LLC + insurancetaking no chances

Tom V. · Answer

@Leah Fisch Check out this thread and scroll down to the post by @Graham Parham where goes over the pros/cons of using an LLC at length.https://www.biggerpockets.com/forums/12/topics/311...

Leah Fisch · Answer

So... I took the communities advice and went to a highly recommended lawyer to file the LLC.Initial documents have me panicking because the lawyer messed up. I'm not even sure what I'm trying to ask here...