LLC formation in NYS

[Phil M.]

So my partners and I have decided to start the formation of an LLC so that we have a business entity to protect our assets.

I understand that the Articles of Formation are a few hundred dollars, but I've spoken to a few other investors and most of them said it would cost about $3,000 to form an LLC. We would preforably want to formate in Richmond county, although I hear of other investors formating out of state, however I don't know the advantages of that. My question is how much would it cost in total? Is most of that cost attorney fees? Would it be significantly less expensive if I used legalzoom.com?

[Bill Gulley]

Hi, I'm assisting two investors in forming LLCs, from a financial planning and organization standpoint. Where I am it's $50.00 for filing fees and an attorney will probably charge 500 to a grand. One of my "students" told be it was about $2,500 with an attorney. I'd certainly like to meet that one!
What I have done is when I want legal work accomplished is I ask what their hourly rate is. I don't tell them in the interview what I want them to do other than real estate contract review, developing documents and filing issues related to the business. They give me an hourly rate. I might sign as a client at that time if they want. Then I show up with my documents and say here, do this and only this. Granted, if you have no experience, you can get snowed easily. Now, I have had a few say, oh, this is the formation of a trust, this is different and I say, you agreed to work for me at XX per hour. I see their point, but an attorney on a retainer is an attorney I own! I did accuse one of bait and switch and she backed off. We didn't have a very good relationship after that and I dumped her, but had the work done. What alot of people don't understand is that the attorney works for you and is obligated to follow your directions so long as you are acting in good faith and not trying to pull a fast one, doing something illegal and they have an obligation to provide good council, it's up to me to take it or leave it. Many market their services as if they are "in charge" when I see that personality, they are not for me. If they can't follow instructions, they don't get the work. There are many starving out there. I talked to an attorney in Texas the other day and he was telling me something like 3000 went out of business or lost their jobs last year! Don't let these people snow you, forming an LLC will take about an hour if you have your ducks in a row, two hours tops for a boilerplate form plus filing fees. You can also do it yourself. the Secretary of State will probably have the forms. The last one I did was done on line with the secretary of state and cost $50.00! Seems there are shysters in every profession, too bad! Bill