Legalzoom or lawyer???

Question

Mindy Jensen · Answer

I would go with the attorney for the personalized service. No two deals are alike, no two LLCs are alike.

Bret Allen · Answer

Here are my 2 cents!

If you want a basic single-member LLC, and you can read and follow directions, do it yourself.

If you have a partner, use an attorney.

If you are going to raise money in the company (equity or debt), use an attorney.

If you have special provisions/terms, use an attorney.

If you want any sort of anonymity with your company, use an attorney.

There are probably other reasons also . . .

NOTE:  Bret is an attorney but is not your attorney.  You should not rely on advice in a forum but should contact a competent attorney to review your individual circumstances.  Nothing in this post creates an attorney-client relationship!

Rich V. · Answer

Use an attorney. No experiences with LegalZoom, but you want ot make sure your LLC is bulletproof and can accommodate a growing business.

In the grand scheme of things, a one-time sunk cost of a few hundred bucks isn't much - Especially when you'll be getting 15%+ on your properties!!

Chris K. · Answer

Unless you have experience with owning and managing multiple corporate entities, DO NOT USE anything but an experienced lawyer when creating a multi-member LLC.

Even as a lawyer, I can reasonably accept the argument that people do not need a lawyer to form a single member LLC. But that advice is absolutely incorrect when it comes to multi-member LLCs or other multi-member fictional entities. I've seen otherwise successful businesses get into serious trouble because of faulty operating agreements. Do not do it.

Not directly related to what you asked, but one question you should ask is whether you really need to create an LLC with your partner. I've found that often times, the answer is "No, I really don't need to." As a general rule, I would avoid owning a corporate entity with another person unless you have a very good reason to do so.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.

Bob Okenwa · Answer

@Andrew Acuna

No problem. I followed the steps from the LLC University site. I have no affiliation or anything like that with them, but I just wanted to share my experience. Much more simple than I thought it could be and saved me hundreds of dollars. Also, I did my own operating agreement, but my partner is my childhood friend of 20 years so there's that also. If it weren't someone I was very knowledgeable about, I'd probably still do it myself but pay an attorney to review it. Might still do that as a precaution anyways lol.

Bob Okenwa · Answer

@Andrew Acuna

It depends on what you're willing to spend. If you have an attorney draft your operating agreement, then it'll probably cost you a few hundred to a few thousand. Probably more so the latter than the former. Not sure how it's done in TX, but I set mine up out here online and it took about 5 minutes.  Take a look at LLC University if you end up doing it yourself. All the info is there to get it done. https://www.llcuniversity.com/

Fred Heller · Answer

@Andrew Acuna

I used Legalzoom when I started. If I could do it all over again I would do it myself and save a lot of money.

The LLC formation document is available online from the Secretary of State's office. It's pretty straight-forward and will cost you about $300. Legalzoom charged $900.

If you are going to use a DBA, you'll file an assumed name form with the Secretary of State. That's about $120. You can also file with your local county clerk.

You'll also need a registered agent. You can google Texas Registered Agents. There are tons of them. They usually charge around $90 a year. Legalzoom charged $200 a year for that.

I'm guessing you'll need an EIN from the IRS. Instructions for that are easily accessible online.

Once you're in business, you'll need to file a yearly franchise tax report with the Texas Comptroller. Unless you're generating multi-million dollars in revenue you won't owe taxes, so you'll file the "no tax due" form. That form is due on May 15 of each year.

Legalzoom or lawyer???

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