What Are Your Primary Concerns of Setting-Up an LLC on LegalZoom?

[Josef Roberge]

I was wanting to set up an LLC in California on LegalZoom for myself. No other members, just me. Will open a bank account under the LLC name.

But some say it's really risky to do without an attorney, and will come back to bite you. Do you think there is not as much to worry about if it's a single-member LLC? Pretty straight-forward?

[Brian Bradley]

@Josef Roberge  Good question. Internet services like legal zoom are the easiest by far to "pierce the corporate veil" and have you held personally liable. Don’t be cheap. Hire a lawyer. Specifically a lawyer who specializes in Asset Protection to ensure it is done correctly. 

All LLCs are not created equal. Basic one pagers, no-frill filings do not contain asset protection, heck I have even seen the filings with incorrect names etc. I have litigated many of these cases and loved seeing legal zoom documents.

Internet services do not provide:

• -No comprehensive advise on how to structure business and investments to achieve an overall AP plan;
• -No attorney to sere as organizer, initial member, and/or registered agent in order to maximize anonymity;
• -No sophisticated company agreement that deters creditors from taking control of your company;
• -No advise on how to move property into the LLC after it is formed;
• -No advise on how to use the LLC in conjunction with a land trust;
• -No advise on how to set up and arrange the LLCs finances, including LLC accounts, injecting capital, or loaning money to the LLC;
• -No advise on how to maintain the LLC liability barrier to prevent plaintiff's from "piercing the veil"; and
• -No follow – up questions answered by a lawyer after the LLC is formed.

You goal should NOT be to just establish an LLC as cheap and fast as possible. The goal should be to establish an LLC that includes sophisticated AP provisions beginning with the very first documents filed with the state. If not, your veil will be easily pierced and you will be held personally liable.