Attorney for LLC formation or do it myself?

Question

I'm very curious what this team thinks of hiring attorneys for forming an LLC vs doing it yourself on line?

I have talked to several attorneys in 3 states (since my homes are in 3 states), and done some cost research on line for "do it yourself" formation as an alternative.

It does not seem to be very difficult nor does the ongoing annual maintenance of the "business" seem out of line for what I can do myself.

Am I missing something that an on line do it yourself option might be missing that an attorney will do for me to justify hiring someone vs doing alone?

Thank you so much for your advice!

Sean Morrison · Answer

Disclaimer: I am an attorney, but I am not your attorney. This is not legal advice, just friendly information.

I usually tell my clients that they can do a single-member LLC holding one SFH property on their own. It's not complicated. However, if you need something more than that (multiple properties, even one partner, asset protection, holding company, etc) then an attorney needs to change it.

Carini Rochester · Answer

I did mine myself at the state's website. I hired a company to handle the publishing in the required business journals. I got marketing material in the mail from a couple of companies a few days after completing the state website portion. I selected from one of those to do the publishing. Got the operating agreement boilerplate online.

Robert Frazier · Answer

Get a free consultation and have them sell you their services. If it seems straight forward, do the filing yourself and find an OA online that you can adjust.

It's much simpler with a single member LLC.

Bob Okenwa · Answer

@Toni Conway

My answer may be bland to an extent, but "it depends". It depends on what kind of structure you're looking for. Do you have partners or is it a single-member LLC?

If it is just the formation of a single member LLC, it is relatively easy and can be done following the steps laid out by the Secretary of State.

If you need an operating agreement for running the LLC with other members, I'd definitely turn to an attorney to help with all of that. Find out exactly what the attorney would be charging you for and see if it is worth it to you to have someone else handle this task.

Karl B. · Answer

Me personally, I set up the LLC myself and had a RE attorney write up an Operating Agreement (he charged me $250 for that but I can always reuse it for future RE LLCs).

Toni Conway · Answer

@Todd Rasmussen

@Carini Rochester

@Robert Frazier

Great.. this all helps me confirm the "self directed" route is where I'll go.  Thank you for the reassurance.  Sometimes all you need is a little verification from those that have done it before!  I appreciate you taking the time.

Todd Rasmussen · Answer

@Toni Conway

Did ours myself. Single member llc's are pretty simple. I have an operating agreement you can have if you want it.

Joe S. · Answer

I’m sure you could set up your own LLC and do it right… Unless you didn’t. Lol

I would lean toward having an attorney set up your LLC. That’s what I did. Would hiring a professional to set up your first LLC really be that big of a financial strain??

Toni Conway · Answer

@Karl B. that's great to hear... thank you

@Bob Okenwa totally get that.  thank you for what you have offered from your experience.

Bob Okenwa · Answer

@Toni Conway

I'm far from being an attorney so I'd always default to such expertise and can only speak from my own experiences. I'd address your concerns with the attorneys and try to get as much transparency as possible, then make the best decision for you and your business.

Attorney for LLC formation or do it myself?

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