Did you use a lawyer to set up your LLC?

Indianapolis, Indiana
Goals, Business Plans & Entities
3yFollow

Did you use a lawyer to set up your LLC?

Tyler LingleBusiness Member
Real Estate Consultant · Indianapolis, IN · Member since 2021 · 440 posts · 292 votes

Hey guys, 

I personally set up my partner and I's LLC online in about 30 minutes, without the use of a lawyer. However, I'm not sure how robust our operating agreement is.

My question is, do you recommend using a lawyer to set up the operating agreement? Any other ways - legal zoom, etc? 

Curious to hear people's advice here. 

[email protected]
Roots Realty Co. 562 Reviews
WebsiteView Page
0Reply
43 views

Most Popular Reply

Luciano A.
Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
3y

@Tyler Lingle

Many people believe that starting an LLC by using the one-page form from their state or ordering online is all they need to do. If you've ever been sued, however—and most of us have at some point in our lives —there are ways for attorneys to break the corporate veil if your business structure isn't complete enough. You will need to schedule annual meetings, prepare minutes and maintain good records.

If you and your partner are excited to start a business, this would be the best time to discuss with an experienced attorney who can point out things you all never considered or discussed. Good times make us optimistic. But when disputes arise it's another story entirely. Investing $100,000+ in an asset is a big deal. Spending $500 to discuss your partnership with a local attorney will help you avoid costly mistakes down the road.

Best of Luck 

4Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Didier Bizimungu
    Rental Property Investor · Saint Petersburg, FL · Member since 2018 · 112 posts · 68 votes
    3y

    I don't see any reason you can't have a lawyer look over your OA after making it.

    All my LLCs are self-created as well. 

    Thanks.

    1Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    You can definitely create an LLC independently but its the OA language that's the tougher part and something that should be reviews with legal expertise.

    [email protected]
    The Elle Group5153 Reviews
    WebsiteView Page
    0Reply
  • Sean Morrison
    Attorney · Slidell, LA · Member since 2016 · 322 posts · 179 votes
    3y

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

    Obviously, I'm biased, but an attorney should put that together. A single member LLC is not as big of a deal, but once there is a partner involved, an attorney needs to be as well.

    4Reply
  • Luciano A.
    Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
    3y

    @Tyler Lingle

    Many people believe that starting an LLC by using the one-page form from their state or ordering online is all they need to do. If you've ever been sued, however—and most of us have at some point in our lives —there are ways for attorneys to break the corporate veil if your business structure isn't complete enough. You will need to schedule annual meetings, prepare minutes and maintain good records.

    If you and your partner are excited to start a business, this would be the best time to discuss with an experienced attorney who can point out things you all never considered or discussed. Good times make us optimistic. But when disputes arise it's another story entirely. Investing $100,000+ in an asset is a big deal. Spending $500 to discuss your partnership with a local attorney will help you avoid costly mistakes down the road.

    Best of Luck 

    4Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Tyler Lingle

    I didn't use a lawyer to file my LLC but used one for

    My operating agreement. Recommend using one you know and trust.

    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • J J MoodyPro Member
    Member since 2022 · 23 posts · 18 votes
    3y

    I used an attorney to set up my LLC and create the operating agreement. In my opinion, it's money well-spent. Like others have mentioned, it's beneficial to you and your business partner to ensure the LLC is established in a way that does in fact limit your liability. It would be worth hiring an attorney to review the OA.

    1Reply
  • Richard Bechtol
    Attorney · Member since 2022 · 83 posts · 79 votes
    3y

    Hi Tyler,

    I am going to have to agree with some of the individuals above. While creating an LLC is a fairly simple process that anyone can do the more difficult part is the OA. In your situation the OA is going to play a more substantial role because you have a partner. In addition an attorney can be a great counselor when you first start the business because they can explain the ins and outs so that you don't end up comingling and allowing the corporate veil to be pierced.

    2Reply
  • Ian G.
    USA · Member since 2023 · 24 posts · 3 votes
    3y

    If you're handling RE and you have a partner, a lawyer is a very good idea. The problem in a lot of areas however is that there aren't good lawyers. I've seen every lawyer within an hour's drive and most of them ask "why would you need to start an LLC?" for a sole proprietorship, they assume it's nefarious. Others were excited to set it up, and suggested I get my Operating Agreement on LegalZoom.com. Obviously, they're all idiots. Two of them are city/county attorneys at that, including one from each category just described.

    So, yes you should probably have a lawyer whenever you have a partnership LLC (and probably with RE) but good luck finding one that's worth a damn.

    So I just do mine myself, having learned a few things about OEs over the decades, but I am not in RE and I am always a sole proprietor.

    Also, this lawyer should (in my opinion) by your lawyer, not the LLC lawyer, because you want your interests protected in the partnership.

    0Reply
  • Christopher Liu
    Rental Property Investor · Santa Rosa CA · Member since 2014 · 56 posts · 48 votes
    3y

    I used a lawyer in New York to setup my first NY LLC and a lawyer from California to setup my first CA LLC. I got them to prepare the necessary OAs with my objectives in mind and file any required documents. Using these as a template I have subsequently setup all NY/CA LLCs on my own.

    1Reply
  • Dan N.
    Member since 2019 · 119 posts · 60 votes
    2y
    Quote from @Sean Morrison:

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

    Obviously, I'm biased, but an attorney should put that together. A single member LLC is not as big of a deal, but once there is a partner involved, an attorney needs to be as well.


     Hi Sean
    You mentioned  in your answer that "A single member LLC is not as big of a deal", but I was wondering if a single owner LLC still needs an Operating Agreement, or not?

    Thank you

    0Reply
  • Account Closed
    Contractor · IN · Member since 2024 · 37 posts · 21 votes
    2y

    @Dan N.

    It is not a legal requirement in Indiana to have one. I did not create one for my first business but I did for my second. Here is some info on why they recommend one still:

    It is recommended that single-member LLCs have an operating agreement for a number of reasons, including:

      • Protecting against personal liability disputes
        • Maintaining a clear separation between personal and business affairs
          • Providing guidance on how the LLC should operate
            • Making it easier to work with third parties
              • Allowing someone else to run the business if the owner is unable to
              0Reply
            • Louis P Lessor
              Janesville WI · Member since 2019 · 55 posts · 36 votes
              1y

              I created my LLC using an online service and had a lawyer review it to ensure I was fully protected and set me up for long-term business success.

              It was also great to build my network and the lawyer ended up sending me some deals that came through. 

              0Reply
            Join the conversationCreate a free account to reply, vote on answers and follow this thread.
            Log InJoin for Free