Use an attorney for LLC formation?

Question

Is it necessary to use an attorney to form an LLC. I talked to several investors that use online companies to form and file LLC documents.

I'd be interested in everyone's thoughts.

Ibrahim Hughes · Answer

Simple to form here in NJ regardless of how many members. However if more than one member you will want an attorney to draft the operating agreement which governs the LLC.

Dan S. · Answer

@Ned Carey, Thanks for the input. I'll look into NoloPress. It's a good idea to get more familiar with entities.

Ned Carey · Answer

If you do not have a basic understanding of entities and the formalities required to run them you should either use a lawyer or do some research yourself.

I highly recommend the books by NoloPress. They have a very good website and have books on creating and running LLCs and corporations.  Even if you chose to use an attorney to help you, reading the material will help you better communicate you wishes to that attorney and better understand his or her recommendations.

Today I create my own LLCs by going down to the state office and applying myself. If you choose an attorney make sure you get one that will advise you on Entities and not just charge you a high fee for printing out boilerplate materials.

Justin B. · Answer

When I formed my first LLC I did everything myself.  HOWEVER before I submitted everything, I paid a lawyer a few hundred buck to review it and make sure nothing glaring poked out.  He had a few recommendations, which we did and that was it.

Disclaimer: I am pretty savvy at this stuff so I had a pretty good idea what I was doing.  If the thought of doing it yourself scares you, then use a lawyer from start to finish.

Dan S. · Answer

It seems the consensus is if it's for myself, go ahead, if it's more than a member I better get a lawyer. Of course there are those with a good thought that I should let the people who know how to do it, to do it.  I'm guessing you never know til you end up in court or worse, in front of the IRS. That's when the real test comes. Has anyone that formed their own LLC ever get tested in court or with the IRS?

Kathleen Leary · Answer

In Kansas, it takes less than 10 minutes online. No third party involved. Fill out the form, pay the money & you're done. Other states are different, of course. The complications set in when there are multiple members in your LLC. This is when a lawyer may be a good idea, although not essential. It's like getting married: starts out great & later on, everybody ends up hating everybody else. Set the rules up at the beginning. Of course, if it's just you, go for it.

Viktor R. · Answer

I'm torn on this one. Each state is so different in how they operate, I error on the side of safety. I'm not a lawyer or tax advisor so my opinion is that I wouldn't want to represent myself in court if I were sued or fight the IRS if they filed a tax lien on me. Let the expert do it correctly and you know that everything will be done right. If you had an infection, would you try to prescribe yourself antibiotics? No, you'd go and talk to your doctor. That's where I am coming from.

Dan S. · Answer

Thanks for everyone's input. I appreciate your thoughts.

Darrin Carey · Answer

If it's for yourself only, you can do it yourself.

If you have partners, you absolutely want an attorney involved.

Forming is easy. Keeping up the required annual items done takes time too.

Chad Brumley · Answer

I have set up three LLC's over the last year.  One of them is associated with real estate investing and I filed them all with the Secretary of State myself without speaking to a lawyer.  You can consult with an attorney but consulting with a tax professional would probably be more helpful.

Use an attorney for LLC formation?

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