So I am currently in the process of setting up an LLC for my real estate investing company. I am looking for recommendations as to which route I should take to set this up. I am in a toss up between hiring a real estate attorney who will charge me about $500 to file all the paperwork or choosing an online company like RocketLawyer or LegalZoom which will only cost me less than half of what the attorney will charge.
Has anyone ever used these online websites and if so, have you found them legit and able to hold up in court if a situation like that would arise?
I appreciate any and all feedback!
I just set one up with Legal Zoom. I think if its just you in it then straightforward Legal Zoom will be fine. When you get into partners and who get what if someone dies then you may need more expert advice. Changes can be made down the line if needed at a price.
The thing with Legal Zoom is their experience. They've done LLCs in every state and every situation. Not advocating them, but I had a similar question two weeks ago when I started.
@Robert Spohn As an attorney I can safely say never you online boiler plate garbage. Find an attorney in your who specializes in Corporate set up, not a real estate attorney, tell them what you want to do and let them do if for you. I am a criminal defense attorney. I did not set up our LLC, I went to an attorney I know and trust who does Corporate set up and had his firm do it the right way. When your LLC is attack in court, Rocket and LegalZoom are not going to come to your defense but the firm who put your LLC together will.
Creating an LLC is not just filing some forms, there is also the operating agreement which must be prepared correctly and permits the LLC to go into debt, ie take out a loan, if that is not done propertly banks will not lend to your LLC. That is just one small issue that Rocket and LegalZoom do not tell you or help you deal with.
I heard a judge once ask a defendant who was representing himself in a burglary case, "Sir if you had a tumor in your brain, would you go buy a mirror and scalpel then cut it out yourself? At which time the defendant said, "No, that would be stupid." Then the judge asked, "Then why the hell are you in my courtroom without a lawyer?"
Hire an attorney. Get it done right.
@Joseph Catalano , Thank you very much for your response. Your reasons for not using an online company makes sense and this is why I had to ask about this. I like to make sure everything I do is done the right way as I do not like to cut corners. I appreciate your advice. Thanks again!
@Robert Spohn you just have to protect yourself and your asset the right way and there are no shortcuts for that. Good Luck.
Thank you @Aaron Howell for the info! I think I'm just going to have my attorney take care of it. She is also an investor herself and has done tons of LLC's in her time.