Cheapest But Most Efficient LLC Formation

10 Replies

I am looking to form an LLC and wanted to ask those who already have one if you though it was necessary to use a lawyer or could I just use the various formation services like corpnet? If you used a lawyer, how much did it cost in setup costs and annual fees?

Would also appreciate any recommendations to good but also cost effective LLC formation companies or lawyers. I am trying to stay under $1,000 in initial costs.

I have used attorneys and an online site.  I prefer the attorney.  Cost here in MI is usually $150-$200 plus the $50 for the state fee. (don't quote me, it has been a while since I got one, but those should be close.)  The fee for your state will be different, but $1000 should cover it easily.

I did a quick google search and New Jersey is $150 plus your attorney, or website fee.  I have friends that do it themselves, but I have not done one myself.

Gary,

Always have a "team". When you start acquiring more properties, you will want to have a good system with all these guys (attorney, a local title company and a CPA who does work with more real estate professionals/investors).

TEAM - Together Everyone Achieves More.

I did it myself with the Secretary of State in Georgia.  Cost me $90 and was able to do it online.  I have to renew once a year, but get to do that online as well.  However, my wife and I are the only members, so the articles of incorporation are stupid short, as is the rest of the documentation.

If you have a partner or partners, then a lawyer might be more advisable.

Also - if this is your first business registration, I wouldn't recommend you do it yourself. This is my.. 5th business I think, so I'm comfortable with the requirements for an LLC.

Oh, one other thing.. keep in mind there may or may not be tax implications.. so you might want to ask your CPA for their advice as well.. or at least do some research on the tax implications of the LLC in your state and federally.

Originally posted by @Gary Freidman :

@Reed Starkey

 I assume those costs are before lawyer fees? 

 No. The $50 was the state filing fee. And the attorney was around $200 or so.   I believe the website one was $150. I used legal zoom.  go to a local attorney and ask him. He'll have your llc up and running for much less than you think. 

I recently established a Corporation through the Corporation Company using there self serve online service (they charge more if you have their call center folks help you). The cost was roughly $100 + plus the filing fees on CA. I think my total out of pocket was under $225. I did have my own Articles of Incorporation though as I have other Corps. So you'd probably have to pay for Articles which was not in my costs above.

I'm always running across $50 off banners when visiting other websites online. You might do a Google search if you elect to use their service for a discount code.

You will need to file Articles of Organization with NJ and you will need an Operating Agreement to serve as your management document. You can prepare these yourself if you feel confident. My legal can prepare them for $100.

Legal Zoom...pricey, but i enjoy sitting back while other people do they work for me

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