Best Website to Form an LLC

[Steve Karpinski]

What is the best online website to create an LLC? Is this the best way to go about it or should I hire an attorney to do it?

[Chris K.]

@Steve Karpinski

Here are the basic steps you need to take as you form a LLC in PA.

1. Prepare Operating Agreement.

2. Prepare Certificate of Organization and Docketing Statement. Here you decide whether you want to use a registered agent. 

3. File the Certificate and Docket Statement.

4. Obtain Federal EIN.

5. Open bank accounts, obtain insurance, etc.

The only part that you can't do by yourself is Step 1. Most attorneys should be able to prepare an operating agreement for a single member LLC for about $500 to $750 (not including filing fees and other potential misc. fees). It will be lot cheaper if you have used the same attorney before and want to create more or less a duplicate entity.

For a single member LLC, you can also consider buying or "finding" a pre-prepared form. For example, a few posters above suggested a website that provides a default form (linked below). Would I personally use that form or recommend others to use it? No --- because after taking a look at it for less than a minute, I can already tell that the drafter prepared this Operating Agreement so that it can be used in all fifty states. It has language in there that I would never include in an operating agreement for a Single Member LLC. That said, I've seen some decent forms over the years that more or less does the job you need for a single member LLC.

https://www.llcuniversity.com/wp-content/uploads/Free-LLC-Operating-Agreement-v1.1.pdf

Whatever the form you end up using, I recommend that you try to at least read the Operating Agreement in full and in great detail so you understand what it says. One reason why creditors can pierce the veil for a LLC is because the member or members fail to observe corporate formalities. One way to prove that is to show the member or members fail to follow its own corporate documents --- one of which includes the operating agreement.

If you want to form a LLC with multiple members, you really need to use an attorney. I personally think it's legal suicide not to do so. The attorney you hire needs to go over with all the members about what happens when the LLC falls apart. I personally think it's irresponsible for attorneys to not spend time explaining this risk --- especially if the clients have little experience operating a corporate entity. In some cases, I would strongly recommend that each member hires their own attorney so all the parties are adequately represented and have a clear understanding of what they are agreeing to.

Good luck!  

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.