Hiring a lawyer for initial LLC formation

[Jameson Sullivan]

I just met with a lawyer this morning, he wants 1250 bucks to do my LLC formation papers, I understand I can do this online but I want to make sure that everything in the future that I do is air tight and Im willing to pay a little now if its worth it. He explained that it might be a good idea because in the event someone comes after me for money, he would automatically be the contact and I would also have a lawyer that I could tell someone to call :P Does anyone have any stories, good or bad, that could help me ? Thanks!

[Jenifer Levini]

Hi, I'm a real estate attorney in California. This thread disturbs me and gives me hope. Clearly there are some people who talk about legal questions with some familiarity, while others are FOS. @Jameson Sullivan your initial question didnt even explain why youre forming an LLC, how complicated your situation is, how much you own in terms of personal assets and other business assets that need to be protected, what are your source of funds, how much legal guidance you need in operating your real estate business,... These are important considerations in forming an entity and whether you are able to do it on your own or should have some professional guidance. It makes no sense to spend money on a website created LLC if you dont really understand how you have to operate your business, set up your banking, write your contracts, interact with vendors, to avoid breaching the LLC veil. A good attorney will explain how you operate your business as part of the LLC package. It like having a caring mother who teaches you how to operate in the world, then pushes you out of the nest.
The person who said insurance is a replacement for an LLC doesnt really understand all the pieces. That's like saying "I removed the windshield, doors and bumper from my car because I got a good insurance policy." The point is that they protect you in different ways. Insurance doesnt keep you from getting bugs in your teeth, and a windshield doesnt pay the bill if you have an accident. But you need them both.

Likewise, insurance doesnt protect and partition off your personal assets if someone is injured on your property. And and LLC doesnt pay for insured loses.

Personally, I think that getting the cheapest LLC formation is a waste of money. If you havent had the whole thing explained to you, hire a good lawyer. Its much cheaper to spend one or two thousand dollars now, then 10 or 20 thousand or more defending a lawsuit.

Jen