How to form an LLC without hiring a professional?

Question

How to form an LLC? How long does it take and which state is best to form an LLC? I have properties in GA and I live in VA.

Phillip Vera · Answer

@Jason Nguyen which part of Georgia?

Personally, I had an attorney set mine up as they serve as the agent on the LLC.  I recommend an attorney, however, it's not difficult to set one up in Georgia, I imagine the same in most states.  You simply apply at the Secretary of State website.  The application process is pretty straightforward.  Otherwise, check out something like LegalZoom.  They can also act as the registered agent.

The biggest thing is anonymity.  Most people setup LLCs for this reason and asset protection.  If you're not worried about anonymity, then you can act as the registered agent.  Or once again, see if an attorney will act as one and you pay them an annual fee.  With LLCs becoming more and more popular, the cost to have an attorney handle this has come down significantly.

Account Closed · Answer

I would definitely recommend hiring a professional, like everyone else is saying, to at least help set everything up. When it comes to liability and asset protection, it's better to be safe then sorry. I'd rather spend some money up front to hire someone to set up an LLC than to regret it and risk losing a lot more money later on.

Account Closed · Answer

Are you prepared to defend a "self made" LLC in court if it becomes necessary?

The whole purpose of an LLC is to protect your assets. If you don't understand LLCs it's best to let a professional do it for you or you are living on false hope of protection. An experienced attorney will tear through a cookie cutter LLC like tissue paper. Also, you have to have an Operating Agreement and follow it precisely for an LLC to have any value.

And, you may not need an LLC at all anyway. Getting umbrella insurance provides better protection, is usually cheaper and doesn't have the maintenance requirements of an LLC. FYI

Daniel Hyman · Answer

@Jason Nguyen

You might want to look into a registered agent. Often, the services they provide can be more cost effective for entity compliance then other service providers.

Hunter Vigneault · Answer

There are a number of online tools that will let you create generic documents and then print and send them to states for filing, but LLC formation is something that I think is best left to a professional. You'll likely get a number of DIY proponents, and that's fine.

I assume you are intending to use it for asset protection/liability purposes and a poorly organized/written document may not help you with either. It will generally (you can call around) cost you a few hundred dollars more to have a professional draft a basic agreement than to use an online automated service.

Additionally, some states have multiple types of LLCs - I don't know about VA or GA - and a professional should be able to talk you through which is right for you.

How to form an LLC without hiring a professional?

Most Popular Reply