LLC’s - Legal Zoom?

Question

I’m just starting out here. The next step for me is to set up the LLC. I got bids from a few lawyers and was surprised at the cost ($700 flat fee plus registration fees, etc). I see Legal Zoom has options to form an LLC at various rates, ranging from free where your just pay the registration costs yourself (seems like $150 per LLC) to $299 flat fee where you get access to attorneys, etc. Seems like Legal Zoom would be the no brainer here, but wanted to make sure others haven’t had poor experiences with this vendor? Anyone able to arrest that LegalZoom is a good place to register LLCs to own property? All advice is welcome.

Account Closed · Answer

Some attorneys may also offer to be the registered agent of the LLC and accept service on your behalf in the event of a lawsuit

Account Closed · Answer

Here's a post I did on LLCs that may help

DO You Need An LLC - It Gives Me Protection, Right? My Attorney / CPA Says That. . .

https://www.biggerpockets.com/forums/311/topics/1098136-do-you-need-an-llc-it-gives-me-protection-right-my-attorney-cpa-says-that

All my REIs are in an LLC! Why am I being personally sued?

https://www.biggerpockets.com/forums/926/topics/1097903-all-my-reis-are-in-an-llc-why-am-i-being-personally-sued

I suggest an LLC be used to open a bank account and run all related income & expenses through it to avoid the accusation of commingling funds, to be able to write checks and to send and receive wire transfers. The IRS will appreciate it when they audit you.

Philip Traynor · Answer

The actual paperwork and filing is not hard.  There is no reason you couldn't do it yourself.

When you hire an attorney to do the process, what you are paying for is their knowledge and advice.  Do you need an LLC?  Is it the right vehicle for you?  Would you be better served with a different business structure or with an insurance policy?  Where should you register?  How do you use the LLC effectively to achieve your goals?  What are the pitfalls to operating this way?

If you know the answers to these questions, do the paperwork yourself and save some money.  It is just filling out a form. If you don't, LegalZoom won't help you.

Peter Mckernan · Answer

Doing one yourself (putting one property in, Legal Zoom)

Doing one with a partner/family/friends that needs a solid OA (attorney)

Doing one with multiple properties (attorney)

Billy Knox · Answer

Charlie,

Don't waste your time with LegalZoom or any of the companies that say they can set it up for you. Just roll your sleeves up and do it yourself (when did we lose that mentality here in America?). Figure out what state you want your LLC to be in and then register it with the state yourself. In most states, the process is incredibly easy and just takes a couple of Google searches (look for the Department of State or Secretary of State). A lot of states waive the fee if you are on active duty or retired. It is very easy. Feel free to reach out if you have specific questions!