June 7, 2022, midnight
“Do I need a lawyer to start an LLC?” That is a common question for clients directly to our organization. Well, here is some good news. There is no legal rule stating that someone has to hire a lawyer when creating an LLC. Almost all states in the US allow LLC creation through the following process. Someone can register a business entity on the website of the Secretary of State. Registration can also take place through the IRS: Internal Revenue Service. Keep in mind that it is worth it to have an LLC. An LLC holds many advantages over general partnerships and sole proprietorships. The structure of an LLC provides limited liability protection to any business owner. Or, to members of the LLC. This way, members get shielded from personal liability in relation to business obligations. Say that you finish registering your LLC. You can then open up company bank accounts and rent or buy a building. But remember that you can still get sued even when you have an LLC in place. How Long Does It Take To Get an LLC? Forming an LLC (limited liability company) functions as a streamlined process. This process involves converting a small business idea into a legal business entity. Each LLC also provides tax benefits. Plus, it can shield anyone from personal liability. This is crucial if something bad happens to your new business. LLC registration costs vary depending on which state you're doing business in. Most LLC registration fees range between $50 to over $500. When Should I Use an Attorney While Creating an LLC? Sometimes a business attorney can save new business owners money and time. Some business lawyers will charge only $200. But other attorneys can charge as much as $5,000. One of the most crucial tasks of a business lawyer is to draft an LLC operating agreement. The agreement will state the who, what, when, where, and how of your company. Each LLC operating agreement functions as an internal document. It positions an owner to put company rules in place. Plus, an agreement can also state the rights and responsibilities of all members. A lawyer can also create articles of organization for any LLC. The articles will list LLC management, a registered agent, and a date of formation. Say that you decide to serve as the registered agent of your business. As the registered agent, you will receive tax forms and other legal documents. You will also take care of the service of process for the company. What is the service of process? It is when a person informs a business that there is a pending lawsuit. Some law firms act as registered agents through business formation services. Say that a law firm serves as your registered agent. The firm will collect all legal correspondence on your behalf. This way, you can move locations or use a PO Box without missing key documents. Lawyers can also take care of other key actions when representing LLCs. An attorney can archive records in case an audit or lawsuit takes place. A lawyer can also keep you up to date on filing fees and registration. Attorneys can even file and complete all sorts of formation and legal documents. It’s best to browse online to see what services local lawyers provide. Keep in mind that most attorney fees are not cheap. Each lawyer will ask for a fee when providing LLC consulting services. Hiring a Lawyer After Forming an LLC Say that you do not need to use any LLC formation services that a lawyer can provide. You might still want to hire an attorney to help get your new business off the ground. Many LLC owners choose to seek the services of an employment law attorney. This type of lawyer can draft HR policies and employment contracts. There are also intellectual property lawyers. These attorneys review services and products to ensure that you have protection. Form a Wyoming LLC. Have you or your business considered hiring a tax lawyer? A tax lawyer can review both standard tax returns and income tax returns. This way, the attorney can make sure that you're never leaving any money on the table. Hiring a business lawyer is another common route to take once you have an LLC. Why? Because you might decide to charge your business structure. This means your LLC can become an S-corporation or single-member LLC. You can even convert your LLC into a different type of business. Plus, a business lawyer can help you with any other business-related legal matter. You might want to have your lawyer review business contracts before signing them. Some LLC owners decide to hire a general counsel. A general counsel can review business compliance with state agencies and laws. Plus, counsel can also stay on top of your annual fees. Other LLC business owners even decide to hire real estate attorneys. These lawyers can answer questions about real estate and commercial leases. It’s no easy task to figure out if a lawyer will save you money or not. If you need advice about hiring an attorney, please contact LegalRegistration.com. Our experts can assess if you need a lawyer. If so, they can help you find an attorney in your local area. How Lawyers Create an LLC (8 Steps) Written below is a fast guide for how to create an LLC. You can follow the guide even if you decide not to hire a lawyer. Keep in mind that every state has unique LLC rules and regulations. As a result, you might have to take extra steps to get your LLC off the ground. Forming a limited liability company (LLC) matters. LLCs hold a great deal of liability protection. Plus, they provide many tax advantages and small business benefits. Say that you decide having an LLC will benefit your business structure. In that case, keep the following LLC guide in mind. Do I Need a Lawyer To Start an LLC? Step #1: Name the LLC An attorney will help you choose a name for your LLC. The name must go within your articles before you can get the LLC registered. Each name has to adhere to your state’s naming rules and regulations. For example, California has unique naming rules that other states do not have. Your business name has to include these words: “L.L.C.” or “LLC.” Or, the business name can include “Limited Liability Company.” The business name cannot match any other business in your state. A lawyer could help you access the Secretary of State's website. This website provides a list of all business names in use within your state. California will have a separate Secretary of State website from other states. The business name cannot feature words related to any US government agencies. These include the FBI, CIA, and State Department. Keep in mind that some words must have extra documentation that accompanies them. These words can include a credit union, attorney, bank, and lawyer. Your lawyer can help you view a complete list of your state’s naming rules. Step #2: Select the Registered Agent Keep in mind that not all states enforce this step. But states like California enforce LLC owners to appoint a registered agent. So, what is a registered agent? It is an entity or person with authorization to receive service of process. Or, to receive other official legal notices or documents related to the LLC. Sure, the registered agent takes care of all legal documents on behalf of the LLC. But he or she also receives tax forms and government correspondence. Even notice of lawsuits related to the LLC must go to the registered agent. You can select yourself as a registered agent of your LLC. Or, an employee of the LLC can receive the designation. Step #3: Draft & File the Articles of Organization Your lawyer can assist you in preparing and filing the Articles of Organization. This is a document that establishes your new LLC in an official manner. The articles also lay out all basic and legal information. Say that you live in California. You or your attorney can file the Articles of Organization using Form LLC-1. Your lawyer will file the form through the California Secretary of State. No matter your state, the articles will register your LLC in an official manner. Say that your lawyer starts preparing the articles. He or she will need some basic information. This includes the LLC address, name, and purpose of the LLC. You must also list the address and name of the LLC registered agent. Your lawyer might ask you about the management structure of the LLC. This means: will the managers or members of the LLC manage it? Anyone forming the LLC must sign the articles. Once your attorney files them, the Secretary of State can review the filing. Say that he or she approves your articles. This means your LLC now functions as a legal business entity. Step #4: Receive the LLC Certificate Through Your State Your state will now provide you with an official certificate. The certificate will confirm that your LLC exists. This takes place after a lawyer files all LLC formation documents. Most lawyers will make these filings online since it saves time. Through the certificate, your LLC can now receive an EIN: Employer Identification Number. Plus, your LLC can open a business bank account and secure business licenses. Step #5: Draft the Operating Agreement A lawyer can help your LLC create an operating agreement. This document showcases how an LLC conducts business. In California, every LLC must have an operating agreement. But that is not the case for every state. The agreement will help your LLC settle legal disputes. The disputes could involve financial agreements or other types of court litigation. Without an agreement, state courts could make decisions based on state law. This means that your LLC would not have enough protection against harsh verdicts. Step #6: Create the Statement of Information In states like California, each LLC has to file a Statement of Information. The filing goes to the Secretary of State. This takes place within ninety days of LLC formation. Your lawyer can help you draft this important document. The statement will feature basic information about your LLC and business. Step #7: Receive an EIN: Employer Identification Number An EIN is the nine-digit Employer Identification Number. The IRS (Internal Revenue Service) assigns each number. This way, the IRS can recognize your LLC within tax filings. Your lawyer can help you secure an EIN either through mail or on the IRS website. Once your LLC has an EIN, you can manage and file taxes at the federal and state level. Plus, you can hire workers, and start a business bank account. Step #8: Pay an Annual Franchise Tax This is another step that does not apply to an LLC in all fifty states. Only certain states, like California, enforce annual franchise taxes. The annual fee in California is $800 for every LLC. Your attorney can check to see if this tax applies to your state and LLC. Even if a business makes no income, it must still pay the tax fee. Incorporating Without a Lawyer Keep in mind that it is not that difficult to put a corporation in place. Many states use online forms to help business owners set up their corporations. Every owner of an LLC must take the following key actions. First, reserve a permanent name for your business. Then, select a registered agent. The next step is to create and file LLC articles of incorporation. You or your lawyer can file the documents through the Secretary of State. Say that your attorney tells you that your LLC received approval. All you must do is pay some minor incorporation fees. The Advantages of Hiring an Attorney Many LLC owners become unsure about how the process of incorporation works. If you're one of those owners, it might work in your favor to hire a lawyer. That’s because an attorney will guide you through every step of the process. Plus, a lawyer can also teach you the ins and outs of how the company can operate. That is important information to have once your LLC gets incorporated. You might want to consider taking part in a legal consultation. That is where a lawyer will help the owner go over corporate entity types. Some types could serve as more of an advantage than other entities. Plus, an attorney can state how to get the most out of your business incorporation. Lawyers also have knowledge about the negative aspects of certain entities. That information applies to both tax and liability. Without question, an attorney can help you go over quality options for your LLC. The Advantages of Incorporating Without a Lawyer Many LLC owners desire to incorporate on their own for one simple reason. The owners want to save money instead of hiring a lawyer. After all, almost all attorneys will charge on a per-hour basis. Plus, websites like LegalRegistration.com make getting an LLC easy. Our organization has helped countless individuals register LLCs without lawyers. Point blank: there’s nothing wrong with incorporating without an attorney. You will save time and money. An LLC owner can always hire a lawyer later on if confusion or problems arise. Need Help Starting Your LLC? Contact Our Organization Please give the LegalRegistration.com team a call right now if you need help. Our experts can walk you through any step of the LLC formation process. Plus, our services can take care of all your incorporation needs with ease. You can also message us on our website or even send over an email. Whether you're working with a lawyer or on your own, our mission is to help you. We can even direct you to a database of local attorneys in your area. When it comes to starting an LLC, you can depend on us for first-rate help. Our team looks forward to helping you start your business on the right track.
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