Do I Need a Lawyer to Set up an LLC?
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The straightforward and simple answer is no, you do not need an attorney to set up an LLC. But there are situations where you may be more comfortable having a legal professional by your side.
When you decide to form a business an attorney is not required. Even as a non-US citizen, you can start an LLC on or own or hire a professional partner like Financepond to take care of your filing and yearly compliance.
There are business attorneys that specialize in business law and can assist small businesses and entrepreneurs, but there isn’t a legal requirement to hire a lawyer to set up an LLC. And attorneys can be expensive as it is almost impossible to hire an attorney without no money.
With that said, don’t feel like you need to hire an attorney in order to create an LLC.
When Should You Hire an Attorney?
Forming an LLC is hands down one of the easiest and most flexible entities to establish. You can manage an LLC as a sole owner or form your business with partners. It’s comforting to know that the United States is one of the easiest countries to form a business as they received a 91% rating out of 100% for ease of starting a business from the world bank.
If you are in a specific unique situation and you have complex legal questions, you might want to hire a lawyer and consult with them about your options. This may be the case if you are looking for venture capital funding or if you have an end goal of going public.
A good business lawyer would be able to help you choose the most suitable business entity and avoid headache down the road.
How Much Do Lawyers Charge to Form an LLC?
If you decide to hire a lawyer, it will cost you between $1,000 and $1,500 to form your LLC. Generally speaking, a lawyer will charge their general hourly rate which will cost anywhere from $150/hr – $750/hr.
The main services that an LLC lawyer can help you out with include:
- Business formation and counseling
- State filing
- Business records book
- Business certificates
- Registered agent services
- Document drafting (Articles of Organization and Operating Agreement)
- Obtaining an Employer Identification number (EIN) for your business
- Ongoing legal counseling and compliance
The costs of setting up an LLC with a business attorney really depends on the legal professionals experience and the firm he/she is working for.
DIY: Steps to Set Up an LLC
If you decide to form an LLC yourself, there will be costs involved as you’ll have to pay a state filing fee which ranges from $40 – $500. Below is a quick overview of the five steps you’ll need to take in order to form your LLC:
- Choose a business name and make sure name is available
- Hire a registered agent form your LLC
- File the Article of Organization with the state that you’d like to form your business
- Write up an Operating Agreement for your LLC
- Obtain your Employer Identification Number (EIN)
Once you’ve completed step number five, your LLC will be active and ready to take on the world!
Conclusion
When it comes to forming your LLC, invest with confidence and plan out your business strategy. A business is like a baby that needs care and nurture. If you feel that you’ve hit a bumpy road and you have legal questions, put the cash forward and hire a good lawyer. But if you know where you’re going and have the steps mapped out, then keep moving full steam ahead!
