Do I Need An Attorney To Set Up An LLC

Forming an LLC transforms your freelancing or small business idea into a legal entity, offering tax benefits and safeguarding your personal assets in case of company issues.

The registration cost typically ranges from $50 to $500.

Hiring an attorney to set up an LLC isn’t obligatory.

Most states permit DIY LLC formation through their secretary of state’s website and the IRS.

LLCs offer advantages over sole proprietorships and general partnerships, providing limited liability protection to owners and members.

This shields you from personal liability regarding business obligations. As an LLC, you can acquire property, open business bank accounts, but also face the risk of legal actions.

Do I Need An Attorney To Set Up An LLC
Do I Need An Attorney To Set Up An LLC. Source (Reddit)

When To Use an Attorney for an LLC

A business attorney, costing between $200 to $5,000, can save time and money during new business creation by handling tasks like:

  • Creating an LLC operating agreement, which outlines company details and member responsibilities.
  • Drafting articles of organization, specifying the registered agent, LLC management, and formation date.
  • Serving as your registered agent to receive legal documents.
  • Maintaining thorough records for potential lawsuits or audits.
  • Managing filing fees and registrations.
  • Verifying business name availability.
  • Completing and filing all necessary documents.

Some attorneys offer online services or fixed fees for assistance. If your LLC is complex or involves multiple parties, consulting with an attorney is advisable to avoid potential issues.

Bringing an Attorney in After Forming Your LLC

If you don’t need LLC formation but require assistance with your new business:

  • Consider employment law attorneys for contracts and HR policies.
  • Intellectual property lawyers for product/service protection.
  • Tax lawyers to optimize income tax and returns.
  • Business lawyers for structure changes, contract reviews, and other legal matters.
  • General counsel for state law compliance and fees.
  • Real estate attorneys for lease or property inquiries.

While DIY saves upfront costs, it may risk errors or missed opportunities. Assess your needs and budget, and consider legal assistance when your business becomes profitable if immediate hiring isn’t feasible.

Bottom Line, Do What Makes Sense For You & Your Business

Choosing whether to engage a lawyer is a personal decision, and business owners must evaluate their specific needs and circumstances.

It’s advisable to thoroughly consider all aspects and weigh the pros and cons before reaching a decision.