Creating an LLC involves transforming your freelance or small business concept into a recognized legal entity.
By doing so, you gain tax advantages and protect yourself from personal liability in case of any issues with your business.
The registration cost typically ranges from $50 to $500.
Contrary to a common belief, there is no mandatory need for a lawyer to establish an LLC.
Most states permit individuals to form an LLC by registering online through the secretary of state’s website and with the IRS.
LLCs offer significant benefits over sole proprietorships and general partnerships.
They provide limited liability protection, safeguarding both the business owner and members from personal responsibility regarding the company’s obligations.
Upon LLC registration, you gain the ability to acquire property, rent office space, and set up business accounts.
However, it’s important to note that an LLC is not immune to legal action.
When To Use an Attorney for an LLC
Hiring a business attorney, costing between $200 to $5,000, can streamline the process of creating a new business.
They handle tasks like drafting an LLC operating agreement, creating articles of organization, acting as a registered agent, maintaining records, handling legal paperwork, and ensuring compliance.
While simple cases can be managed independently, involving multiple partners, complex assets, or financial concerns often warrant professional legal advice to prevent complications.
Bringing an Attorney in After Forming Your LLC
If you don’t require LLC formation services but still need assistance with your new business, there are various legal professionals to consider:
- Employment law attorneys: They can help create employment contracts and HR policies.
- Intellectual property lawyers: They review your products or services to ensure they are adequately protected.
- Tax lawyers: They review your income tax and returns to optimize your financial strategies.
- Business lawyers: Useful for changing business structures or handling other legal matters. They can also review contracts before signing.
- General counsel: They ensure compliance with state laws, agencies, fees, and annual requirements.
- Real estate attorneys: They provide guidance on commercial leases or property purchases.
While a DIY approach saves money initially, the risk of making costly mistakes or missing out on potential savings is a concern for new business owners.
Evaluate your needs and budget, and consider legal assistance when your business becomes profitable if immediate costs are a barrier.
Making the Call on Attorney Assistance for Your Own LLC
When starting your business, specialized law firms offer LLC formation services, but it’s not mandatory to hire them.
Legally, you can register your business independently.
You can handle other documents and legal tasks yourself or entrust them to an attorney to save time and avoid errors.