what does a lawyer need to do an llc

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

Full Answer

Do I need a lawyer to form an LLC?

If your LLC has more than one member, you’ll need a comprehensive operating agreement. You need an attorney for this. If you need your organized purpose to be anything more than just the default (ie “organized to do any legal business…”). For example, if you offer medical services, you may need your organized purpose to specify this.

Why do I need a limited liability company lawyer?

A lawyer can also help you confirm whether a limited liability company is the best legal entity for your business, or the best state for organizing your LLC. There are myriad other issues you may want to discuss with a lawyer.

What do you need to know before starting an LLC?

Your Business Name: Make sure that your name doesn’t pose any potential conflicts with another business name already registered in the state where you’re filing your LLC. Registered Agent: This is the entity or individual who will receive official papers and legal documents on your behalf, including documents related to lawsuits.

Do I need an accountant to set up an LLC?

Don’t use an accountant to form your LLC. , Founded six startups, two angel groups, three funds, and funded 100+ ventures. CEO of Gust, Founder of New Yo… · Author has 22.4K answers and 135.6M answer views Do I need a lawyer to set up a one person LLC via my state's website? How do you know that a single person LLC is the right tool for you?

What is a business lawyer?

Business lawyers if you need to change your business structure to a single-member LLC, S corporation, or another type of business, or need help with another business-related legal matter. General counsel to review compliance with state laws, state agencies, state fees, or annual fees.

How much does it cost to register an LLC?

Your LLC will give you tax benefits and protect your personal assets if anything happens to your company. It costs between $50-$500 on average to register your business. You do not need an attorney to form an LLC.

How much does a business attorney cost?

A business attorney can save time and money when business owners create a new business. For around $200 to $5000, they can handle the items you may not have time to consider, such as: 1 Creating an LLC operating agreement that explains the who, what, when, where, why, and how of your company (this is required in some states) 2 Creating articles of organization that list the registered agent, LLC management, and the date of formation 3 Keeping detailed records in case of lawsuits or audits 4 Filing fees and registering with the correct people 5 Registering your business name and checking that the LLC name is available 6 Completing and filing all legal documents

What is an LLC operating agreement?

An LLC operating agreement is an internal document that allows you to establish company rules, layout members' rights and responsibilities, and more.

What is an employment law attorney?

Employment law attorneys to create employment contracts and HR policies.

What is a registered agent?

Acting as your company's registered agent. A registered agent is a person who receives legal documents, tax forms, and service of process for your company. Service of process is when someone notifies your business that there is a lawsuit pending against your company. Some law firms will act as your registered agent as part of their business formation services. As your registered agent, they will collect your legal correspondence at their physical address. This frees you up to move locations or use a post office box without missing essential documents.

Can an LLC be sued?

Once you register, you can buy or rent a building and have company bank accounts. Unfortunately, your company can also be sued.

Who is responsible for running an LLC?

LLC owners are called 'members.' But an LLC organizer can elect to have either the members manage the LLC or appoint one or more managers. Managers are then responsible for running the LLC.

How do I pay myself from my LLC?

The answer depends on whether you are paying yourself as an investor or as an employee.

What is a Limited Liability Company (LLC)?

An LLC, also known as a limited liability company, provides a flexible compromise between a general business form and a corporation. It's one of the most adaptable of the business forms recognized in the United States, and it is one of the most popular for small business owners.

What are the benefits of an LLC?

Forming an LLC has many benefits, not the least of which is limited liability. There could also be tax advantages, depending on how you file and the choices you make.

What are the tax advantages of an LLC?

Because the IRS doesn't consider an LLC to be a separate entity, it doesn't get taxed directly. You can actually choose how you wish to be taxed. These are the options:

What is a single-member LLC?

Owners of LLCs are called members. A single-member LLC is an LLC that has only one owner. The member could be an individual, another LLC, or some other entity, such as a corporation. An LLC can have managers if it wants. Members appoint managers to run an LLC. But the law does not require an LLC to have managers. Members can elect to run an LLC themselves. Unless the sole member of an LLC is simply an investor, it would not make much sense for a single-member LLC to have a manager. The sole member of the LLC could run the LLC.

How is an LLC taxed?

An LLC is a "pass-through" entity which means that the LLC's earnings are taxed as income to the owners of the LLC. Because the LLC's earnings are passed through to the owners, the LLC itself does not pay taxes.

What is LLC lawyer?

An LLC lawyer can be incredibly helpful in your first few years as a business. They can help you get started and keep your business compliant as you expand, raise money, or hire employees.

How to find an LLC lawyer?

Often, the best way to find an LLC attorney is simply to get recommendations from other people who have formed a business recently or obtained help on a business legal matter.

What is the advantage of registering as an LLC?

The biggest advantage that you get from registering as a business entity is extra legal protection. If someone wins a lawsuit against your business, they can take only the business’s assets—your personal assets are safe.

What is the difference between a sole proprietorship and a partnership?

Sole proprietorships are pass-through entities, which means that the business’s profits and losses pass through to the owner’s personal income tax return and are taxed at the owner’s personal income tax rate. Partnerships work in the same way, except that the profits and losses are divided among multiple business owners. The biggest risk of sole proprietorships and partnerships is that they leave you open to personal liability. If someone sues your business and wins, they can take your personal assets (your car, your personal bank account, even your home, etc.).

How much does an LLC lawyer charge?

Some LLC lawyers charge a fixed rate of as low as $500 to draft and file LLC formation paperwork, and others charge as much as $3,000. For document drafting and document review, lawyers typically charge an hourly rate of $100 to $300.

How to register as an LLC?

These are some of the specific things an LLC attorney can help you with: 1 Determine whether your business is eligible to organize as an LLC in your state. 2 Determine which state it’s best to register in, particularly relevant if you do business in multiple states. 3 Understand whether, and why, an LLC is better for your business than other business structures, including the tax consequences of each structure. 4 Draft and file your articles of organization, which is the foundational document for an LLC that you have to file with the state to create your LLC. 5 Draft and negotiate funding agreements for your LLC with investors. 6 Help you comply with Securities and Exchange Commission (SEC) requirements if you want to raise money from investors. 7 Draft your LLC operating agreement, which creates the backbone of your LLC and specifies how you’ll make decisions and manage the business. This will cover things like how to invite new members into the business, replace members, and bind the company to business loans and important agreements. 8 Maintain meeting minutes, member resolutions, and other important LLC paperwork. 9 Understand state-specific LLC laws and how to comply with them.

How to get legal help for LLC?

A great way to get legal help for your LLC without paying a fortune is by utilizing online legal services. Two such sites are LegalZoom and Rocket Lawyer, which have business legal plans that give you unlimited access to business legal forms and an on-call attorney for less than $40 per month.

How long can an LLC be in business?

Duration of LLC: Some states require you to specify how long your LLC will operate. A few states set a statutory limit on the duration (usually a few decades). But you can extend your LLC for longer if it’s still in business when you hit the end of this period.

What is the most enticing thing about LLC?

Two of the most enticing things about an LLC is that it prevents business owners from being personally liable for things related to the business, and it provides pass-through tax status. It also has fewer formalities and requires less legal documentation.

What is a registered agent?

Registered Agent: This is the entity or individual who will receive official papers and legal documents on your behalf, including documents related to lawsuits. The registered agent has to be in the state where your LLC is registered, and must have a physical address.

What is an Articles of Organization?

The Articles of Organization — also called Certificate of Organization — is the equivalent of the corporation’s Articles of Incorporation. Consider these the building blocks of your LLC.

Do you need an operating agreement to form an LLC?

It also states the distribution of income of the LLC to its members. While it’s not required by law that you file an operating agreement to form your Limited Liability Company, you need to have this LLC legal document prepared to be compliant with the company’s corporate formalities.

How to create LLC?

There are several options to create an LLC: 1 to hire a Lawyer/CPA 2 to use independent filing service 3 to file it yourself at the SOS portal.

What is LLC in business?

A company such as LLC is just an organization and facilitates the business. It is not too much work, just have to remember to pay your tax and file tax forms, if you have a company with no active business. Like they say, easy come, easy go. Anything you can get for no cost have literally no value.

How much does it cost to reserve an LLC name?

The ability to reserve an LLC name is available in every state (for a fee). Alabama is the only one that requires the name to be reserved at a cost between $10-$28. Reserving the name is optional in all other states, but is usually not worth the expense unless it will be some time before you plan to start your LLC.

How much does it cost to file an LLC?

This cost to file the Articles of Organization for an LLC costs between $40 and $500.

Which states require LLCs to publish a legal ad?

There are some states like Arizona, Georgia, Nebraska, Nevada, New York, and Pennsylvania that require new LLCs to publish a legal ad notifying the public of the LLC formation in a local newspaper and supplying the affidavit of publication. Publishing costs vary depending on the state and newspaper.

Can I create an LLC in NJ?

In a way, no. You could create an LLC on your own on the Secretary of State’s website. However, NJ has a very large number of requirements for companies and these requirements can be overly difficult to understand and navigate through. Thus, based on the fact that you are in a state that has a lot of requirements, I would recommend that you get an attorney.

Can an LLC be created without an attorney?

Not technically, no. But every single LLC I have ever seen that was created without an attorney has not had its documentation in order. No corporate book, no unit certificates, no company agreement, no organization minutes. Which is fine if everyone agrees with everyone and has no disputes whatsoever for eternity.

How To Find The Right Lawyer For Your LLC?

Very often people rely on the assessments of others – and seek experiences and recommendations on the Internet. That can sometimes help. However, if you are not skilled enough in this area – it may be best to look elsewhere for recommendations. The plus advice may be to get involved in a local community or group, where you will be able to follow seminars, webinars, or quotes and learn a lot about this area. Then, with your own experience, but also the recommendations of local legal experts – you will be able to make the right decision on choosing an adequate LLC lawyer. Then, opt for one who will be able to respond to the needs of your company.

What Do You Need A Lawyer For?

If you are dealing with some more complex issues related to your LLC business – the presence of a lawyer will be necessary. For example, in cases when you have foreign investors who would like to have a share in the ownership of your company. The situation is similar if you would like to go public or issue shares that can be traded publicly. These are situations that are legally far more complex than mere company registration. According to www.startupsavant.com – hiring a good LLC attorney will sometimes be crucial to you. This is something that every LLC can expect – because each of them sooner or later faces some more complex legal situations.

What Jobs Can Be Done Through An LLC?

Almost all economic activities can be performed in the form of LLC. However, exceptions are the activities of banks and other specialized financial businesses. On the other hand, a limited liability company cannot attract large capital by issuing its shares to third parties – as is the case with a joint-stock company. However, this is not a disadvantage – because the founders of LLC want to have only a few people as business partners – and they don’t usually have megalomaniac financial appetites.

What are the advantages of a limited liability company?

The main advantage of limited liability companies (LLC) – is the fact that the members of the company are not liable for the obligations of the company with their assets. Therefore, in this form of company, the founders are maximally protected.

What is the purpose of a lawyer when signing a contract?

When you sign a business contract – a lawyer is there to check things out and advise you. On the other hand, when it comes to offering a contract to another party – the help of a lawyer can be essential.

Why are founders of companies protected?

Therefore, in this form of company, the founders are maximally protected. It is because their property cannot be the subject of claims. Companies that are established in the form of LLCs, as a rule, have a small number of members, usually one, two, or three, who are connected by friendly relations.

Can a limited liability company have a large capital?

On the other hand, a limited liability company cannot attract large capital by issuing its shares to third parties – as is the case with a joint-stock company. However, this is not a disadvantage – because the founders of LLC want to have only a few people as business partners – and they don’t usually have megalomaniac financial appetites.

What Is an LLC?

An LLC is a limited liability company in which the owners can't be held personally liable for the company's debts or liabilities. It's a distinct business entity separate from its members.

LLCs Versus Corporations

A corporation is a more formal structure, which is subject to rigid rules and procedures. An LLC, on the other hand, offers a more flexible and lenient setup.

Why Form an LLC?

It's fairly simple and straightforward to form with minimal paperwork. The annual filing fee of around $200 is quite affordable, too.

Things to Consider Before You Set Up an LLC

While the existence of a corporation is not affected by entry and exit of shareholders, an LLC can be very susceptible to such developments. Even if a single member leaves the LLC, it can terminate its existence.

The Advantages of an LLC

Protection of personal assets: Unlike in the cases of sole proprietorships and partnership firms, the personal assets of LLC owners are not vulnerable to business debts.

The Disadvantages of LLC

Formation expenses: Formation expenses of LLCs are usually higher than in the case of sole proprietorships and general partnerships.