what type of lawyer do i need to file an llc

Full Answer

Do I need an attorney to dissolve a LLC?

In certain states, it may be necessary to dissolve an LLC against the wishes of its members if the business goes bankrupt. To learn more about what happens when an LLC goes bankrupt, members can review relevant local and state laws, and/or speak to a local business attorney.

How to find a LLC lawyer?

To get you started, here’s a list of questions to ask an attorney before hiring them:

• Do you provide a free consultation? If not, how much does the initial interview cost?
• How long have you been in practice?
• How much experience do you have in cases like mine, and more importantly, what were the outcomes of those cases?
• Have you ever been the subject of a disciplinary action?
• What are your fees? ...
• What is your caseload currently like? ...

Do I need an attorney to form a series LLC?

Legal and Professional Help On Your LLC. If permitted by the laws of their state, anyone can establish an LLC. A lawyer is not needed to do this. However, it is highly advisable that anyone considering establishing a business consult with a lawyer and a tax professional. A series LLC comes with a lot of freedoms other business models do not.

Does my business need a lawyer?

Whether you need an attorney to start your business depends in large part on what legal type of business you're starting. The simpler your business, the less you'll need an attorney. A sole proprietorship is the simplest business form.

Which of the following documents is legally required to form an LLC?

To form your LLC, you must submit to the state articles of organization, also called a certificate of organization (or certificate of formation in some states). You can generally download the appropriate form from the secretary of state website. When filing your form, make sure to include the correct number of copies.

Where is the best place to form an LLC?

The 10 Best States to Form an LLCWyoming.Alaska.South Dakota.Florida.Nevada.Montana.New Hampshire.Utah.More items...•

Where is it cheapest to form an LLC?

Formation Costs Kentucky has the lowest LLC formation cost at $40 per LLC while Massachusetts is the most expensive at $500 per LLC. The formation cost is a one time fee and so it won't have much impact on future costs associated with your LLC.

What should I include in my LLC?

The 3 Must-Have Documents for an LLC Articles of Organization. The Articles of Organization — also called Certificate of Organization — is the equivalent of the corporation's Articles of Incorporation. ... Operating Agreement. ... Employee Identification Number.

Do I need an EIN for my LLC?

An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number.

What taxes do LLC pay?

15.3%Members must report self-employment taxes on a Schedule SE. LLC members are responsible for paying the entire 15.3% (12.4% for Social Security and 2.9% for Medicare). Members can deduct half of the self-employment tax paid from their adjusted gross income.

How much does a LLC cost?

LLC Filing Cost Filing costs will vary depending on the state laws but generally range from around $40 to up to $500 . Along with filing the articles of organization, most states require that businesses obtain a business license. Business license costs range from around $50 to $100 in most states.

What state has lowest filing fee for an LLC?

Cheapest States to Form an LLCHawaii — Filing fee: $50. ... Michigan — Filing fee: $50. ... Iowa — Filing fee: $50. ... Montana — Filing fee: $70. ... Utah — Filing fee: $70. Renewal fee: $20. ... California — Filing fee: $70. Renewal fee: $800. ... Delaware — Filing fee: $90. Renewal fee: $300. ... Indiana — Filing fee: $100. Renewal fee: $50.More items...•

How do I establish an LLC?

How to Set Up an LLCDecide on a Business Name. ... Designate a Registered Agent. ... Get a Copy of Your State's LLC Article of Organization Form. ... Prepare the LLC Article of Organization Form. ... File the Articles of Organization. ... Create an Operating Agreement. ... Keep Your LLC Active.

How long does it take to set up an LLC?

The formation process of an LLC depends on the state. The average time is 7 to 10 business days while other states take about 4 to 6 weeks. For some states, you will get approval immediately after the articles of organization, meaning the turnaround time can be as fast as 3 business days.

What are the benefits of opening an LLC?

Some of the benefits of an LLC include personal liability protection, tax flexibility, their easy startup process, less compliance paperwork, management flexibility, distribution flexibility, few ownership restrictions, charging orders, and the credibility they can give a business.

What is better LLC or sole proprietorship?

A sole proprietorship doesn't protect your personal assets. A sole proprietorship should only be used for very small-scale, low-profit, and low-risk businesses. An LLC is the best choice for most small business owners because LLCs can protect your personal assets and LLCs are easy and inexpensive to start.

What is LLC filing?

LLC formation requires filing a document called “articles of organization,” and a fee, with the state. This fee is typically smaller than the fee required for forming a corporation. LLC formation usually requires less paperwork to be filed with the state, than does corporation formation.

What is an LLC?

What is a Limited Liability Company (LLC)? A limited liability company (LLC) is a business entity. A variety of business entities, or forms, exist in the United States. Other examples of business entities include partnerships, and corporations.

What is LLC in business?

Forming a LLC protects individual assets, limiting liability to the LLC’s own resources. By forming an LLC, a small business owner, if sued, will not have to pay out of personal assets. Individuals who are interested in forming a business with minimal paperwork and costs should also consider forming an LLC.

How does a limited liability company differ from a corporation?

Limited liability companies differ from corporations in terms of ownership structure. LLCs are owned by individuals, while corporations are owned by shareholders. LLCs differ from both partnerships and sole proprietorships in terms of liability.

How long does it take to file an LLC statement?

Many states require that a document called an initial information statement be filed. This statement must be filed within a short period of time (up to 90 days) of the filing of the articles of organization. On the statement, the names and addresses of LLC members and managers must be provided.

What is a partnership liable for?

Partners in a partnership are personally liable for debts incurred by the partnership. These debts include debts incurred by another partner. This means that if a partnership owes money to a creditor, the creditor can “come after” the individuals’ own individual real and personal property to satisfy the debt.

What happens if a corporation files a lawsuit?

Under the law, if someone files a lawsuit against a corporation, and the suit is successful, the corporation pays money out of the corporation’s assets. The individual members’ and owners’ own assets are not “touched.”.

What is an LLC lawyer?

An LLC lawyer who has prior experience with LLC filings and maintenance is crucial if you’re considering starting a limited liability company, or “LLC.” An LLC lawyer can help you decide whether or not an LLC as a business structure is right for your goals for the business and can also make sure you file all the necessary documents completely and on time. Despite the stigma that attorneys charge an unreasonable hourly rate, often, consulting one can help your business and save you money in the long run. Thus, instead of waiting to hire an attorney when faced with a serious legal issue, you might consider hiring an LLC lawyer at the beginning to avoid those potential legal problems.

Is a limited liability company a partnership?

A limited liability company can be thought of as a combination of a partnership and a corporation. Similar to a partnership or sole proprietorship, an LLC is a “ pass-through ” entity, which means that the LLC is not a separate entity for tax purposes and LLC owners only pay taxes on their business’s profits once, on their personal tax return. This avoids “ double taxation ,” which corporations are subject to.

What happens if you file an LLC incorrectly?

If your formation documents are filed incorrectly, they will be rejected and you won’t be able to start doing business, so it can be worth it to make sure they’re submitted right the first time! And let’s be honest, as an entrepreneur, you simply might not have the time to form an LLC yourself.

Why do people need an attorney?

Some people prefer to have an attorney form their business simply because they provide peace of mind that the startup process is handled correctly.

Can I outsource my business formation to an attorney?

You no doubt have a lot on your plate, and it can save you a bunch of time to outsource your formation process to an attorney. If you already have a business lawyer helping you with other services – like trademarks, copyrights, lease agreements, etc. – it can be easy to roll formation duties in too.

Do I need a lawyer to form an LLC?

Even though we just said there isn’t a simple yes or no answer to the question, we should note that legally speaking, you do not need a lawyer to form an LLC. But beyond the fact that lawyers are not required by the state or federal governments, the answer gets more complex.

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.

Can you convert an LLC to a C-Corp?

Quick note: It is possible to convert an entity from a LLC to a C-Corp. It can be a pain to do this, but it can be accomplished, so don’t worry if you are already formed as a LLC, you can change it later on – we’d recommend you plan to do it in conjunction with an outside financing round as it is not a cheap process.

What kind of services do lawyers provide?

Lawyers can provide a wide range of services to their clients. Some lawyers handle many different types of cases. Some lawyers specialize in one or two types, such as family and divorce law.

Why do you need a lawyer for a contract?

Even in transactional civil matters, such as drafting a contract, a lawyer can be very helpful. A lawyer can make sure contracts are drafted correctly and avoid problems at a later date. A real estate purchase, business purchase, and/or creation of a trademark or copyright will most likely involve a lawyer.

What is a lawyer?

A lawyer is an individual who is licensed to practice law in a state. Lawyers are also known as attorneys or an attorney at law. Some lawyers are licensed in multiple states. Some lawyers are admitted to practice at the Federal level as well.

Why is it important to have a family lawyer?

It is important in divorce cases for an individual to have a family lawyer representing them to ensure their rights are protected.

Do lawyers handle different types of cases?

There are many different types of lawyers that handle many different types of cases. Some cases may even overlap practice areas. Most lawyers have experience with a variety of cases and will be able to help you with your needs. Despite the prevalence of “lawyer jokes”, lawyers are service oriented and look out for the best interest of their clients.

Can a lawyer work in a law firm?

Lawyers can work in a law firm with other lawyers, with a partner, or practice by themselves in a solo practice. In most cases, a lawyer will be chosen based on the type of case, or practice area, and the location of the case. Lawyers can provide a wide range of services to their clients. Some lawyers handle many different types of cases.

Is a criminal lawyer necessary?

In serious cases, where punishments are more severe, a criminal lawyer is highly recommended, even necessary. A criminal lawyer can advise an individual on the consequences of conviction or guilty pleas. Some guilty pleas, even to misdemeanor charges, can have long-term consequences.

What are the owners of an LLC called?

Owners of an LLC are called members . Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.

What is LLC in business?

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company. Owners of an LLC are called members.

What is the form 8832 for LLC?

An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election PDF, to elect how it will be classified for federal tax purposes.

How long does it take for an LLC to take effect?

Generally, an election specifying an LLC’s classification cannot take effect more than 75 days prior to the date the election is filed, nor can it take effect later than 12 months after the date the election is filed. An LLC may be eligible for late election relief in certain circumstances.

Is LLC a corporation or partnership?

Classifications. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”).

What is a registered agent for LLC?

A registered agent is someone who receives official or legal documents (such as subpoenas) on behalf of the LLC. Once received, the registered agent will then pass on these documents to the person in charge of the LLC. Anyone over 18 years old can be a registered agent—and there’s nothing wrong with naming yourself. Or, you can designate a company that provides registered agent services to do so. This will come at a fee, of course; pricing for registered agents may cost a few hundred dollars per year.

How to get a copy of articles of organization?

Go to your state’s Secretary of State website to get a copy of the articles of organization form. This document includes details about your proposed LLC so that you can establish it as a legally separate entity.