who can set up an llc lawyer or accountant

Do I need a lawyer to set up a LLC?

Answer (1 of 9): Technically, you do not need a lawyer or accountant for creating a LLC. However, if any of the following statements are true for you, I would strongly recommend you do hire a lawyer and/or accountant to help you: * There will be more than one owner / …

Do I need a business bank account to start an LLC?

Jul 14, 2020 · Steps To Set Up Accounting. Create a chart of accounts, including all your business expenses, revenue, assets, liability, and owner equity accounts. Record all transactions, including received income, written checks, withdrawn equity, and added equity. This is done with a notation known as a journal entry.

How do I set up an LLC?

Jun 02, 2017 · This is one of the worst reasons I can think of, most business set-ups would only cost $500 to $1000 for an attorney to prepare. The most important thing you are buying for that price is piece of mind and an explanation of what everything means and a referral to a CPA who will not attempt to practice law.

Do I need an accountant or an attorney to start a business?

Just wanted to see what everybody's thoughts were. I got a quote of $1,200.00 from my attorney to set up an LLC for me. I've got a buddy who's wife is a CPA, and he tells me he can get her to set me up an LLC for $600.00. This would be ideal, as I need one for my Property Management business, and one for my real estate holdings.

Do I need an LLC for my business?

That will entirely depend on your small business and its needs. If you are a freelancer or solopreneur, you may do fine with a simple sole propriet...

Is an LLC expensive?

The cost of your LLC will depend on a number of factors like the state you’re filing in as well as any extras like an operating agreement or DBA. F...

Can I set up an LLC by myself, or should I hire someone?

You may be able to set up an LLC by yourself, especially if you’re a single-member LLC. Do your research and head to your state’s business formatio...

Do I really need to create an operating agreement for my LLC?

Most states don’t require LLCs to have an operating agreement, though it can come in handy. Those with business partners should consider creating a...

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.

Why is it important to choose a business name?

Choosing a unique business name is important for both practical and branding purposes. For one, most states won’t allow two businesses to have the same name—it doesn’t matter where they’re located within the state. Some states also prohibit certain words, such as “city,” “insurance” or “bank.”

What is an operating agreement?

An operating agreement contains the details of the financial, legal and management rights of all members of the LLC. More specifically, it can include how profits will be distributed, how members leave the LLC and who contributes capital for the business. In essence, it should contain all relevant information pertaining to the operations of your LLC.

How to set up accounting?

Steps To Set Up Accounting 1 Create a chart of accounts, including all your business expenses, revenue, assets, liability, and owner equity accounts. 2 Record all transactions, including received income, written checks, withdrawn equity, and added equity. This is done with a notation known as a journal entry. 3 Strive to balance your books as evidenced by the equation Assets (A) = Liabilities (L) + Equity (E).

What is a general ledger?

As with most types of businesses, the general ledger forms the accounting foundation of an LLC. Similar to a personal checkbook, this record shows the daily transactions of the business. In addition to cash, the general ledger also details investment assets, real estate, valuable equipment, and other assets, as well as lines of credit, loans, and other liabilities.

Why is accounting important for a business?

Accounting is especially important to preserve limited liability, which protects personal assets from being seized to satisfy debts and obligations of the business. LLCs are not taxed at the corporate level, which makes them an advantageous choice for many small business owners.

What is a chart of accounts?

Create a chart of accounts, including all your business expenses, revenue, assets, liability, and owner equity accounts. Record all transactions, including received income, written checks, withdrawn equity, and added equity. This is done with a notation known as a journal entry.

Do LLCs have to file annual reports?

LLCs are subject to fewer record-keeping requirements than corporations must follow. Certain states require the filing of an annual report, but others do not . Before establishing an LLC, you should seek the advice of a qualified tax professional who can explain how this entity is taxed at the state and federal levels.

Is LLC a pass through entity?

An LLC is treated as a pass-through entity by default, which means profits and losses are reported on each member's individual tax return. Many LLC owners will also be subject to self-employment tax. State LLC taxes vary by state as well as by the type of business.

Is the cash method as accurate as the accrual method?

Although the cash method is not as accurate as the accrual method, it has the advantage of delaying taxes until you have the funds in hand. With the example above, the income from that project would be taxed in 2020 even though you won't receive it until 2021 under the accrual method.

What does a good CPA do?

A good CPA will explain the different structures for business setup, such as a corporation, single proprietorship, or LLC. Once you’ve explored your options, the CPA might also offer to complete and file the documents you need to create an LLC in your state. While this might seem like a nice gesture on the part of your CPA, ...

Why is clear resolution management important?

Clear resolution management information is also an important component for handling disputes as they arise. Failing to have an operating agreement is one of the “veil-piercing” liabilities that could cause your business to lose legal protection. An attorney can help create this agreement with your input, a CPA cannot.

Can a CPA be an LLC?

An attorney can deliver this advice, a CPA cannot. While the documents to file for LLC status might seem direct at a glance, they can involve tricky legal issues that are buried below the surface in legal language. If there are issues that apply to your business, an attorney can handle them for you; a CPA cannot .

Can I file LLC for protection?

Filing LLC status alone won’t guarantee you legal protection of your business. Most states carry a clause that allows for “piercing of the veil,” or forfeiture of protection if various additional steps are not taken. Those steps can vary by state, and can be confusing to navigate.

Is it cheaper to have a CPA set up a business?

At first glance, it can seem easier and cheaper to allow your CPA to set up the legal structure of your business. However, the risks involved by not consulting an attorney far outweigh any cost savings. You wouldn’t ask an attorney for tax advice, ...

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 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 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.

What are the advantages of registering as a business entity?

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. In addition, these entities work differently from a tax standpoint.

Why is it important to pick a lawyer?

The most important thing is to choose someone who has a good rapport with you and who makes you feel confident about your business and protected from risk as you grow.

What is MCL 600.916?

Specifically, (1) A person shall not practice law or engage in the law business, shall not in any manner whatsoever lead others to believe that he or she is authorized to practice law or to engage in the law business, and shall not in any manner whatsoever represent or designate himself or herself as an attorney and counselor, ...

Is the practice of law a lucrative business?

It is a lucrative business indeed. The statute limited the practice of law to lawyers is a consumer protection law; it is not a law to protect lawyers. In my above example, protections could have been added to the operating agreement to provide for protection for both members and ensure that there would be no question of control ...