There are many online LLC formation services available on the Internet to form a limited liability company. When can you use an online service or when should you use an LLC startup attorney? The answer really depends on your specific business situation, needs and resources.
While anyone can benefit from the expertise and advice of an LLC startup attorney, the cost to retain legal advice is very expensive. Most experienced business lawyers will charge between $ 200-450 an hour.
The benefits is that you get expert advice specific to your business situation and you get peace of mind knowing that the LLC startup attorney will form your limited liability company and structure the business to best suit your needs and protection.
Many new business owners just starting out can not easily afford the services of a business lawyer so then it becomes a cost benefit analysis. Is the risk of not using an LLC startup attorney worth it given your business intentions? Will a reputable online LLC formation service be sufficient?
For the single member LLC, the answer is easier. Because most of the more complex issues of forming a limited liability company involve the situation where there are multiple members, the single member LLC can reasonably use a reputable online LLC formation service to form a new limited liability company.
However, for a single member LLC, it is still important to properly maintain and operate the limited liability company separate and apart from itself or herself or else personal liability protection may be at risk. The single member should get the information needed to make sure everything necessary is being done while running the LLC business.
For a multiple member LLC, the formation of the limited liability company itself can be made by a reputable online LLC formation service, but it may be worth retaining an attorney after the limited liability company has been formed to advise on how to set up the relationship between the members. Still, you can save hundreds of dollars by having an online service prepare and file the formation documents.
What do you look for in an online LLC formation service? Having a proper and complete formation process is so important. Starting a business is like building a house. Insist on a proper foundation with no defects or else you may find yourself with major issues later on that will be a lot more expensive to you.
Source by Amy McDaniel