Advantages: definitely having all of your bases covered... Disadvantages: paying a lot for something that s pretty simple to do yourself... Suggestion?? If you re to the point of forming an LLC, you should have a lawyer on as consult ...you do a lot of the legwork yourself, but you save a ton of money, and you still have all of your bases covered. I ve learned this from experience with my photography business. Finding a lawyer is the hardest part...I d suggest making a LOT of appointments with any business or business litigation lawyer in your area and simply going in for a free consult. They re all about equally adept to handle all of your needs, so you re really just looking for someone that you feel really comfortable with. Best of luck to you!! **Update** $200 is about right. It sounds intimidating, but it isn t really. It all depends on how much of the leg-work you re comfortable doing. I do just about all of the actual work and have him review everything for me...I do this with client letters, promo materials, and studio contracts. Also, I handle everything with him via email amp; that s much cheaper...it s easier on him, too, b/c he can look at it at his convenience. A quick example: I drafted my studio contract; sent it to him; he sent it back within 24 hours with several changes; he charged $50 and has saved me *thousands* with the simple additions he made. Again, all business attorneys are kinda equal, so just make sure you feel *really* comfortable with them...I really hope this helps, and congratulations on the business venture!!
If it s a single member LLC, do it yourself. Go to your states web site and then to the Secretary of State section. There you will find a down-loadable one page form. Fill it out and mail it in, together with the filing fee, and in about a week, you ll be an LLC. If there is more then one member, have an attorney draw up the LLC papers and the operating agreement. To find a competent attorney, go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to give you a list of attorneys in your area.
Doing the paperwork to create the LLC is fairly simple. Kits for doing operating agreements are available from many office supply stores. I would never discourage someone who is unsure about the process from getting an attorney, especially if the circumstances of your business is unusual. But most owners of a small business can create the LLC and create a passable operating agreement without a lawyer.
An LLC takes 20 minutes to set up, it s easy. If you are getting into business with business partners, then a lawyer might be a good idea for drafting a business/operating agreement. If you are starting by yourself, unless you are entering a high risk business such as a bundgy jumping business, if you are selling paintings or sculptures or something that doesn t have a lot of risk, then I don t think you need a lawyer. You might want to check with a CPA after tax season.
You can go to the secretary of state and find the limited liability corporation filing form. It will also have an instruction form that you can download. It will tell you eveything that you need. You can then search for bylaws, etc... online and use them as a sample to set up the docs for your business.
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