Has anyone here incorporated or formed an LLC?

[NightWatcher]

Did you do it yourself, hire an accountant and lawyer, or use an online outlet like Legal Zoom?

I think I'm going the DIY route after talking to an attorney and accountant to set things up. I do not have a business degree and often even end up screaming at Excel spreadsheets.

If you did it yourself, do you wish that you'd gotten professional help instead?

I have previously operated a sole proprietorship small professional licensed business and will most likely be starting that biz back up as well sometime this summer.

As of today I run 0 businesses, but by summer's end will most likely be running two very different outfits.

[Jackpine Radical]

1. I had my accountant set up an LLC.

He was able to do it in a few minutes online, iirc. Didn't cost much, and saved me the hassle of figuring out how to do it.

[dawg]

15. Practicing law without a licence is what put this guy in prison ....

And that may or may not have resulted in one of his associates being turned into a toad.

Seriously, though, for accountants, taking money for the doing of lawyerish things is a big no-no.

[Jackpine Radical]

17. It's a self-service website. The state obviously doesn't mind

if individuals do it for themselves. Why should they care if an accountant does it?

[dawg]

19. If he charges for it, he could theoretically get in trouble.

We can do anything for free, but lawyers (and judges) jealously guard the exclusivity of their practice areas.

[Jackpine Radical]

20. WI Statutes

183.0107  Execution of documents.
(1g) In this section:
(a) "Electronic" has the meaning given in s. 183.0108 (1g) (b).
(b) "Electronic signature" means an electronic sound, symbol, or process, attached to or logically associated with a writing and executed or adopted by a person with intent to authenticate the writing.
(c) "Sign" means to execute or adopt a manual, facsimile, conformed, or electronic signature or any symbol with intent to authenticate a writing.
(1r) Except as provided in this chapter, any document required or permitted by this chapter to be delivered for filing to the department shall be executed by a manager, if management of the limited liability company is vested in a manager or managers, or any member, if management of the limited liability company is reserved to the members.
(2) The person executing the document shall sign it and state beneath or opposite the signature the person's name and the capacity in which the person signs.
(3) The person executing the document may do so as an attorney-in-fact. Powers of attorney relating to the execution of the document do not need to be shown to or filed with the department.
History: 1993 a. 112; 1995 a. 27, 400; 2001 a. 44.

[dawg]

22. That doesn't really say what you think it does.

It basically just says that the LLC manager can sign for the company without filing a power of attorney with the department authorizing him to act on behalf of the LLC and the other members.

Your accountant is on really thin ice if he took money from you for assisting with this process. I hope he billed it out as "tax planning".

[Lonusca]

2. I think it depends on the state.

I have opened and closed an LLC in California. The process is very simple - no more than choosing a name a filling out a basic form.

[sufrommich]

3. I have a friend who did it herself without a lawyer when

she opened an online gift basket business. I don't know how it's done but I got the impression it's very easy.

[williamj]

23. Lawyers are the Ones who Eat money

We can do anything for business registration for free, but lawyers (and judges) jealously guard the exclusivity of their practice areas.

[Erich Bloodaxe BSN]

4. I used a lawyer.

And had a CPA do my taxes.

It ended up being a big waste of time and money. I only did it because my former employer had made verbal promises about giving me shares in his LLC software startup, so I wanted to have an LLC vehicle to hold those shares. Cost me something like $750 up front, then something like $150 a year in tax preparation for the years I kept it up until I gave up hope on him ever giving me any stock and let it fold.

If I were to do it again, though, I'd still use professionals to make sure I didn't screw anything up.

[NCTraveler]

5. For starters, good luck!!!!!

Second, so much depends on the industry you are getting into. Setting up the LLC is very simple. Structuring the business as far as liability and tax structure should be very easy. Talk with a business attorney. You will be able to do most of it yourself after that. Depending on the volume or type of business, I would always recommend a quality CPA. Every penny you can afford to give to someone else that is not directly related to a core component of your business is time saved so you can concentrate on those areas.

[NightWatcher]

7. I think that's the plan. Get setup advice from a business atty, but do the filing/books myself.

[Xyzse]

6. I did it myself.

Not fun...

[corkhead]

8. I hired a lawyer to do it. You don't know what you don't know

My lawyer gave me some advice and tips that made his expense worthwhile

[Bonhomme Richard]

9. I used a lawyer to set up an S-Corp. n/t

[Sgent]

10. If its a sole member LLC

(only one owner) its fairly easy to setup by yourself. It might be worth an attorney's time to teach you how to limit your liability and use it properly, but actually filing the paperwork is easy.

If its a multi-member LLC, get an attorney. Drafting an operating agreement is something you want done correctly from the start, and can be a big issue later on if its done poorly.

[Sheepshank]

11. In Utah the State has created an online DIY program called OneStop

even creates a boilerplate set of articles. No need to hire an attny or CPA for hundreds of dollars.

In most states, the Attny General or Department of Commerce can walk you through the registration without using high cost professionals. Check with your state if a member of the LLC can also be a registered agent. The registered agent received "service" and legal notice on behalf of the LLC. Most states will permit the member to also be the registered agent if you reside in the state when the LLC is being formed.

I would suggest that you look into the possibility of creating just one LLC, and under that LLC set up two separate DBA's, one for each company. That was you don't have to pay filing fees for two LLC's. Just be be sure, that on the DBA applications that you list the LLC as the owner and not your personal name.

[alc]

12. 5 times

I've done it myself 3 times (2 s-corps and an LLC). I did it 2 other times with partners where we had a lawyer handle it. I'd recommend a lawyer if you have multiple principals involved. My brother started his LLC through an accountant who handles his taxes. I've also been involved in starting 2 non-profit corporations which used a lawyer in one and an accountant in the other. I'd recommend either a lawyer or accountant for a non-profit since there's a lot more to getting recognized as a 501(c)(3) than incorporating (not that you asked but if anyone else is interested)

Taxes are a pain but I don't mind as long as I don't have employees. So I don't have an accountant now. In the 90's it wasn't so bad to handle the taxes (and unemployment insurance, etc) with employees (I had 5 employees at one point and still did it myself). But I looked at the laws/forms when I made my current LLC and decided there's no way I'll do it myself any more if I hire anyone. I actually would have hired someone a year ago but the hassle wasn't going to be worth the little extra money I might make - it would have been part of a longer-term growth pattern rather than to make money then and I'm close enough to retirement that I decided against that.

I'd avoid Legal Zoom. I got 90% through my LLC forms on Legal Zoom a couple of years ago before I realized that many of the forms were misleading. For example you don't need a registered agent (at least in my state I can do it myself as long as I have a postal address). Legal Zoom made it sound like I needed to pay them $60/year to get one or go find a lawyer myself. My state has a very good web site with all the forms I needed and explanations (pros/cons/etc of different methods/answers) were easy to find with google. The total cost was about 1/2 what legal zoom charged (or about 1/4 if I used their other services like a registered agent)

[treestar]

13. I've done it as attorney

Agree it is easy but read up on it and understand the corp is its own person and not you. Separate corporate finances from yours. You'd probably want to get an attorney for an LLC agreement.

There is a tax thing to do too for either to get pass through taxation. Best of both worlds. You pay all the tax and the corporation none. Evil corporation!

[lumberjack_jeff]

14. LLC, yes and we did it ourselves.

Some people suggest Delaware as a state in which to incorporate, but we did it in our home state.

It wasn't terribly expensive, but you need to keep up with the annual paperwork, including filing the signed minutes of your LLC's annual meeting.

[taught_me_patience]

16. It really depends on the projected size of the biz and your assets you want to protect

I'd say that if the projected biz is <100k yearly revs, then don't even bother incorporating
If the biz is 100-500K yearly revs, and a single shareholder, then legal zoom would probably be ok
If the biz is projected to be greater than 500k in yearly revs, then use a lawyer.

If you have substantial assets (>100K) you'd like to protect, use a lawyer. If you have any partners that will be shareholders, use a lawyer and get a good accountant.

One last thing, if your business is in California, it is tempting to incorporate in Nevada to avoid paying the Franchise tax of $800. DON'T DO IT. It will be a complete waste of money and you'll have almost 0 limited liability protection. California courts don't look kindly on businesses trying to avoid paying the franchise tax.

I incorporated through a lawyer and it cost about $1,200. It was an extremely easy process and I'd probably repurpose the forms if I created another entity.

[nadinbrzezinski]

18. We went though legal zoom

It is quite painless that way and they will also do the necessary checklist of what you need to file yourself regardless.

[pa28]

21. Get your accountant to help you.

He only charged me an hour for explaining the basics and providing all the paperwork I needed.

Also, when tax time came around we were on the same page.