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Should I hire a Lawyer to file my LLC in NY?

Discussion in 'Business & Tax Advice' started by TeKn1qu3z, Jan 15, 2015.

  1. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    Hi,

    I'm currently trying to LLC my company here in NY. I read a lot online and was wondering if anyone had specific experience with this. Do you guys advise that I get a lawyer?

    Basically, my company is in the service industry. We provide online services to individuals, small businesses, and big corporations.

    So far, everything has been done under my own name which has been okay, but things have been really expanding and we need the LLC now.
     
  2. keevio

    keevio Newbie

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    You can file for an llc yourself pretty easy. Lawyer is going to do the same thing for a lot of money. I have 4 llc's and set them all up my self pretty easy .
     
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  3. java

    java Guest

    Why would you want to pay someone for filling out forms that you can do yourself. The lawyer will ask you the questions, take notes, then have his/her secretary fill in the forms. Makes no sense to pay someone to do this.
     
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  4. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    You probably want an accountant, not a lawyer. Unless you're doing something like Breaking Bad.
     
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  5. Kelowna

    Kelowna Regular Member

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    Why an llc? why not form a Corp? way more protection and tax savings.
     
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  6. ZumsBus

    ZumsBus Junior Member

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    save your money and do it yourself, it should be really easy!
     
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  7. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    I've never filed an LLC in New York State but have done them in New Jersey, Delaware and Florida and I've never done it without paying an attorney.

    For the couple of dollars it costs to pay a professional, you make sure all your T's are crossed and all your I's are dotted and if there is a mistake they handle it for you.

    BTW, I've formed no less than 30 LLCs over the years and never even thought it wise to not hire an attorney to make sure I was covering my backside.
     
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  8. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Call Saul Goodman In New Mexico. Guy's good. Really good.
     
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  9. Disloyal

    Disloyal Jr. VIP Jr. VIP

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  10. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    Any of you guys have any experience with how employees work? I'm hiring a lot of overseas employees. Is there an international W2 or something similar? Same question for USA employees.
     
  11. goodtimes

    goodtimes Power Member

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    I've done it myself through an online service and had an attorney do it, in a different state but most states are similar. The attorney was $3k. Using mycorporation was $400. Use mycorporation for legal zoom if you want some guidance and to save a few thousand.
     
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  12. Raudhri

    Raudhri Newbie

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    But that's wrong on both counts, isn't it? Pass-through taxation is one of the biggest benefits of an LLC, while double taxation is one of the biggest disadvantages of a corporation. As for protection, where a corporation is limited to full limited-liability protection, a LLC offers an additional layer of liability protection that shields the business from personal lawsuits.
     
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  13. Raudhri

    Raudhri Newbie

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    I think you only really need to consult an expert in the formation of a LLC when you are dealing with multiple companies, a large amount of money/assets or if you're dealing with something out of the ordinary. Even then, you should only hire the attorney to review your structure and write out the more complex agreements that you aren't capable of doing yourself. Since you're saying that you're only forming one LLC, I'd say that you wouldn't really need an attorney (based on the information in your post).
     
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  14. hashminer

    hashminer Newbie

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    I used legalzoom to file my llc in FL. I looked into filing my own paper work but it was just way easier to pay the couple hundred bucks and sign some paper work.

    If you are running a business with some income coming in you will definitely want an accountant. I tried handling my own taxes (local and federal) my first year and messed up one little thing in my tax return. The irs came at me full force and I now get audited every year. Kinda like once you get on their radar you never get off.
     
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  15. Bestcreaters

    Bestcreaters Power Member

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    lol u beat me to it
     
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  16. zebrahat

    zebrahat Elite Member

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    If your business is somewhat simple and you are mainly interested in just having a liability shield (the entity name, instead of your name on contracts), do it yourself as many here have suggested.

    In fact, if you are not physically "doing business" in the state (defined in the law as doing concrete things like renting an office, hiring employees, advertising in the entity name, etc), as an online service you should consider filing the LLC in Delaware, which has a simpler process, and may get you out of unnecessary fees NY may gouge you for. Why pay extra hundreds to advertise your LLC's existence in a state if you're not technically "doing business" there, but nationally?
     
  17. sully1975

    sully1975 Jr. VIP Jr. VIP Premium Member

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    What state are you really located in?

    Most of the hoopla for being an out of state entity and foreign filing to whatever other state is 99% never ever needed.

    NOLO has a series of books that are really good, even one a few years out of date works.
    http://www.nolo.com/legal-encyclopedia/limited-liability-company

    If you are in the states, you will have a local SBDC near you. They work for free since they are paid in tax dollars already. So if you are in NY State, you look up NY SBDC and found a chapter near you and they have accountants and sometime lawyers who have filed thousands of entities.
    http://www.nyssbdc.org/

    The biggest hurdle with most LLCs, is no one fills out the operating agreements, since most states technically don't require them. But get into legal trouble and not have one and the judge gets to determine how you should operate instead of how you said you would/should have. There are actually affordable services that do nothing but llc agreements.

    LLCs are extremely adaptable entities. They can be taxed as pass through by default, or they can elect S or even C corporation elections. But the biggest minefield is no one fills out the operating agrrement for a LLC-c.
     
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    Last edited: Jan 18, 2015
  18. Raudhri

    Raudhri Newbie

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    This, many states have more advantageous laws than others. Like zebrahat said, Delaware is an excellent state. Virginia and Nevada would also be worth considering, since you operate on the net.
     
  19. Raudhri

    Raudhri Newbie

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    sully also has a point, I would consider an operating agreement essential to setting up a LLC. There are also many resources on the internet on how to properly set up a LLC, as well as what you should know as a member of a LLC.
     
  20. sully1975

    sully1975 Jr. VIP Jr. VIP Premium Member

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    I can understand a startup or operating on a shoestring budget. But I really think people should consider an attorney at some part of their business for some things. I have had my worst few years the last half decade ever.

    Local Business and or law schools may have a law/accounting/business student who is over seen by a professor to assist you. There are also barter clubs (several of them nationally, regionally, and locally) if you are broke or just don't want to spend the capital.

    I am just trying some creative thinking for us rabbit ear pant pocket people (aka broke).