Choose Wisely: Forming an LLC Using LegalZoom or Corpnet versus Hiring a Lawyer
Should I Form an LLC with LegalZoom, Corpnet, or Hire a Lawyer?
When considering the formation of a Limited Liability Company (LLC), the decision to use a service like LegalZoom or Corpnet versus hiring a lawyer can be overwhelming. Various factors come into play, such as the complexity of your business, costs, time requirements, and the need for ongoing legal support. Here, we will examine these factors in depth to help you make an informed decision.
Complexity of Your Business
Simple Structures
If your business structure is straightforward and you have a solid understanding of the basics involved in forming an LLC, services like LegalZoom or Corpnet can be both cost-effective and efficient.
Complex Needs
Cost Considerations
Online Services
Online services like LegalZoom and Corpnet typically offer lower prices for basic LLC formation services. These packages often range from $50 to a few hundred dollars, depending on the specific package you choose.
Lawyer Fees
Hiring a lawyer can be more expensive, typically starting at a few hundred dollars and increasing based on the complexity of your needs. This can vary widely depending on the lawyer's experience and the specific legal work required.
Time and Convenience
DIY Services
Online platforms often allow you to complete the process quickly and at your own pace. This can be advantageous if you prefer to handle the paperwork and filings yourself.
Legal Expertise
On the other hand, a lawyer can handle the paperwork and filings for you, saving you significant time. Additionally, an experienced lawyer can help you avoid common mistakes and provide guidance on complex legal issues.
Ongoing Support
Customer Support
Online services may offer limited customer support for ongoing legal questions. While they can provide basic guidance, they may not be able to offer the comprehensive and personalized advice you need.
Legal Counsel
A lawyer can provide ongoing legal advice as your business grows and changes. This can be invaluable, especially when you encounter new legal challenges or significant business transitions.
Conclusion
For straightforward LLC formations, using an online service like LegalZoom or Corpnet can be a good option. However, if you anticipate needing legal advice beyond just forming the LLC or have specific concerns, consulting with a lawyer might be the better choice.
Additional Considerations: One Person LLC vs. Multiple Owners
For a one-person LLC, using an online service can be perfectly fine. I personally prefer these services, having no affiliation with them.
For companies with more than one owner, whether current or anticipated in the near future, it is generally advisable to hire an attorney to help draft the Operating Agreement among and between the owners. The one-page Operating Agreement provided by online services often lacks the depth and detail needed for thorough legal protections and clarifications.
Key details to consider in an Operating Agreement include:
Roles and responsibilities: Who has authority to make which day-to-day decisions or spend a certain amount without calling a vote. Dispute resolution: Which issues require a simple majority, supermajority, or unanimous vote. For example, pricing decisions versus significant business pivots. Exiting scenarios: What happens when one member dies, becomes incapacitated, or wants to leave the business. Profit distribution: How profits and losses are distributed versus reinvested.Without these critical details, your business could face unintended legal complications down the line.
Final Thoughts
Making the right choice for forming your LLC can significantly impact your business's future. Whether using a service or seeking professional legal advice, ensure you have the necessary information to protect your business and its members effectively.
-
Hidden Truths in Professions: Exposing the Dark Sides of Cleaning and IT Work
Hidden Truths in Professions: Exposing the Dark Sides of Cleaning and IT Work Wh
-
Catherine the Great and Her Royal Offspring: Investigating the True Number of Children
Catherine the Great and Her Royal Offspring: Investigating the True Number of Ch