Forming an LLC

[stevew]

is this something I really need a lawyer for? The buisiness is fairly straightforward and I will be the only employee. Basically I exist as s SP right now. My major goal in this is to gain firmer standing as a non employee to our general contractor. Otherwise I may have to pay about 5 grand in workers comp to prove I'm independent. Any thoughts?

[Galaxy]

What state do you live in?

[stevew]

PA

[RainMaker]

It should be easy enough to do on your own. The forms are typically through the Secretary of State. Should just be a form, some money, and that's it. Here is the page I found there that should get you going.

Enterprise

[path12]

Two things make me lean towards the consulting with a lawyer angle:

1) The lack of responses in the thread.

2) You mean you're not willing to shell out $100 to save $5,000?. This is what lawyers are for.

I don't have an answer BTW. I formed a LLC with some guys about 10 years back (only lasted a couple years), but we ran it through a lawyer.

EDIT: Presto -- the FOFC patented cross-posted opposite advice!

[gkb]

Don't be scared, lawyers are your friends.

[RainMaker]

I created mine on my own 4 years ago. When we switched to an S-Corp we used an accountant. The LLC formation is literally just a form and a check.

[Tekneek]

If the LLC is just you, it is not a big deal.

Where you might want a lawyer involved is if you have multiple partners, where you have to make sure you define how somebody can sell their portion, how individuals can be bought out, etc. That can be very complicated and you want to make all of those issues are clearly defined from the start (or you could potentially find yourself in litigation later on).

[Galaxy]

Originally Posted by Tekneek

If the LLC is just you, it is not a big deal.

Where you might want a lawyer involved is if you have multiple partners, where you have to make sure you define how somebody can sell their portion, how individuals can be bought out, etc. That can be very complicated and you want to make all of those issues are clearly defined from the start (or you could potentially find yourself in litigation later on).

In partnerships cases, do you think everyone should have their own lawyers?

[Young Drachma]

I used Legalzoom.com for the last company I set up. Saved me about $6,000 more than the first time I used a lawyer to set up two firms and they basically did the same thing. Depends on the specifics of your bylaws, but save for that...I wouldn't find a lawyer unless s(he) was giving you a good deal.

[Tekneek]

Originally Posted by Galaxy

In partnerships cases, do you think everyone should have their own lawyers?

I don't think it goes that far. If I was forming an LLC with people who wanted their own legal representation at the forming of the company, I would reconsider my intentions.

There are many complicated issues when you get a bunch of people involved, mainly dealing with how partners can leave the LLC (selling their portion to someone outside, being bought out by the other members, management methods, etc). You can easily find a failure in this area if you look at Atlanta Spirit, LLC. They have been mired in litigation since they tried to remove a partner. This has caused lots of problems for them.

[Mustang]

Originally Posted by Tekneek

If the LLC is just you, it is not a big deal.

Where you might want a lawyer involved is if you have multiple partners, where you have to make sure you define how somebody can sell their portion, how individuals can be bought out, etc. That can be very complicated and you want to make all of those issues are clearly defined from the start (or you could potentially find yourself in litigation later on).

Agree with this.

All depends on what you are wanting to do really. I own a LLC and for my purposes, an accountant helped me with any questions I had. But, it is just me and the wife doing sales.

[JonInMiddleGA]

Originally Posted by Galaxy

In partnerships cases, do you think everyone should have their own lawyers?

What I think is that my lawyer ought to just draw up everything. Of course unless my partners are complete idiots then they likely think the same thing.

Having an attorney that's associated in any way, shape, or form, with one of the principles draw up partnership agreement is foolhardy (unless you're the principle with the edge). It'd be like letting your future wife pick the lawyer to draw up the pre-nup.

[miked]

I just started an LLC a few weeks ago and it was fairly simple. In GA all you need is to register with state. We did end up converting it to a C-corp which did require a lawyer, but it's a different deal. If it's just you, there's really no need. If you are going into it with people, even friends, you need some sort of protection. I would ask around as most lawyers will do the paperwork for <$400 and it could save you in the long run.

I'll also second the legalzoom if you just want some boilerplate stuff.

[stevew]

As far as taxes for the LLC go, you just send in quarterly, and then if you're the only person in the company you can just schedule C it w/ the rest of your stuff? Is it seriously that easy?

I have a job, which im currently an independent contractor for, get paid every 2 weeks. The options are to send in for workers comp(something like 2000, I was mistaken on the 5k thing), or to form an LLC and me as the general partner can opt out. As a sole proprietor I can also just opt out, but the company is being fruity about stuff and I'm getting like zero help from them. So whatever, I'll start the Michael Scott Driving Company.

Basically I run a delivery route every night, i gross about 50 cents per mile, after the federal mileage deduction I turn no profit. From the IRS deduction reading I've done, I can still claim this deduction if I'm the only one in my LLC.

There will never be anyone else in the LLC, it's just for appearences and to get the companies stooge lawyer off my case, and to keep my present contract(job, whatever the fuck it's classified as today)

Anyways, sorry for the ramblings, appreciate any help.