I want to have an LLC.

[Ready2bfamous]

I want to file for a business but won't get a lawyer. I know I can do this myself, can anyone walk me through this? I would like to file in Nevada. Thanks in advance

 

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[Darkside]

I want to file for a business but won't get a lawyer. I know I can do this myself, can anyone walk me through this? I would like to file in Nevada. Thanks in advance

That's a big mistake in my opinion. You should definitely consult a lawyer before you start your business. You might think you know what you want but lawyers are more familiar with the legal and tax codes than you are and would therefore help you to structure your business in the right way so as to avoid paying too much taxes.

Keep in mind that once you declare your business as an LLC, you cannot change it's status for at least 5 years so if you make the wrong decision you will be stuck with it for 5 years and the first 5 years of a businesses existence are the most important. The money spent consulting a lawyer is well worth it considering the cost of future taxes and other fees which your business will incur if you try to do this on your own and screw it up.

Even if you wanted to select an LLC, there are different ways to be taxed as an LLC. You can be taxed as an S Corp, or you can be taxed as a partnership; both of which carry different fees and restrictions.

 

[GlobalWealth]

I want to file for a business but won't get a lawyer. I know I can do this myself, can anyone walk me through this? I would like to file in Nevada. Thanks in advance

I agree with Darkside here. I have found with my clients that in many cases they cut corners in all the wrong places, like company formation/registration. There are too many things you can screw up here that can cost you a lot of money in the long run. If you don't understand the different options for taxation, the benefits of registration in some states, or the negatives for others, or a proper operating agreement, this is not a DIY project.

However, I will disagree with Darkside on one point, you don't necessarily need a lawyer. Just because they have JD after their name doesn't guarantee they are smart. It only means they had the tuition for 3 years. I have fixed many mistakes made by lawyers.

 

[Ready2bfamous]

Ok. I will go ahead and scope a lawyer out.

 

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[clee4]

My and my partners started an LLC without a lawyer. We're also based in NV. The initial registration is pretty easy and can be done without a lawyer. For Nevada, you only need to file an initial registration application and once you're approved, you will have to file an initial members list. That's basically it for us. The only time we're involving a lawyer is to review our operating agreement and any other miscellaneous documents.

Personally, you really don't need a lawyer to register, but I would highly suggest one to help you with the operating agreement and to help you sort out whatever paperwork you need to keep yourself in good standing. PM me if you need more info on what we did.

 

[Darkside]

My and my partners started an LLC without a lawyer. We're also based in NV. The initial registration is pretty easy and can be done without a lawyer. For Nevada, you only need to file an initial registration application and once you're approved, you will have to file an initial members list. That's basically it for us. The only time we're involving a lawyer is to review our operating agreement and any other miscellaneous documents.

Personally, you really don't need a lawyer to register, but I would highly suggest one to help you with the operating agreement and to help you sort out whatever paperwork you need to keep yourself in good standing. PM me if you need more info on what we did.

He doesn't need a lawyer to file but he should consult one just to gain as much knowledge about the different taxes and fees he'll have to pay in his state and also to review his operating agreement as you pointed out.

 

[Darkside]

I agree with Darkside here. I have found with my clients that in many cases they cut corners in all the wrong places, like company formation/registration. There are too many things you can screw up here that can cost you a lot of money in the long run. If you don't understand the different options for taxation, the benefits of registration in some states, or the negatives for others, or a proper operating agreement, this is not a DIY project.

However, I will disagree with Darkside on one point, you don't necessarily need a lawyer. Just because they have JD after their name doesn't guarantee they are smart. It only means they had the tuition for 3 years. I have fixed many mistakes made by lawyers.

Of course, he should also learn as much as possible about the taxes that affect him and other laws affecting his business but he should consult a lawyer because there's a good chance that the lawyer will know more about the subject than him. Just as it's possible to self diagnose your own illness but it's better to go to a doctor because they tend to know far more about the human body and have more experience treating people.

 

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[clee4]

He doesn't need a lawyer to file but he should consult one just to gain as much knowledge about the different taxes and fees he'll have to pay in his state and also to review his operating agreement as you pointed out.

agreed....forgot about the taxes and fees too. good catch. :smxB:

 

[CoMp1eX]

Keep in mind that once you declare your business as an LLC, you cannot change it's status for at least 5 years so if you make the wrong decision you will be stuck with it for 5 years and the first 5 years of a businesses existence are the most important. The money spent consulting a lawyer is well worth it considering the cost of future taxes and other fees which your business will incur if you try to do this on your own and screw it up.

Is this true? In all states?

 

[Smooth]

If you decide to skip the lawyer, which is your choice, at least go with legalzoom.com as opposed to personally filing them yourself. It will streamline the process and allow you to be certain that you filed correctly.

 

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[Darkside]

Is this true? In all states?

Yes, the 5 year rule applies to all states because it's a federal law. The IRS has the same laws for every state since it's controlled by the federal government; the only differences between states is state and local taxes which a lawyer in your city can also help you navigate.

 

[Ready2bfamous]

Thanks you guys!

 

[GlobalWealth]

My and my partners started an LLC without a lawyer. We're also based in NV. The initial registration is pretty easy and can be done without a lawyer. For Nevada, you only need to file an initial registration application and once you're approved, you will have to file an initial members list. That's basically it for us. The only time we're involving a lawyer is to review our operating agreement and any other miscellaneous documents.

Personally, you really don't need a lawyer to register, but I would highly suggest one to help you with the operating agreement and to help you sort out whatever paperwork you need to keep yourself in good standing. PM me if you need more info on what we did.

He needs competent advice (as did you) when forming your company. Do you know the differences and benefits in registering in NV vs. DE or WY? What about in CA or IL? Do you know the tax implications? Did you know you can save an enormous amount of tax dollars by segregating assets out of your company and registering another 'equipment leasing company' in another state?

There are 2 main considerations when registering and LLC; the state of registration and the operating agreement. Do you know what makes a good operating agreement? I have reviewed operating agreements written by lawyers that were complete junk. As far as legalzoom, I wouldn't use them if you paid ME the fee.

Do you know which states recognize charging order protection by statute? Do you know why that is good or bad? Yet another reason you need competent advice.

Anyone with a computer can fill out the forms to register and LLC. But that doesn't mean you did it properly.

 

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[GlobalWealth]

Of course, he should also learn as much as possible about the taxes that affect him and other laws affecting his business but he should consult a lawyer because there's a good chance that the lawyer will know more about the subject than him. Just as it's possible to self diagnose your own illness but it's better to go to a doctor because they tend to know far more about the human body and have more experience treating people.

What I am trying to get across is a lawyer is not always the best bet. They aren't business people. Ironically, I get lawyers calling me all the time asking for advice on proper company structure. Just because they have a JD doesn't make them smart.

 

[clee4]

I'll agree that he needs competent advice, but those questions you asked, the answers can easily be found online. I do know the difference and benefits in forming a LLC in each of those states as well as the tax implications. As for segregating assets, I also knew that aspect because I took the time to do the research and read before we started the company.

As for the operating agreement, I wrote it, not my lawyer. I had the lawyer check it to see if it was solid. I didn't use legalzoom. Believe me, I know I don't have all the answers and I probably don't have the experience you do in creating LLCs, but I did enough reading and research until I was confident I did it properly and registered in the right state.

Could I have used a lawyer that specializes in this area? Yes, but I thought I would get more out of it if I learned most of the ins and outs myself. I think when I get into an area I don't understand, I will seek the advice I need, but so far everything I've encountered has been pretty straightforward.

He needs competent advice (as did you) when forming your company. Do you know the differences and benefits in registering in NV vs. DE or WY? What about in CA or IL? Do you know the tax implications? Did you know you can save an enormous amount of tax dollars by segregating assets out of your company and registering another 'equipment leasing company' in another state?

There are 2 main considerations when registering and LLC; the state of registration and the operating agreement. Do you know what makes a good operating agreement? I have reviewed operating agreements written by lawyers that were complete junk. As far as legalzoom, I wouldn't use them if you paid ME the fee.

Do you know which states recognize charging order protection by statute? Do you know why that is good or bad? Yet another reason you need competent advice.

Anyone with a computer can fill out the forms to register and LLC. But that doesn't mean you did it properly.

 

[GlobalWealth]

I'll agree that he needs competent advice, but those questions you asked, the answers can easily be found online. I do know the difference and benefits in forming a LLC in each of those states as well as the tax implications. As for segregating assets, I also knew that aspect because I took the time to do the research and read before we started the company.

As for the operating agreement, I wrote it, not my lawyer. I had the lawyer check it to see if it was solid. I didn't use legalzoom. Believe me, I know I don't have all the answers and I probably don't have the experience you do in creating LLCs, but I did enough reading and research until I was confident I did it properly and registered in the right state.

Could I have used a lawyer that specializes in this area? Yes, but I thought I would get more out of it if I learned most of the ins and outs myself. I think when I get into an area I don't understand, I will seek the advice I need, but so far everything I've encountered has been pretty straightforward.

This only tells me you haven't been tested in court. I hope it holds up when you get your first $1m lawsuit.

 

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[Darkside]

What I am trying to get across is a lawyer is not always the best bet. They aren't business people. Ironically, I get lawyers calling me all the time asking for advice on proper company structure. Just because they have a JD doesn't make them smart.

Of course. I know that lawyers specialize in certain areas. That's why you don't seek just any lawyer, but rather one that specializes in helping businesses. There are subsets even within that category of business lawyers. Some lawyers specialize in lease agreements; so if I need to lease some property I will seek out one of those. Some lawyers specialize in drafting business contracts, so if I need an operating agreement or other types of contracts, I will seek one of them out. It's actually best to find a law firm that has all the different types of lawyers you need for business and pay them a retainer so that you can go to them for whatever you need and not have to pay additional money for their services; you just pay a monthly fee like $100 or more.

 

[clee4]

This only tells me you haven't been tested in court. I hope it holds up when you get your first $1m lawsuit.

i just started my company 2 months ago so im still relatively new to everything, but always willing to learn and i was just posting through personal experience. on that note, i honestly want to know what the best approach to creating an llc is from your stand point, because i do not even want to think about lawsuits at the moment. step by step what should i be doing? i did a lot of reading and i thought i was doing it correctly, but apparently im mistaken. thanks in advance.

 

[hatterasguy]

If your seriosuly trying to run a company you should have at least a lawyer and accountant on your advisory team.


Don't cut corners on business advice, get the cheaper business cards and t shirts insted.

 

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[GlobalWealth]

i just started my company 2 months ago so im still relatively new to everything, but always willing to learn and i was just posting through personal experience. on that note, i honestly want to know what the best approach to creating an llc is from your stand point, because i do not even want to think about lawsuits at the moment. step by step what should i be doing? i did a lot of reading and i thought i was doing it correctly, but apparently im mistaken. thanks in advance.

If I gave away all of my knowledge, I wouldn't be in business.

 

[Rem]

I think it would be wise to consult a tax accountant as you form your LLC. My sister is a lawyer specializing in business litigation and she would be good to have in certain situations but not in forming the LLC.

It can't hurt to consult anyone with sound advice.