Is D.I.Y The Way To Go For LLC Formations?
Limited Liability Companies (LLCs) are one of the most common, and easiest to set up, business entities. Consisting of at least one member, LLCs protect you against personal liability and safeguard your personal assets. This means that, in case your LLC goes bankrupt, none of the members will face any personal losses.
Owing to the flexibility, convenience, and low tax incentives, you may be one of the many people looking to form an LLC.
A quick internet search may lead you to various websites claiming to provide affordable, efficient, and easy-to-set-up LLC formations online. The Do-It-Yourself route may seem low-stress and less expensive, but is it a viable option for you? Let’s find out.
Every state’s requirements for setting up an LLC may differ. Knowing the regulations before you begin is the first step to ensuring the ideal outcomes. These are the general requirements you need to meet in Texas:
· Selecting the name
· Designating a registered agent for your LLC
· Acquiring the name and signature of your designated registered agent
· Filing the Certificate of Formation for your Texas LLC
· Create an Operating Agreement
· Obtaining an Employer Identification Number (EIN)
Is D.I.Y. a good idea?
Most people settling for Do-It-Yourself LLC formations are looking to save some money and complete the process from the comfort of their home. However, there may be issues you can encounter along the way and a lack of knowledge may make your business entity invalid.
While it may seem like a straightforward process, your company’s foundation should be laid in solid, legal ground.
Some of the problems you may encounter are discussed below.
Improperly drafted documents
While LLCs may be less likely to present administrative burdens, filling out the wrong paperwork or forgetting to include certain core documents can be detrimental.
These basic formation documents may include Intellectual Property (IP) assignments, vesting documentation, or board certifications and approvals. Failure to provide accurate documentation—or forgetting to provide it entirely—can create hiccups along the way.
Lack of legal advice and solutions
Setting up an LLC requires you to meet various legal requirements depending on the state you’re in. You may think that foregoing the help of a licensed legal attorney won’t impact the process, but there are several steps along the way where an attorney can help you.
Since online LLC formation service providers aren’t law firms, they can’t provide the legal advice you need to set up your company. This results in a lack of customized documents and standard procedures that may not cater to your needs. These weaknesses will be particularly difficult to manage when you’re looking to sell your LLC.
It can be doubly expensive
Many people think using online firms to set up their LLC will be a cheaper alternative than working with an attorney. However, the mistakes you make along the way and the drawn-out process ends up costing you a lot more than you’d signed up for.
The charges for Registered Agent Services, for instance, are required for a longer period and can end up wasting money over time.
Work with us for seamless LLC formations
Mike Massey Law can assist you throughout the process of setting up your limited liability company. Our attorneys have extensive experience as probate attorneys, living trust lawyers, and estate planning attorneys, equipping them with the knowledge and skills to cater to your needs.
You don’t have to spend thousands of dollars on your company’s formation. We offer a free 10-minute initial consultation along with various benefits and packages, all while completing the services in just 3 business days!
For prompt, convenient, and expert LLC formation services, get in touch with us at 888-407-2407.