Should I form my own LLC or use a Lawyer? - Posted by Larry

Real Estate Investing Real Estate Law
#1

Posted by phil fernandez on February 20, 2002 at 19:41:27:

Hi Dee,

Some of mine are simply named after their address. Examples : 228 Berlin St is registered as 228 Berlin St LLC. 504 Sherwood Dr. is known as 504 Sherwood Dr. LLC. 151 North St is known as 151 North St. LLC. Pretty creative eh.

Another apartment property I have is located next to the statehouse in Montpelier on a street called Terrace St. So that one is called Capitol Terrace LLC. The LLC that my cottage will be placed in will be called Blue Water LLC.

So no real rhyme or reason for the names other than the ones that I use the address. In fact when I was establishing a bunch of LLC’s a few years ago, I was sitting across from my lawyer and he asked me what I was going to call them. I just winged it on the spot. Wish I had a better answer for you on the subject.

#2

Should I form my own LLC or use a Lawyer? - Posted by Larry

Posted by Larry on February 19, 2002 at 18:12:41:

Is it hard to form your own LLC? Like if I get one of those $20 kits from Staples or Office Max? Or should I just pay the $750 and have a lawyer do it?

Thanks in advance.

#3

Re: Should I form my own LLC or use a Lawyer? - Posted by Kent C

Posted by Kent C on February 21, 2002 at 04:56:59:

Look for books made by NOLO publications. They cover many topics at a good value. They make one on LLC’s that has all docs needed and state by state info. Their books are usually $20-$50 at Barnes and Noble.

I dont know if Bronchick puts one out but he is a trustworthy source of info. If he made a book, I would trust it for value and accuracy.

Kent C

#4

Re: Should I form my own LLC or use a Lawyer? - Posted by SueC

Posted by SueC on February 20, 2002 at 09:50:06:

Check with your state’s Department of State or Corporation Bureau. In many states, all the forms and instructions are online. You can also find very good how-to legal books at www.nolo.com, excellent plain-English treatments. I’d avoid the Staples route as it will be boilerplate and not likely state-specific.

BTW, in my area lawyers charge between $1,000 and $1,500. I usually charge less than that, and give my clients the forms to do it themselves after the first one, unless they decide to change their setup, in which case I review their needs for them.

#5

Re: Should I form my own LLC or use a Lawyer? - Posted by Steve-DC

Posted by Steve-DC on February 20, 2002 at 08:25:10:

Larry,

Here in DC it’s very easy to set up an LLC by yourself. You type up the paper work (2 pages), take it to a government business center, pay $100, and walk out the door.

There’s not much more too it than that.

The actual forming of it is easy. If you want any ADVICE about the entity, its advantages, disadvantages, then talk to a lawyer or accountant.

-Steve

#6

Re: Should I form my own LLC or use a Lawyer? - Posted by Brent_IL

Posted by Brent_IL on February 19, 2002 at 23:37:02:

I think forming the LLC is the easy part. The only real question is how you want to be taxed.

The hard part is the operating agreement. It may be legal, but a LLC without an operating agreement is up for grabs. A good attorney is worth more than they will charge.

After that it’s a cookie-cutter, so you will be paying for review.

Get Bronchick’s course, save money, and sleep at night.

#7

Re: Should I form my own LLC or use a Lawyer? - Posted by Rusty

Posted by Rusty on February 19, 2002 at 20:47:45:

I start mine online in Arkansas through the Secretary of State’s website. Costs $50 and I get my certificate within a week.

#8

Re: Should I form my own LLC or use a Lawyer? - Posted by William Bronchick

Posted by William Bronchick on February 19, 2002 at 20:04:20:

You should learn to do it yourself, since a lawyer will only start you off. You need to learn how to keep the proper paperwork year after year,.

A $20 kit from Officemax is worth about $20, so it isn’t a ripoff.

You most certainly shouldn’t get my valuable course, because your lawyer will go broke.

#9

Re: Should I form my own LLC or use a Lawyer? - Posted by phil fernandez

Posted by phil fernandez on February 19, 2002 at 19:58:04:

Actually forming an LLC is very simple. Would I buy a $20 kit to protect me from million dollar lawsuits. I think you already know that answer. The answer is no.

Let your attorney set up the first one. It shouldn’t cost any where near the $750 you mention. Might cost you $200 or $300.

After the first one it’ll be fill in the blanks. I’ve established about 12 of these and actually everytime I’ve used an attorney. Just makes me sleep better at night.

#10

Re: Should I form my own LLC or use a Lawyer? - Posted by Michael

Posted by Michael on February 19, 2002 at 19:32:45:

Never seen one of those $20 kits before but, if your unsure of the process, get an attorney to do it for you. Also shop around for prices. You can get it done cheaper than $750. I believe I paid $250 for mine.

Hope this helps!

Michael, KY.

#11

Re: Should I form my own LLC or use a Lawyer? - Posted by Dee-Texas

Posted by Dee-Texas on February 20, 2002 at 19:26:01:

Hi Phil,
What do you use for the name of the LLC? Since you have so many, is it by number, street? I’m not being nosey only wondering how you keep them all straight. I had to change the name of my first one because someone else had one similar, so I know it’s difficult to find a name.
Thanks,
Dee-Texas