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Who has started their own LLC?

Discussion in 'The Lounge' started by Crashby, Oct 10, 2005.

  1. Crashby

    Crashby Monkey

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    For my real estate dealings, its looking like a better and better idea to form my own company (for tax and liability reasons).

    Did you form your LLC with an attorney or on-line? If on-line, which site did you use? What were the costs?
     

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  2. SK6

    SK6 Turbo Monkey

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    Strongly strongly strongly urge you to use an attorney. The reason why is if you go the “cheap” route, it may end up being REAL expensive, and you may not have the protection you want out of an LLC.

    An attorney is also responsible for the work product, whereas an online situation, there is no interest for your well being.
     
  3. Crashby

    Crashby Monkey

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    I think on-line can run a few hundred bucks, vs. and attorney should be about a grand. Probably worth the extra cost ...
     
  4. Echo

    Echo crooked smile

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    When I was talking to attorneys before forming an S-corp, the one statement that was repeated was "lawyers make lots of money from people who try to find a cheap way to form their company."
     
  5. Heidi

    Heidi Der hund ist laut und braun

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    We started our own LLC for investments, so far, I just have it registered with the state, no articles or anything. I'm leaning towards just doing it myself without an attorney, there are A TON of examples of everything you need in real estate investment books. It's not a difficult thing, pretty much cookie cutter to set up.
     
  6. Brian HCM#1

    Brian HCM#1 MMMMMMMMM BEER!!!!!!!!!!

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    I did mine without an attorney, just need to fill out the necessary paperwork.
     
  7. MtnBikerChk

    MtnBikerChk Squeaky Wheel

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    I believe if you are a single member llc "SMLLC" you don't need a partnership agreement. If you have more than one partner, you need a lawyer to write up an agreement.

    Check the NY secretary of state website and department of revenue services for registering a new LLC.
     
  8. SK6

    SK6 Turbo Monkey

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    The percentages of successful LLC formations done on the individual basis far outweigh the bad ones. However, when it involves real estate transactions, then there are many areas of law that are encompassed in the transactions. The real question is for you to answer. Is it worth doing myself, or pay for the thoroughness that an attorney will provide?

    The point is this, if you do it yourself, you run the risk of making a mistake. This mistake may not be readily apparent, however, in the case of a cause of action that could be possibly filed in court against you, rest assured, the plaintiff will have the use of council, who will dissect your paperwork. If there is a mistake, then you personably would be liable.

    The advantages of the use of an attorney are twofold. One, an attorney does this on a regular basis, and is less likely to make a mistake that can come back to haunt you. The second is that if the attorney does make a mistake, and a deal heads south, you have legal recourse for protection.

    This does not constitute legal advice nor is this to be considered the practice of law; however, it is a discussion of legal theories involved with the particular subject matter. For addressing the specifics in any given situation, it is highly recommended you consult with an attorney.
     
  9. SK6

    SK6 Turbo Monkey

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    That disclaimer may sound like a bunch of sh*t, however, as a paralegal, it is required for my own protection. Otherwise it could be misconstrued to be the unlicensed practice of law.
     
  10. H8R

    H8R Cranky Pants

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    ANY situation? Like ,"What are we having for breakfast?"....
     
  11. SkaredShtles

    SkaredShtles I love NEWCASTLE and will ONLY drink NEWCASTLE!!!!

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    I consulted *my* attorney before taking their advice to have cereal this a.m. :think:
     
  12. SK6

    SK6 Turbo Monkey

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    Ah, please give me a moment while I confer with council.... :p


    Better safe then sorry.........

    and yes, you may want to contact your attorney about your breakfast. They may want to know why you can afford breakfast but not pay their bill! :p


    :D
     
  13. SK6

    SK6 Turbo Monkey

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    OK, here ya go, amended....

    This does not constitute legal advice nor is this to be considered the practice of law; however, it is a discussion of legal theories involved with the particular subject matter. Any opinions expressed on this subject matter discussing any legal theories is strictly the opinion of the author of this post located in this particular thread, hereinafter referred to as Sirknight6 or the alias of SK6, and does not in anyway reflect the opinions of Ridemonkey.com, its owners or family, any of it's advertisers or affiliates. Addressing the specifics in any given legal situation where the need for legal council or use of legal council may be construed as required, it is highly recommended and strongly urged, that you, (the reader of the aforementioned post) consult with an attorney.


    :p

    So what ya have for breakfast? :D
     
  14. OGRipper

    OGRipper Turbo Monkey

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    This is the way to go out here in Cali, not sure about NY. It's not so much that you "need" a lawyer to write your agreement, it's just pretty sketchy to do any kind of multi-member business deal any other way. At the very least, if you are counting on liability protection you should probably talk to a lawyer and confirm the extent of the shield. Out here it covers debts and obligations in the name of the company but does NOT protect you against your own wrongful conduct like negligence. Depending on your business it may or may not make sense. Equally important is that you talk to a tax advisor to make sure the benefits are worth the extra tax returns, annual renewal requirements, etc.

    Edit: SirKnight, as a paralegal you might make a note that it is "counsel." :D
     
  15. SK6

    SK6 Turbo Monkey

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    I could, but then it losses its humorous effect... :p

    :D
     
  16. OGRipper

    OGRipper Turbo Monkey

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    :nope: ;)
     
  17. N8 v2.0

    N8 v2.0 Not the sharpest tool in the shed

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    I had my lawyer set up the paperwork for my LLC (this is my 2nd one now).

    It is pretty standard paper work but there are changes in the law from year to year. An S-Corp is something you file with the IRS. My construction company is an LLC and I file as an S-Corp as well.

    With an LLC you have to file meeting paperwork with the shareholders even if there is only one of you to protect yourself. If you don't ans someone sues and you don't have meeting minutes, they can possibly sucessfully argue that you are not an LLC.

    Once your company is formed, you probably will have to send off to the Sec of State (for your state) to get set-up and a licence. total cost here is less than $300.
     
  18. SkaredShtles

    SkaredShtles I love NEWCASTLE and will ONLY drink NEWCASTLE!!!!

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    Somehow I can easily imagine N8 sitting in a room talking to himself and keeping notes.......... :think:
     
  19. N8 v2.0

    N8 v2.0 Not the sharpest tool in the shed

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    There are horror stories of people who thought they were protected by an LLC but weren't beause of not having meeting minutes.

    Think of it as a paperwork exercise.
     
  20. OGRipper

    OGRipper Turbo Monkey

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    N8, this is not accurate in some respects and illustrates why looking on RM for legal advice is not a good idea. Nothing personal but you should be more careful. One purpose of an LLC is to avoid a lot of the useless formalities that are required with a corporation. A properly organized LLC will have no requirements for annual meetings. Much of what you say is true of corporations, not LLCs. And yes, the "S" election is filed with the IRS but that is only a tax election, the corporation itself is registered with the Secretary of State.

    "My construction company is an LLC and I file as an S-Corp as well." Unless you have two separate entities (one LLC and one S-corp) I think you are using the terminology incorrectly, or at least loosely.
     
  21. N8 v2.0

    N8 v2.0 Not the sharpest tool in the shed

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    Yes, I am probably using terms loosly since I have an att'y and an accountant to work these issues and keep me straight so I can worry about the real business of my company which is building stuff.

    These are two people every company needs to have!
    :D
     
  22. Crashby

    Crashby Monkey

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    I just met with my new tax accountant, and he mentioned that an S-corp may be beneficial because of the FICA tax implications, but since I plan on using 1031 exchanges for almost all of my proceeds going forward, I might as well stick with the LLC... let the fun begin! :rolleyes:
     
  23. Ciaran

    Ciaran Fear my banana

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    I can see N8 getting into an argument with himself at the board meeting... and losing. :D
     
  24. beestiboy

    beestiboy Monkey

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    Get the lawyer it is a way to make another contact and a potential business opportunity. Everyone needs to make a buck even Lawyers (i know its hard to admit that one) Just think of it as a networking opportunity and the pain of the extra money goes away.