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Do I Need a Lawyer to Start an LLC?

Do I Need a Lawyer to Start an LLC

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Did you know that it only takes six days to start a business in the US? However, 90% of startups fail, so you want to make sure all your ducks are in a row before you jump in.

Many entrepreneurs find peace of mind by consulting with a legal professional, as they know the ins and outs of the law. However, there’s a difference between wanting a lawyer’s assistance and needing it due to requirements.

So here’s a question you might have on your mind: Do I need a lawyer to start an LLC? Read on to find out.

Do I Need a Lawyer to Start an LLC?

Legally speaking, you don’t need a lawyer to start an LLC. So Can you start an LLC by yourself? Yes!

Here are the reasons why you can go solo, even though it may be a little more challenging without the help of a legal professional.

There Are Online Resources

Each state has an online portal with straightforward instructions to register an LLC. This includes information about fees and forms.

Also, there are companies that offer step-by-step guidance so you don’t make any mistakes. In fact, ones like Business Anywhere can handle the registration process for you. We have a free business registration service where you only pay the state fee, so that’s a very affordable option for entrepreneurs.

It’s a Simple Structure

LLCs are specifically designed to be simpler to set up and run compared to other business structures. It doesn’t take that much work since there are only a few main steps:

In most states, you’ll be required to file ongoing reports for your LLC. However, they require minimal effort, so maintaining compliance should be manageable without legal help.

The Relevant Documents Are Widely Available

In the above section, we mentioned the articles of organization and operating agreement. These may sound like complicated documents that a lawyer needs to write up, but that couldn’t be further from the truth.

In reality, there are many resources that provide free or affordable templates for basic agreements and other necessary documents. This makes it so much easier to meet compliance standards.

There Are Huge Cost-Savings

As you might already know, hiring a lawyer can be costly. Their fees can reach hundreds or even thousands of dollars, even for tasks that are relatively simple in the LLC setup process.

By handling the filing and paperwork yourself, or with a professional like Business Anywhere, you’ll keep startup costs lower. This can be especially helpful if you have a tight budget.

Why You Might Need a Lawyer’s Help

Can you form an LLC without a lawyer? Yes, but as you can see from the above sections, there are quite a few moving parts involved and you may not have the knowledge and/or energy to deal with everything.

Below are some reasons why you might need a lawyer’s help.

Complex Partnerships

If your LLC will have multiple members, then a lawyer can help you draft a customized operating agreement that clearly defines everyone’s rights, obligations, and profit shares. This can prevent misunderstandings and legal conflicts later on, especially if ownership and involvement aren’t split equally.

Specific Industry Regulations

Some industries have specific legal and regulatory requirements, and these may affect your LLC’s structure. Having a lawyer who understands these regulations can give you full confidence knowing that you’ll be safe from potential penalties or compliance issues in the future.

Protecting Intellectual Property

If your business involves intellectual property, a lawyer can assist in securing and protecting your assets. For example, they can help you register trademarks and copyrights so your unique elements are under legal protection.

Attracting Investors

Do you want to get external funding or bring in more investors? Then a legal expert can help you draft investment agreements and negotiate fair terms. This can prevent others from taking advantage of you.

High-Risk Businesses

There are certain industries where you may face higher liability and compliance risks, such as construction, financial advisory, and healthcare. It can be beneficial to have a lawyer structure your LLC and operating agreement in a way that’ll minimize potential personal liability. They can also ensure that your LLC is fully compliant with industry-specific regulations.

Entering Significant Contracts or Leases

Having a lawyer review the terms of major contracts or lease agreements is always a good thing. They might help you avoid unfavorable clauses or costly liabilities. In addition, they’ll be your advocate and get better terms with greater protection.

Start an LLC Today

If you’ve been asking, “Do I need a lawyer to start an LLC?” then the answer is “No.” For most people, it’s a straightforward process that they can navigate on their own. Having a lawyer’s assistance can be nice, but it’s not necessary, nor is it required by law.

Of course, if you still don’t want to handle the paperwork yourself, we’re here to do the work for you. You’ll free up time and energy, and you won’t have to pay hefty lawyer fees to start your LLC either.

Sign up with Business Anywhere to start using our affordable services now. In addition to a free business registration service, we have competitively priced virtual mailboxes too.

About Author

Picture of Rick Mak

Rick Mak

Rick Mak is a 30-year veteran businessman, having started, bought, and/or sold more than a dozen companies. He has bachelor's degrees in International Business, Finance, and Economics, with masters in both Entrepreneurship and International Law. He has spoken at hundreds of conferences around the world during his career on entrepreneurship, international tax law, asset protection, and company structure. Business Anywhere Editorial Guidelines

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