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. One common question many ask is, do I need a lawyer to start an LLC?
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:
- Naming your business
- Filing the articles of organization
- Creating an operating agreement
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.
