Best/easiest/cheapest way to set up an LLC?

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justincredible's avatar

justincredible

Nick Mangold

32,056 posts
Mar 6, 2010 5:59 PM
I know that I'm not gonna hit all three of those criteria with one option but I just wanted to get some advice from people who have set up an LLC for themselves before.

Is LegalZoom a good option? They seem legit and is only $149 for the basic package.

I should have taken care of this a while ago but I tend to procrastinate.
Mar 6, 2010 5:59pm
G

Gameover

Senior Member

150 posts
Mar 6, 2010 6:44 PM
A local attorney can handle it for you fairly cheap.
Mar 6, 2010 6:44pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Mar 6, 2010 6:53 PM
It is fine to use legalzoom, if you are forming an LLC in Ohio there may be forms online if you want to save $50 or so, I know in the Commonwealth of Virginia there are basic forms from the State Corporation Commission that anyone can download and file on their own, even though some (IMO unethical) attorneys charge upwards of $500 a year to do nothing more than act as registered agent - an act that takes about 5 minutes a year.

Forming the LLC is just a matter of filing a 'certificate' (or 'articles' in some jurisdictions) of formation. No need for bylaws or any other formality other than a basic operating agreement which doesn't even need to be filed with the state. Even if there is no intention of hiring employees it isn't a bad idea to go ahead and get an EIN from the IRS. It is free and easy to do online (and again, something some attorneys charge hundreds of dollars for 5 minutes of work).
Mar 6, 2010 6:53pm
wes_mantooth's avatar

wes_mantooth

Tomfoolery & shenanigans

17,977 posts
Mar 6, 2010 6:58 PM
Legalzoom is supposedly legit. I know a few that have used it and said it was idiot proof.
Mar 6, 2010 6:58pm
LJ's avatar

LJ

Senior Member

16,351 posts
Mar 6, 2010 6:59 PM
Legalzoom is the way to go.
Mar 6, 2010 6:59pm
ytownfootball's avatar

ytownfootball

Bold faced liar...

6,978 posts
Mar 6, 2010 7:00 PM
I set one up several years ago on-line, it was reletively painless, cost about $400. EIN isn't a bad idea either. I can't remember though, one took some time (several weeks).
Mar 6, 2010 7:00pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Mar 6, 2010 7:01 PM
Apparently Ohio runs its business entities via the Secretary of State, and not through a special corporations commission, here is the LLC form:

http://www.sos.state.oh.us/SOS/Upload/business/forms/533a.pdf

You don't need an attorney to serve as registered agent, although I find it interesting in the instructions it wasn't listed as an option. I suppose 50 states have 50 different methods. Looks like the filing fee is $125, which is typical. Again you can do it yourself and forego the extra cost, but if legalzoom or another provider is worth paying a little more to take care of it then that's an understandable option.
Mar 6, 2010 7:01pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Mar 6, 2010 7:02 PM
" I can't remember though, one took some time (several weeks). " [speaking of EINs]

The process has been incredibly streamlined, years ago it was like pulling teeth. Now it is literally a matter of 5 minutes of data input online on the IRS website, you get the EIN immediately in pdf form that you can save.
Mar 6, 2010 7:02pm
ytownfootball's avatar

ytownfootball

Bold faced liar...

6,978 posts
Mar 6, 2010 7:06 PM
^^^Must have been the EIN then, wasn't a big deal, just red-tapish^^^
Mar 6, 2010 7:06pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Mar 6, 2010 7:10 PM
The IRS being red-tapish? You could have fooled me!
Mar 6, 2010 7:10pm
ytownfootball's avatar

ytownfootball

Bold faced liar...

6,978 posts
Mar 6, 2010 7:12 PM
Lol, I try very hard not to let things I can't change bother me too much, there's truth and what I tell myself to get by ;)
Mar 6, 2010 7:12pm
sherm03's avatar

sherm03

I go balls deep.

7,349 posts
Mar 6, 2010 7:16 PM
I've been wondering this same thing for awhile now. A buddy of mine told me that it would be the best thing for me to do for tax purposes. I got royally hammered this year with the amount of money I made doing stand up.

Manhattan, you seem pretty knowledgeable about setting up an LLC. Do you think it's worth it for me to set up an LLC for the money I make doing stand up?
Mar 6, 2010 7:16pm
Q

queencitybuckeye

Senior Member

7,117 posts
Mar 6, 2010 7:17 PM
wes_mantooth wrote: Legalzoom is supposedly legit. I know a few that have used it and said it was idiot proof.
Well, this would be a good test of that theory. :D
Mar 6, 2010 7:17pm
ZWICK 4 PREZ's avatar

ZWICK 4 PREZ

Senior Member

7,733 posts
Mar 6, 2010 7:20 PM
sherm03 wrote:
Manhattan, you seem pretty knowledgeable about setting up an LLC. Do you think it's worth it for me to set up an LLC for the money I make doing stand up?
u really think he's gonna help you after you lambasted him on the office thread? :)
Mar 6, 2010 7:20pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Mar 6, 2010 7:25 PM
Sherm, I presume you currently act as a sole proprietor with your stand-up work, typically doing the work under a state-recognized LLC won't make a difference in your tax liability, the gains and losses from the business will still pass through to your person. It is just a different set of forms you file. One of the main benefits of operating under an LLC is the liability protection, for example if you were scheduled to do a show in Dayton and for some reason can't make it, if you contract under your LLC the club typically couldn't go after you personally for any claims for a breach of contract but rather against your LLC. Again there are exceptions, but restating my earlier point the main reason why folks incorporate a small business isn't tax driven but rather liability driven.
Mar 6, 2010 7:25pm
SQ_Crazies's avatar

SQ_Crazies

The Godfather

7,977 posts
Mar 6, 2010 7:27 PM
Legalzoom.

It's legit, fast, easy and cheap.
Mar 6, 2010 7:27pm
sherm03's avatar

sherm03

I go balls deep.

7,349 posts
Mar 6, 2010 7:29 PM
Manhattan Buckeye wrote: Sherm, I presume you currently act as a sole proprietor with your stand-up work, typically doing the work under a state-recognized LLC won't make a difference in your tax liability, the gains and losses from the business will still pass through to your person. It is just a different set of forms you file. One of the main benefits of operating under an LLC is the liability protection, for example if you were scheduled to do a show in Dayton and for some reason can't make it, if you contract under your LLC the club typically couldn't go after you personally for any claims for a breach of contract but rather against your LLC. Again there are exceptions, but restating my earlier point the main reason why folks incorporate a small business isn't tax driven but rather liability driven.
Gotcha. Thanks. I wasn't planning on forming the LLC, just trying to figure out if it would be a better option for me.
Mar 6, 2010 7:29pm
sherm03's avatar

sherm03

I go balls deep.

7,349 posts
Mar 6, 2010 7:32 PM
ZWICK 4 PREZ wrote: u really think he's gonna help you after you lambasted him on the office thread? :)
Ehh...I was hoping there were no grudges there. By the looks of it...Manhattan doesn't look at this site as such serious fucking business. And that's a good thing.
Mar 6, 2010 7:32pm
M

Manhattan Buckeye

Senior Member

7,566 posts
Mar 6, 2010 7:40 PM
sherm03 wrote:
ZWICK 4 PREZ wrote: u really think he's gonna help you after you lambasted him on the office thread? :)
Ehh...I was hoping there were no grudges there. By the looks of it...Manhattan doesn't look at this site as such serious fucking business. And that's a good thing.
There are more important issues, like my gambling, which alas has taken a dive today. Kentucky better cover against Florida tomorrow.
Mar 6, 2010 7:40pm
T

Timber

Senior Member

935 posts
Mar 6, 2010 10:19 PM
A great quote from a buddy...
"Do not bet on anything that breathes!"
Mar 6, 2010 10:19pm