Forming LLC - Attorney help?

2,806 Views | 12 Replies | Last: 2 yr ago by Stat Monitor Repairman
tlh3842
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AG
My wife is looking to kick off her floral/plant sales business, and we're needing to create an LLC. Any tips on whether it's best to go with an attorney, or fine to just do it yourself? If yes to attorney, would appreciate some recommendations. We're located in Houston area if that matters.
2wealfth Man
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AG
get an attorney, you should get the LLC formation documents, a certificate of filing from the state, a membership agreement and make sure to get a federal tax ID as well. Franchise tax returns will need to be filed with the state annually. If you don't do this you are not in good standing with the state and can have your LLC protections invalidated.
Sea Speed
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AG
We used Alisa hoggatt for creation of my wife's business llc and our estate planning. Definitely recommend.

https://localestateplanners.com/lawyers/alisa-hoggatt-houston-estate-planning-attorney/
a07nathanb
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AG
I've done it on legalzoom and it was easy.
one safe place
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2wealfth Man said:

get an attorney, you should get the LLC formation documents, a certificate of filing from the state, a membership agreement and make sure to get a federal tax ID as well. Franchise tax returns will need to be filed with the state annually. If you don't do this you are not in good standing with the state and can have your LLC protections invalidated.
If it is a single-member LLC and no employees and is not subject to certain excise taxes, the EIN is not needed.
Hanrahan
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AG
You still have to file franchise tax return in Texas for single member llcs
Hanrahan
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AG
And you need the ein to open bank accounts unless you are going to use accounts opened in your name for the Llc. Plus you will be asked for the ein in many other instances you wouldn't want to use your ssn. So just get the ein. It's easy and doesn't change anything from a tax standpoint to get one.
Milwaukees Best Light
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AG
Sea Speed said:

We used Alisa hoggatt for creation of my wife's business llc and our estate planning. Definitely recommend.

https://localestateplanners.com/lawyers/alisa-hoggatt-houston-estate-planning-attorney/

My wife used her as well and said she is great.
Www.hoggattlawfirm.com
fka ftc
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a07nathanb said:

I've done it on legalzoom and it was easy.
EIN takes about 30 seconds on the IRS website and is free. I shutter when people pay others for this step.

You can also handle the forming of the LLC on the State of Texas website and save yourself some money.,

You could use LegalZoom from day 1 for a simple single-member operating agreement or consult an actual lawyer, particularly if you are opening a physical location, have employees, subject to sales tax remittance and others. I would spend money on a CPA / tax adviser before a lawyer, but regardless get a simple singl;e-member operating agreement in place when you form the LLC..

Just my experience and perspective, not legal / tax / accounting advice.

Edited to Add: The advice to involve an attorney is excellent as well and you may feel more comfortable going that route. I am only suggesting that depending on your experience and level of comfort, you can save money by not using an attorney at this stage. Best of luck on the new venture!

Second edit to incorporate jabin recommendation to seek attorney for operating agreement from start (or LegalZoom depending on comfort / budget).
OasisMan
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chatGPT
KingofHazor
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As a retired attorney, that's terrible advice and, if followed, may well destroy the LLC's characteristic as a limited liability entity. Even if you try to do everything yourself without hiring an attorney, you absolutely need an operating agreement at the outset.
fka ftc
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Jabin said:

As a retired attorney, that's terrible advice and, if followed, may well destroy the LLC's characteristic as a limited liability entity. Even if you try to do everything yourself without hiring an attorney, you absolutely need an operating agreement at the outset.
Edited. Agree with having an operating agreement from the outset.
Stat Monitor Repairman
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You may look at your maximum exposure for this specific type of business,

What is the worst possible thing that could happen to expose you to both kinds of liability,

Are you going to have employees?

Are you going to have vehicles or some sort of special equipment?

Are you going to be ordering from overseas or ordering large quantities of product?

If you talking a home based business looking to grow, you've got to assess whether or not you'd be better served by a dba, schedule C, and insurance,

Once you hit go on that llc you'll be burdened with recurring mail and paperwork in some form or fashion. It may not seem like a lot now but it piles up. And if you late on your filing and get in not good standing it can be a pain in the ass to navigate.

So the administrative burden is not zero,

Also Texas has a deal where veterans can get their filing fee waived and also a franchise tax abatement, so that may be helpful for some folks.
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