Questions about filing for an LLC

October 26, 2021

by a searcher from The University of Michigan - Stephen M. Ross School of Business in Livonia, MI, USA

I had a couple questions about filing
1) Most importantly, should I file with the help of a lawyer? The process seems simple and straight forward so I didn't think it was necessary, but I have seen varying opinions. Thoughts?
2) Is there anything unusual that needs to be included in the Operating Agreement or can I use a standard agreement?

Any help is appreciated. Thanks!

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Reply by an intermediary
in Port St. Lucie, FL, USA

Its important to partner with a LICENSED Tax Advisor/Accountant so that they can help you navigate the pros & cons of a: S-Corp, C-Corp, LLC and Limited Partnerships. Typically if you own what is categorized as a high-risk business, most business owners and investors setup an LLC to down-size liability. Again, having a qualified Business Attorney to give you the legal pros and cons of Corporation liabilities is also advisable. On Google you can find a lot of great information. Just stay away from these online companies that charge you a whole bunch of money for something you can do yourself relatively easy. Division of corporations typically charge $125 -$175 for an LLC filing and you can do your own EIN SS-4 Form filing through IRS.gov for free. Hope this helps.

Reply by a professional
from The Johns Hopkins University in Basking Ridge, NJ 07920, USA

I agree with ^Louis, After you speak to a trusted accountant on the tax issues, formation of the LLC is straightforward - whether you handle yourself or through a service.‌ The OA is another matter entirely. There are a number of thorny matters that can arise. Given that it is the governing document for your entity, it is worth using counsel to ensure that the documents maps your intent and is appropriate for operation of the business. You would be surprised how often the OA is reviewed - whether by banks or otherwise. Good luck!

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