Legalzoom.com

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acwservices

Senior Member
Location
Eastern NC
Anyone ever used an online legal firm such as Legalzoom.com,or any other online company to establish an LLC? After much research, I think I have decided to make the change from a sole propreiter to an LLC. My local attorney quoted me $500-$600, and legalzoom is advertising $149 for NC.
 
ceb58

ceb58

Senior Member
Location
Raeford, NC
I have not use any online legal service but I would like to know what/why are some of your reasons for wanting to go LLC. I have looked into also but for all the trouble it doesn't seem worth it. You are not protected from personal liability as some would have you think. You can thank the folks at Enron for that. And basically you will pay tax on the same money twice
 
480sparky

480sparky

Senior Member
Location
Iowegia
The difference will be what you get for the money. In the end, yes, you're incorporated.

If you use an on-line service, they will simply incorporate your business as you instruct them to.

A flesh-and-blood attorney in a brick-and-mortar building will be able to advise you on the best corporation for your particular situation.
 
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acwservices

Senior Member
Location
Eastern NC
ceb58 said:
I have not use any online legal service but I would like to know what/why are some of your reasons for wanting to go LLC. I have looked into also but for all the trouble it doesn't seem worth it. You are not protected from personal liability as some would have you think. You can thank the folks at Enron for that. And basically you will pay tax on the same money twice
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The only reason I would want to go LLC is for the protection of my personal assets. I don't understand why you would think that an LLC would not offer personal liability protection. I have spent a considerable amount of time researching this, talking with people, even consulting a local attorney- and the forming of an LLC has been highly recommended by all (some recommend forming an LLC, but taxed as an s-corp for tax reasons, but they all agree that an LLC is best for personal liability protection. As far as paying tax on the same money twice- I don't think that is accurate. An LLC is taxed in the exact same manner as a sole prop- income is reported on the schedule C on both at the end of the year.
 
480sparky

480sparky

Senior Member
Location
Iowegia
acwservices said:
The only reason I would want to go LLC is for the protection of my personal assets. I don't understand why you would think that an LLC would not offer personal liability protection. I have spent a considerable amount of time researching this, talking with people, even consulting a local attorney- and the forming of an LLC has been highly recommended by all (some recommend forming an LLC, but taxed as an s-corp for tax reasons, but they all agree that an LLC is best for personal liability protection. As far as paying tax on the same money twice- I don't think that is accurate. An LLC is taxed in the exact same manner as a sole prop- income is reported on the schedule C on both at the end of the year.
Click to expand...

Many times, if you're an LLC, when you apply for credit, they ask you to sign a form to make you personally responsible for the debt.
 
petersonra

petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
ceb58 said:
I have not use any online legal service but I would like to know what/why are some of your reasons for wanting to go LLC. I have looked into also but for all the trouble it doesn't seem worth it. You are not protected from personal liability as some would have you think. You can thank the folks at Enron for that. And basically you will pay tax on the same money twice
Click to expand...

You have more protection than if you have a sole proprietorship and it is hard to pierce that shield short of criminal acts.

You can still set your taxes up as passing thru to you personally (commonly referred to as sub-chapter S).

The thing is that your IRS status is a completely separate thing from the LLC itself.
 
D

DanZ

Senior Member
Location
Living in: Orient, OH ; Working in Central Ohio
Just as a thought, don't forget to get your accountant involved. I would trust their tax advise over an attorney's tax advice almost any day. If you don't have a good local accountant, find one! A good accountant and a good attorney are two of the best investments you can make! IMHO
 
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ohm

Senior Member
Location
Birmingham, AL
acwservices said:
The only reason I would want to go LLC is for the protection of my personal assets. I don't understand why you would think that an LLC would not offer personal liability protection. I have spent a considerable amount of time researching this, talking with people, even consulting a local attorney- and the forming of an LLC has been highly recommended by all (some recommend forming an LLC, but taxed as an s-corp for tax reasons, but they all agree that an LLC is best for personal liability protection. As far as paying tax on the same money twice- I don't think that is accurate. An LLC is taxed in the exact same manner as a sole prop- income is reported on the schedule C on both at the end of the year.
Click to expand...

As an LLC you're protected from the mistakes of your employees, not your mistakes and you pay a fixed % in taxes. If you work alone or hire independent contract labor to help you, IMO you're better off buying business insurance & going sole proprietor.
 
tonyou812

tonyou812

Senior Member
Location
North New Jersey
acwservices said:
Anyone ever used an online legal firm such as Legalzoom.com,or any other online company to establish an LLC? After much research, I think I have decided to make the change from a sole propreiter to an LLC. My local attorney quoted me $500-$600, and legalzoom is advertising $149 for NC.
Click to expand...

My accountant did it for free!!!!!
 
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