Forming an LLC is quite easy to do. Just be sure to follow the instructions your state has set out for you. There are rules governing the number of partners, the length of time an LLC is in effect, and the transferability of the partnership. Each state may also have its own set of guidelines for establishing an LLC. Basically the rules are based on:
* There must be one or more members.
*The LLC is only effective for thirty years.
* Company rights are not transferable.
* The partners of the LLC have to choose the main managers of the LLC.
* There is no numerical limit on the number of members.
The forms that are filed from location to location may also differ. It is a good idea to seek legal advice when establishing an LLC.
For federal tax purposes, the LLC is considered a partnership. There are specific tax forms that must be filed each year on behalf of the LLC. The benefit again is that the liability is not personal and personal assets cannot be seized for back taxes.
Setting up a pro se (do it yourself) LLC seems like it would be complex, but there are some legal forms and legal form templates that are available online that can be obtained for a few dollars. As long as all state and local laws are followed and the forms are filled out correctly, trying this pro can save quite a bit of money. The forms must be notarized, with the signature of each partner and the forms correctly filled out. The forms will need to be completed and the LLC will need to be registered in the state where the business is located. There is good information on the Internet and books available that can provide detailed information on how to fill out the legal forms, how to file the forms, and where to file the forms.
Hiring an attorney to set up an LLC is probably the best option if there is a certain level of discomfort with preparing the forms without one. A lawyer who practices business law or corporate law is the best option. The attorney will prepare all legal forms and file them. Rates will vary, so shopping around is a good idea.
Either way, pro se or with an attorney, establishing an LLC is a good way to protect an individual from personal liability.