Starting an LLC is worthwhile to limit your liability if something happens to your business, not to mention it gives you tax benefits. Before you start, you may ask yourself “Do I need a lawyer to start an LLC and why should I hire one?”

Technically, there is no requirement in any state to hire a lawyer to set up an LLC. You can make it on your own or hire an LLC formation service. But hiring an attorney can help you get through the procedures more easily.

Do I Need to Hire a Lawyer to Form an LLC?

Do I Need to Hire a Lawyer to Form an LLC?

Many people share the same question if they need an attorney to start an LLC. You do not need to hire a lawyer as there is no legal requirement to get a lawyer to form a legal business entity.

Each state has different procedures but most of them only require registration on the official website of the Secretary of State and the Internal Revenue Service. Once you are registered, you can rent or buy a building and open a business bank account.

That becomes the question, can you handle all the processes on your own? Some business owners focus on expanding their business and chances are they fail to handle important items like explaining the company, creating articles that list registered agents, and so forth.

Do I need a lawyer to start an LLC? The answer heavily depends on your situation. If you need someone to give you individualized guidance and help you with legal services, the answer is yes. You may also need a lawyer when your LLC involves multiple partners.

But if you start with a simple LLC that involves a few people with relatively modest assets, it is okay to do the process on your own so you can optimize your budget for business expansion.

Pros and Cons of Using a Business Attorney

Pros and Cons of Using a Business Attorney

Hiring a business attorney is not an obligation when it comes to setting up an LLC. In case you can’t decide whether or not you use a lawyer, consider the following pros and cons.


1. Helps with Administration

An attorney can help you fill out forms and file necessary documents. Creating an LLC operating agreement that explains your company can be tricky, especially if you are not familiar with administration. Hiring an experienced lawyer is a clever solution to get it done.

2. Check Business Name Availability

Determining a business name can be tricky because you need to check if it has been used by existing businesses. Do I need a lawyer to start an LLC? You may hire an attorney to help you check if a desired name is available and if it fits your business.

Most laymen find it difficult to understand legal processes. The good news, a lawyer has legal expertise that is acquired through study, practice, and training so they can provide you with advice related to ongoing legal process.

They can help you make the best decision and avoid mistakes or errors which can cause issues in the future. In the case of starting an LLC, a lawyer may advise you to prepare the required legal documents and give you insight into the step-by-step process.

4. Record Proper Documentation

Another reason why you need to get a legal advocate to set up an LLC is that they can assist you to record proper documentation of the entire process. Preparing documents and filling out forms may be daunting and you do not have time to record the process on your own.


5. Costly

A lawyer costs around $1,000 – $1,500 on average, which is rather expensive. If you’re concerned about this price rate, you may ask yourself “Do I need a lawyer to start an LLC?” Your financial condition is the determining factor to this answer.

 If you plan to start a small LLC and you do not have enough budget to afford a lawyer, feel free to set up your business without an attorney. But if your financial situation is settled and you are going to form a bigger LLC, hiring a lawyer helps make the process easier.

6. Not All Attorneys Have the Same Capability

Lawyers have different capabilities. Not all attorneys have the same expertise, experience, and knowledge in handling various legal processes including starting an LLC. Although the outcome may be similar, the process can take more time and effort.

Besides, every state has different filing requirements when it comes to setting up an LLC. Not all lawyers are familiar with the requirements in different states so there is a bigger chance of errors or mistakes during the process.

Do I need a lawyer to start an LLC? Hiring a lawyer is generally not a requirement of setting up an LLC but you can get one to help you accomplish the process. Please keep in mind that getting a lawyer comes with pros and cons, so be sure to make your decision carefully.

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