| After getting a physical address for my as of this time | | | | certificates with transfer ledger. |
| purely online business, I could now complete the | | | | - The Express Gold package ($359.00) included |
| paperwork to setup my own Limited Liability Company. | | | | everything in the Standard package plus Priority Rush |
| (See previous articles for why I chose to do this) | | | | service (7-10 business days), over 40 essential |
| There were several options for completing the | | | | business forms on CD-ROM, including employment and |
| paperwork and filing which I will briefly talk about. I am | | | | independent contractor agreements, Federal Tax ID |
| also mainly going to go write about the option I ended | | | | (EIN) application preparation, and two-day FedEx |
| up choosing in order to accomplish the filing, and | | | | delivery of final package |
| possible mistakes I may have made along the way. | | | | The price differences between the packages were |
| Options for Filing the LLC Paperwork | | | | mainly related to add-ons which had nothing to do with |
| | | | the actual filing process. I chose the Economy package |
| 1. Do It Yourself | | | | because I was only interested getting the filing |
| 2. Hire an Attorney and/or CPA | | | | performed with just the necessary paperwork and |
| 3. Use a non-attorney legal documentation service | | | | services required to do this. At the end you can |
| Do It Yourself | | | | choose additional add-ons if needed as well. I added |
| The first option for filing my LLC paperwork was to | | | | the filing for my business employer identification |
| request the paperwork from my state, Texas, fill out | | | | number (EIN) so that it would be provided at the same |
| the forms myself, and send it to the Secretary of | | | | time my LLC paperwork was completed. I have read |
| State office for filing. Now I had read several articles | | | | that obtaining your EIN through the IRS is a really |
| on this with some people saying it was painful while | | | | painless, fast, and easy process online, so you may |
| others stated that it was not that hard to do. I guess it | | | | decide not to have it as an add-on expense if you use |
| just depends on how much you like to do yourself. I | | | | a filing service. |
| often like to figure things out and over-research things | | | | There was one hidden fee, or at least not clearly |
| before I do them (often spending more time on the | | | | spelled out fee, I encountered during the process. It |
| research than the actual doing part which is a problem | | | | was a fee related to selecting a Registered Agent for |
| I have!) I decided from the start with my businesses | | | | your LLC. "Each LLC must have a registered agent. |
| that I didn't want to get caught in that trap I set for | | | | This is the person designated to accept official notice if |
| myself often. On the other hand, I also don't want to | | | | the LLC is "served" with a lawsuit. A registered agent |
| shell out more money than I think I need to if I don't | | | | must be either (1) an adult living in the state of |
| have to. I'm sure with proper research and time I could | | | | formation with a street address (P.O. boxes are not |
| have completed the paperwork accurately and saved | | | | acceptable) or (2) a company registered with the |
| money in the final cost of filing. But since I did not have | | | | Secretary of State in the state of formation." |
| unlimited time or an unlimited ambition to tackle this, I | | | | (Legalzoom.com, 2010) Now there are advantages in |
| chose not to follow this path. | | | | selecting a registered agent other than yourself which |
| Hire an Attorney and/or CPA | | | | are listed in the information on their website, such as |
| This of course would have been the most expensive | | | | adding a layer of privacy among others, but what did |
| option and I'm not sure it would have saved me | | | | not seem to be clearly discussed was the fee of |
| anymore time or headache over the third option listed. | | | | $149.00 a year for having your registered agent |
| First you would have to pick an attorney that had | | | | through LegalZoom's registered agent service. This is |
| experience in setting up an LLC (from what I had | | | | something I will look into more during the year to see if |
| learned, this can vary more than you think.) Also just | | | | I want to change my registered agent to avoid this |
| like anything that you want to outsource, such as car | | | | recurring fee. |
| repair, plumbing services, lawncare, etc., unless you | | | | My Order Summary |
| have used their services before you really do not | | | | Package: |
| know how good it is until you use them. With | | | | Economy LLC $149.00 |
| attorney's and CPA's fees, this can be an expensive | | | | Two-Day Delivery (Two Business Days) $14.95 |
| process. I personally do not have much experience | | | | LLC Filing Fee - TX $300.00 |
| selecting these professional services because I have | | | | EIN Obtainment $79.00 |
| not used them much in the past. So I would either | | | | 250 Premium Business Cards $19.99 |
| have to research and find recommendations for these | | | | Non-Customized Membership Certificates (10) Included |
| professional services, taking time and effort, or just | | | | Filed Articles of Organization Included |
| hope that the ones I did contact would do a good job. | | | | Operating Agreement Included |
| Use a Non-Attorney Legal Documentation Service | | | | Registered Agent Services $149.00 |
| This option is much like taking your tax papers to tax | | | | Business Registration $49.00 |
| preparation services like H&R block or the like. With | | | | Grand Total: $760.94 |
| this option you get some guidance with paperwork | | | | As you can see, the total cost is much more than the |
| preparation and filing assistance, but they do not offer | | | | first impression you get when you see $149.00 initially. I |
| you legal advice which you may or may not require. | | | | knew there would be state filing fees which is a good |
| These services are setup to be user friendly with | | | | chunk of change by itself for my state, so this did not |
| answers to many frequently asked questions listed for | | | | surprise me. I added the business card add-on which |
| reference. Think of Turbo Tax Online as a comparison | | | | also gave me a free coupon for a total of 500 |
| except these are for legal documents. I ended up | | | | business cards and free shipping. I also had the EIN |
| picking this type of service over doing it myself | | | | obtainment add-on which I had mentioned previously. |
| completely or hiring an attorney and/or CPA. | | | | So I could have shaved $100.00 off the order total and |
| There are varieties of companies that provide these | | | | also the Registered Agent Services if I had chosen to |
| services and I did check out a few. I have to admit, I | | | | do so. |
| ended up choosing out of recommendations from | | | | How Long Did it Take Using the Economy Package? |
| others online that had used them, and also because of | | | | Below is the time table from the order status on my |
| brand recognition. Hey I guess marketing does work. | | | | account at Steps to Completion |
| As a note of disclaimer, after I used their service and | | | | Status - My order was placed on 3-10-2010 around |
| was happy with the results (keep on reading) I signed | | | | 8:00 pm |
| up for an affiliate account with them. I'm not asking | | | | · LLC name is preliminarily available - Completed 03/11 |
| anyone to use a particular service, that is up to you, | | | | 2010 12:01 PM |
| and there are many out there which may be just as | | | | · Sent to Texas Secretary of State for filing - |
| good or better. | | | | Completed 03/12/2010 11:34 AM |
| How the Process Went | | | | · Texas has approved your filing - Completed 03/15 |
| I will not give the actual step-by-step, line-by-line | | | | 2010 03:41 PM |
| process because I believe most of it is | | | | · Preparing your final documents - Completed 03/18 |
| self-explanatory to those who use their service, and | | | | 2010 11:23 AM |
| there is no reason to duplicate their entire process just | | | | · Preparing your order for shipment - Completed 03 |
| to bloviate and have more to write than I think is | | | | 18/2010 05:43 PM |
| needed. Also there are many different choices to be | | | | · Final quality check - Completed 03/19/2010 02:21 PM |
| made which are based on each individual business's | | | | I received all my paperwork in the mail at my business |
| circumstances, and for me to lay out my specifics | | | | address two days later. Since I had not purchased the |
| would not necessarily be of any benefit to others. I | | | | expedited services and only the Economy package, I |
| have to say, though, that I felt there was adequate | | | | was pretty impressed with the overall turn-around time |
| information given to guide me through the procedure. | | | | from start to finish being 11 days. I received all the |
| The only point in the process where I think I should | | | | required paperwork and documentation for the LLC |
| have done more research prior to starting the | | | | including the official LLC registration certificate from my |
| paperwork related to deciding how you want your | | | | state's secretary of state office along with my |
| LLC to be taxed. In simple terms, you can choose to | | | | business Employee Identification Number. I now had |
| be taxed either as a corporation or as an individual in | | | | everything I needed to open up a business bank |
| terms of how profits are regarded. I believe this is an | | | | account in the name of my new Limited Liability |
| area where you might need to get more background | | | | Company. This is the next step I will write about in an |
| information regarding the pros and cons of the route | | | | up-coming article. |
| you choose prior to starting the paperwork process, | | | | Conclusion |
| and make sure you know why you are choosing the | | | | I was very happy having used a legal documentation |
| method of taxation you end up selecting. | | | | service, in my case LegalZoom.com, as opposed to |
| Legal Zoom had three different packages for filing | | | | filing the paperwork myself or using an attorney for |
| your LLC paperwork. They had the Economy, | | | | the project. The process was straightforward and |
| Standard, and Express Gold. The prices listed do not | | | | very easy to complete. I think it took me about 30-45 |
| include the costs of the actual state filing fee which is | | | | minutes to go through the steps of questions during |
| charged by the state where you form your LLC. This | | | | their online interview procedure. The costs were a little |
| varies from state to state so it is helpful to know what | | | | more than I had expected, but overall I think it was a |
| your state charges beforehand so you will not have | | | | good value. I wish I would have explored a little more |
| sticker shock when it comes to the total cost. I will | | | | in-depth the taxing designation I chose for my LLC |
| breakdown my costs a little later in this post. | | | | because I have learned more about this since I setup |
| - The Economy package ($149.00) or basic package | | | | my LLC. I also probably would have applied for my |
| included a preliminary clearance of your LLC's name, | | | | own EIN on the IRS website rather than paying for this |
| the filing of Articles of Organization, a custom | | | | service if I have to do it again. Everything is a learning |
| operating agreement including provisions protecting | | | | process and I hope this post may help readers |
| officers and managers from liability, and their "Peace | | | | understand a little better the process I went through in |
| of Mind Review." | | | | getting my LLC paperwork completed. I would love to |
| - The Standard Package ($249.00) included everything | | | | hear any comments you have on the subject and |
| in the Economy package plus extras such as a Deluxe | | | | even advice from you if you have gone through this |
| LLC Kit embossed with your company name, an | | | | process differently. |
| official company seal, and 20 customized membership | | | | |