How to form an LLC with partners? Cost effectively
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[{"id": "g0xvsmg", "text": "https://www.amerilawyer.com/form_a_limited_liability_company/limited_liability_company.htm", "replies": [], "depth": 1}, {"id": "g0xwjbf", "text": "You can do it yourself through your states website. We had our accountant do ours and he charged $150.", "replies": [], "depth": 1}, {"id": "g0xxd86", "text": "Geeze 10k to setup a LLC? Filing fees should only cost around 100 with your secretary of state. I imagine the lawyer having to deal with dozens of members and tens of millions in holdings with deals that needed to be closed to cash out some members.", "replies": [], "depth": 1}, {"id": "g0xybul", "text": "There are really two different things going on when you create an LLC:\n\n1. Creating the LLC with the state. This process varies per state, but it's generally very easy to do and usually costs $100-$150.\n2. Creating an Operating Agreement that describes how your LLC operates. In some states you file this document with the state as well, but in others you hold on to it. There isn't a universal template for this. This is where you'd describe the nature of your partnership, including names, roles, responsibilities, and equity distributions. This document is where all the power of your LLC lies, so it's really important you get it right. The costs here will vary significantly based on the complexity of your Operating Agreement, but in my experience it ranges from $500-$2000, including the LLC filing. I have no earthly idea how it cost $10k for your friend.\n\nI highly recommend working with a lawyer on this for your partnership. If you are partnering with others, especially friends, this very well may be one of the most important legal documents you will ever put your name to.\n\nOn the plus side, once you've created one Operating Agreement, it's easy to re-purpose the agreement for future LLCs that have a similar arrangement. This is especially valuable if you are forming new LLCs for different properties, since it turns your entity creation cost to the filing fee with your state.", "replies": [], "depth": 1}]