If you have been looking at the idea of incorporating your real estate business as an LLC (Limited Liability Company), then you are at least aware of some of the protections being an LLC offers. It also means that you have probably invested time in researching how an LLC is formed. Which in turn also means you have probably spent a fair amount of time on the internet doing your homework.
Going one step further, it’s safe to assume you have also seen the wealth of companies offering to help you set up your LLC online at what can only be described as bargain prices. There are countless numbers of websites offering low-cost or free “generic” articles of incorporation and other documents pertinent to setting up your LLC.
Top Reasons Not to Use an Online LLC Service
1. Lack of Choice
With generic documentation, your choices are minimal as to the types off LLC you are able to form. You may find that these services offer very little information regarding any other type of LLC beyond the basic ones they offer. For example, Jack goes online, registers a standard LLC, but needed a Delaware Statutory Trust.
Jack’s business is locatedin California, and if he had gone to an attorney, they would have informed him of the necessary trust. But, because the online company didn’t advise him of the Delaware Statutory Trust, Jack ended up owing hundreds of dollars in franchise taxes.
2. Generic LLC
Online services only offer “generic” LLCs, because they are cheap. They use identical “form” documents that have no provisions for your specific needs. On the other hand, if you were to go an attorney who specialized in this type of work, they would be able to ensure that the LLC formed meets your exact needs. Plus, you can count on the document you sign will stand up in a court of law should the need arise. You won’t find any online service that is willing to guarantee this and if necessary, go to court on your behalf.
3. No Professional Communications
When you deal with online LLC service, you have absolutely no contact with any type of legal professional. You will find that the majority of issues occurring from the use of an online LLC service arise simply from the lack of professional in sight by someone with a vested interest in your application. An attorney can do a lot for you that even the best of online services cannot.
While the formation of LLCs is typically the realm of business attorneys, when it comes to forming an LLC for your real estate company, you may be better off with a real estate attorney. A real estate attorney has more knowledge of the ins and outs of the business and how to recommend the right type of LLC to protect your business and personal assets best. These are all services an online service is not able to provide. Consider all of this as you consider trying to save money on your LLC filing.