Originally Posted By: psmothers
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I was in the same boat myself. I went and talked to my CPA first and she told me that basically tax wise, for my condition, that either would be about the same. I then talked to a good friend of mine who is a tax lawyer and also has set up many LLC’s. He told me to go ahead and spend the money and LLC. Many will argue that it really does not give you much more “coverage” then a sole proprietorship. As my lawyer friend advised me “at least it is some coverage.” Remember that this good friend of mine who has nothing to gain either way. He gives me advise but we keep it to that in order to always maintain our friendship over business.
So if you decide to go LLC you have three choices of which path to follow.
1)File your paperwork all by yourself. Your state Secretary Of State's Office has the standard articles of incorporation for you state. By doing this you will only pay the state incorporation fee. In Louisiana it is under $150. My lawyer friend recommended that I do not go this route because the standard Louisiana articles of incorporation have some legal holes in them.
2)Pay a lawyer to do it for you. This by far is the most expensive way. You will have to price it out in your area. The upside is that lawyers usually have very solid articles of incorporation without holes in them. I would say if you can find someone under $500 in your area to do it then do it. Here I was quoted $900 - $1200.
3)Do it online. There are many online sites that are popping up for people to do various simple legal paperwork such as LLC. This is the way I went. I used legalzoom.com
. It cost me right at $200 which included my state filing fee. Go with the cheapest package they have. Everything else in it is fluff that you can do cheaper. It took about 25 days to process. You can pay twice as much and have it done twice as fast but I would not waste the money. Whichever way you go do not pay anyone to get you an EIN. (Federal Tax ID Number) You can to that by yourself for free and at no cost. Look here.
Anyway hope that helps. You should also search through the different forums here. I know there has been much talk about this in the past.
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