Is it best to file your own LLC through the state website or hire a specialist to file for you. One of the person whom I talked to said that it is better to file through their company since they can reword the LLC form application for better law suit protection. Is this true?
My experience with companies that help you start LLCs is that the company basically files the articles of organization with your state and will also act as the company’s registered agent for an extra fee. When we started our business, I used a company to start our LLC. It didn’t cost a lot more than the normal state fees but given the same situation again, I would not use a company to establish the LLC. If you can fill out a simple form and pay a fee, you can set up an LLC. The real meat of the matter is in the operating agreement. It’s not required to establish the LLC with the state, but the operating agreement and how you operate your business will provide protection… not filling out a line on a form. The person you talked to probably worked for the company hoping they’d get your business.
From my experiences talking with more than just a handful of real estate investors over the past few years, their business model changes as they get more experience and find out what is successful for them. In my opinion, this is a good reason NOT to pay more than a token amount to have your initial operating agreement drafted by a “professional” since it is reasonable your needs will change within the first few years. A decent standard operating agreement will probably suffice. If and when you start to specialize and get a better handle on what works for you and what you need to protect and protect against you can always amend the operating agreement.
an LLC is an LLC is an LLC. Nothing that they say or do on the LLC formation paperwork makes any difference.
The heavy lifting is done by the operating agreement.