Hiring a lawyer can help you save time and avoid problems when forming your limited liability company (LLC).

You don't necessarily need to hire a lawyer when starting an LLC. Many states permit you to register your business as an LLC through the Secretary of State's website. However, it comes with legal paperwork and hassle. Furthermore, each state has different laws regarding the regulation of LLCs, which may not be easy to comprehend without the help of a lawyer. You can get into trouble with the IRS, the law, or your local tax authority if you do not proceed with LLCs with a thorough understanding of the law. A lawyer can help you save time and avoid problems. We do so by:

* Determining the eligibility of your business to register as an LLC

* Drafting and filing the Certificate of Formation for your business.

* Helping you understand state-specific LLC laws and how to comply with them

* Maintaining detailed records if needed for lawsuits or audits.

A Limited Liability Company, or LLC, protects your assets and guards your company against any liability that might affect your business. It is a legal entity that has a hybrid structure. It contains attributes of both a partnership and a corporation. For example, when thinking about an LLC vs corporation, a corporation limits the liabilities of its owner, and so does an LLC. Meanwhile, when comparing an LLC vs partnership, an LLC is also a pass-through entity for tax purposes like a partnership. It means that individual members will be taxed only once as a form of personal income on any profit the LLC makes.

BENEFITS OF USING A LAWYER. There are many benefits of using a lawyer to form an LLC. A legal consultation can help an owner:

* Understand the advantages of forming an LLC.

* Determine how to get the most out of incorporating the business.

* Understand the shortcomings of different entities in terms of liability and tax.

* Get started and keep their business compliant as they expand, raise money, or hire employees.

* Help draft and file complex paperwork such as the Certificate of Formation.

* Understand business laws that govern the state the LLC is in.

Therefore, if you hire a lawyer to undertake these tasks, you will save a lot of time and energy, which could invest in your business.

DIFFERENCE BETWEEN AN LLC AND AN S CORP. An LLC an S Corp are often discussed together, but they are two different things. An LLC can attain S Corp status if it meets specific criteria. However, LLCs and S Corps both require different management and shareholder structure. In addition, they have unique reporting requirements. There are several differences; these are:

* A limited liability company is a legal framework for businesses. At the same time, an S Corp is a tax classification.

* S Corp has a more formal structure than an LLC: A corporation requires you to hold meetings for shareholders, file annual reports, put together a board of directors, and make other functional decisions. On the other hand, an LLC can be lenient regarding the formality and structure of a business.

* An S Corp is more complicated than an LLC to set up: LLCs usually require less paperwork than an S Corp setup. On the other hand, an S Corp setup requires a thorough inspection and must be filed with the appropriate authorities.

* Corporations can only issue Stocks: LLCs have membership interests. As a result, members have a share in the company's ownership. On the other hand, S Corp provides convertible preferred stock, so investors favor investing in such corporations.

While it is not mandatory to hire a lawyer to form an LLC, it is still a good practice if you do so, especially when you are a small business owner. Hiring a lawyer can help ease forming an LLC and give you the essential aid when protecting your enterprise.

If you're starting a new business and have questions about forming an LLC, give us a call at 253.858.5434 to set up an appointment today. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.