Filing an LLC Is Easy. Setting It Up Right Is What Matters.
Starting a limited liability company can look deceptively simple.
Choose a name. Complete an online form. Pay the state filing fee. Receive your Articles of Organization.
You’re officially an LLC.
But are you properly set up to operate one?
That’s where the difference begins.
There are dozens of national online services that can submit LLC formation paperwork on your behalf. And if all you need is someone to transmit information to a Secretary of State, many can perform that task.
Law 4 Small Business (L4SB) approaches LLC formation differently.
We’re a business law firm. We don’t simply think about getting your LLC formed. We think about what happens after it’s formed.
Because your LLC isn’t just a filing.
It’s the legal foundation of your business.
LLC Formation Is More Than Articles of Organization
Articles of Organization establish the existence of your LLC with the state. They do not, by themselves, answer many of the questions that can become important as your business grows.
For example:
- Who owns the company, and in what percentages?
- Who has authority to make decisions?
- Is the LLC member-managed or manager-managed?
- What happens when the owners disagree?
- What happens if an owner dies, becomes disabled or wants to leave?
- Can an owner sell an interest to someone else?
- How will new members be admitted?
- How will profits and distributions be handled?
- What happens to intellectual property contributed by an owner?
- How should important business decisions be documented?
- What provisions should be included based on the LLC’s intended tax treatment?
Those aren’t simply filing questions.
They’re business and legal questions.
That’s why choosing who helps establish your LLC can matter.
A Filing Service and a Business Law Firm Are Not the Same Thing
National LLC formation companies have made filing business entities fast and convenient. For straightforward situations, that convenience can be attractive.
But convenience shouldn’t be confused with legal strategy.
At L4SB, LLC formation is part of a much larger understanding of business law.
Our attorneys work with business owners dealing with contracts, ownership changes, partnership disputes, intellectual property, employment matters, acquisitions, business sales, liability issues and other challenges that businesses encounter throughout their lives.
That experience influences how we think about the beginning of a company.
We’ve seen what can happen years after an LLC is formed incorrectly or incompletely.
Our goal is to help business owners think about those issues before they become expensive problems.
The Operating Agreement Matters
One of the most important differences can be what happens after the LLC is filed.
An Operating Agreement establishes the rules governing your company and the relationship among its owners.
A good Operating Agreement can address matters such as:
- Ownership and membership interests
- Member and manager authority
- Voting rights
- Routine versus major business decisions
- Admission of new members
- Transfers of ownership
- Buyouts
- Death or incapacity of a member
- Dispute resolution
- Tax treatment
- Capital contributions
- Distributions
- Intellectual property
- Dissociation of members
- Dissolution of the company
A generic document may address some of these issues.
The more important question is whether it addresses them appropriately for your business.
The L4SB Lawyer Defined® Operating Agreement
L4SB developed the Lawyer Defined® Operating Agreement to bridge the gap between inexpensive generic documents and the cost of having an attorney draft a completely customized agreement.
The system provides more than 100 customizable features and options covering areas including taxation, voting, management powers, member rights, dissociation, valuation and intellectual property.
It can accommodate different circumstances involving:
- Single-member and multi-member LLCs
- Member-managed and manager-managed LLCs
- Different intended tax treatments
- Different voting thresholds
- Member and manager powers
- Ownership changes
- Intellectual property
- Professional LLCs
- Community-property considerations
- Member departure and buyout provisions
The result isn’t simply another document to put in a folder.
It’s designed to provide a meaningful framework for how your LLC operates.
Local and State-Specific Knowledge Matters Too
LLCs are created under state law.
That means forming an LLC isn’t purely a national process.
Requirements, statutes, filing procedures and business considerations can differ from one state to another.
For a New Mexico business owner, for example, there can be advantages to working with professionals who understand New Mexico business law and regularly work with businesses operating within the state.
L4SB was founded in New Mexico and has extensive experience helping New Mexico entrepreneurs and business owners form, operate, protect and grow their companies.
That local experience matters because your business doesn’t exist inside an online questionnaire.
It exists in a particular state, under particular laws, facing real-world business decisions.
Think Beyond Formation Day
Here’s another important difference.
What happens six months or three years after your LLC is formed?
Maybe you bring in a partner.
Maybe an investor wants an ownership interest.
Maybe you hire employees.
Maybe you develop valuable intellectual property.
Maybe you sign a major contract.
Maybe you want to elect a different tax treatment.
Maybe a partner wants out.
Maybe you’re sued.
Maybe you buy another company.
Maybe someone wants to buy yours.
Your LLC formation documents can suddenly become very important.
Working with a business law firm means you aren’t necessarily starting over when those questions arise. You have access to professionals who understand business entities and the issues businesses encounter throughout their lifecycle.
That’s why L4SB believes LLC formation shouldn’t be treated simply as a transaction.
It’s the beginning of a business relationship.
“But Isn’t an LLC the Same No Matter Who Files It?”
The state doesn’t create one type of LLC for customers of a national filing service and another type for customers of a law firm.
An LLC is an LLC.
The difference is what surrounds it.
Who helped you determine how it should be structured?
What Operating Agreement governs it?
Does that agreement reflect your actual business?
Have ownership, management and voting been properly addressed?
Do you understand what you need to do after formation?
Do you know whom to call when the business changes?
That’s where LLC formation services can be very different.
The question isn’t simply:
“Can someone file my LLC?”
Of course they can.
The better question is:
“Am I establishing my business correctly for what I want to do next?”
When Might a National Online Filing Service Be Enough?
We believe business owners should make informed decisions.
If you understand LLC formation, know exactly how you want the company structured, understand your state’s requirements, have an appropriate Operating Agreement and simply want assistance submitting paperwork, an online filing service may be sufficient.
But if you’re starting a business and aren’t sure what you don’t know, the lowest-cost filing option isn’t necessarily the lowest-cost business decision.
A mistake that saves a small amount today can become considerably more expensive to correct later.
Why Form Your LLC With Law 4 Small Business?
When you form an LLC with L4SB, you’re working with an organization built around business law, not simply document filing.
Our approach is designed around a simple philosophy:
A little law now can save a lot later.
We want your business to be properly positioned not only on the day your LLC is approved, but as you operate, grow and encounter the opportunities and challenges that come with owning a business.
Because you’re not simply forming an LLC.
You’re building a business.
Ready to Form Your LLC?
Start your business with a legal foundation designed for what comes next.
Form your LLC with Law 4 Small Business.
