I have a small handyman business and finally decided to set up an LLC. I called a local lawyer and he quoted $1,800 for a single-member LLC, not including the state filing fee. That seems really steep to me. I was expecting maybe $500 or so. Am I out of touch or is this quote high? I don't need anything complicated, just the basic formation.
A lawyer quoted me more than I expected for basic LLC formation
That does sound high for a basic single-member LLC. I paid a flat $750 through a small law firm three years ago, and that included everything except the state fee. I'd get another quote or two before deciding.
$1800 is not crazy if they are doing more than just filing. Some attorneys include an operating agreement, a tax ID, and a brief consultation. But if it's literally just the certificate of formation, that's too much.
Have you considered filing yourself? The state website has a fill-in form and it's pretty straightforward. I did my own LLC for under $200 total. The only reason to pay a lawyer is if you have unusual circumstances.
I'm an attorney, though not Your attorney and not in your state. $1,800 is within range for a full-service formation that includes customized operating agreement and initial compliance. But if the quote is for a cookie-cutter package, you should ask for an itemized breakdown.
I second asking for itemization. When I got my quote, the lawyer listed out filing, operating agreement, and a 30-minute call. Then I could see what I was paying for and decide if I wanted to skip the call.
We used a service like LegalZoom for about $500 total includ ing state fees. It worked fine for a simple LLC. The downside is no real legal advice, but for a handyman business with no partners, you probably don't need much.
i think it depends on your state. Some states have more complex requirements. Also, if you ever plan to hire employees or take on a partner later, paying a lawyer now might save you headaches.
I got quoted $2,000 last year and ended up going with an online service for $300. No regrets so far. But I'm a solo consultant, so my liability risk is lower than a handyman's.
Before you decide, ask the lawyer what happens after formation. Do they help with annual reports, registered agent, or just hand you the paperwork? That ongoing support can justify the higher fee for some people