I'm a licensed electrician in Ohio looking to finally leave my job and start my own shop. I've been comparing services like LegalZoom, Incfile, and a couple local ones. Does anyone have experience with how they handle the specific licensing and insurance requirements for electricians? I don't want to mess up the LLC paperwork and then find out I can't bid on jobs. Any recommendations or horror stories?
LLC formation
How well do these formation services handle LLCs for electricians?
I used LegalZoom for my LLC (not an electrician, but a contractor). They got the LLC done fine, but they don't know squat about your trade licensing. You'll have to get your electrical license and insurance separately. The LLC just protects your personal assets.
Honestly, for a single-member LLC as an electrician, you might be overthinking it. File the articles yourself with the state, get an EIN, and then focus on your contractor license. These formation services charge hundreds for stuff you can do in an afternon.
I used Incfile for my LLC last year. It was cheap, and quick, but I had to figure out the contractor license stuff on my own. They do offer a registered agent service which is nice if you don't want your home address on public records.
Not an electrician, but I run a small HVAC business. My advice: don't rely on a formation service for anything beyond the LLC filing. They're not experts in your industry. Join a local trade association or talk to other electricians in your area. They'll tell you what you actually need.
Thanks for the replies., So it sounds like the consensus is to just use them for the basic filing and handle the rest myself. I guess I was hoping there was a one-stop-shop for all the paperwork. But I can see how that's unrealistic.
One-stop-shop = you paying someone elsee to do things you can do. I filed my own LLC in Ohio for $99. Took me 20 minutes online. The electrician license is the real hurdle. Have you looked into the state exam yet?
I've heard bad things about LegalZoom's customer service when you need to make changes. They nickel, and dime you for everything. For a simple LLC, DIY is the way to go. But if you're really busy, maybe a local accountant can help for a reasonable fee.
I used a local formation Service that specializes in contractors. They actually walked me through the licensing requirements and insurance. Cost a bit more but saved me a lot of headaches. Maybe look for something like that in Ohio?
the licensing board in Ohio doesn't care if you used LegalZoom or your grandma to form your LLC. They just want to see your license and insurance. So pick the cheapest option for the LLC and spend your energy on the electrical exam.
AmpedUpAmy, do you remember the name of that local service? I'm in the the Cleveland area if that helps. ConduitCarl, yeah, I'm studying for the exam now. Just trying to get the business side sorted in parallel.
I'm in Texas, so different rules, but I used a service called 'Contractor LLC' that was pretty good. They handled the LLC and gave me a checklist for the licensing. Might be worth seeing if they operate in Ohio.
This thread is giving me flashbacks. I spent weeks comparing formation services and then just ended up filing myself. The only thing I'd pay for is a registered agent if you don't want your addrss public.
OP, if you're worried about liability, make sure you get the LLC before you start bidding. But also, check if Ohio requires a separate contractor license for electrical work. In some states, you need both an electrical license and a contractor license. That's where people get tripped up.
WireNuts, good point. I think Ohio requires an electrical contractor license, which is dfferent from the journeyman license I have. I'll double-check. Thanks for all the input, everyone. I think I'll just file the LLC myself and focus on the licensing.