So I skipped the online formation services and paid an actual local lawyer $450 to look over my operating agreement and incorporation docs. Friends said I overpaid, but I wanted someone accountable who actually read the thing. Now I'm second-guessing whether it was worth it. Anyone else go the solo lawyer route?
LLC Setup
I paid a lawyer to review my paperwork instead of hiring a formation company
$450 is basically nothing if they caught one bad clause. Way cheaper than a lawsuit.
Did they actually catch anything, or just nod and say 'looks fine'? That's the real test.
Nothing catastrophic, but they flagged that my operating agreement had no buyout provision if a member wanted out. Formation company template just didn't include one.
The templates are fine for like 80% of people. Youre paying for the other 20%. No shame in it.
I used a formation company and honestly the whole thing felt like buying a souvenir mug. Pretty website, zero substance.
Lawyer here (not yours). $450 for a doc review is reasonable in most markets. The formation mills literally just paste your name into a boilerplate PDF and charge you $300 for the privilege.
lol @ 'souvenir mug'
I did the same thing but my lawyer charged $900. Still don't regret it. He found out my registered agent address was going to be a UPS store that doesn't accept service of process. Saved me a headache.
That UPS store thing is such a classic gotcha. The DIY crowd always misses it.
Different question, but did your lawyer also handle the filing or just review? Mine would only review and told me to file myself, which felt weird.
Just review. I filed with the state myself. Took like 20 minutes and $125. The value was in the read-through, not the paperwork shuffle.
Not to be that person but if you're a single-member LLC with no assets yet, an operating agreement is basically a fancy letter to yourself. $450 for that is steep.
Single member LLCs still need one for liability protection in many states. 'Fancy letter to yourself' is how people end up with commingled funds and a dissolved corporate veil. But yes, pricing varies.
Kettle Corn out here giving legal advice with a username that sounds like a county fair booth.
I'm just here for the term 'corporate veil.' Sounds like a haunted bridal shop.
Anyway OP, if your lawyer actually read the thing and flagged a missing buyout clause, you got your money's worth. Most of these formation companies don't even know what a buyout clause is.