I'm a freelance copywriter and don't want to pay a lawyer just to form an LLC. I know there are services like LegalZoom and stuff, but even those seem overpriced for what is basically filing a form. Has anyone done this themselves? I'm in Ohio if that matters. I just want the liability protection without burning $1500 on legal fees.
LLC Formation
I'm a freelance copywriter and don't want to pay a lawyer just to form an LLC
Ohio's Secretary of State website is actually pretty straightforward for the articles of organization. You can file online for $99. The part people mess up is the operating agreement, but for a single-member LLC you can find a decent template and just make sure it matches Ohio law.
Honestly, for a one-person copywriting business, the liability shield of an LLC is often overstated. If you personally screw up a contract, you can still be sued personally. The LLC mainly protects you from business debts, not professional negligence. But if you want one, DIY is fine for your situation.
I used Northwest Registered Agent for my LLC and it was like $39 plus state fee. They give you a year of registered agent service. Might be worth it if you don't want to be your own agent and have your address public.
Thanks. I hadn't thought about the registered agent angle. My home address would be on the filing if I do it myself, right? I'm not crazy about that being public.
Yeah, your address goes on the articles. You can use a registered agent service to keep it private, but that's an ongoing cost. Some people use a virtual office or a UPS store box, but check if Ohio allows that for the registered agent address. I think it has to be a physical street address.
Ohio does require a physical address for the registered agent, no P.O. boxes. But you can be your own agent and just use your home address. If privacy is a big concern, then paying a service makes sense. Otherwise, save the money.
Don't forget the annual report in Ohio. It's due by the end of April and costs $25. Miss it and you get a penalty. Also, you need an EIN from the IRS, which is free and takes five minutes Online.
The operating agreement is the piece I'd be careful with. A generic template might not cover things like what happens if you bring on a partner later or how profits are distributed. But for a single-member LLC, it's mostly a formality. Still, if you ever get sued, having a solid operating agreement can help help show you respected the corporate form.
Also, don't forget to get a business bank account. Commingling funds is the fastest way to lose your liability protection. That's the one thing I'd spend time on, not the filing itself.
Good point on the bank account. I'll make sure to keep things separate. I think I'll just file with the state and use a template flr the operating agreement. Thanks for the help.