Hey everyone, I'm finally taking the plunge and opening my own PT clinic. I've been an employee for 12 years and I'm over it. Now I'm stuck comparing formation companies, there are like a million of them. I'm in Texas if that matters. I need an LLC, probably want an S-corp election eventually, and I have no idea if I should use a lawyer or one of those online services. Any recommendations or horror stories?
Business Setup
I'm opening a physical therapy practice and comparing formation companies
First off, congrats! I used ZenBusiness for my LLC and it was fine. Cheap, fast, but their upsells are annoying. For a PT practice, though, you might want to talk to a local business attorney because of healthcare regs. Just my 2 cents.
Online services ade fine for the filing. Don't pay a lawyer $2k just to file articles of organization. Use LegalZoom or whatever, then hire a CPA for the S-corp stuff.
What mossybackyard said. I'm a PT in Colorado and the liability stuff is no joke. But honestly, the formation company won't help with that. They just push papers. You need someone who knows healthcare to review your operating agreement.
Also, avo id those companies that charge you a monthly fee for a "registered agent" you don't need. In Texas you can be your own registered agent if you have a physical address. Save the money.
I used Incfile. They were cheap but it took them 3 weeks to file. My friend used Northwest and got it done in 2 days. YMMV.
Thanks for the iinput. I'm leaning toward filing myself and then finding a CPA. But isn't there a risk with the S-corp election? Like if I mess up the paperwork?
You can always elect S-corp later. No rush. Get the LLC, get your EIN, open a bank account. Worry about S-corp after you're actually making money.
This is going to sound dumb but I paid one of those services and they messed up my business name. Took forever to fix. I'd honestly just file directly with the state. It's like $300 in Texas and the form is easy.
Also check if your county requires anything. I'm in Harris and there's a separate assumed name thing if you're using a DBA. Not a big deal but just another thing.
I've heard horror stories about Incfile's customer service. But I've also heard good things. It's a coin flip. I'd use a local attorney for $500-800 instead of a $200 online service.
Forgot to mention: if you're going to hire employees, you'll need workers comp and payroll. The formation company doesn't care about any of that. So yeah, local help might be worth it.
Okay, so the consensus seems to be: file directly with the state, skip the upsells, and get a CPA/attorney. That's actually helpful. One more thing—any of you used a service that includes a free registered agent for a year? Is that worth it?
Free for a year means $100+ per year after that. Just be your own agent. It's literally just an address.
Unless you don't want your home address on public records. Then a registered agent is worth it. But you can use a PO box or virtual office too.