There is no legal requirement to hire a lawyer to form an LLC. Other providers such as ZenBusiness and Northwest Registered Agent can do this for you. If you prefer to do it on your own, here’s a guide to forming an LLC.
Advantages of an LLC
The main advantage of a limited liability company (LLC) is that the members of the company are not liable for the obligations of the company with their personal assets.
Costs and Legal Considerations
Forming an LLC
When you hire a lawyer, forming your LLC and drafting an operating agreement typically costs:
- $350-$1000 for a single-member LLC
- $750-$5000 for a multi-member LLC
As a small business owner, an LLC allows you to protect your personal assets and minimize your tax burden. While a lawyer is not required to start an LLC, their advice may be beneficial.
Starting an LLC in Pennsylvania
The cost to start an LLC online in Pennsylvania is $125. This fee is paid to the Pennsylvania Department of State when filing the LLC’s Certificate of Organization. Recommended services such as Northwest charge $29 plus state fees.
If you hired a Registered Agent service, there’s an annual fee of about $125.
Starting an LLC in Texas
In Texas, there is no legal requirement to hire a lawyer to form an LLC. However, legal advice can be an asset when starting any business.
If you’re considering a PLLC, tailored for licensed professionals, it may have additional requirements.
Step-by-Step: LLC Formation in Texas
Let’s walk through the essential steps to form an LLC in Texas:
- File a Form 501 to reserve your business name along with the $40 filing fee.
- Register for a sales tax permit if needed with the Texas Comptroller of Public Accounts.
- Nominate and obtain consent from a registered agent.
- Complete the state filing of your articles of organization.
- File an Operating Agreement, as required by Texas law, with the details of your LLC structure and management.