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LLC creation

stateofmind

stateofmind

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Jul 16, 2007
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Do you recommend using Legal Zoom to create a basic LLC for my consulting work on the side? I had a lawyer buddy going to do it for me in his spare time, but I'm running out of time and he hasn't had the time.

Or do you recommend a local Des Moines area lawyer that could do this high quality and cheap... :)
 
Clark

Clark

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There's a reason most CPA's leave that type of work to attorneys (and it's not just that we don't think we know how to do it)

You're in some dangerous territory Curt regarding the legality of a non attorney preparing legal documents for a fee.
 
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Cycsk

Cycsk

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Clark said:
There's a reason most CPA's leave that type of work to attorneys (and it's not just that we don't think we know how to do it)

You're in some dangerous territory Curt regarding the legality of a non attorney preparing legal documents for a fee.
Click to expand...


upload_2017-5-10_13-12-50.jpeg
 
isufbcurt

isufbcurt

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Clark said:
There's a reason most CPA's leave that type of work to attorneys (and it's not just that we don't think we know how to do it)

You're in some dangerous territory Curt regarding the legality of a non attorney preparing legal documents for a fee.
Click to expand...

I appreciate your concern.

Setting up an LLC is really not a complicated process. I am not the one signing anything, the LLC is setup in the member's name(s). All I am doing is assisting them in following the Iowa Secretary of State's directions, assisting them in selecting the proper type of entity for their situation, getting them setup with a EIN and other required filings they may have (sales tax, state w/h, state unemployment, etc.).
 
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CloneLawman

CloneLawman

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isufbcurt said:
I appreciate your concern.

Setting up an LLC is really not a complicated process. I am not the one signing anything, the LLC is setup in the member's name(s). All I am doing is assisting them in following the Iowa Secretary of State's directions, assisting them in selecting the proper type of entity for their situation, getting them setup with a EIN and other required filings they may have (sales tax, state w/h, state unemployment, etc.).
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Just for curiosity's sake (I don't particularly care about CPA's setting up an LLC)--do you draft Operating Agreements and other agreements as well?
 
ZB4CY

ZB4CY

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Numbers.....

Math....

16240.jpg
 
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Clark

Clark

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isufbcurt said:
I appreciate your concern.

Setting up an LLC is really not a complicated process. I am not the one signing anything, the LLC is setup in the member's name(s). All I am doing is assisting them in following the Iowa Secretary of State's directions, assisting them in selecting the proper type of entity for their situation, getting them setup with a EIN and other required filings they may have (sales tax, state w/h, state unemployment, etc.).
Click to expand...

you can disagree all you like, the law is pretty clear.

taken from the Iowa Code:

However, the practice of law includes, but is not limited to, representing another before the courts; giving of legal advice and counsel to others relating to their rights and obligations under the law; and preparation or approval of the use of legal instruments by which legal rights of others are either obtained, secured or transferred even if such matters never become the subject of a court proceeding
 
D

DRCHIRO

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We have a few that our CPA assisted us with. Quick and and painless process.
 
Last edited:
stateofmind

stateofmind

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Jul 16, 2007
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Clark said:
There's a reason most CPA's leave that type of work to attorneys (and it's not just that we don't think we know how to do it)

You're in some dangerous territory Curt regarding the legality of a non attorney preparing legal documents for a fee.
Click to expand...
What if he does it for free? ;)
 
stateofmind

stateofmind

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HogueNation said:
If things go to court I'll trust my attorney over your CPA every day of the week. Thanks for your input though.
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Do you get taken to court over how you filed your LLC? Or for the business-related liabilities? I'm not being a smartass, just don't understand the risk here.

If I'm going to court I'm going to use a lawyer. All I'm wanting to do is file with the state and get an EIN so that I can open a bank account to deposit money for paying for the business expenses, and possibly pay myself eventually.
 
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djkent01

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Clark said:
There's a reason most CPA's leave that type of work to attorneys (and it's not just that we don't think we know how to do it)

You're in some dangerous territory Curt regarding the legality of a non attorney preparing legal documents for a fee.
Click to expand...

There's some truth to what you're saying. When I practiced I chose not to do it on the advice of my liability insurance firm. Nonetheless, when I was approached, I gave the clients two options. Go to an attorney (I referred one) or do it yourself. But then bring it back to me to make sure it's done right and all the tax filings and structures are proper. Besides, filing it takes minutes and it's not really a big billable engagement to file. Everything else is what takes time.

But attorney's are generally clueless when it comes to tax structure. For example - I've seen it happen several dozen times - a person sets up an LLC and out of the goodness of their heart they make the spouse a member. If an S-Corp election isn't filed - it's a partnership for tax purposes. Period. Not only subject to pass through income but also self-employment tax - and requires a separate tax return. Happens all the time. Most CPA's have all that knowledge at their fingertips. If you do decide to engage counsel - get a CPA anyway. BEFORE you meet with the attorney.
 
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