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Forming new LLC questions

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firstbiz

Junior Member
What is the name of your state?What is the name of your state? California

I'm starting a small service business.

(It's an attorney service - doing court filings, service of process, courier work, etc, for attorneys, and for other similar services, and for the general public. I have experience in the field, working for someone else.)

There is some potential for liability, so I think I should (and have been advised to) form an an LLC.

Cash is a serious problem - I don't have much. The business itself doesn't require much investment, so I think I'm okay there, but I'm looking to save money wherever I can until the ball starts rolling. I'm pretty clever, so I'm considering forming the LLC myself, without spending $1000 or more for an expert. But I'm also clever enough to know that that might be an expensive way to "save" money.

factoids:
* I intend to be the sole "partner". (Or it could be my wife and me, if there's some requirement or advantage).
* I will be, at least in the beginning, the sole employee - but I will sometimes need to use sub-contractors locally and nationwide.
* I intend to carry plenty of insurance.
* I'm mainly concerned about protecting our home from liability issues.
* This is my first entrepeneurial enterprise. I know the front-end of my business, but I have no experience in "business" itself.
* I am somewhat familiar with legalese, and willing to learn more, and I'm not intimidated by forms and rules - but I'm definitely NOT a lawyer.
* I believe the liabilty risk is mostly errors & omissions, rather than other risks (premises liability, product liabilty, breach of contract, fraud, etc.). My clients are notoriously litigious!
=)
* I believe the probability of being sued is not that great - but I could _potentially_ be sued for millions, if I check the wrong box on a legal document, and ruin someone's multi-million dollar case!

I have done a LOT of reading, and answered all the easy questions. But I have several unanswered questions:

1. Am I crazy? Should I do this myself?

2. The forms are simple enough - I could complete the forms, for free, in 30 minutes, and file tomorrow for $85. Is there anything NOT obvious that I should know? Any particular text that should, or should NOT, be included in the filing, or operating agreement, etc?

3. What the heck sense is there in an operating *agreement* that I make with *myself*?

4. I know an LLC isn't necessarily bullet-proof. What can I do to make sure it's "done right"? What can I do, beyond the basics, to further protect myself?

5. I'm considering putting this off until maybe January 1st, 2006 - but I am advised to do it immediately to reduce liability.

6. What else do I need to know?

7. I think I'm sold on an LLC - but is there maybe a better idea?

Whew! Lots of questions.

Thanks in advance,
 



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