Are these reasonable fees & terms for a lawyer to help with LLC?

[Pipan]

What is the name of your state? Austin, TX

Hello

For formation of a new start-up LLC that will have only one or maximum 2 members (at least for now), a lawyers is going to charge me: $1995. The location of both business and lawyer is in Austin, TX. The lawyer works from home. The service will be as following, and will the above fee will include the filing fees to the State of Texas to file the Certificate of Formation ($300).

"" Ascertaining name availability, drafting the Certificate of Formation, drafting the Company Agreement of the company, drafting the Organizational Minutes of Members, Drafting a detailed Client Memorandum discussing operation as a limited liability company, holding the organizational meeting, and filing the Certificate of Formation and reasonable telephone consultation concerning operation as a limited liability company, not to exceed one hour during the first month after formation.

Also, the hourly rate for additional services in connection with a limited liability company formation, assuming minimal securities compliance is involved, is two hundred ninety-five dollars ($295.00) an hour for attorney services and one hundred $125.00 an hour for legal assistant and law clerk services or in lieu of an hourly rate, a project fee to be agreed upon in advance of the commencement of such services. ""

I could not find the lawyer's review, but found his profile on Linkedin.

Are these reasonable fee and terms?
Also if the lawyer works from home, can it be typically not a good sign?

Any input you have is appreciated.

Thank you.
Pipan

 

[Zigner]

What is the name of your state? Austin, TX

Hello

For formation of a new start-up LLC that will have only one or maximum 2 members (at least for now), a lawyers is going to charge me: $1995. The location of both business and lawyer is in Austin, TX. The lawyer works from home. The service will be as following, and will the above fee will include the filing fees to the State of Texas to file the Certificate of Formation ($300).

"" Ascertaining name availability, drafting the Certificate of Formation, drafting the Company Agreement of the company, drafting the Organizational Minutes of Members, Drafting a detailed Client Memorandum discussing operation as a limited liability company, holding the organizational meeting, and filing the Certificate of Formation and reasonable telephone consultation concerning operation as a limited liability company, not to exceed one hour during the first month after formation.

Also, the hourly rate for additional services in connection with a limited liability company formation, assuming minimal securities compliance is involved, is two hundred ninety-five dollars ($295.00) an hour for attorney services and one hundred $125.00 an hour for legal assistant and law clerk services or in lieu of an hourly rate, a project fee to be agreed upon in advance of the commencement of such services. ""

I could not find the lawyer's review, but found his profile on Linkedin.

Are these reasonable fee and terms? Any input you have is appreciated.

Thank you.
Pipan

Shop around...

(As a note, I've been involved in a handful of these matters and they tended to cost more than you have been quoted...)

 

[quincy]

What is the name of your state? Austin, TX

Hello

For formation of a new start-up LLC that will have only one or maximum 2 members (at least for now), a lawyers is going to charge me: $1995. The location of both business and lawyer is in Austin, TX. The lawyer works from home. The service will be as following, and will the above fee will include the filing fees to the State of Texas to file the Certificate of Formation ($300).

"" Ascertaining name availability, drafting the Certificate of Formation, drafting the Company Agreement of the company, drafting the Organizational Minutes of Members, Drafting a detailed Client Memorandum discussing operation as a limited liability company, holding the organizational meeting, and filing the Certificate of Formation and reasonable telephone consultation concerning operation as a limited liability company, not to exceed one hour during the first month after formation.

Also, the hourly rate for additional services in connection with a limited liability company formation, assuming minimal securities compliance is involved, is two hundred ninety-five dollars ($295.00) an hour for attorney services and one hundred $125.00 an hour for legal assistant and law clerk services or in lieu of an hourly rate, a project fee to be agreed upon in advance of the commencement of such services. ""

I could not find the lawyer's review, but found his profile on Linkedin.

Are these reasonable fee and terms? Any input you have is appreciated.

Thank you.
Pipan

Compare the rates with other attorneys in your area. What is reasonable depends on several factors (attorney experience, local rates .. ).

In other words, we cannot judge "reasonable" for you. You are right, however, to do some research prior to signing a contract.

Good luck.

 

[Pipan]

Compare the rates with other attorneys in your area. What is reasonable depends on several factors (attorney experience, local rates .. ).

In other words, we cannot judge "reasonable" for you. You are right, however, to do some research prior to signing a contract.

Good luck.

Thanks Quincy. If the lawyer works from home, can it be not a good sign?

 

[quincy]

Thanks Quincy. If the lawyer works from home, can it be not a good sign?

It is not necessarily a bad sign .. but I might be reluctant to hire an attorney who doesn't have an office outside his home.

 

[Zigner]

Does he work from his kitchen table, or does he have a home office?

 

[Pipan]

I don't now.

 

[quincy]

I don't now.

The fact is that most attorneys do not stop working when they are home - and many if not most will have a "home office" to where they will retreat when they need to conduct business outside their regular business hours.

Working exclusively from home can be a smart financial decision or it can be a sign that the attorney does not have enough clients/make enough money to support having a separate office location.

I was always told that appearance counts - and this includes the appearance of success. This can be displayed by driving a late model car and wearing expensive suits and having an office space that is equipped with the latest technology.

Should any of that matter? Not really. But for some reason it does matter. Looking successful can make you successful.

I suggest you do your research.

 

[adjusterjack]

Is $1995 reasonable for all that? Seems reasonable to me.

Reminds me of the story about a building owner who was having electrical problems. The electrician comes over, inspects the electrical equipment, takes a part out of his bag, installs it, everything works perfectly, and hands the building owner an invoice for $2000.
Building owner: "Wait a minute. Took you 5 minutes to install a small part. How much is the part?"
Electrician: "$5"
Building owner: "What's the rest of it for?"
Electrician: "Knowing where to put it."

You can, of course, create and register your LLC by yourself - if you "know where to put it."

 

[quincy]

Although I agree that creating an LLC can be done without legal assistance, it can be a big mistake to do so.

 

[Pipan]

Is $1995 reasonable for all that? Seems reasonable to me.

Reminds me of the story about a building owner who was having electrical problems. The electrician comes over, inspects the electrical equipment, takes a part out of his bag, installs it, everything works perfectly, and hands the building owner an invoice for $2000.
Building owner: "Wait a minute. Took you 5 minutes to install a small part. How much is the part?"
Electrician: "$5"
Building owner: "What's the rest of it for?"
Electrician: "Knowing where to put it."

You can, of course, create and register your LLC by yourself - if you "know where to put it."

That reasonable figure should be compared with others doing the same or similar thing. To me if that $2000 is within the range of +/- $300 is Okay. And that range should depend on experience, and other factors.
I am comfortable with filing and I have done it before, but filing is a process, more important is the content. For example to me it is important to know who should be member and who should not.

Thanks for your response.

 

[quincy]

That reasonable figure should be compared with others doing the same or similar thing. To me if that $2000 is within the range of +/- $300 is Okay. And that range should depend on experience, and other factors.
I am comfortable with filing and I have done it before, but filing is a process, more important is the content. For example to me it is important to know who should be member and who should not.

Thanks for your response.

It is a smart business move to have all documents drafted by an experienced attorney. You can avoid costly disputes in the future by having all potential problems properly addressed in the beginning.

Good luck.

 

[Pipan]

The fact is that most attorneys do not stop working when they are home - and many if not most will have a "home office" to where they will retreat when they need to conduct business outside their regular business hours.

Working exclusively from home can be a smart financial decision or it can be a sign that the attorney does not have enough clients/make enough money to support having a separate office location.

I was always told that appearance counts - and this includes the appearance of success. This can be displayed by driving a late model car and wearing expensive suits and having an office space that is equipped with the latest technology.

Should any of that matter? Not really. But for some reason it does matter. Looking successful can make you successful.

I suggest you do your research.

I agree with you Quincy.
One of the lawyers that I have contacted I think has good experience in the specific area of business that I am going to operate.

 

[quincy]

I agree with you Quincy.
One of the lawyers that I have contacted I think has good experience in the specific area of business that I am going to operate.

Experience is an important factor. You can pay less for an attorney with little experience but your overall cost can be greater because more billable hours will be spent on research.

You are approaching your business formation in a smart way. That bodes well for your business success in the future.

 

[Ohiogal]

It is not necessarily a bad sign .. but I might be reluctant to hire an attorney who doesn't have an office outside his home.

Bite me quincy.
Signed, A Well established Professional Attorney With a Great Reputation who is contacted by attorneys in big offices all the time for advice and I work from Home.