Should I use a service like Legalzoom to form an LLC before I lease a space and start my electronic repair shop or should I hire an attorney?

[johnNight]

I'm starting the electronic repair business in Texas. Would it be acceptable to just follow a youtube tutorial and use Legalzoom or an alternative to do this? Or would it be more advisable to hire an attorney? Hiring an attorney seems like a pain and I'd like to avoid it if I can. But if I need one, then I will hire one. I do plan on hiring a few employees in the near future. Many people say that a service like Legalzoom would be fine to form many LLCs but it depends on the business.

 

[Zigner]

I'm starting the electronic repair business in Texas. Would it be acceptable to just follow a youtube tutorial and use Legalzoom or an alternative to do this? Or would it be more advisable to hire an attorney? Hiring an attorney seems like a pain and I'd like to avoid it if I can. But if I need one, then I will hire one. I do plan on hiring a few employees in the near future. Many people say that a service like Legalzoom would be fine to form many LLCs but it depends on the business.

It's really up to you, but you might want to consider this: Would you feel comfortable rebuilding your transmission after watching some videos and reading some books? My opinion would be to at least talk to some attorneys before making the decision.

 

[johnNight]

What is the best place to find attorneys to talk to?

 

[Zigner]

What is the best place to find attorneys to talk to?

Seedy dive bars by the docks...

Seriously though, you can start by doing a web search for business attorneys in whatever city you are in. You could also go to www.attorneypages.com or contact the State Bar of Texas to see if you can get referrals.

 

[Just Blue]

What is the best place to find attorneys to talk to?

https://www.texasbar.com/

Give a brief explanation of your situation and the Bar will give you several referrals. Meet with those attorneys and then choose the one that both meets your needs and budget.

 

[Taxing Matters]

I'm starting the electronic repair business in Texas. Would it be acceptable to just follow a youtube tutorial and use Legalzoom or an alternative to do this? Or would it be more advisable to hire an attorney? Hiring an attorney seems like a pain and I'd like to avoid it if I can. But if I need one, then I will hire one. I do plan on hiring a few employees in the near future. Many people say that a service like Legalzoom would be fine to form many LLCs but it depends on the business.

While you can use some boilerplate forms service to form your LLC, you'd still want to get advice from a business attorney, so you may as well have the lawyer do your LLC filing (assuming a LLC is really the best form of business for you). You should also see a tax lawyer or other tax professional for advice, too. It's particularly important to get that kind of professional advice when you have partners and/or employees. There is a lot you need to know to do this business right. You'll need to have well written contracts to use with your customers. You'll need to understand employment law once you hire those employees. You'll need to understand all your tax obligations — which means not just federal income tax, but also employment taxes, unemployment taxes, and sales taxes. You'll want to know how to establish and protect your intellectual property (IP) like trademarks and to ensure you're not infringing on the IP rights of others. Starting a business is a significant undertaking and one that can be very costly if you screw it up. So don't be pennywise and dollar foolish with this. Get good professional advice. The fees you pay for that are a good investment in the future of your business.

 

[adjusterjack]

You'll also need proper business insurance.
Premises liability in case somebody is injured in your store and blames you.
Products liability if you sell anything.
Professional liability if you damage somebody's property while working on it.
Property insurance on your equipment, furniture, fixtures, and improvements you make to your premises.
Property insurance that includes property of other for the same type of damage as to your own property regardless of fault.
Commercial auto insurance if you use your auto in your business.
Workers compensation insurance for your employees.

All this can be obtained through a local independent insurance agent.

 

[quincy]

Consulting with a trademark professional prior to investing a lot of time and money in naming and promoting the business could be important, too.

The bottom line is that nothing can put an end to a fledgling business quite as rapidly as a costly lawsuit filed against it. The goal should be to protect your business as much as it possibly can be protected - and this is generally best accomplished through help from professionals prior to operation.

 

[LdiJ]

You'll also need proper business insurance.
Premises liability in case somebody is injured in your store and blames you.
Products liability if you sell anything.
Professional liability if you damage somebody's property while working on it.
Property insurance on your equipment, furniture, fixtures, and improvements you make to your premises.
Property insurance that includes property of other for the same type of damage as to your own property regardless of fault.
Commercial auto insurance if you use your auto in your business.
Workers compensation insurance for your employees.

All this can be obtained through a local independent insurance agent.

And FYI, a lot of that gets bundled into a general business insurance policy with liability coverage, and isn't nearly as expensive as it might come across from that description.

Geez AJ, is your goal to talk people out of going into business for themselves?

 

[quincy]

And FYI, a lot of that gets bundled into a general business insurance policy with liability coverage, and isn't nearly as expensive as it might come across from that description.

Geez AJ, is your goal to talk people out of going into business for themselves?

Haha.

It can be a wake up call for some who are thinking of starting a business when they learn of just how much they need to consider and to do before slapping their name on a building and opening their doors to the public.

johnNight is doing the smart thing by asking questions first.

 

[LdiJ]

Haha.

It can be a wake up call for some who are thinking of starting a business when they learn of just how much they need to consider and to do before slapping their name on a building and opening their doors to the public.

johnNight is doing the smart thing by asking questions first.

Don't get me wrong, I totally agree. I just thought that AJ's list of all of the different kinds of insurance that is needed was a little scary...LOL.

 

[quincy]

Don't get me wrong, I totally agree. I just thought that AJ's list of all of the different kinds of insurance that is needed was a little scary...LOL.

Haha. Definitely scary.

Many businesses survive just fine without ever having to rely on their insurance. But those without insurance often discover too late that their idea to save on costs at first costs them dearly later.

 

[adjusterjack]

And FYI, a lot of that gets bundled into a general business insurance policy with liability coverage, and isn't nearly as expensive as it might come across from that description.

That's right. An electronics repair shop is ideal for a Business Owner's Policy.

Geez AJ, is your goal to talk people out of going into business for themselves?

I see facetiousness in your comment, but it deserves an answer.

My goal is that people go into business properly and not wind up like this guy who posted on another site:

"A teen girl fell in my antique shop today. She sprained or broke her ankle.
There was NO cause except her own tripping in her own feet.
Is there any chance she could successfully sue me? She and eventually her mom implied she might?
I have no business insurance. I am in Iowa.
Worried."

 

[Zigner]

My goal is that people go into business properly and not wind up like this guy who posted on another site:

Adding something like this to the end of your post would probably have helped:

(Most of the above are bundled in the standard business insurance policies issued.)

 

[quincy]

Certainly adjusterjack’s previous post could have been condensed to simply say “business policy” to reduce the “scariness” of it all but listing what the business policy includes (or should include) is important.

There are a lot of anecdotes that could be posted to illustrate the need for insurance.