Here’s Why You Should Never Buy an LLC Online

It is very probable that you already understand the importance of running your business as a limited liability company to protect your assets. Perhaps you have already spent a handful of hours researching on different entities and how they are set up. If this is the case, it is safe to think that you have sourced some information from the internet. Have you ever encountered online businesses that offer to establish a limited liability company for you at a very low price? Numerous websites offer articles of incorporation and other pertinent documents at extremely cheap prices.

Please be informed; these offers are often too good to make business sense. Even more importantly, the providence of these documents is not adequate enough to substitute the need for a qualified lawyer. It is understandable why people will fall for the appeal of paying low fees for a pre-created entity. Using an online template or service may seem to be a very convenient way of saving money; unfortunately, it is a risky path that could cost you so much more with time. Below are a number of reasons why you should avoid purchasing limited liability corporations online.

1. Online LLC Services Give Limited Choices

If you Google search for options of easy to form and cheap entities, you will see numerous businesses that create LLCs all over. You will also find vague documents for joint venture agreements and limited partnerships, but it is very likely that you will not find other types of corporations that might have been better for you, like Series LLC. Having a limited range of entities to choose from is a drawback in its own right. This issue, moreover, becomes even bigger if you did not know that a better fit for your case exists; you might, therefore, fail to realize it all together.

Let us consider an example. John, an investor in California, wishes to purchases about three properties with a partner. He has heard before from fellow investors and online forums about limited liability corporations and has begun to research on how he can get one of his own. If he hires an advocate, the lawyer is most likely going to pry and question John’s motivations and inquiring if an LLC would best fit his needs. Let us assume that in this case, an LLC would not be best for John. He needs a Trust instead, which is definitely more complex than traditional LLCs. Moreover, Trusts are not offered through online services. The advocate will inform John that if he opted to have a traditional LLC, he would have to pay the State of California close to 800 US dollars every year in form of franchise tax. This information will not be relayed online; John will definitely learn about it the hard way.

2. Online LLCs are not Customized

There is a reason why online LLCs are quite cheap: the documents are all alike. The corporation that is thereafter established does not reflect your specific needs. An attorney, however, will customize your documents to meet your requirements. They might even ask questions and make professional recommendations based on their knowledge and experience. Moreover, advocates will try to ensure that the documents they hand over to you will be admissible in a court of law and accomplish their goals effectively. Online services will not achieve such milestones.

3. Lack of Contact with Professionals

Most problems that are associated with procuring online services to form an LLC stem from the lack of professional oversight. The reality of the matter is that a competent advocate can cover numerous milestones that these online businesses cannot. Entity creation is the domain of attorneys, and many real estate advocates are well versed in this area as well. If you hope to use your corporation for asset protection, securing the services of an advocate can assist you in avoiding expensive lawsuits.

An online service will only sell you an entity. There is no way an online service can match the services offered by an experienced advocate. While it is understandable why the thought of saving money provokes most people to procure online services, it is recommendable to go for an experienced advocate. A good lawyer will save you a lot of money in the long run, especially if you plan to be in business for long.


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