Question

Topic: Other

Going From Sole Proprietor To Llc

Posted by Anonymous on 1000 Points
Hello Marketing Profs. For those of you who changed your biz structure from sole proprietor to LLC, I am wondering what resources you used to become an LLC. I am looking at The Company Corporation, LegalZoom, and Nolo press book(s) with CD ROM. Looking forward to your feedback.
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RESPONSES

  • Posted by Peter (henna gaijin) on Accepted
    I think the Nolo books are great, and can provide you the step by steps for the process. I would read through the one on legal structure or the general on on starting up a new business first, then decide whether you want to take this on yourself or to hire a lawyer to handle a lot of it.
  • Posted by Billd724 on Accepted
    Amy --

    I used a local attorney who did my LLC under an all-inclusive 'package' price. I felt it was a reasonable fee and the process was not terribly complicated. That said . . .

    I have used LegalZoom for trademark registration and found them them to be an equally effective albeit significantly less costly alternative to a local law firm -- once I knew what I wanted and how to ask for it, the LegalZoom option was quite attractive.

    While I think your LLC filing is kind of a no-brainer, I personally feel more comfortable using a local attorney should anything out of the ordinary need to be addressed. In addition, a good attorney will often bring up ancillary or related issues to the 'basic' service you initially ask of them (e.g. 'create an LLC') which, if not identified and addressed, may end up costing you a lot of time and money in the long run.

    While services like the ones you mentioned are generally reputable and do what they promise, it's still good judgment to obtain your legal services from a local attorney until / unless you know specifically what you want and that getting it from one of these alternative services is a better overall option.

    I went with LegalZoom after registering 4 trademarks through a local law firm and used that as my 'education' about the process and issues. After all that, I knew precisely what to ask LegalZoom to do for me and how to ask them for it. And, in the end, I got what I wanted. But without my earlier 'education' gained from using a local attorney, I might have easily made some significant mistakes in the way I made use of an outside legal service. I didn't. But I could have easily made some costly mistakes.

    Just my two cents worth. I hope this advice is helpful to you.

    Good luck with your new structure! '-)

    Bill
  • Posted by CarolBlaha on Accepted
    When I went LLC I just got on my state site (Colorado) and followed the easy instructions. They walked me thru it very easily, it was one easy form and done. I might hire someone to help me incorporate -- but a LLC I think you'll find it surprisingly easy.


    Good Luck, Carol
    Sell Well and Prosper tm
  • Posted by mop on Accepted
    Our company went from sole proprietor to LLC almost 10 years ago. We used the Company Corporation. It was so easy. Good Luck!
  • Posted on Accepted
    Depending on what state you are in, you may be able to do the conversion yourself -- even online. Go to your Secretary of State's website and see if there's a link to the "Formation of an LLC" page.

    I've done this a couple of times for clients and friends (in different states), and it's pretty easy. Even in states where you can't do it online, you can probably downoad a PDF form and then send it in with your check (via snail-mail).

  • Posted by darcy.moen on Accepted
    The Company Corporation is a good selection. I've used and endorse their service. One of my clients introduced me to them a few years ago. I've returned to them time and time again as they are fast, efficient, and extremely helpful. If you wish, call and ask for Jenny Hall. Jenny is simply great! Tell her Darcy sent you her way.

    Of course, if you are in the USA already, you might want to consider a local lawyer, but compare prices. Balance out your needs. If you are an experienced business person with a few companies under your belt, The Company Corp may be perfect for you. If you are new to business, you might want to talk with a local lawyer and invest a few dollars in asking questions and availing yourself to your councillor's advice.

    Darcy Moen
    The Customer Loyalty Network
  • Posted on Accepted
    The Company Corporation is a trusted source.

    And check out the best states to incorporate within and the requirements for doing so.

    For example, more than half of the Nation's Fortune 500 companies incorporate in Delaware due to ease of incorporating, business-friendly climate, fast services and Court of Chancery's ability to issue timely decisions.

  • Posted on Accepted
    That would depend on how comfortable you are with the required filings and requirements for a registered agent.

    I would take that question to my CPA to see what related services they offer once you form the LLC and see where they would pick up if you are not comfortable with the required procedures and filings.

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