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Self-Organization

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Obviously, the greatest benefit of self-organization is initial savings. Self-organization costs the least initially. LLCs are easier to form than corporations because they are generally simpler entities. You must analyze your own needs. How complex will your entity be? Will you require multiple classes of ownership interest? Do you expect to have more than a few members? Will you operate in an industry with a formidable degree of potential liability? If your needs are not complex, you are a good candidate for organizing your LLC yourself.

Of course, as with any legal matter, cutting costs can often cost more later. For example, if your LLC is not properly organized, ambitious creditors may later reach your personal assets by piercing the corporate (LLC) veil. See Part Five: LLC Lawsuits and Personal Liability Protection for more information on preserving your LLC’s full liability protection.

For further assistance with self-organization, Entrepreneur Press offers two helpful books: Forming an LLC: In Any State and Entrepreneur Magazine’s Ultimate Guide to Forming an LLC in Any State. These two books use a step-by-step approach to forming business entities.

Ultimate LLC Compliance Guide

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