Do I need an LLC?
Entrepreneurs don't necessarily need an attorney to start an LLC, but consulting one can be helpful for legal guidance and ensuring proper compliance with state requirements and regulations.
Starts at $0 + state fees and only takes 5-10 minutes
Last Updated: March 13, 2026
Does an entrepreneur need a lawyer to set up an LLC? This is a common question for those who are looking to form their first small business. Technically, an entrepreneur doesn’t have to hire a lawyer; no state law requires it. Anybody can create an LLC on their own if they wish, or they can hire an attorney, or they can hire an LLC formation service. But there are pros and cons to all three methods.
This guide covers the essential benefits and drawbacks of hiring a lawyer, doing it independently, or hiring a service.
There are three options that entrepreneurs can use when forming their limited liability company (LLC): doing it themselves, hiring a business lawyer, or using a business formation service. All three are perfectly legitimate and legal. But every small business owner has different needs. By weighing the pros and cons of each method, business owners can pick the method that works best for them and their unique companies.
No matter what state an entrepreneur is forming their business in, there’s nothing stopping them from filling in their Articles of Organization and doing everything on their own. It’s a very common choice, especially for small, standard LLCs. But the method isn’t right for everyone.
Creating an LLC independently is an attractive option simply because it’s the quickest and most affordable. Generally, all an entrepreneur has to do is fill in the information requested on their state’s Articles of Organization and pay the accompanying filing fee. They won’t have to pay someone else for their expertise, spend time in consults, or wait for someone else to complete their paperwork. This guide on how to start an LLC covers everything entrepreneurs need to know.
If a business owner files online, there’s a good chance their LLC can be formed in a matter of hours. No other method is faster.
There are, of course, drawbacks to the DIY approach. If someone isn’t familiar with the legal requirements in their state, they could accidentally make errors or skip steps — mistakes that might cost the business down the road. Granted, entrepreneurs can take time to familiarize themselves with the process, but not everyone has that option.
Even with careful study and research, there are still complex aspects to some LLCs that can require legal expertise. For example, a business owner might want detailed guidance on what tax method to use; choosing between pass-through taxation or electing S corporation status can feel overwhelming (please see the What is an S Corp? page or What is a C corporation? guide for more information). Specialty limited liability companies like nonprofit LLCs, series LLCs, or professional LLCs often require a lawyer’s expertise.
Hiring a business attorney is arguably the safest method to start an LLC. A lawyer’s expertise can help businesses avoid a lot of legal compliance pitfalls. But even so, it’s not right for every business.
On the plus side, a dedicated business attorney can give entrepreneurs all the individualized guidance they need. They can guide someone to the best type of LLC for their goals and walk them through state-specific LLC laws. They can also provide advice on tax classifications, including pass-through taxation, S corporation status, or C corporation status, to help entrepreneurs know which classification will save them the most money.
Business attorneys can also help with other legal services. For example, they can assist with maintaining a registered agent, drafting employment contracts, writing an operating agreement, or creating other important legal documents.
The LLC is an incredibly flexible structure, so during formation, entrepreneurs have some decisions to make. For example, they’ll need to decide whether they want their LLC members (the term for LLC owners) to manage the company, or if they’d rather assign designated LLC managers. A lawyer can outline the pros and cons of each option, helping pick the optimal management structure.
Plus, many entrepreneurs simply don’t have the time to form an LLC by themselves. It might save time to outsource the formation process to an attorney or online service. If an entrepreneur already has a business lawyer helping with other services – like trademarks, copyrights, lease agreements, etc. — it can be easy to roll formation duties in, too.
There are drawbacks to hiring a business attorney, however. For one, hiring a lawyer is arguably the most expensive start-up option. Lawyers charge expensive hourly fees that can add up quickly. Especially in the startup phase, most businesses simply don’t have the spare cash lying around to pay for a lawyer’s LLC formation fees, which can cost thousands of dollars.
Even if someone finds a lawyer who offers a package formation service, they’ll usually find it’s pricier than self-filing or hiring a service. And between meeting with the attorney for consultations and waiting for them to file the paperwork (they’ll likely have other clients to attend to, not just the entrepreneur), it can take longer to get the LLC running, too.
Additionally, it’s important to note that not all attorneys have the same expertise. Some lawyers focus on business law specifically, and others offer business formations as a supplement to their primary services. Even a “good” lawyer might not be the right fit if business isn’t their specialty.
Last but not least, entrepreneurs can opt to hire an LLC formation service like ZenBusiness to form their LLC for them. An LLC formation service is a happy medium between doing it independently and hiring a legal professional. Basically, formation service customers answer a few questions about themselves and their business, and then the formation service completes the state paperwork on their behalf.
Even so, entrepreneurs will want to weigh the pros and cons to decide if a formation service is the right choice.
On the plus side, LLC formation services are far less expensive than hiring a licensed attorney. But like an attorney, these services can help avoid costly filing errors. That’s because formation services have a wealth of experience in creating businesses. Many have helped create hundreds of thousands of new LLCs.
These services can also file business formation documents quickly, getting the company up and running in a day or two. Plus, these companies can offer other services, such as registered agent services, filing for an employer identification number (EIN), creating an operating agreement, and much more. Usually, these extra perks cost less than what an attorney would charge. Since every LLC needs to designate a registered agent anyway, these LLC service providers can eliminate multiple items from the to-do list in one fell swoop.
Ultimately, services like these can be a great choice if an entrepreneur wants a little help without breaking their startup budget.
There are some negatives to using an LLC formation service, however. For one, while it might be cheaper than hiring a lawyer, it’s still more expensive than filing independently.
And if an entrepreneur is looking for specific, personalized advice for complex legal and accounting questions, they’ll likely find that these services don’t quite meet their needs. For example, suppose a soon-to-be business owner is on the fence about what type of LLC they have to create, or they’re thinking about forming a series LLC. Most formation services typically can’t handle these complex, unique circumstances.
There’s no one-size-fits-all answer to this question. Here are some thoughts for entrepreneurs to keep in mind when deciding whether to go it alone or to hire an attorney or an online LLC formation service.
If a business has a limited startup budget, using a business formation service might be the best bet. If the owner(s) can’t spare the $1,000 or more that it will likely cost to hire a lawyer, an online LLC service could be the only option, other than doing it independently.
Additionally, some LLCs just aren’t all that complicated to set up. If someone’s starting a single-member LLC that they’ll own and operate by themselves, or even if the LLC will have multiple members with an even ownership split, they can probably trust an online business formation service to get the job done right.
Online LLC services also throw in some additional features to sweeten the deal. How about getting a free or discounted year of registered agent service along with the LLC formation? Perhaps a customized operating agreement at no extra charge? Business formation services can often include these extras.
However, if the LLC will have multiple owners with varying ownership percentages and financial commitments, will operate in more than one state, or operates in an industry with special restrictions or regulations, it might be a good idea to hire an attorney.
Another situation where hiring a lawyer is preferred is when the owner simply wants as much reassurance and peace of mind as possible. Online LLC formation services are staffed by knowledgeable professionals, but they certainly don’t have the experience or expertise of a qualified business attorney. If someone wants the confidence that comes from having a true expert handle every step of the formation, hiring a lawyer is still the way to go.
By this point, most people will have a pretty clear picture of whether they want to hire an attorney or an online formation service to create their new LLC. But how does someone choose the right lawyer or the right LLC service? Here are a few insights to consider.
For those looking to hire an attorney, ZenBusiness has a helpful resource, “How to Find an Attorney to Form an LLC,” which breaks down a variety of options for finding a perfect business lawyer. This includes asking for local recommendations, contacting regional bar associations or law schools, using an online legal services website like LegalZoom or Rocket Lawyer, or searching Avvo’s extensive lawyer directory. It also includes information about how to figure out if an attorney has the business’s best interests at heart.
Considering an LLC formation service instead? Check out ZenBusiness’s guide to the best LLC formation services available.
It’s difficult to make a blanket statement about whether hiring an LLC attorney or an online LLC service is the “better” option for most, but generally speaking, getting some professional help is smart.
If an LLC has complicating factors and can afford it, an entrepreneur may want to hire an attorney to form the business. There truly is no substitute for the level of expert assistance a business attorney can provide. Business owners going this route may find the Questions to Ask a Lawyer When Starting a Business guide to be a helpful resource.
On the other hand, if someone’s operating their business on a limited budget, or if they’re forming a relatively simple business with few complications, online LLC formation services also offer a quality service. These services can’t provide the same level of expertise as a lawyer, but they’re still reliable for forming a compliant LLC with minimal hassle.
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Starting an LLC can feel overwhelming, but entrepreneurs don’t have to do it all alone. It doesn’t have to be expensive, either. ZenBusiness can help anyone start their LLC for $0 (plus state fees). And they’ve got extra support, too: whether someone needs an operating agreement template, a registered agent for service of process, annual compliance help, or anything in between, ZenBusiness has it covered.
$0 + state fee and takes 5-10 minutes
There are no legal requirements to hire a lawyer to help start an LLC. So if someone wants to do their formation on their own, they legally can. That said, some soon-to-be LLCs may benefit from asking a legal professional about their business formation questions. Legal advice can be especially helpful if someone needs a complex operating agreement or tax advice.
Not necessarily. Texas state law does not explicitly require entrepreneurs to hire a lawyer to create an LLC. Hiring one is up to the owner’s personal discretion.
Legal fees ultimately depend on which lawyer is hired and the level of assistance needed, as most lawyers bill by the hour. In California, it’s not uncommon to spend between $500 and thousands of dollars to form an LLC.
LLCs are highly favored by small business owners because they offer personal liability protection because they’re a separate legal entity. But they’re still simple to run and maintain, and they’re taxed as a pass-through entity. Even so, they aren’t right for everyone.
Corporations also offer personal asset protection plus the ability to raise funds through selling shares of stock. They have corporate formalities to uphold, however, such as appointing a board of directors, holding shareholder meetings, corporate bylaws, and more.
Unincorporated businesses like sole proprietorships and general partnerships are the easiest to start and run, but they don’t have personal liability protection. If an entrepreneur is not sure which business entity type is right for them, it’s highly recommended to consult an attorney.
Using an online LLC service removes much of the hassle from the business formation process. With these services, usually all an entrepreneur needs to do is provide them with the name, location, and industry the business operates in, along with some info about themselves and their registered agent.
The service then creates the Articles of Organization (or similarly named document) and files them with the state to create a new LLC.
Yes, most are. There are quite a few reputable companies offering LLC formation services these days, including ZenBusiness, who’s helped form hundreds of thousands of businesses and earned a Trustpilot rating of Excellent.
LLC Resources
Start an LLC in Your State
When it comes to compliance, costs, and other factors, these are popular states for forming an LLC.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
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