price for attorny to help form llc

[totters_traders]

hi guys, i posted my situation here a few posts ago bout 3 partners etc not wnting to get voted out and legal side of things, we hae met wih an torny who says he can get all the legal paper work done for us aand help us set the llc up with ein numbers and all that stuff that we relly dont know too much about, his rice was 1800 dollars, does this sound good, can we downloads egl forms nd do all that ourselves, or write up our own contracts using old or downloaded ones as templates

or does any one know of a cheaper atorney? or is this a good deal

[BusinessAdviser]

hi guys, i posted my situation here a few posts ago bout 3 partners etc not wnting to get voted out and legal side of things, we hae met wih an torny who says he can get all the legal paper work done for us aand help us set the llc up with ein numbers and all that stuff that we relly dont know too much about, his rice was 1800 dollars, does this sound good, can we downloads egl forms nd do all that ourselves, or write up our own contracts using old or downloaded ones as templates

or does any one know of a cheaper atorney? or is this a good deal

That sounds expensive as all hell. Filing your articles of incorporation (registering your LLC) is very simple and much less expensive to do yourself. An operating agreement doesn't take an attorney long, because he'll likely just pull up a form he has. I don't know of a single attorney who drafts one himself. So I think 1800 dollars sounds really expensive to me.

[dropbox247]

Forming an LLC consists of: downloading the LLC formation form (usually 2 pages) from your State Secretary office's website. Filling in the name of the company, the address, the registered agent's (one of the partners) name and address, the names of the owners and their addresses, signatures and thats about it. You send it in with a check, usually less than $100.

Download an LLC operating agreement template and customize it to your needs.

Call the IRS, ask for an EIN (or apply online). It takes like 10 minutes. They ask for the name of the business, the owners names, social security numbers, etc and they give you one right then and there.

BAM, you're done. (Excuse the terrible wording of this post, I'm half asleep)

[dropbox247]

oops......

[Cole Taylor]

SNIP... You send it in with a check, usually less than $100.

Dont know where this started
13< $100
6 @ $100
19/50=38%
38% does not = usually

[VDA 2006 Inc]

Our entire corporation cost $500 so that seems a bit high. I recommend having it done by a CPA or Lawyer for the simple fact that down the road, if anything goes wrong or you need a hand with something, they'll be the ones you turn to.

[totters_traders]

can any one recomend one to me that will help us get a contract for all partners to feel happy with for cheaper

[totters_traders]

hey guys my partner who is based in florida got this back from the attorney , please advise remember all we want is to set up a llc and have the money that comes in split, and make sure that one member cant be voted out by the others, due to a fallout. i cant see why this is costing so much



We are very pleased that you have chosen to retain our firm to perform legal services on your behalf. From our experience, we have found that clients appreciate a frank and open discussion and understanding of the services that we will perform and the basis upon which they will be expected to pay for these services. This letter is intended to set forth our understanding as to the nature and scope of the legal services we have agreed to render on your behalf, the amount of the fees for these services, the manner in which our fees for these services shall be determined and the terms upon which you will make payment of these fees.

1. Nature of the Legal Services. You have engaged us to perform legal services on your behalf, including the following:
 Initial Consultation (1st twenty minutes are FREE).
 Preparation and Filing for LLC.
 Apply for EIN Number.
 Apply for two (2) ITIN’s.
 Preparation of LLC Operating Agreement.

2. Fees for Legal Services.
a) It is our firm’s policy to obtain a retainer as a partial advance against anticipated legal fees before we undertake to provide legal services. After analyzing the scope and nature of this legal representation, we believe that a non-refundable flat fee of $1,750.00 is appropriate. We believe that a non-refundable retainer in the amount of $895.00 is appropriate at this time, leaving a balance of $895.00. Said fee is considered earned upon receipt and covers. The retainer amount is not an estimate of the total cost of legal services, which will be required in this case. It is impossible to estimate that amount at this time.
b) If additional legal services are required beyond the scope outlined in the initial consultation and in this retainer agreement (i.e. changes while work is in progress, time spent beyond maximum hours quoted, etc.) the hourly rate will be applied and an additional charge will be assessed in addition to the flat fee as indicated above. Said additional charge, along with any outstanding balance, will be due and owing in accordance with the regular billing practices of the law firm.
c) Fees for legal services will be computed and billed on hourly rates, not including disbursements and costs. Billing will be done in six-minute increments, for each telephone call, letter drafted and any and all services rendered on your behalf, no matter how short in duration.
d) You fully understand that you will be billed on an hourly basis, at the regular hourly rates established from time to time for the attorneys, law clerks, paralegals and legal assistants in our firm as the same may be from time to time revised. The following are the currently hourly charges for our professional staff: Attorney - $400 / hour; Paralegal - $295 / hour and Legal Assistant - $195 / hour. If our hourly billing rates change, we will notify our clients of the change at the time the invoice is submitted to you for payment.
e) While our bills for legal services are for the most part directly related to the value of the time actually spent on your matter by our professional staff, we do reserve the right to consider the following factors in determining our fees: i.) the nature of the legal problem, its novelty or difficulty, complexities and importance, and the nature of services required to be rendered by us; ii.) the amount of money involved, the client’s interest at stake, and the benefit derived by the client; iii.) the time limitations imposed upon us by the client or by the circumstances, with particular consideration given to overtime work and work spent outside normal working hours; iv.) the responsibility imposed upon us and our experience, reputation and ability; and v.) preclusion of other employment.
f) We are always available to answer any questions you might have about the amount of and method used by us to determine the fees we charge you.

3. Costs and Expenses.
a) In connection with our representation of you, we anticipate that certain costs and expenses may be incurred and advanced on your behalf. You will be responsible for said costs and expenses. These costs and expenses may include, but will not necessarily be limited to, costs of investigation, service of process, depositions, filing fees, recording costs, registration fees, travel expenses, delivery charges, long distance telephone charges, photocopying, charges associated with obtaining copies of relevant documents and tests, the costs of engaging appropriate experts, postage (first-class mail, FedEx, express mail, certified mail and the like), computerized research charges and court costs (such as filing fees, newspaper publications, recording fees, etc.). In addition to our fees for legal services, you agree to pay us for such out-of-pocket expenditures made or advanced on your behalf.
b) In the event that unusually large costs or advances are anticipated, we reserve the right to require a cost deposit prior to undertaking the expenditure of funds on your behalf.

4. Payment of Fees and Expenses. In order to keep you informed of the services we provide on your behalf, you understand that you will be billed monthly for the time spent on your matter and for expenses incurred on your behalf. You agree to pay each monthly invoice within ten (10) days of receipt. If you have a disagreement about the amount of the bill, please contact us in writing prior to the due date, otherwise you agree to the amount of your bill to the date of the invoice. You agree that the entire attorneys’ fee and costs are the personal responsibility of each and every person and entity signing this agreement severally and jointly.

5. Non-Payment of Fees and Costs.
a) Unless another agreement is reached, you understand that non-payment of any invoice for fees and/or costs which is rendered to you in accordance with the terms and conditions of this letter will constitute a default by you and we may, in our sole and absolute discretion (subject to court approval, if necessary), cease to provide further legal services to you. You will, however, be liable to us for the payment of any fees earned and any costs incurred by us to that time. Late fees will be assessed on all unpaid balances at the rate of 1.5&#37; per month until said balance has been paid in full.
b) You further agree that we shall have the right to withdraw from representing you if you do not make payments as required by this agreement, if you have misrepresented or failed to disclose material facts to us, or if we disagree about the course of action, which should be pursued by you. In any of these events, you agree to execute such documents as will permit us to withdraw.
c) In the event we are ultimately required to bring suit to collect any unpaid fees and/or costs, you understand that you will be required to pay reasonable attorneys’ fees equal to 20% of the recovery plus interest at the rate stated above. You further understand that we have the right to retain any and all files, papers and other property coming into our possession in connection with our engagement without any liability to you until we have been all costs, fees and interest due us under this agreement. You also agree to the imposition of a charging lien for any monies due us on all real and personal property that is preserved, protected or obtained as a result of the representation undertaken herein.

6. Commencement of Representation.
a) It will be absolutely essential for you, and your agents and employees, to fully cooperate with the attorneys and other representatives of this law firm who will perform services on your behalf. As such, all requests for information must be met immediately.
b) This law firm, none of its agents, representatives or employees, can make, nor have they made, any representations or guarantees as to the outcome, or the successful conclusion, of this matter. Your signature below will serve as an acknowledgement of that fact.
c) If the foregoing is agreeable to you, please acknowledge your understanding and agreement by signing this letter and delivering it to us, together with the payment of the retainer set forth above, and we shall commence our representation.

I am sorry about the length of the foregoing discussion with regard to fees, but, as I stated previously, my firm feels that it is best that all such matters be fully discussed at the beginning to avoid any unhappy misunderstandings. If you should have any questions, we should discuss them now, at the outset of the matter. We appreciate your confidence in our firm and we assure you that we shall make every effort to perform our comprehensive legal services in a prompt and efficient manner.

Sincerely,

THE LAW OFFICES OF JOSEPH A. PORCELLI, P.A.

By: _____________________________________
Joseph A. Porcelli, Esq.

I have read this letter and confirm that it correctly states the basis upon which I have retained The Law Offices of Joseph A. Porcelli, P.A. as my legal counsel in connection with the matters referred to herein on the day here above written

[totters_traders]

would any one on here be concerned at this

[JLeezer]

I would be highly concerned that this guy is charging $400 an hour for his time and $295/hour and $195/hour for a paralegal and legal assistant, respectively. As far as I know, a paralegal has only basic training in legalese and document filing. I'd imagine that a legal assistant is moreso an assistant to someone in the business of being an attorney. Unless this guy has the MOST reputable firm in the area or is actually working for a company such as Deloitte & Touche or similar firm with legal services, these prices are WAY out of line.

A fair price for an attorney performing these services should be in the $200 - $300 an hour rate, with assistant's rates significantly less.

Also, did you notice in section 2a that his math is a bit wrong: $895 + $895 does not equal $1750, but does equal $1790. I'm guessing you'd be paying $195 an hour for someone who isn't too hot at basic math or at least competent enough to double check themselves.

If your partners have the money to blow on this, go for it. But I'd be much happier filing the documents yourself and spending around $100 - $300 for the filing fee.

[JLeezer]

would any one on here be concerned at this

Scenario A) If you haven't signed anything, you aren't under contract to pay the guy or use his services

Scenario B) If you have signed an agreement, but haven't yet paid him or used his services, he'll have to take you to court to force you to pay him. This takes his time and money. If he is actually so busy that he can charge clients $400 an hour, he doesn't have the time to do that. So you may be able to just not pay him for the services not used and the matter will just disappear. Now, if he is a cocky lawyer that thinks his time is worth $400 an hour but doesn't have too many clients and too much work, that might be another story. In that case, you might end up going to court over it or maybe have the chance to settle out of court.

[totters_traders]

yes this is very worrying, however we havent signed with him just getting quotes, any help on a firm to use would be great

[latinolive]

Call the IRS or reference it at ww.irs.gov. You can set up your EIN number in about 10 minutes over the telephone. As an attorney, you can establish your own LLC without me or my legal colleagues. I know that is bad for my profession, but it is the truth.

By the way, one of my clients just referenced a company named Innoventum, Inc. (which was started by attorneys) that has a business start up tool kit as to the "how to." I was amazed when I looked at their website as it was quick impressive with the free articles, etc. You may want to look them up and reference them as well. It may save you the $1,800.

Carlos

[Barkri12]

A corporation is a more common type of business setup for those trying to get funding for their business. While it is possible to obtain external financing for an LLC, it is not as common as with a corporation.

[Earthbound01]

I am also looking to start my LLC.

Legalzoom.com which I saw commercials for on TV offers it from $149-359.
Maybe this would be better for you.

Is it better to just file it myself or to go through them?