The internet is flooded with various articles that portray forming a Colorado LLC as the easiest thing in the world, and that you do not need a lawyer to help you with it. According to them, filling up the blanks in ready-made online templates is enough to form a Colorado LLC successfully.
Although you can set up a suboptimal LLC that way, you might not be able to set up an LLC that suits your business needs by towing this easy path. Forming a Colorado LLC by yourself may seem as easy as pie, but setting it up correctly is onerous. The fact that a free online template helped many businesses, does not imply that it will help yours as well. That is why you should use a competent lawyer to do it for you. If you do not hire one, you could face some pitfalls.
- You might not know if an LLC is the right incorporation form for your business. When you hire a lawyer to help you set up an LLC, he will consider your specific business needs and advise you on the best form for of entity for your business.
- You might not know if you need to incorporate at all. Many will advise you to sidestep lawyers due to costs. But, if your business activities cannot bear the cost of setting up an LLC, maybe you don’t need to incorporate at all. Not all businesses have to be incorporated.
- You might not have an operating agreement (and other documents) tailored for your business. And that could be a huge problem when the first partnership problems arise.
- You are responsible for incorporation mistakes. You can collect on lawyer’s malpractice insurance if you suffer damages due to his mistake about the incorporation. If you get something wrong while doing the whole process yourself, you’ll be the only one responsible.
Of course, you can form a Colorado LLC without a lawyer, but it’s not always a smart decision. You are incorporating because you want to limit your liability, and that is why you should leave it to the pros.