Verified FBN Member (SD)
Business

Who/what did you go through to set up your LLC?

I'm looking to set up an LLC or 2. I have been told to set up 2, one owns everything, the 2nd rents everything from the first to conduct business (custom work and such). I have Livestock and a little bit of machinery, no land. The farm looks like it will be gone after my folks go through a nasty divorce. I'm looking to protect myself through their divorce (I own some stuff at dad's and some equipment with him 50/50) and because I plan on doing some custom fixing/manufacturing of farm stuff when the farm is gone.

What way do you recommend I go? Talk to a lawyer? (I've been trying to find someone to do it for a while now, no luck) Or do I set one up myself online?

Live in South Dakota if that makes a difference. Any advice appreciated, thanks!

Verified FBN Member (CO)

A lawyer wouldn’t be a bad idea for your situation just to make sure things get “secured” from the divorce. That being said it’s incredibly easy to setup a LLC. Basic process: You need to draw up articles of incorporation/operating agreement. Your state’s Secretary of State should have a link online to start a new business. Register the business name, fill out the paperwork and then apply for a EIN with the feds.

If you’re nervous about it, go to Legal Zoom online (I think they are still in business) and let them walk you through it step by step. It’ll cost more vs doing it yourself but it’ll be done. Can always take notes as you fill out their forms and then cancel at the end and go do it all yourself.

Verified FBN Member (CO)

Yep, just checked the legalzoom.com and they have different pay scales for helping you set it up depending on how much help you need. $0-1150 + whatever your state charges for filing fees.

Verified FBN Member (SD)

Awesome, I'll look into it, thank you. And do I need to go through anything special for financing or the bank will continue like we are now just the name will change?

Verified FBN Member (CO)

I’d imagine the bank would slide things over to your LLC especially if you’re the sole owner/member of it. Kinda depends on your bank though. If you haven’t clued them in on your plans, best to make a phone call this morning.

Verified FBN Member (SD)

Thank you. The bank offered no advice when I asked them about what to do to form one. Thank you very much. Now I know where to start. My accountant just told me to go to their "buddy" lawyer and that it would be $800. But he didn't call me back after 3 times so yeah. Thank you much!

Verified FBN Member (KS)

You should have a state collage that should have some one that they recommend to help you. In Kansas we have K State and they have all kinds of Ag help. Sometimes just for the asking. Sometimes we think the up front price is too much, but if it is done correctly the first time it is usually the cheapest in the long run. Good luck.

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