Registering LLC through an accountant?

14 replies
I live in Canada and looking to register my business as LLC.
I've done some research and it seems like the registration fee is around $300 (online) / $360 (in person).

Since I dont have much experience with all these documentations and articles, I plan to register thru a CPA.

I went to a few and some quoted $600, while some even ask for $1,200 - that's almost 4x the price.

I am wondering if there is any difference between these services? Is there a challenge or something specific that a CPA does and some doesnt?
Or are they just charging 4x premium due to reputation? I am comfortable paying more for their services, but 4x seems like ALOT and it doesnt seem
too reasonable here, from my understanding.

Please advise! Thanks
#accountant #llc #registering
  • Profile picture of the author ryanmckinney
    I am not sure how it works for Canada -

    I am in the U.S.

    I used rocketlawyer.com , and they filed for me for the same exact cost it would have cost me to file in person. They filed it for me for free, because I signed up for a 7 day free trial of their monthly services, that is 39.99 a month, if not they file for you for another $99. Here the fee for me to file is $110, I had the $99 fee waived, and opted for the free trial of their monthly. I cancelled the monthly services prior to the free trial. Essentially, they filed for me for the same cost if I had filed my self.

    I hope that helps, I believe they may service Canada as well, it won't hurt you to look into it.

    Ryan
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    • Profile picture of the author Noobcorp
      Originally Posted by ryanmckinney View Post

      I am not sure how it works for Canada -

      I am in the U.S.

      I used rocketlawyer.com , and they filed for me for the same exact cost it would have cost me to file in person. They filed it for me for free, because I signed up for a 7 day free trial of their monthly services, that is 39.99 a month, if not they file for you for another $99. Here the fee for me to file is $110, I had the $99 fee waived, and opted for the free trial of their monthly. I cancelled the monthly services prior to the free trial. Essentially, they filed for me for the same cost if I had filed my self.

      I hope that helps, I believe they may service Canada as well, it won't hurt you to look into it.

      Ryan
      Thanks Ryan,
      Is there a difference between which service I go with anyways?

      If I go with a $1000+ accountant as opposed to $500, will they document/register the same way?

      Thanks again. Any inputs will be appreciated.
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      • Profile picture of the author T.R. McCarroll
        Can't you just do it yourself at the link below. It looks like it is a government agency and all online.

        http://www.ic.gc.ca/app/scr/cc/Corpo...Canada/hm.html

        When I did mine in the states I used the State of Florida website and it walked me right through it plus I downloaded the Articles Of Inc right then and there.

        If it is a simple LLC why waste your hard earned cash.

        Just my 2 cents,

        T.R.
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        • Profile picture of the author Noobcorp
          Originally Posted by T.R. McCarroll View Post

          Can't you just do it yourself at the link below. It looks like it is a government agency and all online.

          http://www.ic.gc.ca/app/scr/cc/Corpo...Canada/hm.html

          When I did mine in the states I used the State of Florida website and it walked me right through it plus I downloaded the Articles Of Inc right then and there.

          If it is a simple LLC why waste your hard earned cash.

          Just my 2 cents,

          T.R.
          I guess I am concern about filing the wrong information or missing anything that may caused even more trouble in the future :|
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      • Profile picture of the author ryanmckinney
        Originally Posted by Noobcorp View Post

        Thanks Ryan,
        Is there a difference between which service I go with anyways?

        If I go with a $1000+ accountant as opposed to $500, will they document/register the same way?

        Thanks again. Any inputs will be appreciated.

        For RL, the 39.99 month is for access to lawyers/contracts -

        I am not sure why the accountant is charging so much, maybe for their "time".

        As above: look into doing it your self, or find someone who will and finagle them into doing it for free :-) , outsourcing at it's finest!

        Rocket lawyer will try to upsell you on a lot of things, just say no to all.
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  • Profile picture of the author Aaron Doud
    How much is your time worth? Expect a lawyer or CPA to be worth the same if not more. I would have an expert do it if you want it done 100% right.

    It's the reason I always tell me to bootstrap it as a normal DBA and than get the LLC or other corp once it is established.

    $1000 bucks to a bootstrapper is a lot to a true business it is just a large expense. Think about it that way.

    If you have an LLC and you are the only employee and etc it will provide little protection in the US at least due to the peircing of the veil case law.
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    • Profile picture of the author Noobcorp
      Originally Posted by Aaron Doud View Post

      If you have an LLC and you are the only employee and etc it will provide little protection in the US at least due to the peircing of the veil case law.
      You are correct.
      I am looking to form a LLC as a one man team to avoid liabilities issues.
      Can you please elaborate what you meant by 'little protection'?

      I thought this is the whole purpose of forming a LLC?
      Please advise. Thanks
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  • Profile picture of the author Lori Kelly
    With most online forms, there are instructions attached.

    It is a very simple process in the US (not sure about Canada) to form your own LLC or corporation.

    In the US, if you send in your paperwork with missing information, the Secretary of State returns it. The instructions are easy enough to follow.

    Accountants and attorneys do it here too. If it is not a complex filing (not many are), you can definitely do it yourself and save a lot of money.

    In the US, corporations are required to document decisions of the officers and directors - corporate minutes. There are a few things you should familiar yourself with when forming a formal entity.

    The LLC will need an operating agreement. You can obtain those online too for a small fee. Although record keeping requirements are not required for an LLC, it's a good idea to document decisions of the members - even if there is only one member/ you in the company.

    I hope this helps.
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    • Profile picture of the author sandalwood
      Originally Posted by Lori Kelly View Post

      With most online forms, there are instructions attached.

      It is a very simple process in the US (not sure about Canada) to form your own LLC or corporation.

      In the US, if you send in your paperwork with missing information, the Secretary of State returns it. The instructions are easy enough to follow.

      Accountants and attorneys do it here too. If it is not a complex filing (not many are), you can definitely do it yourself and save a lot of money.

      In the US, corporations are required to document decisions of the officers and directors - corporate minutes. There are a few things you should familiar yourself with when forming a formal entity.

      The LLC will need an operating agreement. You can obtain those online too for a small fee. Although record keeping requirements are not required for an LLC, it's a good idea to document decisions of the members - even if there is only one member/ you in the company.

      I hope this helps.
      Lori,

      Having formed several LLCs, all in NV, I will undescore your easy to file in the US. And, yes the Secy of State will send back all incomplete forms. In essence, they are providing you a free overview service.

      Your last statement about the LLC requiring an operating agreement is not true in NV. You should have an OP AG but you aren't required, by statute, to have one. That is one reason NV is a popular filing location.

      However, back to correct statements: Documenting decision of the members. Yep, if for no other reason than the tax man :-).

      Good info and I hope the OP is paying attention.

      Tom
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    • Profile picture of the author vndnbrgj
      Originally Posted by Lori Kelly View Post


      The LLC will need an operating agreement. You can obtain those online too for a small fee. Although record keeping requirements are not required for an LLC, it's a good idea to document decisions of the members - even if there is only one member/ you in the company.

      I hope this helps.
      Here is MI, you don't need an operating agreement or articles of incorporation for your LLC. I have formed 5, and I sent them with the first, because I thought they were needed. They were sent back and never filed. I called the state, and they said they weren't necessary.

      Back at the OP:
      I file all my paperwork myself, and as stated I live in the US.
      The only difference we have in price is the speed in which the form is filed.

      Also, some of those accountants, might be setting up your tax info as well. Like in the US, you have to file for an EIN, (Employer Identification Number) with the IRS (Tax Nazi's ) This takes me 5 minutes on their site. This is a separate filing from the LLC paperwork. Then, there is filing tax paperwork with the state, again separate.

      So, are they filing your just your Corp papers?
      Are they setting up your tax info for your providence?
      Are they setting up your tax info for your country?
      (Edit: I don't know if you have this stuff, or what it's called in Canada)
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  • Profile picture of the author Aaron Doud
    You need to talk to a lawyer to get a better idea.

    But where you and the business are one and the same the protections of an LLC are meaningless. If you get sued for your actions as a business the lawsuit could pierce the veil of the LLC.

    So for the purposes of getting started I don't think an LLC is needed. Once you have formed a solid company then you should make sure it is an LLC or corp. But in the beginning you can just be DBA(doing business as). Because if the worst were to happen it is likely you would be treated the same by the law anyways.

    Insurance is a better way to mitigate these threats.
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  • Profile picture of the author milla04
    Hey Noobcrop,

    to be quite honest $500 - 1k is a little on the pricey side if you ask me, will these prices include registered agent fee too. I am from the UK and I incorporated an LLC in the US, which is quite simple, if you found a price that is no more than $300 with a 2 day turn around that is very reasonable. However that shouldnt be your only worry, if you incorporate in the wrong state you could be paying tax fees, share fees and other kind of fees from $250 a year min killing your profits.

    Which is wrong way to go for a new business as you quoted "one my band," I would look into New Mexico because there are no yearly fees, no shared fees, nothing. All you have to pay is registered agent (R.A) fees which are priced from $50 - $99 a year, which you would to do for other states anyways. Most people mention Delaware, however you still have to pay min $250 for an LLC and (R.A) fees on top.

    To answer your other question you can set up an LLC out of your state, no problem.

    All the best
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  • Profile picture of the author globalpro
    I am in the US and currently filing as an LLC.

    I asked an attorney friend of mine and was told I could have an attorney do it, but for what I am wanting, a CPA would work better. Reason being is a CPA will be handling end of year tax returns, can advise on my accounting processes (to maximize tax benefits), etc.

    After some research here local, I found an attorney will charge $800-$1500 to handle set up and still refer to CPA for the rest. Ended up finding a CPA that will do it for $250 (includes the state filing fees) and is going to handle setting up my books, then advise from there.

    Sweet thing is I will be doing website, mobile, places page for her and have discussed referrals for her current clients that need same services.

    A win/win situation for me.

    Hope that helps.

    Thanks,

    John
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  • Profile picture of the author Green Moon
    In the U.S., it is pretty simple to file directly online and there are free sites like LLC Center that will help walk you through the process.

    That is fine for a single member LLC, but if you have more than one member, you almost certainly want to work with an attorney. An operating agreement needs to cover issues like capital contributions, management decisions, deadlocks, transfer restrictions, dissolution, distributions, etc...

    I know dozens of CPAs at some of the best accounting firms in a major Midwest city and I have never met a single one who is qualified to deal with issues of a multiple member LLC. Most accountants know their limitations and will tell you to talk to a lawyer when there is more than one member in the LLC. Unfortunately, a significant number will go ahead and set up the LLC and either not deal with the legal issues at all or, worse, try to pass off a standardized form of operating agreement as a solution to the legal issues.

    If you don't need legal advice, there is no need to pay for it. If you do need legal advice, it is a big mistake to think that you are getting it cheaper from an accountant.
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