⚠️ Educational Information Only: This article provides general information about formation assistance options, not recommendations or advice. This content is intended for general educational purposes and is not tailored to any individual or business. Your decision should be based on your specific situation, needs, and consultation with qualified professionals.
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Business owners have several options for completing Texas business formation, ranging from self-filing to full attorney representation. Understanding the differences in cost, service, and what each option provides can help you evaluate which approach might be appropriate for your situation.
Three Main Approaches
Formation assistance generally falls into three categories:
- Self-filing (DIY): Completing and filing formation documents yourself
- Online legal services: Using automated platforms that guide form completion and handle filing
- Attorney assistance: Working with a Texas attorney for formation and related services
Each approach has different costs, levels of service, and considerations.
Option 1: Self-Filing (DIY)
What Self-Filing Involves
Steps you handle:
- Researching entity type appropriate for your business
- Checking name availability
- Downloading and completing formation forms
- Determining registered agent
- Selecting management structure (LLCs)
- Submitting filing to Secretary of State
- Creating operating agreement or bylaws (on your own or using templates)
- Obtaining EIN and handling post-formation tasks
Typical costs:
- Texas filing fee: $300
- Operating agreement template (optional): $0-$200
- Registered agent (if using service): $100-$300/year
- Total typical cost: $300-$800 first year
Time investment:
- Research and preparation: 3-8 hours
- Form completion and filing: 1-2 hours
- Post-formation tasks: 2-4 hours
- Total time: 6-14 hours typically
Self-Filing Commonly Chosen When:
- Simple, straightforward entity structure
- Single-member LLC or small corporation
- Budget-conscious with time to invest
- Comfortable reading and following detailed instructions
- No complex ownership or special provisions needed
- Willing to research and learn the process
Considerations with Self-Filing:
- Lowest cost option if done correctly
- Learning curve: Requires understanding forms and requirements
- Error risk: Mistakes can cause delays and additional fees
- No legal review: No professional verification of entity selection or form completion
- Limited guidance: Secretary of State provides forms but not legal advice
- Operating agreement: Must research and draft on your own or use generic templates
Option 2: Online Legal Services
What Online Services Typically Provide
Common services included:
- Guided form completion with step-by-step questions
- Name availability checking
- Filing submission to Texas Secretary of State
- Basic operating agreement or bylaws template
- Registered agent service (often for first year)
- Compliance calendar or reminders
- Document storage
Typical costs:
- Basic package: $100-$300 + state filing fee
- Standard package: $200-$500 + state filing fee
- Premium package: $400-$800 + state filing fee
- Total typical cost: $400-$1,100 first year
Time investment:
- Answering guided questions: 30-60 minutes
- Review and submission: 15-30 minutes
- Post-formation tasks: 1-2 hours (with templates provided)
- Total time: 2-4 hours typically
Online Services Commonly Chosen When:
- Want guided assistance but not full attorney services
- Straightforward formation with standard structure
- Value convenience and time savings
- Want someone else to handle filing submission
- Appreciate included registered agent service
- Budget allows for moderate service fees
Considerations with Online Services:
- Guided process: Easier than pure DIY
- Convenience: They handle filing logistics
- Templates provided: Operating agreements and bylaws included
- Limited customization: Templates may not address specific needs
- No legal advice: Not tailored to your specific situation
- Upsells common: Additional services often promoted
- Ongoing fees: Registered agent and other services renew annually
Option 3: Attorney Assistance
What Attorney Services Typically Include
Common scope of attorney formation services:
- Entity selection consultation and advice
- Name availability verification
- Preparation of Certificate of Formation
- Filing with Secretary of State
- Custom operating agreement or bylaws
- Initial organizational documents
- Guidance on post-formation requirements
- EIN application assistance
- Registered agent service (some firms)
Typical costs:
- Simple LLC formation: $500-$1,500
- Corporation formation: $750-$2,000
- Complex structures or multiple entities: $2,000-$5,000+
- Plus state filing fee ($300)
- Total typical cost: $800-$5,300+
Time investment from you:
- Initial consultation: 30-60 minutes
- Providing information to attorney: 30-60 minutes
- Review of documents: 30-60 minutes
- Total time: 2-3 hours typically
Attorney Assistance Commonly Chosen When:
- Complex ownership structures or multiple owners
- Professional practice requiring specific entity type
- Need for customized operating agreement or bylaws
- Want legal advice on entity selection
- Concerned about liability protection or tax implications
- Value of professional guidance justifies cost
- Plan to raise investment capital
- Want ongoing legal relationship for business matters
Considerations with Attorney Assistance:
- Professional guidance: Legal advice on entity selection
- Customization: Documents tailored to your specific needs
- Error prevention: Professional review reduces mistakes
- Comprehensive service: Addresses issues beyond just filing
- Higher cost: Professional fees significantly increase total cost
- Relationship building: Establishes attorney for future needs
- Peace of mind: Professional handling of formation
Detailed Comparison
| Aspect | Self-Filing | Online Service | Attorney |
|---|---|---|---|
| Cost Range | $300-$800 | $400-$1,100 | $800-$5,300+ |
| Your Time | 6-14 hours | 2-4 hours | 2-3 hours |
| Entity Selection Advice | Self-research | General information only | Professional legal advice |
| Form Completion | You complete | Guided questions | Attorney prepares |
| Operating Agreement | Template or DIY | Basic template | Custom drafted |
| Error Risk | Higher | Moderate | Lowest |
| Customization | Limited | Limited | High |
| Legal Review | None | None | Professional |
| Ongoing Relationship | No | Service relationship | Legal counsel |
Factors to Consider in Your Decision
Complexity of Your Situation
Lower complexity often seen with:
- Single-member LLC or sole proprietorship conversion
- Standard management structure
- No special provisions needed
- Simple ownership
Higher complexity often seen with:
- Multiple owners with different roles
- Special profit-sharing arrangements
- Professional practice requirements
- Plans to raise investment capital
- Complex tax considerations
Your Comfort with Forms and Legal Concepts
Consider:
- Have you successfully completed legal or government forms before?
- Are you comfortable reading and interpreting instructions?
- Do you have time to research unfamiliar concepts?
- How important is certainty that everything is done correctly?
Budget vs. Value of Professional Guidance
Consider:
- What is the cost of getting formation wrong?
- Value of your time spent on DIY formation
- Peace of mind from professional handling
- Long-term relationship value with attorney
Future Legal Needs
Consider:
- Will you need attorney services for contracts, agreements, or disputes?
- Are you entering a highly regulated industry?
- Do you anticipate complex business transactions?
- Would establishing an attorney relationship now be valuable?
Common Hybrid Approaches
Some business owners use combinations of these options:
Attorney Consultation + Self-Filing:
- Consult attorney on entity selection ($200-$500)
- File formation documents yourself
- Have attorney prepare operating agreement ($500-$1,500)
- Total cost: $1,000-$2,300
Online Service + Attorney Review:
- Use online service for formation and basic documents
- Have attorney review operating agreement ($300-$500)
- Total cost: $700-$1,600
Questions to Ask When Evaluating Options
About services:
- What exactly is included in the stated price?
- What are the ongoing fees (if any)?
- What level of customization is provided?
- What happens if there's an error or rejection?
- Is ongoing support included?
About your needs:
- How complex is my ownership structure?
- Do I need customized governance documents?
- How important is it to get everything right the first time?
- What is my time worth for this project?
- Will I need legal assistance in the future anyway?
Important Disclaimer: This article provides general educational information about formation assistance options and is not a recommendation for any particular approach. The information provided does not constitute legal or financial advice. Individual circumstances vary significantly, and what works well for one business may not be appropriate for another. The decision about whether to use self-filing, online services, or attorney assistance should be based on your specific situation, complexity of your business structure, budget, time availability, comfort with legal concepts, and individual needs. Many business owners benefit from consulting with qualified Texas attorneys to evaluate their specific situation and determine the appropriate level of assistance. This article is intended for general educational purposes and is not tailored to any individual or business situation.
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📚 Related Educational Resources
Texas Certificate of Formation Overview
Return to the main guide for comprehensive information about what the Certificate of Formation is and requirements.
How to File: Step-by-Step Guide
If considering self-filing, review the complete step-by-step filing process guide.
Common Filing Mistakes to Avoid
Understand errors to avoid if self-filing or using online services.