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Business Formation — AI Legal Advisor

Starting a business involves critical legal decisions about structure, liability, taxation, and compliance. Whether you are forming an LLC, incorporating, or setting up a partnership, our AI legal advisor helps you choose the right structure and complete the formation process correctly.

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Topics We Cover

LLC Formation

Step-by-step guide to forming an LLC: choosing a name, filing Articles of Organization, creating an Operating Agreement, obtaining an EIN.

S-Corporation

Understand S-Corp election, eligibility requirements, tax advantages, reasonable compensation rules, and compliance obligations.

C-Corporation

Learn about C-Corp formation, double taxation, corporate formalities, and when a C-Corp is the best choice (VC funding, IPO plans).

Partnership Agreements

Draft comprehensive partnership agreements covering profit sharing, decision-making, dispute resolution, and exit strategies.

Business Licenses & Permits

Identify required federal, state, and local licenses and permits for your specific business type and location.

Registered Agent & Compliance

Understand registered agent requirements, annual report filings, franchise taxes, and ongoing compliance obligations.

Frequently Asked Questions

LLC vs S-Corp: which is better?

LLC is simpler and more flexible, ideal for small businesses and single owners. S-Corp can save on self-employment taxes for profitable businesses but requires more formalities (payroll, reasonable compensation, annual meetings). Many businesses start as LLC and elect S-Corp tax treatment later.

How much does it cost to form an LLC?

State filing fees range from $40 (Kentucky) to $500 (Massachusetts). Most states: $50-$200. You may also need a registered agent ($50-$300/year) and an EIN (free from the IRS).

Do I need a lawyer to form an LLC?

No. You can file Articles of Organization yourself through your state's Secretary of State website. However, a lawyer is recommended for complex ownership structures, multi-member LLCs, or businesses in regulated industries.

What state should I form my LLC in?

For most small businesses, form in the state where you operate. Delaware, Wyoming, and Nevada are popular for larger businesses due to favorable laws, but you will still need to register as a foreign LLC in your home state, adding cost and complexity.

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⚠️ Disclaimer: US Legal Brain is an AI-powered information service, not a law firm. Content does not constitute legal advice and does not establish an attorney-client relationship. Always consult a licensed attorney for your specific legal matters.