Very well said, Kevin.  I would just add that I don't understand the LegalZoom concept.  After having just completed my Business Associations classes, and currently studying LLC's and S-Coprs, I do not think a LegalZoom approach is wise.  I'm not sure how they operate, but my impression from the advertising is that it is a DIY type of service.  They make sure that the documents are properly prepared according to your selections, but I don't know how they can properly adivse you on what the correct choices should be. 

Choosing the right entity (in my opinion that would be an LLC) and selecting the specific provisions for your articles of organization or your operating agreement that work best for your situation seem to be rather fact intensive and would require a depth of knowledge that I don't think you can get online by answering a few questions.  I have just spent the better part of the past year studying these things and it is complicated.  There are a lot of pitfalls for the unwary.

I think you really need to speak to your accountant and personally, I would speak to an attorney before doing anything.  As Kevin said, it is a one-time expense and since it will have an impact on your operations for a long time to come it would be wise to make sure you get it done to fit your needs and have someone you can speak to later when you have questions.

Best,
Robert A. Franco
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