Should you use a do-it-yourself incorporation service?
Maybe. But here’s what an attorney will do for you that they can’t.
1. There are no hidden fees when you work with a business attorney.
Internet incorporation services don’t tell you that there are other corporate forms that require additional fees to be submitted to government agencies. These require additional fees and must be filed shortly after you receive the Articles of Incorporation.
2. Attorneys can analyze your unique situation to recommend the best business entity for liability or tax reasons.
Can online incorporation services do that? No, these companies are prohibited by law from giving you legal advice. They may only assist you in filing documents that you choose to be filed. This decision is best made with the advice of a business attorney and/or tax preparer. For example, you may own a commercial property that you want to transfer into a corporation. However, in this situation, a corporation may not be the best entity. You might be far better off with a limited liability company for tax reasons. There are many other examples like this.
3. An attorney’s completeness will ensure your protection.
Web incorporation services may make mistakes or not complete the entire incorporation process, thereby eliminating any protection you have from liability limits. Typically, these services only file the Articles of Incorporation (usually a 1-page document), send you a folder containing incomplete forms, and fill in the blank documents. You are left with the daunting task of completing the bylaws, minutes, stock certificates, S-Election (if applicable), figuring out IRS tax issues, securities qualifications, and other complex legal issues. If these documents are not completed properly, you may not be protected from personal liability for a judgment.
How much is your business worth to you?
The best way to answer the question regarding the efficacy and affordability of do-it-yourself incorporation services might be to compare it to the way a motorcycle helmet salesman answers the question, “Which helmet should I buy? The $100 helmet or the $300 helmet?” His best answer is, “It depends. Do you have a $100 head or a $300 head.”
So choosing how you go about incorporating your business is the same. How much is your business worth to you? We hope enough to do it right.
The attorneys here at the Law offices of Steven A. Elia know what’s best for your business. Let us help secure your business with the right corporation entity choice. Call 619-444-2244 today to schedule an appointment or press the button below to submit a form and get the incorporation process started.