As you do some research online, you’ll quickly discover that you will need a business entity. Who should you choose to help incorporate your business into a Limited Liability or a C Corporation or S Corporation? Can you hire and discuss a company or your particular corporate needs online and save yourself money, or should you pay for an attorney that you can meet in person?
Let’s answer these questions so that you can make an informed decision for yourself, your partner, and your business.
Incorporate Online: Yay or Nay?
Doing things online saves time and money. The internet is a great place for shopping, paying bills, and catching up on trending news. The internet is not the best place for incorporating a business. That’s not to say that online legal help isn’t trustworthy, but it is limited.
For example, when you incorporate your business, there are many tasks that need to be completed. These include the following:
- Registration of securities
- Creation of minutes
- Creation of bylaws
- Financing information
- Insurance of shares
- State corporation filings
- Shareholder agreements
Online companies cannot perform any of these tasks because they cannot give legal advice. Instead, they will send you forms to handle on your own. The trouble is that most people don’t know how to fill out the information. Legal forms are binding, and you don’t want to “wing” it because your responses could have legal implications.
Save Money by Working with Incorporation Lawyers
Forming your entity cheaply ends up costing more in the long run. Online services will provide you with a corporate book, a copy of incorporation articles, and blank forms to fill out. You need much more than this, including bylaws, minutes, and financing information.
Unfortunately, it’s not until business partners start fighting that shortfalls in the incorporation process are noticed. With emotions running high and money on the table, it’s not uncommon for the shareholders to fight over everything. By structuring your business property from the beginning, you avoid costly legal fees later on. You may even save your personal relationship!
If you do decide to use online legal services, make sure you follow up with incorporation lawyers to ensure that all corporate requirements are met.