Online incorporation companies offers easy, quick, and cheap online incorporation and LLC formation services. Virtual legal services, such as bizfilings.com, supply search services. This article reviews the advantages and pitfalls of these services overall.
No Legal Counsel
From the fine print, lots of record preparation providers state they are not law firms, can’t provide legal counsel, and recommend that you consult a lawyer for legal advice. Only licensed lawyers can practice law and supply legal advice to customers, so these firms are sensibly protecting themselves from making it clear they are not in the company of providing legal advice; they provide whatever forms or filing you tell them to. Should you tell them to form a Nevada LLC, when you need a California S corporation, they will, but it won’t meet your actual business needs. Many incorporation services would appear to solve this situation with long FAQs.
Other Legal Issues
Lawyers will focus not just on forming an entity you have ordered them to, but in taking a step back, assessing your entire business plan and goals, and making certain the legal arrangement takes into account your specific conditions, rather than imagining you and your company are the same as another guy and his small business. They propose, and will also point out options for greatest legal problems that arise tangentially to forming a corporation or LLC. Such issues the ordinary incorporation service client might be blissfully unaware of include promissory notes securities laws compliance, trademark and service mark issues, and employee and independent contractor regulation. Each one of these ought to be customized, LLC operating agreements and bylaws should be tailored, not one size fits all.
Hidden Charges
The principal advantage of incorporation services is price savings; they cost less than attorneys do. However, the exact prices charged by incorporation services frequently end up being up to two or three times greater. Make sure you check versus law company fees and what a total package costs in creating comparison amongst different providers. In any case, the important consideration here is that incorporation service costs cannot and don’t include legal advice on the incorporation process or associated legal problems, or even follow-through to ensure that the business entity is implemented properly.
