Are You Really Saving Money When You Use Online Legal Services Like LegalZoom To Form A Corporation Or Limited Liability Company?


You may save money in forming the entity, but do you know what you are getting?  Do you know that you have formed the correct type of entity for your business?  Do you know if you have done all of the required paperwork?  Have you properly issued stock if you formed a corporation, or properly issued membership interests if you formed a limited liability company? You will only know this if you consult an attorney first.

On numerous occasions, I have seen clients that have formed a corporation or limited liability company and not properly issued the stock or membership interests, or have not completed the bylaws of the operating agreement of an LLC.  I have also found on numerous occasions clients who did not know what they were forming and formed the wrong type of entity. There can be major tax ramifications if the wrong business entity is formed.  Whenever you are looking at forming a business, you should always consult with an attorney and accountant on the type of entity that you should form for your business. By using online legal services, you may pay less now, but you will in most cases pay more to clean up the paperwork.  Attorneys will assist you in forming your business so that it is properly set up the first time.  If you have any questions on setting up a new corporation or LLC, please do not hesitate to contact our office.

Written by Douglas A. Bordner, Managing Partner

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