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Online incorporation services claim to offer a simple, fast, and affordable way to incorporate and form limited liability companies (LLCs). These services include popular websites like LegalZoom.com, MyCorporation.com, and IncorporateTime.com. There are also virtual paralegal services available, such as We the People or those found on platforms like Craigslist.

These services promote their ability to form a corporation or LLC quickly and easily by filling out an online questionnaire and paying a fee of $100-150 for the completion of paperwork and filing with the secretary of state, plus any applicable filing fees. However, it is important to review the advantages and disadvantages of these services as a whole. For specific reviews of a particular provider, it is recommended to seek out individuals with direct experience using the service, as well as at least a year of business operations thereafter.

It is worth noting that these document preparation services often state in their fine print that they are not law firms and cannot provide legal advice. They typically recommend consulting with an attorney for any legal advice needed. By doing so, they protect themselves from practicing law without a license. This means that while they can prepare forms and file them as instructed, they may not meet all of your specific legal needs.

Incorporation services may try to address this by providing lengthy FAQs and learning centers on their websites. However, a few minutes or even hours of research cannot replace the education and experience of a lawyer. Incorporating a business involves complex legal issues that require the expertise of an attorney. Trusting the advice of a paralegal or incorporation service that offers legal advice without a license should be done cautiously, if at all.

Furthermore, these services often present incorporation as a one-size-fits-all solution, neglecting to acknowledge that every business has unique circumstances and needs. Attorneys, on the other hand, take a step back to assess your overall business plan and goals. They ensure the legal structure takes into account your specific circumstances and can advise on issues that may arise alongside forming a corporation or LLC. These issues can include securities laws compliance, promissory notes, trademark and service mark concerns, employee and independent contractor law, and tax considerations.

Another aspect to consider is the lack of follow-through provided by incorporation services. A good business attorney will not only help with the formation of your corporation or LLC but also ensure that all necessary documentation is executed correctly, including meeting minutes, issuance of shares, and various filings at the federal, state, and local levels. Many incorporation service companies may overlook these crucial steps, resulting in incomplete or ineffective corporate documents.

Lastly, it is important to be aware of any hidden fees associated with incorporation services. While these services may initially advertise low rates, additional fees for services such as name reservations, corporate minute books, expedited service, EIN numbers, or other state and federal filings can significantly increase the overall cost. When comparing service providers, it is crucial to look at the complete package cost and consider any potential add-ons.

In conclusion, incorporation services can offer cost savings compared to hiring an attorney. However, it is essential to understand that their prices do not include legal advice, hand-holding, referrals to other professionals, or follow-through to ensure the correct implementation of the business entity. It is always recommended to consult with a business attorney to ensure your specific legal needs are met and to avoid any potential issues or complications in the future.
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Ihab Salloum