| Given the fact that the threat of getting sued is on just | | | | Risk is the second factor when making your decision |
| about every business owner's mind, it is hardly | | | | to incorporate. In this case, we are talking about the |
| surprising that most businesses are held in the form of | | | | risk of doing something wrong and having the |
| a corporation or limited liability company. While this | | | | corporate entity set aside should someone sue the |
| makes sense, how to actually form an entity is an | | | | business. With all the online incorporation services |
| issue to. | | | | popping up, this is becoming a new focus for plaintiff |
| You can form a corporation or a limited liability | | | | attorney's that sue businesses. Why? |
| company in three basic ways. You can do it yourself. | | | | Forming a business entity is a surprisingly formal affair. |
| You can use a cheap online service. You can hire an | | | | Certain steps have to be taken and the details have to |
| attorney. The "best" choice is primary a balancing act | | | | be focused on. People trying to do it themselves |
| of two factors - price and risk. | | | | almost always fail to do certain things such as issue |
| Price is often the first thing that most people think of | | | | stock and correctly set up the initial board of directors. |
| when forming business entities comes to mind. Let's | | | | Online services are infamous for filing documents with |
| face it, most new businesses are idea rich and cash | | | | the relevant Secretary of State as "incorporators", and |
| poor. You just know it will be the next big thing, but the | | | | then failing to transfer the corporate entity to the |
| old bank account is not exactly bubbling over at the | | | | business owners. This leads to the bizarre situation in |
| moment. | | | | court where the entity is set aside because the |
| To save a ton of money, you can form your business | | | | shareholders can't prove they actually own the entity. |
| entity yourself. Of course, you need to figure out how | | | | Incorporation attorneys, on the other hand, know how |
| to do it, and hope you get it right. A bit more expensive | | | | to handle all this. Of course, they cost a lot more. |
| option is to use an online service. Such services will | | | | So, what is the best choice for your situation? It |
| usually file the necessary paperwork with the | | | | depends on your comfort level. If you want to minimize |
| Secretary of State in question, but that is about it. The | | | | risk, go with the attorney. If you are good at working |
| third option is the most expensive, to wit, hiring an | | | | out things on your own, you might take a shot at doing |
| attorney. Basing the decision just on price, however, | | | | it yourself. It just depends. |
| can lead to trouble. | | | | |