Businesses are always looking to cut costs, and with the economy the way it is, certainly you should spend your money wisely when starting a new company. Over the years, there have been a slew of “Document Filing” companies like MyCorporation and LegalZoom that will draft legal forms for you, such as filing for a corporation, a trademark, or draft a will. Please note that these companies are not law firms, cannot give financial or legal advice, and they will clearly say so. With the prices these companies charge, it’s easy to look at these companies as an alternative.
Checking Out the Competition
MyCorporation was running a free filing promotion (and still is until end of February), so on December 31, 2008, I filed for a California corporation. Around the new year states’ offices get really busy because so many people want to file for corporations, LLCs, etc; therefore, the turnaround time for filing such entities are extended by a couple of weeks. I was crossing my fingers that it would be filed on Friday, January 2, 2009, to get it as close to the first day of the new year as possible
Over the next couple of weeks, I went to the California Secretary of State’s website to see if my corporation had been filed, and on January 12, 2009, my corporation had been filed with the State. The paperwork still needed to get sent back from the State to MyCorporation, and I received my documents from MyCorporation on February 4, 2008.
What Did I Get?
I didn’t buy any of the extras (e.g. Employer Identification Number filing, S-Corp Election filing, corporate kit, etc), so I received the bare bones: the filed Articles of Incorporation, stock certificate (half of them which had the wrong corporate name on them), stock transfer ledger (looks like a table made in a word processor), “Time Sensitive Special Instructions,” a “Corporate Maintenance Checklist,” a “Corporation Guide” CD, by-laws template, meetings templates, and some other miscellaneous papers regarding my order.
Should You Use an Attorney?
Some people are just born Do-It-Yourselfers.: you’ve done a million projects on your own, always do a ton of research, and they always turn out OK. And i’m sure there have been a lot of people that have used legal document filing services and have withstood the true test of litigation. Sometimes, legal document filing services are the way to go if you know what you’re doing and want to save some money.
However, if you need some guidance, you should seek the counsel of an attorney. Document filing companies cannot provide you legal advice and you’ll get a lot more value out of an attorney, such as helping you weigh the pros and cons of creating an helping you decide which type of entity is right for you. Moreover, attorneys will often include filing for an Employer Identification Number, file for an S-Corp election should you chose to do so, provide you with a nice corporate kit and seal, and draft custom bylaws and other corporate documents.
Conclusion
Document filing companies are good for seasoned veterans who have already established and maintained several corporations and/or LLCs. If you need guidance, your best bet is to seek counsel for with an attorney to help you with your legal entity needs. Though the cost to use an attorney is more, you’ll get a lot of value using an attorney who can guide you through the maze of starting a new legal entity.
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Information on this site is for informational and educational purposes only; it does not constitute legal advice nor does it create an attorney-client relationship. Should you need assistance, please contact an attorney to help you with your specific set of facts.
Related posts:
- What’s this 25102(f) Notice for my California Corporation?
- A Corporation or Limited Liability Company Can Help You Get Business and Make More Money
- You Can File Your California Corporation’s Annual Statement of Information Online
- That Official Looking Letter from the CA Secretary of State is Not So Official
- Back to Basic Basics: Picking an Entity
