California business attorney Nina Yablok put an incorporation service to the test and has good reasons for not recommending their services to startup businesses: corporate services – almost a scam. Another almost scam on new businesses in New York by web incorporation services: Talking them into a registered agent for an annual fee. New York does not require you to have a registered agent and there is no benefit in having one. So don’t pay for one.
Setting up your business entity through a web service may seem cheap at first. However, remember that it is very important to develop a relationship with a business attorney early in the life of your business. Many business attorneys make this easy for you by offering flat fee business entity formations and initial free consultations. Just call a couple of them and ask. Other benefits of using an attorney for your business entity formation:
– a real person with a law degree takes responsibility for your business entity formation;
– a real person with a law degree is available to answer questions and help you decide what business entity is right for you;
– a real person with a law degree can help you draft an operating agreement or shareholder agreement. New York requires you to have an operating agreement for your LLC, and a shareholder agreement for your corporation is a very good idea. Web services do not usually draft these agreements for you. If they do, you will get a "one size fits all" agreement that can be worse than not having one at all.
– a real person with a law degree will remember you and your business and remind you of follow up legal issues in running a corporation or LLC, maybe even years later.
I could not agree with you more. I just wrote a post on similar issues I have with LegalZoom. Check out http://www.rushonbusiness.com/2007/01/zoom_past_legal.html
Rush
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his is due, in large part, to the state’s limited restrictions on the formation and operation of corporations. Web Incorporation Firms Hundreds of firms.
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Demin Martin