Cost Of Incorporation
If an attorney handles incorporation for you, he or she should take all of the steps necessary to set you up to go forward conducting business according to sound legal requirements to preserve the protection that is a primary goal of incorporation. This would include filing a certificate of formation with the secretary of state, drawing up initial bylaws or operating agreement (for a LLC), drawing up minutes of the organizational meeting, issuing stock or membership interests (for a LLC), and providing forms for minutes on an ongoing basis.
Also, the attorney usually will provide a set of instructions to you on formalities that need to be followed after incorporation to maintain protected legal status of the corporation.
Typically, the attorneys fee for handling all of these steps is about $1,500. In addition to this cost, the secretary of state charges a filing fee of around $350. If the filing is done online, there are small additional costs, but this is by far the simplest and fastest way to incorporate.
Services exist that offer very cheap packages to assist people in incorporating. Sometimes, these packages can cover all the bases to successfully incorporate. The user has to be fairly sophisticated to correctly follow all of the steps required. I have seen many people attempt to use these packages but fail to complete critical steps. This results in failure to obtain proper incorporation and the legal protection it would provide, as well as a total waste of time and money.
This is a key area where you get what you pay for, in my opinion. If you want legal protection of incorporation, it makes sense to seek legal assistance in forming the corporation so you know it has been done correctly.
If you would like to talk about incorporation, please call Adair M. Buckner for a free initial consultation.*
*(The free consultation does not cover actual review of documents or giving legal advice on a specific situation.)
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