Just because you can incorporate online, doesn’t mean you should.
As a business owner, you’ve probably stumbled across ads promising to help you incorporate online. You may have even wondered if getting your LLC status could be as easy as a few mouse clicks. Before you shell out money to get started, remember that the internet is full of dangerous schemes. If you go the “too good to be true” online route, you may find yourself stuck in a bottomless pit of quicksand without someone to pull you out. Watch out for these tempting—but empty—promises:
Myth 1: It’s Cheaper than Hiring a Professional
Money is the number one reason why so many entrepreneurs go through an unknown online entity to incorporate. These online avenues guarantee that you’ll save loads of money. And of course, who doesn’t want to keep more cash in their bank account?
But the truth may be harder to swallow. Although the initial cost to work with an online service may be lower, it could cost more in the long run. If you fail to file all the paperwork correctly, you may find yourself with a ton of legal costs when you least expect them. It’s safer to have a living, breathing person with extensive knowledge of the process to work with you from the start.
Myth 2: You’ll Get Everything You Need at Once
What does it take to incorporate your business? The answer is lots and lots of paperwork. And since you’re dealing with government documents, none of it really makes any sense to the average person. Any online tool can provide you with the paperwork you need to fill out, but that’s where their help stops.
It may surprise you to learn that an online service cannot help you file any of these documents. According to the law, all they can do is provide you with the necessary paperwork. They cannot act as your advisor. Unless you speak fluent legalese, you may make a few mistakes when filling out the forms. And even a single mistake can cost you everything.
Myth 3: You’ll Become an LLC in Record Time if You Incorporate Online
Sure, the faster you fill out and file your forms, the sooner the government can approve (or deny) your application. However, that’s not always a good thing. You may end up overlooking something vital if you rush through the process. There are many—sometimes time-consuming—steps to incorporating, including:
- Choosing a business structure
- Optimizing your owner benefits
- Protecting your personal assets
- Having a development plan
- Complying with regulatory agencies
- Creating an exit strategy
An online service doesn’t see the full picture. Instead, these companies can only provide you with the documents they think you’ll need. Saving a few minutes just isn’t worth the risk.
The Safe Route Is the Better Route
Don’t let the false hopes and promises of online incorporation tools fool you. They are not safe. While they may sound great in theory, they do not offer the same guarantees as working with a trusted professional.
With over 29 years in the industry, Incompass Tax, Estate & Business Solutions knows how to help you incorporate. We will work with you during every step of the process. With us on the job, you can trust we will file your paperwork correctly. Get in touch with us to learn why our services are safer than trying to incorporate online.