Popular online legal service firm LegalZoom provides a variety of services, including assistance with business formation. LegalZoom is one of the possibilities you might take into consideration if you’re seeking to establish a corporation. The main query, though, is whether LegalZoom is worthwhile for businesses. The advantages and disadvantages of using LegalZoom for corporation formation will be discussed in this article.
The first thing to remember is that LegalZoom is a corporation. The business was incorporated in Delaware in 1999. This implies that the business is legally acknowledged as an independent legal person with specific rights and protections from its owners.
LegalZoom provides a range of services for corporation formation, including as filing the required papers, getting a federal tax ID number, and offering templates for corporate bylaws and resolutions. However, there are certain disadvantages to forming a corporation through LegalZoom.
The absence of individualized care is one of the key reasons you shouldn’t utilize LegalZoom for corporation creation. Although LegalZoom is an online service provider, having a dedicated lawyer or accountant to help you through the procedure is preferable to LegalZoom’s customer care. This can be particularly troublesome if you have certain requirements or inquiries that LegalZoom’s typical services do not address.
The expense of using LegalZoom for business formation is another factor you might want to take into consideration. Even though LegalZoom’s costs are typically reasonable, they might quickly rise if you require additional services or improvements. For instance, there will be additional costs if you wish to file more quickly or have a lawyer check your documents.
So, does LegalZoom make sense for forming corporations? Your particular needs and circumstances will determine the response. LegalZoom can be an excellent alternative if you want to incorporate a corporation for a modest cost with little frills and don’t require individualized care. However, you might want to think about other possibilities, such as working with a professional attorney or accountant, if you have specific requirements or inquiries or if you want more individualized assistance.
Another choice to think about is ZenBusiness if you’re still debating online business formation services. In contrast to LegalZoom, ZenBusiness provides more individualized service and other features like registered agent service and compliance reminders. Even while their costs are a little bit higher than those of LegalZoom, they are still reasonable and can be a better choice for individuals seeking a more individualized level of service.
Despite the fact that LegalZoom is a well-known and respected service provider, you should carefully assess your needs and circumstances before utilizing them for corporation creation. LegalZoom might be an excellent choice if you don’t need individualized attention and are at ease using online services. However, you might want to think about other choices like ZenBusiness or hiring a specialized lawyer or accountant if you have specific needs, questions, or want more individualized service.
Depending on the demands and objectives of your particular organization. S Corps can aid with capital raising while offering tax savings options, whereas LLCs give management and tax flexibility. It is best to seek advice from a legal or financial expert to ascertain which course of action is most suitable for your particular circumstances.