What are Business Formation Services?
Starting a business can involve many tasks and steps, but business formation services try to make them easier to accomplish.
Business formation services are provided by experts, and they can include tasks such as helping you register your business and gathering important formation documents so you avoid making any mistakes during the process.
Read the rest of this article to learn about business formation services, what they usually entail, how to find a legitimate provider/platform, and when you should contact a lawyer for assistance with starting your business.
What’s Included in Business Formation Services?
Business formation services include a range of tasks, such as the following:
- Assisting you with finding the correct structure for your business, such as LLC or S corp.
- Filing your business paperwork, such as your Employer Identification Number (EIN).
- Ensuring you file all important documents on time.
- Checking all your documents so that they don’t include any mistakes.
- Informing you of any fees you need to pay when setting up your business.
- Helping you choose the best business name.
- Keeping you legally compliant throughout the process.
What are Common Benefits of Business Formation Services?
There are many ways in which you can benefit from making use of business formation services. These include the following:
- They can provide ongoing support, such as setting up processes so you receive all important legal notices.
- They save you time. Instead of having to deal with paperwork and admin, you can focus on other aspects of your business.
- They provide personalized advice and assistance, based on your specific needs.
- They’re convenient. Business formation services prevent you from having to use different providers because they provide a range of services, helping to simplify the process.
What Should You Look for in a Business Formation Service Provider?
Business formation service providers can include online platforms or specialized consultants. When choosing a business formation service provider, you want to ensure that they’ll benefit you and your business. Here are some important things to look for:
- Knowledge about business structures. You want the business formation service provider to have knowledge about different structures (such as LLCs and partnerships) so that you get all the information you need to choose the best one for your business.
- Legal and tax services. These providers don’t only register your business but can offer various tools and support to prevent you from facing fines or other consequences of non-compliance.
- Fair costs. Check that the business formation services provider is transparent about their pricing so there are no hidden fees.
- Choose platforms with user-friendliness. You want their platform to make it easy for you to navigate their services and resources. A responsive customer service is essential.
- Check reviews. Make sure you do your research before hiring a business services provider. You should check out all reviews online to gauge their customer feedback.
What are Business Formation Service Red Flags?
When finding and selecting a business formation service provider, there are some red flags to keep an eye out for.
- They add sneaky fees. One of the biggest red flags is if the provider promises free formation but then includes hidden fees that can quickly pile up.
- They don’t provide information. Perhaps the company’s physical address isn’t listed or their services are outsourced to agents without your consent or knowledge.
- They don’t have strong customer service. Check that the company provides a strong customer service department, with clear contact details provided.
- They make huge promises. You should be wary of any exaggerated claims, such as “we handle everything” without explaining exactly what they will handle and what’s still your responsibility.
Do You Require a Lawyer for Business Formation?
When setting up a business, you might wonder if you require help from a lawyer. While you might not always need legal guidance, such as if you’re a solo entrepreneur with a simple, straightforward business, it’s advisable if you require a more comprehensive service.
There are important tasks that a lawyer will do, such as providing you with information about taxes and other liabilities you might not know about — and which could cost you at a later stage.
A lawyer provides comprehensive assistance in other ways, such as by:
- Helping you draft and review all your legal documents so that they’re legally sound, transparent, and prioritize your interests.
- Getting all the correct permits and licenses you need, depending on your business.
- Registering your business name.
- Achieving business approval faster.
- Understanding and explaining all the appropriate laws and regulations that affect you, based on your location. Lawyers have in-depth knowledge of these laws, so they’re ideally positioned to help you.
- Saving you time and money by helping you to avoid any errors.
- Protecting your sensitive information and content, such as with IP laws.
- Fixing any mistakes before they become costly or land you in legal trouble.
- Locating anything during the process that could pose potential risks for disputes.
- Assisting you with complex business structures.
- Helping you to find a reputable business formation services provider.
Where can you find a lawyer for a business formation?
If you want to hire a lawyer to help you with starting your business, you should consult with a lawyer from ContractsCounsel, an online legal marketplace that connects clients with skilled lawyers who have been vetted on the platform. They’ll assist you with all aspects of starting your business to ensure you follow all laws, avoid costly mistakes, and make the process easier.