Search Site
Menu

But I Can Do it by Myself for Less…

When handling it yourself is not a good idea from a legal perspective

 

It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money — that is all. When you pay too little, you sometimes lose everything…”

  • Common Law of Business Balance (frequently attributed to John Ruskin 1819-1900, but this attribution is unconfirmed and often contested)

 

Potential Client:       “I’m looking to create a new LLC (or corporation or limited partnership). What would you charge to do that?”

[Attorney provides price for entity formation]

Potential Client:       “Well, I read online I can form it myself for less than that.”

Attorney:                 “Possibly, but it may not be advisable.”

Potential Client:       “Why not? You don’t have to be a lawyer to form your own entity, right?”

Attorney:                 “Correct, but you also do not have to be a dentist to extract your own wisdom teeth, and you do not have to be a physician to give yourself stiches, but neither are recommended.”

Potential Client:       “Well, that is different. That’s medical.”

Attorney:                 “You do not have to be a licensed master mechanic to replace your own transmission, and you do not have to be a licensed electrician to do certain electrical work in your own home, but neither are recommended unless you have the proper equipment, training and experience.”

Potential Client:       “Well, that is different. That’s complicated and potentially dangerous.”

Attorney:                 “You do not have to be a licensed barber or cosmetologist to cut your own hair.”

Potential Client:       “But I would never cut my own hair, it would look horrible.”

Attorney:                 “If you don’t trust yourself cutting your own hair, which will grow back in weeks, why would you risk making such an important decision as forming your new business without advice from an attorney with training, knowledge and experience with entity formations?”

Potential Client:       “OK, I get your point… How quickly can you get an entity formed for me?”

 

The reality is there are a lot of things you can do for and by yourself that do not legally require you to pay a licensed professional to do, but it may not be advisable or prudent to do so. This is extraordinarily true when it comes to forming a new entity for your business. As an attorney at a firm that has helped thousands of clients start new businesses, we understand funds are often tight when starting out. Looking for areas to save money in the beginning is not only wise but often necessary.

Our experience has shown us, however, that the few hundred dollars you may manage to save by forming an entity yourself is rarely, if ever, worth it in the long run. It will often cost you thousands of dollars later to fix filing and formation errors. Even the slightest of errors in forming a company can have significant and sometimes disastrous effects on the business and the business owners. One such potentially catastrophic effect we often see from self-formed entities is failure of the corporate shield, which is intended to protect the business owner from personal liability. This results in said owner finding him/herself personally liable for debts and obligations of the company. In such cases, the business owner’s personal assets can be at risk and the financial blow devastating. At The Strong Firm P.C., we have assisted thousands of clients in properly forming their new entity to ensure the client has the best protection from personal liability, and we would be glad to do the same for you.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact a Dedicated Texas Business Lawyer To Schedule a Consultation
Call 281-367-1222 or contact us online to schedule a meeting.

Strong In Action

  • Spring 2021

    The Strong Firm prevails in dispositive motion regarding Texas economic loss rule resulting in dismissal of claims again party.

    Read More
  • Spring 2019

    The Strong Firm successfully forecloses first priority lien against multi-million dollar commercial asset.

    Read More
  • Spring 2021

    The Strong Firm secures writ of reentry after unlawful lockout of commercial tenant.

    Read More
  • Spring 2021

    The Strong Firm prevails in writ of mandamus proceeding involving denial of temporary restraining order to stop foreclosure sale.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2021 Award
  • Clio Client-Centered Certification

Recent Blog Posts

Happy Independence Day – We Are Open For Business

Happy Independence Day! We Are Most Certainly Open For Business! Independence Day invokes feelings of individual freedom and independence being the basis on which our great country was founded.  Over the course of the last 15 months, few things have been entirely certain.  Markets, along with the availability of workers,
Read More
Happy Independence Day – We Are Open For Business

Residential Real Estate: Lawyers, Title Companies, and Agents, Oh My!

Residential Real Estate: Lawyers, Title Companies, and Agents, Oh My!   The evolution of the internet and rapid increase in access to information has changed the way we buy and sell homes. While real estate agents still serve a vital role in the process on both sides of the transaction, many buyers
Read More
Residential Real Estate: Lawyers, Title Companies, and Agents, Oh My!

COMMUNITY AND SEPARATE PROPERTY IN TEXAS: OWNERSHIP AND CONTROL

COMMUNITY AND SEPARATE PROPERTY IN TEXAS: OWNERSHIP AND CONTROL Texas law characterizes property acquired by spouses either community or separate property when property is acquired, and this characterization has tremendous consequences. w defines a spouse’s "separate property" as: (1) property owned or claimed by the spouse before marriage; (2) property acquired during
Read More
COMMUNITY AND SEPARATE PROPERTY IN TEXAS: OWNERSHIP AND CONTROL

Scams in Times of Disaster and Emergency

Scams in Times of Disaster and Emergency While Texans are generally prepared for major weather-related disasters during hurricane season from June through October, occasionally a rogue weather event, such as an artic blast, sweeps across the state causing severe and unanticipated property damage to residential and commercial properties. As individuals and
Read More
Scams in Times of Disaster and Emergency
  • Video Vault


    Watch videos done by our legal team to gain a better understanding of your legal needs. Our lawyers give video insight into areas such as Real Estate, Business Law, Mergers & Acquisitions and much more.
Contact us

Quick Contact Form