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 2019

    The Strong Firm represents borrower in $42.3 million HUD construction loan for multifamily real estate development in Walton County, Florida.

    Read More
  • Spring 2019

    The Strong Firm acts as legal counsel for borrower in $32.1 million HUD construction loan for multifamily real estate development in Conroe, Texas.

    Read More
  • Spring 2019

    The Strong Firm aids borrower in $31.7 million HUD construction loan for multifamily real estate development in Nueces County, Texas.

    Read More
  • Spring 2019

    The Strong Firm represents borrower in the refinancing of a $3.57 million commercial mortgage-backed security for a commercial office facility in Montgomery County, Texas.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2019 Award

Recent Blog Posts

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the Bankruptcy Provisions Therein

Last Friday, Congress passed and President Trump executed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act” of “Stimulus Bill”) granting a significant and admirable level of support to the U.S. economy that has been left reeling by the one-two punch of the COVID-19 pandemic and OPEC’s… posturing.  While
Read More
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the Bankruptcy Provisions Therein

Combating Consumer Scams Amid COVID-19

As Texans, we have weathered our share of crises and disaster, although, here in southeast Texas, it’s usually in the form of a hurricane. Times of crisis and uncertainty, such as the current COVID-19 outbreak, tend to bring out not only the very best in people, but also the very
Read More
Combating Consumer Scams Amid COVID-19

Considerations for Commercial Property Owners and COVID-19

The novel coronavirus (COVID-19) has wreaked havoc on the world and our nation, casting widespread uncertainty and hardship in seemingly every corner of the economy. With many commercial tenants in dire financial straits – particularly those who rely upon customer interaction (i.e. retail, restaurant, and entertainment) – commercial landlords are
Read More
Considerations for Commercial Property Owners and COVID-19

Small Business Owner’s Guide to the CARES Act

The U.S. Senate Committee on Small Business & Entrepreneurship has put together the below summary of programs and assistance available to small business owners and certain nonprofit organizations through the Small Business Administration (“SBA”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).  The following information is current
Read More
Small Business Owner’s Guide to the CARES Act
  • 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.

Pay Retainer Online

Use our easy-to-use and secure online payment feature.
We accept all major credit cards.

Pay Your Retainer

Contact us

Quick Contact Form