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You could save hundreds of
dollars by incorporating yourself without a lawyer. How?
Is it advisable to do so?
1. This is Not Legal
Advice!
The only ones who should be
giving legal advice are those licensed to practise law (in
other words, only lawyers). This article is not legal
advice. If you need legal advice, consult a lawyer.
This article is being
written simply to inform you that it is possible to form a
corporation or limited liability company without a lawyer.
2. Why Use a Lawyer?
First of all, if you make a
mistake incorporating yourself, who do you sue? You only
have yourself to blame. On the other hand, a lawyer has
insurance to cover errors and omissions.
Secondly, you could benefit
from the expertise of your lawyer. Perhaps a corporation
isn`t the right vehicle for you under your circumstances.
Be aware that there can be disadvantages as well as
advantages to incorporating. Your lawyer can consider
commercial law, securities legislation, limited liability,
tax factors, estate planning, share structure, and a
myriad of other business considerations. Sometimes the
advice of a good lawyer can save you thousands of dollars.
3. Is it Advisable to
Incorporate Yourself?
Is it advisable to perform
surgery on yourself? It is illegal to perform surgery on
someone else unless you are licensed to practise medicine,
but perhaps in a wilderness survival scenario,
self-surgery might be your only option. However, is
performing surgery on yourself really a good idea in most
instances?
Likewise, just because it
is possible to incorporate yourself without a lawyer
doesn`t mean it is always a good idea.
In some jurisdictions, only
lawyers can incorporate others. For a paralegal or other
person to incorporate a company for you could be
considered unauthorized practise of law. Thus, it may be
legal to incorporate yourself but not others.
Some factors you might
consider are: Am I really that short of cash that I can`t
spend the extra money for good legal advice that may save
me thousands of dollars? Am I confident that my situation
is one that really doesn`t need the services of a lawyer
to incorporate? Can the money saved on legal fees be
better utilized in financing other aspects of my business?
Each person will have to
make their own decision on whether or not to seek the
services of a lawyer in forming a corporation.
"He who has himself as
a lawyer has a fool for a client." I have often
thought that perhaps a law firm originated this common
expression.
4. How To Incorporate
Yourself
Many books have been
written by lawyers on how to incorporate yourself.
For example, in Canada, M.
Stephen Georgas, LL.B., has written books on the subject
of forming your own corporation. Published by
International Self-Counsel Press Ltd., he has authored
"Incorporation and Business Guide for Ontario"
("How to form your own corporation Includes tax
advantages to incorporating") and "Federal
Incorporation And Business Guide" ("How to form
your own Federal corporation under The Canada Business
Corporations Act").
The same publisher sells
forms and minute books as well as titles for incorporating
in other provinces of Canada.
Forms, corporate supplies,
name searches, and kits are available from legal
stationers and other sources.
In the United States, there
are likewise many manuals available for incorporating
yourself in various states. "Incorporating Your
Business For Dummies" by The Company Corporation and
"How To Form Your Own Corporation Without a Lawyer
for Under $75.00" by Ted Nicholas are two such books.
Sometimes helpful
information on this subject is available from federal,
provincial and state governments for free or nominal cost.
You can sometimes locate
incorporation manuals at your local library for free. Be
careful. Legal manuals become outdated very rapidly. You
might consider very seriously purchasing the most
up-to-date manual available; it might also include helpful
reference material on maintaining corporate minutes and
other helpful suggestions on operating your corporation.
Buy the appropriate manual
and supplies and then follow the instructions. With a
little effort, you could save hundreds of dollars
incorporating yourself without a lawyer.
For further resources on
incorporation, please visit: http://www.yenommarketinginc.com/incorporation.html
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