A recent LawTrades user asked: What Benefits Does a Startup Get Incorporating as a C-Corp with a Lawyer in Comparison to Going with LegalZoom?
Over the years, I’ve learned that small, seemingly trivial mistakes made during formation can result in big consequences. Incorporating often involves requirements beyond the initial forms, something that the LegalZoom-type sites can’t help you with. Also, regulations are always subject to change which means that you (or LegalZoom) could miss some vital updates that result in an incomplete formation of your business.
You should be aware that Delaware has some other requirements other than the initial forms. One is that you must have a registered agent in the state. Thus, if you are a non-Delaware corporation then you will need to take additional steps to fulfill this rule. Also, don’t forget about completing the annual report and franchise tax.
Your best bet is to hire a lawyer because s/he will be the best to assess whether a C-Corp is truly the entity to best protect your company and assure its success (especially with the tax implications). If a C-Corp is advisable for your business then an attorney can aid you while your startup raises large amounts of venture capital. Also, Delaware has a nuanced requirement for filing for tax exempt status, so a lawyer will be able to help you figure out if you qualify, and what type of protection your company can get.
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