There are many important tasks you must complete when launching a business of your own, and you only have so much time and capital with which to do so. That is why it might be appealing to cut corners whenever possible, but using an online incorporation service is one shortcut you should think twice before taking.
Establishing the legal structure of your business is not something you can afford to do the easy way. By understanding the pitfalls of using an online do-it-yourself service, you will be able to make better decisions regarding the operation of your emerging company.
Insufficient documentation
Online incorporation services tend to provide the bare minimum of legal solutions, and even then they might only be very generalized documents. Your business is unique in its offerings and there are many factors that set it apart from enterprises in other industries. Therefore, you need specific documentation that guarantees your business’s legal compliance in every area. Having insufficient documentation can lead to denials when applying for a business bank account as well as difficulties in navigating contracts or providing faulty contracts to your partners.
Costly mistakes
Another consideration to keep in mind regarding online incorporation services is that they typically provide you with templates for the legal documents you need. This means that it is up to you to fill in the forms without supervision from a legal expert. Doing so creates the opportunity for you to make mistakes in your documentation, inevitably leading to costly errors in your tax reports and other areas of company management as well.
Online incorporation services may seem like a fast and easy solution, but they can cost your business in the long run. If your company still requires fully compliant legal documents, it is not too late to complete your documentation.