• Tanya S Osensky

How I Help: Startups and Entity Formation

I recently consulted with a client who formed a legal entity using an online service and now has a myriad of problems as a result:


1. She has only one sheet of paper showing the formation, and no supporting documents.

2. The entity is set up in the wrong state.

3. The entity expired because it wasn’t renewed on time and correctly.

4. The wrong type of entity was registered altogether.


This client would have been better off if she just operated as a sole proprietorship.


Setting up a legal entity without consulting legal and tax professionals is a waste of time, money and energy. Online business incorporation services are inexpensive, but they don't give professional legal advice.


If you are getting ready to incorporate your new company in Delaware, because you heard it’s THE BEST state for business, unless you live in or the business is based in Delaware, you're probably making a mistake. I'm sure you don't follow all the advice you read online...

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As I mentioned in my last post, I’m not in competition with services like LegalZoom because they can’t – and don’t – give any legal advice. I do. Besides that, I take the time to understand my client