How I Help: Startups - Value of online incorporation service
Online legal incorporation services like LegalZoom seem to offer great value. For as little as $150 LegalZoom will register an LLC and provide an operating agreement.
That is cheap, but that money saved could cost a lot more down the road. When reviewing corporate records for a client recently, I noticed that the operating agreement was missing three key components. She told me that two years earlier she spent $20,000 defending a lawsuit from an ex-business partner that could have been avoided with a better agreement.
I drafted a new agreement for her, which will serve her well for years to come and avoid a future disaster.
If you are considering using an online incorporation service, let me take a look at that operating agreement first. I will identify gaps that can be fixed before there’s a problem.