So you’ve decided to incorporate your business, and you are making the all important decision of how and how much. Well, here is a breakdown of the cost differences between forming a corporation online and filing corporation papers the old fashioned way, with a lawyer.
First, let’s discuss the fees for an average lawyer formation and filing of corporation papers. Based upon an average hourly rate of $250.00, a lawyer would charge $1,500.00 for the formation of a corporation. This number could be reduced to around $1,000.00, depending if you know a very cheap attorney, or a family friend. However, it is safe to say the total charge will be above $1,000 based upon the average salary and time required from an attorney.
To file a corporation online, the costs would be much less depending upon the features that you require. The basic incorporation package can be filed using an online legal document service for $150.00. The state filling fee is not included, however, and depending upon your state will add anywhere from $50 to $150 dollars. Basically, the total estimate for everything included would be under $300.00 for the entire package of filing a corporation online. There are many optional features that can be added, including applying for a Tax ID, filing for S Corporation status, and stock certificates. These options can add another $100 to $300 dollars depending upon how many you need.
All things considered it is still a great deal cheaper to file a corporation online. The process is also much simpler because you do not need to directly contact a lawyer. The price difference in forming a corporation online is anywhere from 50-60% less expensive than a comparable attorney. Especially for small businesses, this represents a significant difference and one that should be weighed carefully.
If you are unsure of certain details such as tax status, and other issues with corporations, it is still recommended to consult a lawyer before forming a corporation. However, there is nothing to stop someone from simply consulting a lawyer about the process, and then proceeding the file the corporation papers online. This would save a great deal of money in hourly fees from a licensed attorney, and would address any issues that you could have with filing status.
This information is for general purposes only. All that we do is submitted and performed with the understanding that we are not engaged in rendering legal, accounting or other such professional service. If legal advice or other expert assistance is required, the services of a professional should be sought.
