Tuesday, December 18, 2007

“Lessons in Online Incorporation”

Online incorporation services proliferate in the internet. The article “Online Incorporation Service Review”, posted in September 25, recounts a business owner’s experience with one of these online incorporation companies that offer and cater to the needs of new businesses.
The article, written by the business owner himself, complained about the high service cost being charged by these online companies on novice businessmen like him. And despite the high charges, most online companies fail to meet the standards of the job.
The article also noted that online incorporation services do not explain or educate clients on legal forms they needed to accomplish in business. As a result, clients feel disappointed, groping for answers to their basic questions about business incorporation. And for new businessmen, who knew less of legal forms, this creates confusion and problems.
In addition, the article pointed out that online incorporation websites failed to give any legal advice to clients and went directly to selling their services like a “package”.
The confusion was fairly illustrated when the businessman purchased the wrong type of incorporation and his lawyer had to undo the process and fix him up with the right corporation. The businessman blamed the high cost of incorporation fee ($150) imposed by the California government as the reason why online incorporation companies continue to exist and operate. These companies allegedly charged lower fees, he added.
In the end, the article recommends that the legal services of a business corporate attorney is a more reliable way than the services of online companies which lack the personal touch of human assistance.