No, you don't need a lawyer to form an entity.
Wait. Why is a law firm saying on its website that you don't need a lawyer?
Because anyone can form an entity online using either the forms provided by the state or using one of the many online incorporation services available.
LLC Formation. We have created a helpful information sheet to set forth what you need to do to form an LLC. Email us and ask for us to send it to you - it's complementary. After you form the entity, we can assist by drafting an LLC operating agreement (either a single-member agreement or a multimember agreement).
Corporation Formation. You may form the corporation yourself on the SDAT website and then have us draft bylaws, minutes of the organizational meeting, stock certificates, and a shareholders' agreement.
So, if you can form the entity online yourself, why should you have a lawyer assist you with further company legal documents?
- You are forming a corporation and neither the state website nor the online sites have the required forms for the Board of Directors Organizational Meeting, Bylaws geared to your company or stock ledgers and certificates that need to be completed.
- You have more than one owner and you want to make sure you have a solid owners' agreement among all of the owners that sets forth all of the rights and obligations of the owners and what happens when one owner wants out, becomes incapacitated or dies.
- You realize that spending some additional dollars now may end up saving a lot of dollars in the future.
- Your business needs a solid services agreement that protects the interests of the business and that is tailored to the specifics of your business.
- You realize that after your entity is formed, you will have a lawyer who is familiar with your company, your goals and your needs and will be available for future work and questions.
If you hire us, you will have a lawyer for your business that has your back (click here for our formation services and fees).
You can rest assured that your company is on strong legal footing which will allow you to do what you do best: Run your business.