Entity formation is simple, right? If Legal Zoom will form your S-Corp for $149+ filing fees, why do I charge $2000-$2400 (without even making your S-Corp election for you)?

Am I a con artist? I guess that's for you to decide. Here are some questions to ask before you move forward with a cookie-cutter document filing service.

(1) Are you getting advice on what entity to form?

So you want an "S-Corp." Why? Someone on TikTok told you it was the bee's knees ... ok. Well, do you know you'll have to track payroll for yourself? Do you realize that the tax savings for your new business - which you project will generate minimal revenue in the next 18 months - will be practically non-existent? Do you realize you can make an "S-corp" election at a later date? Do you understand an LLC can be an S-Corp just like a corporation can?

(2) Are you getting advice on what to name your entity?

I like that you searched the Secretary of State's website to see if your exact business name is taken! Did you take note of similar names? Did you check the USPTO database for trademarks? Did you do a Google search to see if anyone is involved in local or interstate commerce under the same name in a different state? Have you thought about whether you'll need to file a fictitious business name or trade name with your state or local government?

(3) Is your operating agreement customized for your needs?

Did you realize that your state government might legally require you to execute an operating agreement? Did you know that your operating agreement could limit your ability to satisfy the requirements of an S-Corp if you decide to make that election, that you might need to amend it?

(4) Are you getting instructions on your next steps and the opportunity to save money by doing things yourself?

Do you know when your statement of information or beneficial ownership filings are due? Do you know when to register with your state Department of Treasury or Franchise and Tax Board? Do you know where to register fictitious business names or trade names? Do you know where to file for business license(s) or make S-corp elections?

(5) Are you getting scam warnings?

Is a cookie-cutter legal service going to warn you of the numerous scams to come? The people who will contact you using your publicly available registered agent information and attempt to steal your personal information? Or are they too busy trying to charge you $79 to get an EIN - which is completely free?

(6) Who do you go to when you have a question down the road?

What do you suppose is an easier way to answer the compliance questions you'll come up with later on - trying to squeeze legal advice out of a document filing company, trying to contact a lawyer who knows nothing about you, or calling up the lawyer who helped you get your business started?