According to The Domains, GoDaddy can now offer incorporation services in all fifty states, taking the wind out of the sails of many online incorporation services. The Domains quoted GoDaddy owner Bob Parsons as saying, “When the incorporation services [sic] is combined with Go Daddy’s [other services], customers can launch a legitimate business without having to hire a lawyer”
Well, yes and no. Customer can in fact launch a legitimate business, but it’s quite questionable how legitimate that business will be over time. Why is that? Well, it’s shocking how many businesses never issue stocks, elect a board, or appoint officers, sign operating agreements, elect S treatment, or hold annual meetings. As long as everyone gets along, there may not be a problem. As soon as two “owners” of the company disagree or someone sues the company, those little details become important. After all, if no stock is issued, no one really owns the company, and if there’s no board or officers, than no one is really authorized to run it. And if someone sues a company with no minutes or worse, no officers, that company isn’t going to provide a whole lot of protection.
Now, this may all sound a bit self-serving, and on some level it is. That said, it usually takes a whole lot longer to clean up a mess that’s been in existence for a couple of years (or ten or twenty) than it would have to set it up properly in the first place. As the saying goes, you can pay me now or you can pay me later. Later is always more expensive.
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Pardon me - but I applaud a chip in the good ol boy system.
Simple start up businesses with single owners who are incorporating have been paying high prices for these services- for years.
Why not save the legal expertise - for when it’s really needed?
For most average small businesses, this is a coupe. You do of course, make a nice attempt at invoking fear.