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Entity Formation

To protect an individual from personal liability, the law allows us to form entities. LLCs (limited liability company) and corporations are the two most common forms of entities used. So long as you form the entity as required by state law, so long as you follow state requirements in maintaining the entity, so long as you don’t act in a criminal or negligent manner, and so long as you do not “pierce the corporate veil”, your personal assets should protected from any liability that arises under the LLC or corporation. While many people are able to form their own entity online by themselves or with online legal aids, it is recommended you consult with an attorney to make sure the formation is done properly. Many online legal forms are not compliant with state law, nor do they offer help for common legal disputes that arise. Our forms are updated as the law changes and we provide advice on how to avoid piercing of the corporate veil.

DID YOU KNOW? LLCs are the entity of choice for most small business owners today because there are fewer formalities needed to keep it active (e.g., there is not a requirement for an annual meeting).