Filing service or lawyer: which do you actually need?

Both, for different things, and the confusion between them causes most of the cleanup work I do.

What a filing service does well

• Prepares and files formation documents correctly.

• Provides a registered agent.

• Sends reminders.

• Handles annual reports.

That's a real service, they're generally good at it, and it's cheap because it's a repeatable process.

What they don't do

They don't ask how you make money. They don't ask who else is involved or what happens when you sell. They don't tell you whether the entity type is right, whether the state is right, or whether the tax election someone suggested fits your situation.

Not because they're careless. Because that isn't the product. You bought filing, and you got filing.

Where the gap shows up

• Someone forms an LLC in a state they don't operate in, because a website said that state was best.

• Someone gets a template operating agreement silent on what happens if a partner dies.

• Someone elects S-corp treatment because a checkbox suggested tax savings, and discovers the payroll requirement a year later.

None of that is the filing service's fault. It's the space between what you bought and what you needed.

The sensible division

Get advice on what to form and why. Then have it filed by whoever files it most cheaply.

That's how I work — I don't file anything. I tell you what to file, in writing, and you hand it to a filing service or do it yourself. It also means I have no stake in what gets built.

What to do

If a filing service formed your entity and nobody asked about your business first, it's worth an hour to check that what you have matches what you do.

Most of what I find is fixable. It's just easier now than in three years.

This is general information, not legal advice for your situation. If you want an answer for your business, book a consultation.