Why You Should Hire an Attorney to Form Your Corporation or LLC

by | Oct 1, 2025

Why You Should Hire an Attorney to Form Your Corporation or LLC — and the Pitfalls of DIY Formation

Starting a business is exciting — but also full of decisions with long-term consequences. One of the first and most important is how to structure your company. Whether you’re forming a corporation or a limited liability company (LLC), the steps you take now will shape your liability protection, tax treatment, ownership rights, and ability to grow.

With so many online templates, ChatGPT, AI and non-attorney filing services, it’s tempting to think you can “just do it yourself.” But the truth is, formation is more than filling out state forms — it’s building the legal foundation of your business. And a shaky foundation can cost you far more to fix than to do it right the first time.

  1. Choosing the Right Entity and Structure

LLC or corporation? C-corp or S-corp? PC or PLLC? Sole member or multiple members? Member-managed or manager-managed? These choices affect:

  • Personal liability if your business is sued
  • Taxation (pass-through vs. double taxation)
  • Regulatory compliance as some licensed professions must operate as a professional entity such as a professional corporation or a professional LLC
  • Investment potential (especially if you plan to seek funding)

An attorney evaluates your goals, risk tolerance, and growth plans to recommend the structure that best protects your interests.

  1. Drafting Governing Documents That Actually Protect You

Many DIY filers skip or use generic operating agreements or bylaws, or ones written for other states or countries with different laws and terminology. That can be a problem.
Poorly drafted documents can:

  • Leave ownership and owner rights and responsibilities unclear
  • Fail to address what happens if an owner leaves, dies, or becomes disabled
  • Miss important provisions for regulatory compliance, liability protection, dispute resolution or profit distribution

An attorney customizes these documents to prevent future legal headaches and disputes.

  1. Ensuring Compliance from Day One

Incorporation or LLC formation is not a one-step process. You may also need:

  • Federal EIN (Tax ID or business social security number)
  • Assumed names or “DBAs”
  • Trademark clearance for your business name (filing a corporation or LLC does not provide trademark rights)
  • Business licenses and permits
  • State and federal tax elections or registrations 
  • Federal BOI filing with FinCen
  • Industry-specific consents or filings such as with the Department of Education, Division of Licensing or other government agencies

An attorney makes sure your company is properly formed and compliant with all initial legal requirements, avoiding costly penalties.

  1. Maintaining Your Liability Shield

The whole point of forming an LLC or corporation is to protect your personal assets. But if you fail to follow corporate formalities or mix business and personal funds, courts can “pierce the corporate veil.”


An attorney explains and sets up the systems you need to keep your protection intact.

  1. Avoiding Costly Future Fixes

Correcting mistakes after the fact — such as ownership disputes, tax classification errors, or improperly issued shares — can be expensive, time-consuming, and damaging to investor or lender confidence. Starting right means fewer problems later.

The Pitfalls of DIY or Online Filing Services

  • One-size-fits-all forms that don’t address your specific business needs
  • No guidance on tax elections or ownership agreements
  • Missed filings or deadlines that jeopardize your legal status
  • False sense of security — thinking you’re “set” when critical legal protections are missing

Bottom Line

Your business formation is a legal milestone, not just a clerical step. You want all of the protections and advantages that a corporation or LLC can provide. By working with an attorney, you get:

  • Tailored legal advice for your situation
  • Solid, customized documents
  • Peace of mind that your business meets all regulatory compliance requirements and is built to last

 

Tracy Jong is a Senior attorney at Evans Fox LLP with 30 years of experience focusing her practice in business law, intellectual property and licensing for alcohol and cannabis. Tracy Jong is a member of the New York Bar and is a registered attorney at the United States Patent and Trademark Office. She can be reached at Tjong@EvansFox.com.

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The content has been prepared for informational purposes only; it should not be construed as legal advice, does not create or constitute an attorney-client relationship, and readers should not act upon it without seeking professional counsel.