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Thursday, November 11, 2010

Save Yourself From Bankruptcy Glitch

It is possible for you to save hundreds of dollars by incorporating yourself without a lawyer. You may ask - How? Moreover, is it advisable?

Please bear in mind that this article is not legal advice – only lawyers are entitled to give legal advice as they have the ‘license’ to practice law. So, if it is legal advice you are looking for, consult a lawyer.

To begin with, if you make a mistake incorporating yourself, whom do you sue? You yourself are the one to blame. Moreover, unlike a lawyer, you have no insurance to cover your errors and omissions.

The practical point to consider is – would any sane person perform surgery on himself? Only a license to practice medicine gives one the legal permission to perform surgery on someone. But, in a wilderness, when the question is about survival, self-surgery might be the only option available. Still, one may ask, - Is performing surgery on oneself really a good idea in most cases?

Similarly, just because it is possible to incorporate yourself without a lawyer, it does not necessarily mean that it is always a good idea too. In case of some specific jurisdictions, it is only the lawyers who can incorporate others. It is considered unauthorized practise of law for a paralegal or other person to incorporate a company for you. Hence, it might be legal to incorporate yourself, but you cannot incorporate others.

A few factors that you might consider are the following: -
- Are you really that short of cash that you cannot spend some money for good legal advice that may save you thousands of dollars?
- Are you confident that your situation is one that actually does not need the services of a lawyer to incorporate?
- Can the money you save on legal fees be better utilized in financing other aspects of your business?

Whether or not to seek the services of a lawyer in forming a corporation is a decision that may vary from person to person.

It was probably some law firm that originally came up with the common expression that – “He who has himself as a lawyer has a fool for a client.”

Lawyers have written many books about how the idea of incorporating oneself. Surprisingly, it is the same publisher who sells forms and minute books, as well as titles for incorporating in other provinces of Canada.

Many a times, you can locate incorporation manuals at your local library for free. Be wary of such publications. Legal manuals become obsolete very soon. However, if you really need to purchase a legal manual, make sure it is the most up-to-date one available; you might also find therein some helpful reference material on maintaining corporate minutes and valuable suggestions on operating your corporation.

Once through with the purchase of the appropriate manual and supplies, remember to follow the instructions carefully. All it takes is a little effort to incorporate yourself without a lawyer, and in the bargain, you could save hundreds of dollars.


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