Forming My New Company…DIY or NOT?

To Inc. or not to Inc.? – that is the question. Or should I say – to Inc. myself, or have a lawyer or a professional service handle the task for me?  Logistically speaking, there are pros and cons to each and we shall examine them here.

At Harvard Business Services, we serve as a Delaware Registered Agent to more than 30,000 companies, most of which we’ve formed and filed on behalf of our clients. However, we also serve as Registered Agent to thousands of clients each year who undertake the filing themselves with little or no professional help – true “Self-Filers.”

The fact that we offer the lowest Annual Registered Fee in Delaware ($50 ) makes us very popular among both of these groups, and it’s even more convincing once you figure out the three-year cost of Harvard vs. other agents. At Harvard, we’ve been guaranteeing a fixed agent fee of $50 per year for almost 30 years. A lot of other agents start out at a low fee and then jack your rate up the second year and every year thereafter. Ask them about it if you’re comparing prices.

Obviously, those in the hands of a professional will have a greater level of confidence than those who are on their own. There’s nothing like knowing that a professional is taking care of everything for you, especially if this is your first time forming a company. But let’s look at three practical matters and compare self filing to using Harvard’s formation service: Cost, Speed and Completeness.

COST:
Self-Filers are incurring less expense through the process; since any professional will charge a fee for their expertise.  From our experience, filing through an attorney will typically range from $500 to $2,500. Harvard’s services start at $329 and go up to $599 for express overnight service. Filing yourself will cost you the filing fees ($90), the first year’s agent fee ($50 – $149), the cost of a corporate seal ($40) (some banks require them for opening an account) and any fed ex or mail service of filing the documents. Self-filers will prepare their own Certificate of Formation and make several phone calls to government offices before accomplishing the filing. Depending on how you value your time, you’ll save a couple of bucks by self filing.

SPEED:
Self-filers can expect the approval from the Delaware Division of Corporations within a two week period and receipt of their documents within 3 weeks, on the average.  Harvard files every company on a SAME DAY basis. You’ll have your filed scanned documents by email within two business days, and your seal will arrive about the same time. If you were to request same day filing service when self-filing, Delaware would be happy to provide it, for an extra $100. This extra fee would wipe out most of the cost savings of self-filing. So, if speed is a consideration, the costs are about the same.

COMPLETENESS:
Some banks, car dealers and real estate agents will require a company to use their seal on official documents and sales contracts. The Company Seal is the signature stamp for your company. You’ll need one sooner or later. A fair value for such an item is around $40 for a seal of comparable quality. Once you throw that in, you’re better off having Harvard handle everything for you.

For almost 30 years, Harvard has been filing corporations and LLCs for clients from all across the USA and all around the world. We know what’s needed to get the documents quickly through the approval process and we follow your documents electronically to make sure they don’t get delayed. If the self-filer makes a mistake in his documents the State will put a hold on the application and the client will be delayed or back at square one.

As a final thought, consider one other thing. One of the most popular reasons that clients file Delaware LLCs  is for the benefit of anonymity.  When we prepare and file your documents, we sign the certificate and your identity remains undisclosed. However, if you self-file, you will be required to offer your name and address for public record and forfeit anonymity.

So, when considering home repairs; DIY may save you $$$…but when considering the foundation of your new business….maybe not so much.  You usually get what you pay for.  At Harvard, you get so much more!