A. Why can’t you get assistance from corporate lawyers if you remain a sole proprietor?
Do not get me wrong, some lawyers will stretch the bounds of the ethics and claim they are being your business attorney by representing you as a sole proprietor, but if they are not actively trying to make your business into an actual business, they are essentially committing malpractice. Why?
1. Business Attorneys are supposed to represent your business, not you. If you are a sole prop, they are not representing your business.
2. Business attorneys are supposed to represent your business zealously and ensure that it is protected. They are not doing so if they allow you to remain a sole proprietor.
B. No big deal, I can file the piece of paper myself with the Secretary of State.
1. You absolutely can and there is no reason you shouldn’t. But that does not mean you are functioning as a legitimate business entity, and it would be a shame for you waste your money on the filing and yearly on annual reports if you just have a piece of paper filed with the Secretary of State.
2. You must have more and do more than filing a piece of paper and the annual reports to actually get the protections of your state. Depending if you are an LLC, PLLC, S-Corp, B-Corp, C-Corp, 501(c)(3), PC, LLP, or LP, each entity requires back-end paperwork that must be drafted if order for you to claim the protection of the law. The paper filed with the secretary of state is not what protects you.
C. My CPA/Financial Advisor/Puppy filed my paperwork. I am fine.
You are just as fine as if I were doing your taxes. You really do not want me to do your taxes, as I would be committing malpractice on so many levels I would probably be sending you emails from jail (can you email in jail?) Essentially, anyone can file your paperwork, so if you are going to have your CPA/Financial advisor do it (and pay them to do it), just do it yourself, since they cannot give any legal advice whatsoever as to what that entity is doing for you legally (just as I cannot tell you that you can deduct your blowouts on your return (you cannot, I have tried)). So definitely file your paperwork, but do not let your accountant/cpa/puppy/financial advisor give you legal advice. And certainly do not let them charge you for it!
