Typically when we are meeting with clients that are looking to start a business they are ready to start a business.
When an entrepreneur meets with an attorney to investigate the prospect of starting a company, they are organized into an LLC; sometimes before they are ready to actually start. But, they have their Articles of Organization, their operating agreement and are quite a bit lighter in the pocketbook.
I state this somewhat tongue in cheek. But there have been times when we have counseled clients to really think long and hard about this before they spend their money.
I have had many fun discussions with attorneys about the pros and cons or an LLC versus an S- Corp. I like S-Corp and the attorneys like LLC’s. The attorneys all state that the sale of an operating agreement is not the basis for their opinion. But, they always sell and operating agreement with every LLC organization. At least all the ones I have talked to have.
But I have talked to people who have active businesses up and running but are still not ready to start their business. One stated that she is still taking classes and will not be ready for at least another 6 months. Her business is over a year old.
I do have a couple of client’s that we did incorporate, one in a writer and has product to upload. She admits that she has a publishing block that she personally needs to work through. Another is an LLC that was looking at a couple of properties for purchase and lease; but never made an offer for either.
These are the exception and not the rule. Their intentions were and are to move forward. They are moving at their timeframe and not mine.