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Jan
28 • 2017
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Can my accountant incorporate my business for me?

Only if you want to create problems for your accountant. The “practice of law” means more than just appearing in court; it also includes the preparation of legal instruments, such as articles of incorporation, bylaws, and other documents needed to form a corporation. So if your accountant prepares incorporation papers for you, or even just fills out forms downloaded off the internet, she has just engaged in the unauthorized practice of law and thereby subjected herself to the possibility of (1) refunding fees paid by clients for her services, (2) substantial fines and penalties, (3) the loss of liability insurance coverage, and (4) criminal prosecution. Even apart from the headache for your accountant, there are legal issues involved in forming a business other than just filling out and filing the necessary paperwork, including the foundational consideration of what legal structure will work best for your business. For more information, look through our series of articles on Why Every Entrepreneur Needs Both a Lawyer and a CPA to Form a Company, The Risks Associated with CPAs Handling Incorporations and the Unauthorized Practice of Law, and Do Accountants Have Insurance Coverage When They Form Business Entities?