By Gloria Black, Paralegal
I grew up in a family of do-it-yourselfers. You probably know the type. When something broke, they fixed it themselves. They rarely asked for help, and they certainly weren’t going to pay someone else to do a job they believed they could handle.
That mindset has stayed with them to this day, and they are far from alone. Many people, especially those who grew up in similar households, continue to believe that doing everything themselves is the best way to save money.
But at what point does it stop saving money and start costing you more?
For my parents, every dollar had a job, and that job was never to pay someone else to do something they could do themselves. They repaired the house, worked on the cars, cooked every meal, cleaned, and did everything else that needed to be done.
At the time, that approach made perfect sense. Money was tight, and paying a mechanic or contractor could mean sacrificing something far more important, like groceries or rent.
As their financial situation improved, however, the mindset never changed.
They each eventually became business owners, yet they continued to prepare and file their own formation documents. As a corporate paralegal, I now recognize mistakes they made that could have been avoided with professional legal guidance but their do-it-yourself mentality simply wouldn’t allow them to justify the expense.
Looking back, I can’t help but wonder how much time and frustration could have been avoided. Would home repairs have been completed sooner if they had hired a contractor? Would the cars have required fewer repairs if a mechanic had addressed the underlying issues earlier and correctly? More importantly, would my parents have had more time to spend with my brother and me if they hadn’t been trying to do everything themselves?
There’s no question that when money is scarce, doing things yourself is often a necessity. But once you have the ability to invest in professional help, continuing to do everything yourself may no longer be the most economical choice. Sometimes the cheapest option upfront becomes the most expensive in the long run.
I see this regularly in my work at a law firm that assists businesses with entity formation, contracts, business transactions, mergers and acquisitions, and litigation. While some legal disputes are unavoidable, others can often be traced back to decisions made when the business was first formed. When the legal disputes are unavoidable, a properly formed business could protect your personal assets from business liabilities.
For example, someone may choose to operate as a sole proprietor because it seems simple and inexpensive. They may read a brief description online or Googled the term, and thought “That’s exactly the type of business I’m starting.” However, if that business is sued, the owner’s personal assets, including their home and personal bank accounts, may be exposed to liability. Forming a limited liability company (LLC), when appropriate, can provide important legal protections that a sole proprietorship does not.
The same principle applies to contracts. Having an attorney review or draft agreements tailored to your business can help prevent disputes caused by unclear or incomplete terms. Likewise, a well-drafted operating agreement establishes expectations among business owners before disagreements arise. This is especially important for new business owners who may not yet recognize the issues that lead to conflict.
While online templates and AI-generated forms may seem useful, they cannot replace legal advice tailored to your specific circumstances. An attorney can also help ensure your business is formed correctly by advising on the appropriate entity type, jurisdiction, required filings, publication requirements (yes, some states still require publication in a newspaper!), and whether a professional or restricted entity is necessary.
Even for experienced entrepreneurs who understand the formation process, it’s worth asking one question:
Is your time better spent filing paperwork or growing your business?
Doing it yourself isn’t always the least expensive option. Sometimes the greatest return on investment comes from hiring the right professional before a problem ever arises.
The goal isn’t to do everything yourself. The goal is to spend your time where it creates the greatest value. So before determining that you will do it yourself, ask yourself if you should.