Q: Can a attorney charge you doubt the fee to set up a business entity and pass half the fee to another company?
I attended a 4 day meeting in Nevada to learn how to sell online using Amazon, Ebay, etc. They suggested you set up
two business entities so you have two online stores, doubt your profits. Day 3 of the meeting they introduce an attorney to speak about the importance of having business entities to protect your personal assets, very important and good advice. But, I have the following question. The attorney offers a package deal to set up two business entities in the state I live, send me documents, provide information to set up bank accts, answer questions I may have for several months. The fee for two business entities is $5000, I paid that fee to the attorney. I have since learned that the attorney retained $2500 and he gave the other $2500 to the company that put on the event. Is this legal for the attorney to do? The cost seems like price gouging for two business entities. Thank you and I look forward to your response.
A:
Your question is listed under "contracts; Tennessee" But your facts say you were in Nevada and a lawyer gave a presentation with a 2 for the price of one "deal" if you sign up now- Normally not a good idea- but you are beyond this now. The issues you raise may be state specific. I am doubtful the lawyer in Nevada was a Tennessee lawyer. Were the entities he set up Tennessee entities? In Tennessee a lawyer cannot split a fee with a non-lawyer as a general rule. But, again you weren't in Tennessee and the lawyer is likely not licensed here.
Without knowing more, your best bet would be to contact the entity in the state where the lawyer is licensed that oversees attorney ethics- for instance in Tennessee this would be the Tennessee Board of Professional Responsibility. Most states will have a consumer liason that you can talk to and ask your questions.
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