diff --git a/dll/win32/lsasrv/lookup.c b/dll/win32/lsasrv/lookup.c
index b0805ebc0f8..79cbffca57c 100644
--- a/dll/win32/lsasrv/lookup.c
+++ b/dll/win32/lsasrv/lookup.c
@@ -182,7 +182,6 @@ LsapInitSids(VOID)
     hInstance = GetModuleHandleW(L"lsasrv.dll");
 
     /* NT Authority */
-
     LsapLoadString(hInstance, IDS_NT_AUTHORITY, szAccountName, ARRAYSIZE(szAccountName));
     LsapLoadString(hInstance, IDS_NT_AUTHORITY, szDomainName, ARRAYSIZE(szDomainName));
     LsapCreateSid(&NtAuthority,
diff --git a/dll/win32/lsasrv/lsarpc.c b/dll/win32/lsasrv/lsarpc.c
index 4b9ef392c27..5f314e8c2be 100644
--- a/dll/win32/lsasrv/lsarpc.c
+++ b/dll/win32/lsasrv/lsarpc.c
@@ -36,10 +36,12 @@ LsapSecretMapping = {SECRET_READ,
 
 /* FUNCTIONS ***************************************************************/
 
-VOID
+NTSTATUS
 LsarStartRpcServer(VOID)
 {
     RPC_STATUS Status;
+    DWORD dwError;
+    HANDLE hEvent;
 
     RtlInitializeCriticalSection(&PolicyHandleTableLock);
 
@@ -52,7 +54,7 @@ LsarStartRpcServer(VOID)
     if (Status != RPC_S_OK)
     {
         WARN("RpcServerUseProtseqEpW() failed (Status %lx)\n", Status);
-        return;
+        return I_RpcMapWin32Status(Status);
     }
 
     Status = RpcServerRegisterIf(lsarpc_v0_0_s_ifspec,
@@ -61,7 +63,7 @@ LsarStartRpcServer(VOID)
     if (Status != RPC_S_OK)
     {
         WARN("RpcServerRegisterIf() failed (Status %lx)\n", Status);
-        return;
+        return I_RpcMapWin32Status(Status);
     }
 
     DsSetupInit();
@@ -70,10 +72,42 @@ LsarStartRpcServer(VOID)
     if (Status != RPC_S_OK)
     {
         WARN("RpcServerListen() failed (Status %lx)\n", Status);
-        return;
+        return I_RpcMapWin32Status(Status);
     }
 
+    /* Notify the service manager */
+    TRACE("Creating notification event!\n");
+    hEvent = CreateEventW(NULL,
+                          TRUE,
+                          FALSE,
+                          L"LSA_RPC_SERVER_ACTIVE");
+    if (hEvent == NULL)
+    {
+        dwError = GetLastError();
+        TRACE("Failed to create or open the notification event (Error %lu)\n", dwError);
+#if 0
+        if (dwError == ERROR_ALREADY_EXISTS)
+        {
+            hEvent = OpenEventW(GENERIC_WRITE,
+                                FALSE,
+                                L"LSA_RPC_SERVER_ACTIVE");
+            if (hEvent == NULL)
+            {
+               ERR("Could not open the notification event (Error %lu)\n", GetLastError());
+               return STATUS_UNSUCCESSFUL;
+            }
+        }
+#endif
+        return STATUS_UNSUCCESSFUL;
+    }
+
+    TRACE("Set notification event!\n");
+    SetEvent(hEvent);
+
+    /* NOTE: Do not close the event handle, as it must remain alive! */
+
     TRACE("LsarStartRpcServer() done\n");
+    return STATUS_SUCCESS;
 }
 
 
diff --git a/dll/win32/lsasrv/lsasrv.c b/dll/win32/lsasrv/lsasrv.c
index 12fac372d82..e2a28bd600b 100644
--- a/dll/win32/lsasrv/lsasrv.c
+++ b/dll/win32/lsasrv/lsasrv.c
@@ -271,8 +271,6 @@ LsaIFree_LSAPR_TRANSLATED_SIDS(
 NTSTATUS WINAPI
 LsapInitLsa(VOID)
 {
-    HANDLE hEvent;
-    DWORD dwError;
     NTSTATUS Status;
 
     TRACE("LsapInitLsa() called\n");
@@ -302,7 +300,7 @@ LsapInitLsa(VOID)
         return Status;
     }
 
-    /* Start the authentication port thread */
+    /* Start the authentication LPC port thread */
     Status = StartAuthenticationPort();
     if (!NT_SUCCESS(Status))
     {
@@ -311,37 +309,13 @@ LsapInitLsa(VOID)
     }
 
     /* Start the RPC server */
-    LsarStartRpcServer();
-
-    TRACE("Creating notification event!\n");
-    /* Notify the service manager */
-    hEvent = CreateEventW(NULL,
-                          TRUE,
-                          FALSE,
-                          L"LSA_RPC_SERVER_ACTIVE");
-    if (hEvent == NULL)
+    Status = LsarStartRpcServer();
+    if (!NT_SUCCESS(Status))
     {
-        dwError = GetLastError();
-        TRACE("Failed to create the notification event (Error %lu)\n", dwError);
-
-        if (dwError == ERROR_ALREADY_EXISTS)
-        {
-            hEvent = OpenEventW(GENERIC_WRITE,
-                                FALSE,
-                                L"LSA_RPC_SERVER_ACTIVE");
-            if (hEvent == NULL)
-            {
-               ERR("Could not open the notification event (Error %lu)\n", GetLastError());
-               return STATUS_UNSUCCESSFUL;
-            }
-        }
+        ERR("LsarStartRpcServer() failed (Status 0x%08lx)\n", Status);
+        return Status;
     }
 
-    TRACE("Set notification event!\n");
-    SetEvent(hEvent);
-
-    /* NOTE: Do not close the event handle!!!! */
-
     return STATUS_SUCCESS;
 }
 
diff --git a/dll/win32/lsasrv/lsasrv.h b/dll/win32/lsasrv/lsasrv.h
index 4bc0673c717..8a772aba212 100644
--- a/dll/win32/lsasrv/lsasrv.h
+++ b/dll/win32/lsasrv/lsasrv.h
@@ -206,7 +206,7 @@ LsapLookupSids(PLSAPR_SID_ENUM_BUFFER SidEnumBuffer,
                DWORD ClientRevision);
 
 /* lsarpc.c */
-VOID
+NTSTATUS
 LsarStartRpcServer(VOID);
 
 /* policy.c */