Business Services Of Hawaii
In this review, we’ll get straight to the point and discuss the essential information you need to be aware of about BetterLegal which includes:
- The actual cost for BetterLegal’s LLC formation services
- Expected turnaround time for formation
- Customer reviews, BetterLegal’s reliability, support offerings, and much more
We’ll also provide detailed explanations of the numerous other relevant, formation-related services that BetterLegal offers.
Below is a brief overview of our findings. In the next section, you’ll be able to find our more comprehensive review that outlines our conclusions and also explains everything you need to know about BetterLegal.
Is BetterLegal the Right Choice for You?
BetterLegal is unique among firms that offer formation services because it offers only a single LLC creation and a single incorporation package. While the package includes amazing add-ons, like Operating Agreement or Bylaws drafting has some unnecessary services, too.
In general, we were delighted with the ease of use on BetterLegal’s website and simple online filing system. The costs of services offered were easy to find in the majority of cases.
BetterLegal’s rates for regular services, such as registered agent services as well as annual compliance, were competitive. Additionally, they offered additional filing add-ons than smaller competitors.
You can go to BetterLegal.com yourself, or, if you want to know more about the elements we used to evaluate BetterLegal’s’ service Read on!
BetterLegal Quick Overview
Established in 2017, and located in Austin, Texas, BetterLegal is a fairly small player within the business formation sector.
Like many of its young peers, BetterLegal tries to emphasize its efficiency. On their website you’ll see the following statement:
We’re a 21st century business that makes the process quick simple and affordable and without the needless waste of time or paper.
The company is indeed able to boast amazing turnaround times and an extremely user-friendly website.
Like several other small-scale creation companies, BetterLegal uses third parties to offer a variety of services, including its registered agent service. They also offer several services through partner firms, including banks and online accounting firms as well as at least one insurance company.
Although they concentrate on the business formation process, BetterLegal provides many other services related to creating and running a company. Some of the other services BetterLegal offers are:
- Operating Agreement and Bylaws drafting
- A permit or business license for a search service.
- Services for compliance, which include the filing of annual reports
- Amendment filings, for example, those needed to change the name of your business address, the state in operation or even member information
BetterLegal’s formation pricing structure is straightforward. In contrast to competitors which tend to offer a variety of different packages of formation, BetterLegal offers its formation bundle at a single cost.
BetterLegal’s formation bundle applies to LLCs as well as standard corporation (C-corps). In the following section, we’ll discuss the bundle of services offered. BetterLegal offers a range of other services, including monthly subscriptions, or with fixed costs that are related to the formation of businesses. We’ll discuss them further, in the “Services” portion of this review.
BetterLegal’s Formation and Incorporation Package: $299, plus state fees
BetterLegal’s single product for incorporations and formations is comparable to many of its competition’s middle-tier offerings. It includes more than the standard bare-bones structure.
For a fixed $299 cost, which includes applicable state fees, here’s what’s included:
Articles of Incorporation or Organization: The documents officially establishing your corporation or LLC with the state in which you reside. BetterLegal promises to file your documents on the same day and a speedy delivery of the documents once your state has approved the documents.
EIN Filing: EINs (Employer Identification Numbers) are utilized by the IRS to keep track of companies. The majority of companies need an EIN. It’s good to know that filing for one is easy. The entire procedure can be completed online, in minutes through the IRS’s EIN file web page.
Operating Agreements or Bylaws: They establish guidelines concerning how your LLC or corporation is to be run. While they aren’t legally required in all states, we consider them crucial to all business owners.
Bank Resolution The document specifies who is authorized to create a business account as well as conduct other banking operations on behalf of a business. This document is required when you are planning to establish a bank account for your business.
Website: BetterLegal will provide you with a domain, and build a basic site as well as an “online store with inventory management services.” Business owners can decide to upgrade to a paid site plan in the future.
Tax Analysis: An analysis that is a basic understanding of your business’ tax situation , performed by a third-party partner of BetterLegal.
Insurance Evaluation: An evaluation of your business’s potential insurance needs and service offerings provided through a third-party partner of BetterLegal, CHUBB Insurance.
We’ll get into more detail on the overall value of this package just a bit further down in the article.
BetterLegal vs Competitors Pricing
Below, you’ll find our table which compares BetterLegal’s prices for formation with those of its main rivals.
The prices listed within this table are independent of BetterLegal’s package pricing. They are standardized for comparison against competitors.
We define Basic Formation, Full Formation, and Full Formation plus Website below in the table.
Here’s what BetterLegal has to say about the cancellation of their registered agent service:
To cancel the automatic renewal of your RA Service, you must notify BetterLegal of your intent to cancel by calling our Customer Service Line at (512) 969-2339, emailing us at email@example.com, or by canceling online through your account portal.
While it’s not specifically stated We assume that this policy applies to other recurring-fee services like BetterLegal’s annual compliance services. Business Services Of Hawaii
As for other fixed-fee services, BetterLegal’s terms are quite clear: “All purchases through the Website are final and will not be refunded.”
Below are a few of the areas where we believed BetterLegal was particularly strong.
Solid turnaround times
BetterLegal provides information about its turnaround time on its main webpage. They claim same-day filings for all their formations, meaning you’ll be able to submit your Articles of Organization or Incorporation will be submitted to the state authorities within the same day as you file them with BetterLegal.
They also state that you’ll receive your documents within two business days. It’s likely that this doesn’t account for actual state processing times, which can be a couple of weeks, but it appears that BetterLegal does everything in their power to make things happen as quickly as possible.
A number of reviews support BetterLegal’s claims. Quite a few of the reviews we reviewed, like that below review, discussed the company having a quick turnaround time on formations.
The same-day filing offered by BetterLegal is applicable to all orders. You don’t need to pay extra to get internal prioritization this is something that many of BetterLegal’s competitors do charge extra for.
A quick turnaround time is often one of the two most important factors when forming new businesses (the other is the formation cost) This is a big plus for BetterLegal.
BetterLegal is a tiny company, and we don’t have as many reviews to base our decisions on as we’d prefer. However, the reviews we have are very well-constructed.
BetterLegal sports an 4.8 out of 5 on Trustpilot
They also have the score of 4.88 from 5 with BBB. BBB.
The company is Better Business Bureau accredited as well, boasting an A+ rating.
The reviewers of BetterLegal seem to have nice opinions all over the board. They appreciate the company’s clarity as well as its turnaround time and prices (even though we ourselves do not think their pricing is very impressive).
Limited customer support
Smaller companies in formation tend to be nimbler, more efficient, and more affordable than their larger counterparts. But, many small-sized formation companies do not have the support staff that the larger companies have.
BetterLegal is no exception here.
Although the BetterLegal website offers an online chat feature, there is no contact information found on their main pages. To find those pieces of information, you’ll need to go down to the very bottom of the company’s privacy webpage. And, even there it’s not clear the availability of phone lines or the speed at which email responses are made.
BetterLegal, it seems similar to the majority of their competitors heavily relies on automated customer service.
The ideal scenario is that your order will go through without a hitch. You’ll never need to contact an agent for service. However, we do see the lack of service rep availability as a major drawback but.
Below, we’ll discuss some of the main formation-related services that BetterLegal provides. We’ll discuss when and why you might need each service, and we’ll provide BetterLegal’s pricing too.
LLC Formation and Incorporation
$299 + state fees
BetterLegal can assist you in filling out and file all the necessary documents for forming your LLC or incorporating your business.
LLCs, also known as Limited Liability Companies, are one of the most sought-after kinds of business across the United States. They are more flexible and easy to manage than standard corporations (C-corps) LLCs are also able to handle lower requirements for recordkeeping and compliance. They can also confer some significant tax advantages through pass-through taxation.
Corporations face more complicated regulations, but they may provide certain tax or structural advantages, depending on the size of your business and field of operation.
If you’re not sure whether an LLC or an organization is the right business model for you, talk to an expert in small businesses or an experienced accountant.
Both corporations and LLCs are formed on a state-level, usually with a given department’s Secretary of State office.
Every state has its own rules and regulations for the establishment of LLCs, and learning about the various processes and laws applicable to your state could be a time drain.
A majority of business owners who are new hire an organization service, such as BetterLegal, to fill out and complete their paperwork on their behalf. For LLCs, this means the filing of Articles of Organization. For corporations, it means filing Articles of Incorporation.
Within their normal formation bundle, BetterLegal will file your documents and forward it to state authorities. The process is easy and can be completed entirely online. It’s as simple as asking basic questions regarding your business, e.g., its name, the name of its owner(s) or member(s), its industry and address. Business Services Of Hawaii
BetterLegal will also run a quick name check to ensure your LLC or corporation’s name isn’t already taken (which could lead to an application being rejected).
As we noted in the upper part of this review, BetterLegal’s $299 formation price does not include state filing fees that can range from $40 – $500, depending on your state of filing.
In the formation package
An EIN, or Employer Identification Numberis the type of tax ID that the majority of new companies will require to obtain. The EIN is assigned to the IRS, EINs are legally mandatory for businesses that have employees and are also necessary when you are planning to open your own business bank account.
It’s easy to think of your EIN as sort of being like your business’s Social Security Number. Every one is unique, and is used by the IRS to keep track of the activities of your business.
Thankfully, acquiring an EIN is a simple process. It can be done on the internet, by using the IRS’s EIN application page within a matter of minutes. Simply fill in a few lines of info on your business and you’ll get an EIN automatically.
Because making an application for EIN is easy and easy, we advise against any fee-based EIN filer. Although many firms offer the option to file for your EIN at a cost (or as part of a higher-priced setup package), BetterLegal automatically includes EIN filing in the only formation package.
You can remove EIN filing from your basket at checkout but it won’t lower the price of your purchase in any way. We’re not happy that BetterLegal “builds in” the price of EIN filing but doesn’t give customers a discount for removing this unneeded service.
Operating Agreement or Bylaws
In the Formation package
A Operating Agreement is one of the most crucial legal documents for any LLC. Operating agreements outline the basics of how an LLC will be managed. They usually include info such as:
- Who the LLC’s owner(s) or member(s) are, as well as how the ownership of an LLC is split among them
- Who and by whom is the LLC managed? LLC will be managed
- How will profits be divided
- What to do if members or owners leave or dies
- …plus other key pieces of info
Only a few states are required to have an Operating Agreement. California, Delaware, Maine, Missouri, and New York legally require you to have the Operating Agreement. However, even in these states, you do not have to file the contract with your state, you’re just required to keep it on hand.
Even so, we recommend that all LLCs, in all states, draft an Operating Agreement as well as keep the document in their possession.
An Operating Agreement establishes your LLCs liability protections. Since liability protection is one of LLC’s key benefits It’s not a good idea to ignore these protections.
Operating Agreements also help in providing guidance during unexpected situations. You probably don’t go into business expecting your partner to quit or a dispute over profits to arise – however having a written document available can help to navigate such situations easily.
If you’re considering incorporating, instead of making the LLC you’ll require corporate Bylaws rather than an operating contract. Corporate Bylaws work much in the same way as operating agreements, and offer similar advantages as operating agreements.
As part of their primary set of formation services, BetterLegal will help you create a legally-binding Operating Agreement or Corporate Bylaws.
It is included in the Formation package
A banking resolution is a essential, yet simple document. A bank resolution defines the member(s) within an LLC have the authority to establish a business bank account and to participate in any other banking-related activity.
Banks require a bank resolution before you can open a bank for business account.
In their initial formation package, BetterLegal will draft a banking resolution for your company. All you have to provide them with details about who’s allowed to open and/or have access to a bank account under the name of your LLC.
In the Formation package
BetterLegal is among a handful of firms that offer a web domain as part of the formation service. Unfortunately, details on their offer are sparse.
The main page for their service says that you’ll be able to “Set up a free website or online store with inventory management.”
There is evidence of upselling here too, as the following sentence reads: “As your business grows, transition to a paid plan to unlock more features and customization.”
BetterLegal includes a GoDaddy ribbon on their main website however, nowhere does the company explicitly state who its third-party domain hosting partner is. The name isn’t mentioned in the company’s terms of services.
We’re all for openness, but we’re not happy by BetterLegal’s performance in this case. In any case, we always suggest going directly to a domain hosting company or builder of business websites.
Plenty of companies are specialists in these areas So there’s no reason to get these services second-hand by forming a company.
Registered Agent Service
$90 per year or $10 per month
All corporations and LLCs are legally required to have a registered agent. While it sounds like a fancy phrase, the role of a registered agent is very easy – they get official correspondence and service of procedure (legal notices, like lawsuits) for the benefit of the company.
Registered agents must be present during office hours and they must be based in the same state in which your LLC or corporation is based.
Receiving official correspondence in a timely manner, and being able to respond in a timely manner is crucial.
If you don’t respond to a compliance notification from the state or federal government, your business may lose its good standing, receive penalties or fees, or be dissolved. If you fail to comply with a court summons and miss your court date the case could be automatically canceled.Business Services Of Hawaii
Having an on-the-ball registered agent This is why it’s vital.
Technically speaking, you could be your business’s own registered agent. There are various reasons why many entrepreneurs choose to employ an agent registered with the company.
We suggest using the an Registered Agent service in the following situations:
- You are often traveling and not always at the same address
- You aren’t a resident of the United States
- Your business operates in several states.
- You don’t want your personal information and address made public made available
Similar to other formation firms, BetterLegal offers a registered agent service. As with smaller formation firms, BetterLegal contracts this service out to an outside party.
BetterLegal’s full terms of service can be found here.
If you are able to bypass the transparency issue the BetterLegal registered agent service actually comes at a great cost. It costs either the monthly fee of $10 or you can pay $90 for the year. The latter cost is highly cost-effective – many large companies cost $150 annually or more.
BetterLegal’s registered agent service is an additional service that is not included in their basic formation package. This makes them somewhat of an outliersince several competitors offer registered agent services with the formation package, usually including the initial year of service no cost.
Business License Search
Depending on what type of business you run and the industry you’re operating in, and where you’re based, you may need a few or many permit and licences. These could be required at the local, state or federal levels.
Licenses can be a pain to deal with yet they’re necessary. If you’re out of compliance and are found to be in violation, you could face a hefty fine or be forced to shut down your business temporarily or even dissolved completely.
Figuring out which licenses and permits apply to your specific business requires quite a bit of research. Instead of having to comb through a lot of red tape and legalese yourself, you can hire an organization such as BetterLegal to perform the search for a business license.
Many formation firms provide this service. Enter the information about your business and BetterLegal will conduct a thorough search, accumulating all permits and licenses pertinent to your business and giving guidelines on how to fill them in.
Take note that BetterLegal will not file these for you – it offers the tools and info to file them on your own. Still, this can be an enormous time saver, especially for companies that are heavily regulated.
$90 per calendar year, or $10.00 for each month
Most state governments require LLCs and corporations to file an annual report. Usually, these reports aren’t too complicated or thorough. They’re merely an opportunity to monitor the state’s position on the businesses that operate within their territory.
The filing deadline may be fixed (e.g., all businesses are required to file their annual report by December) or dependent on your company’s founding date (e.g. If you were founded in August of 2021, then you’ll have to file an initial annual report by August of 2022). Certain states have you submit a report once each two years.
The annual report you file may appear like a hassle however it shouldn’t be a snooze. If you do not complete your report by the deadline and you fail to file it on time, you could face an amount of money or lose your good standing with the state.
Many of the formation companies, like BetterLegal, offer annual compliance services. For a monthly or annual fee, BetterLegal will send you reminders of your annual report deadline. After you’ve filled in the relevant info and they’ll write the annual report for you and send it to the state for you.
Most states have a nominal (under $100) cost for filing annual reports – BetterLegal will collect that fee from you and send it on to the appropriate authority.
In the formation package
BetterLegal also provides a small range of third-party products in their formation package.
Business Banking: You’ll be set up with a free, no-minimum online business bank account. You’ll receive debit cards associated to the account. You’ll be able to issue physical checks from the account online.
Tax Analysis: Advice and analysis from an “leading virtual tax service”. It’s unclear how in-depth the analysis is, as well as what kinds of questions you’ll have the ability to ask.
Assessment of Insurance: An evaluation of your company’s specific insurance needs. The insurance services are provided through a BetterLegal affiliate, CHUBB Insurance, which is located within New Jersey.
Payroll, Benefits, and HR Platform An even more comprehensive service that, unlike others, is not free when you sign up for your formation package. A wide variety of services are covered, all provided by third parties.
While it’s certainly possible that some business owners will benefit from these add-on services, we tend to avoid “offers” like these. Most of the time, these services are merely opportunities for businesses to promote their business to their partners.
We recommend contacting specialists for your payroll, tax, insurance and HR needs.
As for bank accounts, it’s generally advantageous to choose a bank that has an established relationship with. In the event that you do not have any bank that fits that description for you, BetterLegal’s partner offer may be an attractive one.
Additional Filing Services
BetterLegal also provides a range of one-off filing services that are not included with its primary formation package. We’ve identified the ones that we believe will be of the greatest value for business owners who are new, along with BetterLegal’s fixed cost for each.
Internationally-domesticated foreign LLC: Moves your LLC’s home state from one to another state, $299
Reinstate LLC or a corporation: Reinstates an LLC or corporation that had previously been dissolved and is worth $199.
Ending a corporation or LLC: Legally dissolves an LLC or corporation for $199.
Request a Certificate of Good Standing: You will receive a document from your business’ home state showing that you’re current on all your fees and that you are in compliance with state permits and license laws. $25
Register foreign LLC in a new state: allows an LLC that was established by a state in another to legal operate in another state. Also known as “Foreign Qualification,” this procedure typically involves submitting the “Certificate of Authority” – in essence, a permit operate in a certain state. It costs $199.
Change your principal office address: It changes your address for business from the one you originally listed on the Articles of Organization or Incorporation to a new one, costing $99
Add or remove members, directors as well as shareholders. Changes the official status of your business’s information to reflect changes in its members, directors or shareholders. $99
Since BetterLegal has solid reviews with an easy-to-use website and an impressive track record on turnaround times, we’re comfortable recommending these services.
Most new business owners prefer to keep their startup paperwork and add-on filing all in one place we understand that this advice isn’t for everyone.
If you want to learn more about the offers offered by competitors look over some of the reviews right here!
What can BetterLegal do?
BetterLegal’s primary focus is LLC formations and incorporations. They also, though, provide many services related to the formation and operation of companies, including business license searches as well as registered agent service. compliance services, and amendment filing services.
How much does it cost to form an LLC using BetterLegal?
BetterLegal’s LLC formation package costs the fixed amount of $299 plus the state fee. The package comes with Articles of Organization and an Operating Agreement but it doesn’t include a registered agent .
Is BetterLegal legit?
Yes. The company has been operational since 2017 It is Better Business Bureau accredited. BetterLegal also boasts an A+ BBB rating as well as an outstanding customer review score on Trustpilot.
Who do you think BetterLegal best for?
BetterLegal is the best choice for those who are willing to pay a bit extra to have a speedy, reliable LLC registration and incorporation.
What are the benefits of the use of BetterLegal?
BetterLegal offers convenient online formations and has excellent time-to-turnaround. However, the firm’s form package is on the expensive side. BetterLegal has also contracted a lot functions to third-party partners.
What states do BetterLegal serve?
BetterLegal covers all 50 states.
We recommend BetterLegal to amyone looking for a solid and quick buisness formation service. BetterLegal has a proven lightning fast turnaround, mostly a day or two, and very up front pricing on all services. They are also very well rated on the better business bureau. Business Services Of Hawaii
While some larger competitors may have some services included in packages, such as registered agent etc, all things considered this is a great deal for anyone looking to do a business formation fast and easy.