In Depth Review Of Starting An LLC Or Corporation-Startup Business Grants Sba

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In this review, we will cut to the chase and discuss the things you should know about BetterLegal, including:

  • The actual cost of BetterLegal’s LLC formation services
  • Time for formation expected to be completed
  • The reliability of BetterLegal, reviews from customers, support offerings and more

We’ll also provide an explanation of each of the other relevant, formation-related services that BetterLegal provides.

Here’s a brief summary of the findings. Below, you’ll read our full review, which outlines our conclusions and also explains everything you need to know about BetterLegal.

Is BetterLegal the Right Choice for You?

BetterLegal is unique among formation companies in that it provides only one LLC creation and a single incorporation package. Although this package comes with amazing add-ons, like Operating Agreement or Bylaws drafting has some unnecessary services, too.

We were generally delighted with the ease of use on BetterLegal’s website and its easy-to-use online filing system. Prices of services offered were easily found, for the most part.

The prices offered by BetterLegal for recurring services, including registered agent service as well as annual compliance, were reasonable. They also provided more filing options than other smaller competitors.

You can visit BetterLegal.com yourself, or, if you want to know more about the elements we used to evaluate BetterLegal’s services Read on!

BetterLegal Quick Overview

Established in 2017, and located at Austin, Texas, BetterLegal is a fairly small player within the business formation industry.

Like many of its new peers, BetterLegal tries to emphasize its efficiency. On their homepage you’ll see the following statement:

We’re a 21st century company that makes the process fast simple and affordable and without the needless use of paper or time.

The company is indeed able to boast incredible turnaround times as well as an extremely user-friendly website.

As is the case with many other small company formations, however, BetterLegal uses third parties to offer a variety of services, like their registered agent services. They also offer several services through partner companies such as banks and online accounting firms along with at least one other insurance company.

While they are primarily focused on business formation services, BetterLegal provides many other services related to the process of starting and running a business. The other services BetterLegal provides include:

  • Operating Agreement and Bylaws drafting
  • A business license and permit search service.
  • Compliance services, including preparation of annual statements
  • Amendment filings, such as the ones needed to alter your business’s name address, state in operation or even member info

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BetterLegal Pricing

The structure of pricing for formation at BetterLegal is simple. Contrary to their competitors, who typically have multiple different packages of formation, BetterLegal offers its formation bundle at a single cost.

BetterLegal’s formation bundle applies to both LLCs and traditional corporate entities (C-corps). In the following section, we’ll discuss the bundle of services offered. BetterLegal also offers many additional services, either with annual subscriptions or fixed charges, related to business formations. We will discuss these further, in the “Services” portion of this review.

BetterLegal’s Formation and Incorporation Package: $299 plus state fees

BetterLegal’s sole service for incorporations as well as forms is similar to many of its competition’s middle-tier options. It has more features than the standard bare-bones structure.

For a one-time price of $299, and any applicable state fees, here’s the list of what’s included:

Articles of Organization or Incorporation: These documents are the official way to establish your corporation or LLC with the state in which you reside. BetterLegal guarantees same-day filing and quick return of your documents after your state has processed the documents.

EIN filing: EINs (Employer Identification Numbers) are used to help the IRS to keep track of businesses. Many businesses require an EIN. Luckily, applying for one is quick and easy. The whole procedure can be completed online, in minutes through this page. IRS’s EIN filing web page.

Operating Agreement or Bylaws: They establish rules for how your LLC or corporation is run. Although they are not legally required in most states, we believe they are important to all business owners.

Bank Resolution The document specifies who is authorized to open a business account and perform other banking activities on behalf of a business. This document is required when you intend to open a bank account for your business.

Websites: 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 website plan later on.

Tax Analysis: An analysis that is a basic understanding of your company’s tax position performed by a third-party partner of BetterLegal.

insurance evaluation: An evaluation of your business’s potential insurance needs and service offerings made available through a third party partner of BetterLegal, CHUBB Insurance.

We’ll provide more details about the overall value of this program in the next paragraph within the report.

BetterLegal vs Competitors Pricing

Below is our table that compares BetterLegal’s formation prices with the prices of its primary competitors.

The prices listed on this page are not part of BetterLegal’s package pricing. They are standardized for comparison with competitors.

We will define the terms Basic Formation and Full Formation plus Website in the table below.

Cancellation policy

For information about BetterLegal’s cancellation and refund policies, you have to dig through a great deal of legalese found on their Terms of Use page.

Here’s what BetterLegal says with regards to 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@betterlegal.com, or by canceling online through your account portal.

Though not explicitly mentioned, we assume this policy also applies to all recurring fees for example, BetterLegal’s annual compliance service. Startup Business Grants Sba

In the case of other fixed-fee offerings, BetterLegal’s terms are quite clear: “All purchases through the Website are final and will not be refunded.”

 

BetterLegal Pros

Below are some of the areas we felt BetterLegal was especially strong.

Solid turnaround times

BetterLegal highlights its turnaround times on its main page. They claim same-day filings for all of their establishments which means that the Articles of Organization or Incorporation will be submitted to state authorities on the same day you send them to BetterLegal.

The company also states that they’ll send you your documents within two business days. It’s likely that this doesn’t account for actual state processes, and that can be as long as a few weeks, but it appears like BetterLegal does everything on their end to move things along as quickly as possible.

Many reviews confirm BetterLegal’s claims. Many of the reviews we read such as this one, mentioned the company having a quick turnaround time on formations.

BetterLegal’s same-day filing is available to all their orders. You don’t have to shell out extra money to receive internal prioritization which is something many of BetterLegal’s competitors do cost for.

A quick turnaround time is often one of the two most important factors for those creating new businesses (the other is the formation cost), this is an enormous benefit for BetterLegal.

Excellent reviews

BetterLegal is a small company, and we don’t have as many customer reviews to base our decisions on as we’d prefer. Still, what’s available is quite solid.

BetterLegal sports the 4.8 rating out of 5. Trustpilot

They also have a 4.88 rating out of five with BBB. BBB.

These are Better Business Bureau accredited as also, with the A grade.

The reviewers of BetterLegal appear to have positive things to say across the board. They praise the firm’s transparency in terms of turnaround times, turnaround time, and prices (even though we ourselves don’t think their prices are particularly attractive).

Limited customer support

Smaller companies in formation tend to be nimbler, more efficient, and cost-effective than their larger counterparts. However, many small formation firms also do not have the support staff that the larger companies have.

BetterLegal is no different here.

While the BetterLegal website has an online chat option however, there’s no contact information that can be found on their main webpages. To find those pieces of information, you’ll need to dive all the way to the bottom of the privacy page. And, even there, there’s no info on how often phone lines are open or the speed at which emails are responded to.

BetterLegal It appears that BetterLegal – like the majority of their competitors heavily relies on automation for their customer service.

In the ideal scenario, your registration is likely to go off without a hitch. You’ll never have to reach out to a service rep. There is the lack of service rep availability as a definite downside, though.

 

BetterLegal Services

Below, we’ll discuss some of the most important formation-related services that BetterLegal provides. We’ll go over the reasons and when you’ll require each service, and we’ll include BetterLegal’s prices too.

LLC Formation and Incorporation



$299 plus the state fee

BetterLegal will assist you to fill out and file the key documents needed to form your LLC or incorporating your business.

LLCs, or Limited Liability Companies, are one of the most popular business types within the United States. Nimbler and easier to manage than traditional corporations (C-corps), LLCs have fewer recordkeeping and compliance requirements. They also have the potential to provide significant tax advantages through tax pass-through.

Corporate entities have more stringent requirements, however they can provide some tax or structural advantages, depending on your business’s size and the industry you operate in.

If you’re not sure whether you’re unsure if an LLC or a corporation is the best business type for you, speak to an expert in small-scale business or a certified accountant.

Both corporations and LLCs are formed by state law, typically with a given state’s Secretary of State Office.

Each state has their own regulations and rules concerning the creation of LLCs. Learning about the various processes and laws relevant to you could be a major time-sink.

Many new business owners hire the services of a formation company, such as BetterLegal to fill in and complete their paperwork on their behalf. For LLCs, this is the filing of Articles of Organization. For corporations, that is filing Articles of Incorporation.

As part of their standard form program, BetterLegal will file your documents and forward it to state authorities. The procedure is straightforward and can be completed entirely online. You’ll be asked a few basic questions regarding your business, e.g., its name and its owner(s) or member(s) as well as its field of business, and its address. Startup Business Grants Sba

BetterLegal will also run a quick name check to ensure your LLC or corporate name isn’t already used (which can result in an application being rejected).

As we noted in the upper part of this description, BetterLegal’s $299 formation price does not include state filing fees that can range between $40 and $500 dependent on the state you are filing.

EIN Filing



Included with formation package

An EIN, also known as an Employer Identification Number, is a form of tax identification that all new companies will require to get. Assigned by the IRS, EINs are legally required for businesses with employees. They’re also required when you are planning to open an account with a bank for business.

You can think of your EIN as being similar to your company’s Social Security Number. Every one is unique and used by the IRS to track your business’s activities.

The good news is that getting an EIN is a very easy procedure. You can do it online, using the IRS’s EIN application page within a matter of moments. You simply type in a few pieces of information about your company and you’ll receive an EIN in a matter of minutes.

Since the process of filing an EIN is easy and simple, we suggest against any paid EIN filing service. Although many companies give you the option to apply for your EIN at a cost (or as part of a higher-priced setup bundle), BetterLegal automatically includes EIN filing within its one and only formation package.

You can opt to remove EIN registration from your cart when you pay, but it won’t reduce the cost of filing at all. We’re not happy that BetterLegal “builds in” the price of EIN filing, but doesn’t offer you a discount for dropping this unnecessary service.

Operating Agreement or Bylaws



In the form package

A Operating Agreement is among the most important legal documents required by any LLC. Operating agreements outline the fundamentals of the way in which an LLC is to be run. They typically include information such as:

  • Who an LLC’s owner(s) or member(s) are, and how ownership is distributed among them
  • Who and how is the LLC managed? LLC will be managed
  • How profits are to be distributed
  • What should you do if an owner or member leaves or dies
  • …plus other key details

A few states are required to have an Operating Agreement. California, Delaware, Maine, Missouri, and New York legally require that you have operating Agreement. However, even with thesestates, you don’t need to file an contract with your state; you are just required to keep it handy.

Even so, we recommend that all LLCs in all states, draft operating Agreement to keep on hand.

An Operating Agreement provides your LLC with insurance against liability. As liability protections are an important benefit of LLCs it is not wise to leave out them.

Operating Agreements can also assist by providing direction during unplanned circumstances. It is unlikely that you enter into the business hoping that a partner will quit or a dispute about profits to occur, however having a written document on hand can help you to navigate such situations smoothly.

If you’re incorporating instead of creating an LLC, you’ll need corporate Bylaws in lieu of operating agreements. Corporate Bylaws work much similar to operating agreements, and offer similar benefits to, operating agreements.

As part of their overall formation package, BetterLegal will help you draft a legal Operating Agreement or Corporate Bylaws.

Banking Resolution



It is included in the formation package

A banking resolution is another basic, but important document. The resolution of a bank outlines which member(s) of an LLC have the power to open a bank account for business account and participate in any other banking-related activity.

Banks require that you submit a banking resolution before you can open a bank for business account.

In their initial formation package BetterLegal will prepare a bank resolution for your business. All you need to submit is details about who’s allowed to start and / or access a bank account in your LLC’s name.

Website services



Included with formation package

BetterLegal is one of only one of the few formation companies that offers a web domain as part of its formation package. Unfortunately, details on their offerings are limited.

Their main package page states that you’ll have the ability use the service to “Set up a free website or online store with inventory management.”

However, there is evidence of upselling too, as the following sentence says: “As your business grows, transition to a paid plan to unlock more features and customization.”

BetterLegal includes a GoDaddy ribbon on their main webpage However, the company specify which third-party domain hosting provider is. There isn’t even a name given when you dig through the terms of service for the company.

We’re all for honesty, and we’re disappointed by BetterLegal’s performance in this case. In any case, we always suggest going directly to a domain hosting service or builder of business websites.

Plenty of companies are specialists in these fields So there’s no reason to obtain these services by forming a company.

Registered Agent Service



$90 per calendar year, or $10.00 for each month

All corporations and LLCs must have an agent registered. Though it may sound like a fancy word however, the job of a registered agent is very simple – they receive official correspondence and service of procedure (legal notices, such as lawsuits) on behalf of the company.

Registered agents must be available during business hours, and they should be located in the state where your LLC or corporation is based.

Receiving official correspondence in a timely manner, and being able to respond promptly is vital.

If you miss a compliance notification from the federal or state government, your business could lose its good standing and be subject to penalties or fees, or be dissolved. And if you don’t respond to a court order and you miss your court date, your case can be automatically dismissed.Startup Business Grants Sba

A registered agent on the ball This is why it’s important.

Technically, you are the registered agent for your company. However, there are numerous reasons why business owners choose to utilize an registered agent service.

We suggest using the an Registered Agent service in the following situations:

  • You are often traveling and not always at one address
  • You are not a citizen in the United States
  • Your business operates in multiple states
  • You don’t want your personal information and address made public accessible

Like most other formation companies, BetterLegal offers a registered agent service. Like many other small formation companies, BetterLegal contracts this service out to a third-party.

The complete terms of service for BetterLegal are available here.

If you’re able to bypass the transparency issue BetterLegal’s registered agent program actually comes at a great cost. You can choose to pay the monthly fee of $10 or you can pay $90 for the year. That later price is very competitive – plenty of other large companies charge $150 per year or more.

BetterLegal’s registered agent service is an additional service that is not included in their basic formation package. This makes them an outliersince numerous competitors offer registered agent services with the formation package, often with the first year of service for absolutely free.

Business License Search



$125

Depending on what type of business you run and the industry you’re operating in, as well as where you’re located, you could require several or even a number of licences and permits. These may be needed at the state, local, or federal level.

Licenses can be quite a hassle to deal with, but they’re absolutely necessary. If you’re not in compliance with the law, you could be handed an enormous penalty or be forced to shut down your business temporarily or completely dissolved.

Finding out what licenses and permits apply to your specific business requires an extensive amount of research. Instead of sifting through lots of legalese and red tape yourself, you can hire a company like BetterLegal to conduct the search for a business license.

Many formation firms provide this service. Enter the information about your business, and BetterLegal will run a thorough lookup, gathering all permits and licenses that are pertinent to your business and giving guidelines on how to complete them.

Note that BetterLegal will not make these filings for you; it offers the tools and info that you require to file them yourself. Still, this can be an enormous time saver, especially for highly-regulated businesses.

Annual Compliance



$90 for the calendar year, or $10.00 monthly

Most state governments require corporations and LLCs to submit some form of annual report. Usually, these reports aren’t excessively complicated or detailed. They’re simply an avenue for states to keep an eye on businesses operating within their jurisdiction.

Your deadline filing report may be fixed (e.g. that all businesses have to submit a report in December) or depending on the business’s creation date (e.g. If you formed in August of 2021, then you’ll have to file an initial annual report by the month of August 2022). Some states only require you to file a report every two years.

Filing your annual report may seem like a burden, but it absolutely shouldn’t be a snooze. If you do not submit your annual report in time, you may receive the cost or lose excellent standing in the eyes of the State.

Many formation services, including BetterLegal, offer annually-based compliance programs. For a monthly or yearly cost, BetterLegal will send you reminders about your annual report due date. Then, once you’ve entered all the necessary information the firm will draft your annual report and send it to the state for you.

A majority of states have a modest (under $100) fee for filing annual reports – BetterLegal will take that fee from you and forward it to the appropriate authority.

Third-Party Offerings



It is included in the Formation package

BetterLegal also offers a limited selection of third-party services in their formation service.

Business Checking: You’ll be set up with a free minimum business account online. You’ll receive debit cards associated with your account. You’ll be able to issue physical checks through your online account.

Tax Analyse: Analyses and guidance from a “leading virtual tax service”. It’s unclear how in-depth the analysis is, and what kind of questions you’ll have the ability to ask.

Insurance Evaluation: An evaluation of your company’s specific insurance needs. Insurance services are offered through a BetterLegal partner, CHUBB Insurance, which is based within New Jersey.

Payroll Benefits, Payroll, and HR Platform: An even more comprehensive service that, unlike others, is not free with your formation packages. A wide variety of services are covered, all provided by third-party providers.

Although it’s possible that some business owners benefit from these services, we’re inclined to be wary of “offers” like these. Most of the time, these services offer companies the chance to sell their products to partners.

We suggest contacting experts for taxes, insurance, payroll and HR needs.

In the case of banks, it’s typically beneficial to use an institution that you already have an established relationship with. If you don’t have a financial institution which fits this description for you, BetterLegal’s partnership offer might be a good one.

Additional Filing Services



Prices vary

BetterLegal offers a variety of unique filing services which aren’t included in its primary creation package. We’ve identified those that we believe will be the most useful to business owners starting out and BetterLegal’s fixed fee for each.

Internationally-domesticated foreign LLC: Your company’s primary state in the to another, $299

Restate LLC, or a corporation: Reinstates an LLC or a company that has been dissolution, $199

Ending a corporation or LLC: Legally dissolves an LLC or corporation for $199.

Request a the Certificate of Good Standing You will receive a document from your company’s home state proving that you are up to date with all your expenses and in compliance with the state permit and license regulations, $25

Create a foreign LLC in a new state. Allows an LLC formed by a state in another to legal function in another state. Also known as “Foreign Qualification,” this process usually involves applying for the “Certificate of Authority” – in essence, a permit do business in a specific state, $199

Change the principal office address: It changes your address for business from the one you originally in your Articles of Organization or Incorporation to a new address, costing $99

Remove or add members, directors or shareholders: The company’s official records to reflect any changes to its directors, members or shareholders. $99

Since BetterLegal has solid reviews with an easy-to-use website, and a good performance in terms of turnaround times We’re happy to recommend these services.

The majority of new business owners prefer to do their startup filing and add-on filing all in one place we understand that this advice isn’t for everyone.

If you’re looking to find out more about the competition’s offers look over some of the many reviews available right here!

BetterLegal FAQs

What is BetterLegal?

BetterLegal’s primary focus on LLC registrations, formations, and incorporations. They also offer plenty of options for the formation and operation of businesses such as business license searches, registered agent service, compliance services, as well as amendment filing services.

How much does it cost to form an LLC with BetterLegal?

BetterLegal’s LLC formation package is priced at an affordable $299, which includes the state fee. This package comprises Articles of Organization and an Operating Agreement but it doesn’t provide a registered agent service.

Is BetterLegal legit?

Yes. The firm has been operating since 2017 and is Better Business Bureau accredited. BetterLegal also boasts an A+ BBB rating and an excellent customer review average on Trustpilot.

Who is BetterLegal best for?

BetterLegal is best for those who want to pay a bit extra to have a speedy and reliable LLC registration or incorporation.

What are the advantages of using BetterLegal?

BetterLegal provides easy online forms and has fast speed of turnaround. However, the company’s form package is quite expensive. BetterLegal also outsources several of its services to third-party partner companies.

What states does BetterLegal serve?


BetterLegal serves all 50 states.

Our Conclusion

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. Startup Business Grants Sba

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.

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