South Carolina Limited Liability Company Act

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South Carolina Limited Liability Company Act

In this review, we’ll cut to the chase and discuss what you really need to be aware of about BetterLegal, including:

  • The actual cost for BetterLegal’s LLC formation services
  • Expected turnaround time for formation
  • The reliability of BetterLegal, reviews from customers as well as support services and more

In addition, we’ll give detailed explanations of the numerous other pertinent, formation-related services that BetterLegal offers.

Below is a brief overview of the findings. Further down, you’ll read our full review that outlines our findings as well as describing everything you need to know about BetterLegal.

Is BetterLegal the Right Choice for You?

BetterLegal is unique among establishment companies because it offers only a single LLC formation and a single incorporation package. While this package has some great add-ons, such as Operating Agreement or Bylaws drafting includes some unneeded services as well.

We were generally impressed with BetterLegal’s intuitive website and its easy-to-use electronic filing. The costs of services offered were simple to locate generally.

BetterLegal’s rates for regular services, such as registered agent service and annual compliance, were reasonable. They also provided more filing options than other small competitors.

You can visit BetterLegal.com yourself, or, to learn more about the factors we used to assess 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 industry.

Like many of its young competitors, BetterLegal tries to emphasize its efficiency. On their homepage you’ll see the words:

We’re a 21st-century company which makes the process speedy, easy and inexpensive – without the unnecessary use of paper or time.

The company is indeed able to boast incredible turnaround times as well as a very easy-to-use website.

As is the case with many other small formation companies, though, BetterLegal uses third parties to provide a number of its services, like their registered agent services. They also offer several services through partner companies, including banks as well as online accounting companies, along with at least one other insurance firm.

Though they focus primarily on the business formation process, BetterLegal provides many other solutions for the process of starting and running a business. Among the additional services BetterLegal provides include:

  • Operating Agreement and Bylaws drafting
  • A permit or business license for a search service
  • Compliance services, including preparation of annual statements
  • Amendments to your filings, like the ones needed to alter your company’s name address, the state of operations, as well as member info

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BetterLegal Pricing

The pricing structure for BetterLegal’s formation is very straightforward. Contrary to their 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 both LLCs and traditional corporation (C-corps). We’ll go over the bundle of services offered. BetterLegal also provides a variety of additional services, either with annually-billed subscriptions or set costs, related to business formations. We’ll discuss them further, within the “Services” portion of this review.

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

BetterLegal’s sole product for incorporations and forms is comparable to many of its competitors’ middle-tier packages. It offers more than a typical bare-bones formation.

For a fixed $299 fee, plus relevant fees for state, here’s what’s included:

Articles of Organization or Incorporation: The documents officially establishing your LLC or corporation with the state in which you reside. BetterLegal guarantees same-day filing and a speedy return of documents once the state has processed them.

EIN filing: EINs (Employer Identification Numbers) are utilized to help the IRS to track companies. The majority of firms have an EIN. Luckily, applying for one is quick and easy. The entire procedure can be completed online, in minutes through an online application on the IRS’s EIN file web page.

Operating Agreements or Bylaws: These documents establish the guidelines for how your LLC or corporation will be managed. Though not legally required in all states, we consider them crucial to all business owners.

Banking Resolution: An official document that outlines who is authorized to open a business account and perform other banking activities for a company. The document must be signed if you are planning to create a bank account on behalf of your company.

Website: BetterLegal will provide you with a domain name and set up a basic website or “online store with inventory management services.” Business owners can choose whether to pay for a website plan later on.

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 insurance needs, with service offerings then offered through a third-party partnership of BetterLegal, CHUBB Insurance.

We’ll go into greater detail on the overall value of this package little further in the article.

BetterLegal vs Competitors Pricing

Below is a table which compares the formation costs of BetterLegal with the prices of its primary competitors. Below, you’ll find a table that compares the prices of its main.

The prices in this table are independent of BetterLegal’s package pricing. They are standardized to allow comparison against competitors.

We define Fundamental Formation, Full Form, and Full Formation plus Website below in the table.

Cancellation policy

For information about BetterLegal’s cancellation and refund policies You must comb through a great deal of legalese found on their Terms of Service Page.

Here’s what BetterLegal says with regards to the decision to end their registered agent program:

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 that this policy also applies to all recurring fees like BetterLegal’s annual compliance services. South Carolina Limited Liability Company Act

For other fixed-fee options BetterLegal’s policies are concise: “All purchases through the Website are final and will not be refunded.”

 

BetterLegal Pros

Below are a few of the areas in which we thought BetterLegal was particularly strong.

Fast turnaround times

BetterLegal provides information about its turnaround time on its main website. They boast of same-day filings for all their entities so you’ll be able to submit your Articles of Organization or Incorporation will be sent to the state authorities on the same day that you file them with BetterLegal.

They also say that they’ll send you your documents within two business days. We suspect that this isn’t accounting for actual states’ processing times, which can be as long as a few weeks, but it seems like BetterLegal will do everything in their power to make things happen as quickly as possible.

Many reviews back up BetterLegal’s claims. A number of reviews we looked at, like this one, discussed the company’s quick turnaround time for formations.

BetterLegal’s same-day filing applies to all orders. There is no need to pay an extra fee to avail internal priority, which is something that many of BetterLegal’s competitors do charge for.

Since a quick turnaround time is usually one of the two main aspects for people who are starting new companies (the other being formation price) This is a big plus for BetterLegal.

Great reviews

BetterLegal is a small company which means we do not have as many reviews to go off of as we’d like. But, the information we’ve got is pretty solid.

BetterLegal sports an 4.8 from 5 Trustpilot

They also have an average of 4.88 rating out of five for BBB. BBB.

They’re Better Business Bureau accredited as well, and boast an A+ rating.

Reviewers of BetterLegal appear to have positive comments across all areas. They are pleased with the clarity of the company, turnaround time, and pricing (even although we ourselves don’t think their prices are very attractive).

Limited customer support

Smaller companies in formation tend to be more agile, efficient, and cost-effective than larger companies. But, many small-sized formation companies do not have the staff support that larger companies have.

BetterLegal is no different here.

While the BetterLegal website has an online chat option, there is no contact information located on their main page. To find those pieces of info, you have to dive all the way to the bottom of the company’s privacy webpage. Even there, there’s no info on how often phone lines are open or the speed with which email responses are made.

BetterLegal It appears that BetterLegal – like many of their peers – relies heavily on technology for their customer service.

The ideal scenario is that your order should go without a hitch, and you’ll not need to call an agent for service. We still see a lack of service rep availability as a major drawback however.

 

BetterLegal Services

Below, we’ll go over some of the primary formation-related services that BetterLegal offers. We’ll explain the reasons why and when you may need each service, and also include the prices offered by BetterLegal.

LLC Formation and Incorporation



$299 plus state fees

BetterLegal can help you fill out and file the essential documents required to establish your LLC or for incorporating your company.

LLCs, also known as Limited Liability Companies, are among the most well-known businesses across the United States. More flexible and simpler to manage than traditional corporations (C-corps) LLCs are able to meet less requirements for compliance and recordkeeping. They also have the potential to provide serious tax benefits through pass-through taxation.

Corporations have more cumbersome regulations, but they may provide certain tax or structural advantages, based on your business’s size and industry.

If you’re uncertain whether you’re unsure if an LLC or a corporation is the right kind of business for you, talk to an expert in small businesses or an accountant who is certified.

Corporations and LLCs are created at the state level, typically with a given state’s Secretary of State Office.

Every state has its own rules and regulations regarding the formation of LLCs, and learning about all the procedures and laws applicable to your state could be a time-sink.

Many new business owners hire a formation service, like BetterLegal to fill in and fill out their paperwork. For LLCs, that means the filing of Articles of Organization. For corporations, it is filing Articles of Incorporation.

In their normal training bundle, BetterLegal will file your documents and forward it to the relevant state authorities. The procedure is straightforward and is completed online. You’ll just be asked some simple questions about your company, e.g., its name and its owner(s) and member(s), its industry and address. South Carolina Limited Liability Company Act

BetterLegal will also conduct an instant name check to make sure your LLC or company’s name isn’t already taken (which could lead to rejection of your application).

As we noted in the upper part of this review the $299 price for the initial registration does not include the state filing fee 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 Employer Identification Numberis the form of tax ID that the majority of new businesses will need to obtain. The EIN is assigned by the IRS, EINs are legally required for businesses with employees. They are also required for those who want to establish an account with a bank for business.

You can imagine your EIN as sort of being the equivalent of your business’s Social Security Number. Each one is unique and utilized by the IRS to keep track of business’s activities.

Thankfully, acquiring an EIN is an easy procedure. 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 information about your business and you’ll get an EIN automatically.

Because making an application for EIN is quick and simple, we advise against any pay-per-click EIN services for filing. Although many firms offer the option to file for your EIN at an additional cost (or within a higher-priced setup bundle), BetterLegal automatically includes EIN filing in its one and only formation package.

You can remove EIN filing from your cart when you pay but it won’t lower the price of your purchase in any way. We’re not pleased that BetterLegal “builds in” the cost of EIN filing but doesn’t give you a discount for dropping this unnecessary service.

Operating Agreement or Bylaws



It is included in the Formation package

The Operating Agreement is one of the most essential legal documents that can be used by an LLC. Operating Agreements outline the fundamentals of how an LLC is run. They typically include information like:

  • Who an LLC’s owner(s) or member(s) are, in addition to how their ownership divided among them
  • How and by whom is the LLC managed? LLC will be controlled
  • How profits are to be distributed
  • What do you do when an owner or member leaves or dies
  • …plus other important informational

Only a few states are required to have an Operating Agreement. California, Delaware, Maine, Missouri, and New York – legally require that you have operating Agreement. Even with thesestates, you don’t need to file your agreements with state authorities, you are just required to keep it in your possession.

Even so, we recommend that all LLCs in all states, create the Operating Agreement to keep in their possession.

An Operating Agreement provides your LLC with security of liability. Since liability protections are an important benefit of LLCs It’s not a good idea to ignore them.

Operating agreements also aid by providing direction during unplanned situations. Most likely, you don’t enter the business hoping that a partner will leave or a dispute over profits to occur, but having a pre-written document available can help navigate these situations more efficiently.

If you’re incorporating instead of creating the LLC you’ll require Corporate Bylaws in lieu of operating agreements. Corporate Bylaws operate like they provide the same advantages to operating agreements.

A part of the primary formation package, BetterLegal will help you draft a legal Operating Agreement or Corporate Bylaws.

Banking Resolution



It is included in the formation package

A bank resolution is a simple yet important document. A banking resolution outlines which member(s) in an LLC have the authority to establish a business bank account and to participate in various banking-related activities.

Banks require a banking resolution at the time of opening a bank for business account.

Within their formation package, BetterLegal will create a banking resolution for your business. All you’ll have to do is provide them with the information needed to determine who’s eligible to establish and have access to a bank account under the name of your LLC.

Website services



In the formation package

BetterLegal is one of a handful of formation companies that provide a website domain in addition to its formation package. Unfortunately, details on the service are scarce.

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

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

BetterLegal includes a GoDaddy ribbon on their homepage However, the company specify the name of its third-party hosting provider is. The name isn’t given when you dig through the company’s terms of service.

We’re all for honesty, and we’re disappointed with BetterLegal in this case. In any event, we always suggest going directly to a domain hosting company or business website builder anyway.

A lot of businesses are specialists in those categories, so there’s no need to obtain these services through a formation business.

Registered Agent Service



$90 per annum or $0 for each month

All corporations and LLCs are legally required to have an authorized agent. Although it might sound like a fancy word, the role of an agent registered is easy – they get official correspondence and serve process (legal notices, such as lawsuits) on behalf of the company.

Registered agents must be available during office hours and they should be located in the same state your LLC or business is registered in.

Being able to properly receive official correspondence, and being able to respond quickly is vital.

If you fail to comply with an compliance notice issued by the state or federal government, your business could be in trouble and be subject to penalties or fees, or be dissolved. If you fail to respond to a court order and you miss your court date and your case is not attended to, it could be automatically forfeited.South Carolina Limited Liability Company Act

A registered agent on the ball, then, is truly crucial.

Technically, you can be your business’s own registered agent. However, there are various reasons why many business owners choose to utilize an agent registered with the company.

We recommend using the registered Agent service in the following situations:

  • You are often traveling and not always at one address
  • You are not a resident of the United States
  • Your company is present across multiple states.
  • You don’t want your name and address to be publicly available

Similar to other formation firms, BetterLegal offers a registered agent service. And, like most smaller formation firms, BetterLegal contracts this service out to an unrelated third party.

The full terms and conditions of BetterLegal’s service can be found here..

If you are able to overlook the transparency issue the BetterLegal registered agent service actually comes at a great price. It costs either 10 dollars per month, or $190 for the year. That later price is very competitive – plenty of other major companies in the industry cost $150 annually or more.

BetterLegal’s registered agent services are also an add-on – it is not part of their standard formation package. This makes them somewhat of an exception, since numerous competitors offer registered agent services as part of the formation package, usually with the first year of registration for no cost.

Business License Search



$125

Depending on what kind of business you operate or operate in, the type of industry you’re in, as well as where you’re based, you may require a couple or a lot of permits and licenses. They may be required at the local, state or federal levels.

Licenses can be difficult to manage yet they’re necessary. If you’re out of compliance and are found to be in violation, you could face a hefty fine or have your business temporarily shuttered or even dissolved completely.

determining which permits and licenses apply to your particular company requires an extensive amount of research. Instead of having to comb through a lot of legalese and red tape by yourself, you can employ an organization such as BetterLegal to perform a business license search.

A lot of companies that form businesses offer this service. You’ll enter info on your business, and BetterLegal will do a comprehensive search, compiling all the permits and licenses that are relevant to your needs and offering instructions on how to fill them out.

Be aware that BetterLegal doesn’t file these for you – it offers the tools and details you need to file them your self. However, this could be a significant time-saver especially for highly-regulated businesses.

Annual Compliance



$90 per year or $10 for each month

Most state governments require corporations and LLCs to file an annual report. They aren’t usually excessively complicated or detailed. They’re simply an opportunity for states to keep tabs on the companies operating within their area of responsibility.

The filing deadline may be fixed (e.g. that all businesses have to submit a report by December) or based on your business’s formation date (e.g. If you started your business in August 2021, you’ll file your first annual report in August 2022). Certain states require you to file a report at least every 2 years.

Making your annual report can appear like a hassle but it is a necessity and should not be overlooked. If you do not file your report on time you could be charged a fee or lose your excellent standing in the eyes of the State.

Many of the formation companies, like BetterLegal provide annually-based compliance programs. For a monthly or annual cost, BetterLegal will send you reminders regarding your upcoming annual report deadline. After you’ve filled in the required information the firm will draft your annual report and send it to the state for you.

Most states have a nominal (under $100) fee for annual report filing – BetterLegal will accept the fee and send it on to the relevant authority.

Third-Party Offerings



Included with form package

BetterLegal also offers a limited range of third-party products in their formation service.

Business Checking: You’ll be set up with a cost-free minimum online business bank account. You’ll be able to use debit cards that are associated to the account. You’ll be able to make physical checks through an online bank account.

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

Assessment of Insurance: An evaluation of the specifics of your company’s requirements for insurance. Insurance services are offered through an BetterLegal Partner, CHUBB Insurance, which is based within New Jersey.

Payroll Benefits, Payroll, and HR Platform: An even more comprehensive option that, unlike other offerings, does not come free in your formation packages. A variety of options are offered, all of which are provided by third parties.

Although it’s possible that business owners benefit from these additional services, we’re more likely to stay clear of “offers” like these. In general, such services offer companies the chance to drive business to their partners.

We recommend contacting specialists for your payroll, tax, insurance and HR requirements.

In the case of bank accounts, it’s usually to your benefit to use a bank that you already have an established relationship with. If you don’t have a bank which fits this description for you, BetterLegal’s partner offer could be a tempting one.

Additional Filing Services



Prices can vary

BetterLegal also offers a bunch of unique filing services that are not included with its primary creation package. Here, you’ll find the ones which we believe to be the most useful for business owners who are new as well as BetterLegal’s fixed fee for each.

Domesticate foreign LLC: The LLC’s state of residence from one to another state, $299

Reinstate LLC or corporation: Reinstates an LLC or corporation that had previously been dissolved or disbanded. $199

Terminate LLC or corporation: Legally dissolves an LLC or corporation for $199.

Request a Certificate of Good Standing: Get a certification from the company’s home state showing that you are up to date on all your fees and are in compliance with the state permit and license laws. $25

Register foreign LLCs in a different state: Allows an LLC formed by a state in another to legal operate in another state. Also called a “Foreign Qualification,” this process usually involves applying for the “Certificate of Authority” – essentially, a permit to operate in a certain state, $199

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

Add or remove members, directors, as well as shareholders. The company’s official records to reflect changes in its directors, members or shareholders. Cost: $99

Since BetterLegal has solid reviews and a user-friendly website, and a good record on turnaround times We’re confident in recommending these services.

Most new business owners prefer to keep their startup paperwork and any add-on filing in one location, however we realize that this advice isn’t for all.

If you want to learn more about the competition’s offers look over some of the numerous reviews available here!

BetterLegal FAQs

What does BetterLegal do?

BetterLegal’s main focus on LLC creations as well as incorporations. They also, though, provide many options for the formation and running of companies such as business license searches, registered agent service, compliance services, and amendment filing services.

What is the cost to establish an LLC through BetterLegal?

BetterLegal’s LLC formation package is priced at the fixed amount of $299 plus the state fee. This package comprises Articles of Organization and an Operating Agreement but does not provide a registered agent service.

Is BetterLegal legit?

Yes. The company has been in operation since 2017 and is Better Business Bureau accredited. BetterLegal also boasts an A+ BBB rating as well as a high customer review score on Trustpilot.

Who do you think BetterLegal most suitable for?

BetterLegal is ideal for those who want to pay a little more for a fast, reliable LLC formation or incorporation.

What are the advantages of using BetterLegal?

BetterLegal provides easy online formations and has excellent time-to-turnaround. However, the company’s formation program is a bit pricey. BetterLegal is also outsourcing a number aspects of their services to third-party partner companies.

What states do BetterLegal serve?


BetterLegal is available to 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. South Carolina Limited Liability Company Act

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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