Is An Llc A Corporation

{llc6}

Is An Llc A Corporation

In this review, we’ll cut to the chase and explain the essential information you need to know about BetterLegal, including:

  • The true pricing of BetterLegal’s LLC formation services
  • Expected formation turnaround time
  • BetterLegal’s reliability, customer reviews, support offerings and so much more

We’ll also provide clear explanations of the many other pertinent, formation-related services that BetterLegal offers.

Below is a brief overview of our findings. In the next section, you’ll be able to read our full review that outlines our findings as well as describing all 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. Although this package comes with excellent add-ons like Operating Agreement or Bylaws drafting offers a few unnecessary services as well.

We were generally delighted with the ease of use on BetterLegal’s website and its easy-to-use online filing system. The prices of the services offered were simple to locate generally.

BetterLegal’s prices on ongoing services, like registered agent service as well as annual compliance, were reasonable. They also provided more filing add-ons than most other smaller competitors.

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

BetterLegal Quick Overview

Founded in 2017 and located at Austin, Texas, BetterLegal is a fairly small company in the business formation sector.

As with many of its younger competitors, BetterLegal tries to emphasize its effectiveness. On their website, you’ll find the statement:

We’re a 21st century business that makes the process fast, easy and inexpensive and without the needless waste of time or paper.

The company is indeed able to boast amazing turnaround times and an easy-to-use website.

Like several other small-scale creation companies, BetterLegal uses third parties to provide a number of its services, including the registered agent program. Additionally, they offer a variety of services through their partner companies, including banks as well as online accounting companies, and at least one insurance company.

Although they concentrate on business formation services, BetterLegal provides many other services related to creating and running a company. The other services BetterLegal offers include:

  • Operating Agreement and Bylaws drafting
  • A permit and business license search service
  • Compliance services, including submission of annual report
  • Amendments to your filings, like those needed to change your company’s name location, state in operation or even member information

>>In a hurry? click this link to set up your business in 10 minutes or less!<<

 

BetterLegal Pricing

BetterLegal’s formation pricing structure is simple. Contrary to their competitors, who typically have multiple formation package tiers, BetterLegal offers its formation bundle at a single cost.

BetterLegal’s Formation Bundle is available to LLCs as well as standard corporation (C-corps). Below, we’ll describe the bundle of services offered. BetterLegal also provides a variety of other services, including annual subscriptions or fixed costs, related to business formations. 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 similar to many of its competition’s middle-tier options. It includes more than the standard bare-bones structure.

For a set $299 fee, plus relevant state fees, here’s 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 a speedy return of documents once your state has processed the documents.

EIN Filing: EINs (Employer Identification Numbers) are utilized by the IRS to keep track of companies. Many firms need an EIN. The good news is that filing for one is easy. The entire procedure can be completed online in just a few minutes via an online application on the IRS’s EIN filing web page.

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

banking resolution: A document stating who is authorized to open a business account and carry out other banking transactions on behalf of a business. This document is required when you intend to establish a bank account for your business.

Website: BetterLegal will provide you with a domain name and build a basic site or “online store with inventory management services.” Business owners can choose whether to pay for a 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 along with the service options provided through a third-party partner of BetterLegal, CHUBB Insurance.

We’ll get into more detail on this package’s overall value just a bit further down in the article.

BetterLegal vs Competitors Pricing

Below is our table which compares the formation costs of BetterLegal against those of its major competitors.

Prices quoted in this table are independent of BetterLegal’s package pricing. They are standardized for comparison with competitors.

We define Basic Formation, Full Formation, and Full Formation + Website below the table.

Cancellation policy

To find information on BetterLegal’s cancellation and refund policies it is necessary to comb through the legal jargon on the 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.

Although it isn’t explicitly stated We assume that this policy applies to other recurring-fee services like BetterLegal’s annual compliance program. Is An Llc A Corporation

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

 

BetterLegal Pros

Below are a few of the areas in which we felt BetterLegal was particularly effective.

Solid turnaround times

BetterLegal showcases its turnaround times on its main webpage. They claim same-day filings for all their entities so your Articles of Organization or Incorporation will be submitted to state authorities within the same day as you submit them through BetterLegal.

They also say that you’ll receive your documents within two business days. We assume this isn’t accounting for actual state processes, and that can be a couple of weeks. However, it appears like BetterLegal does everything on their end to make things happen as fast as they can.

Many reviews back up BetterLegal’s claims. Quite a few of the reviews we read, like the one below, discussed the firm’s speedy turnaround time on formations.

BetterLegal’s same-day filing applies to all of their orders. You don’t have to shell out extra money to receive internal priority, which is something that Many of the competitors charge extra for.

Since a quick turnaround time is often one of the most crucial factors for those forming new businesses (the other is the formation cost) This is a big plus for BetterLegal.

Excellent reviews

BetterLegal is a tiny company which means we don’t have as many customer reviews to base our decisions on as we’d like. Still, what’s available is quite solid.

BetterLegal has the 4.8 out of 5 on Trustpilot

They also have the score of 4.88 out of 5 on the BBB.

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

The reviewers of BetterLegal seem to have good opinions throughout all areas. They are pleased with the clarity of the company in terms of turnaround times, turnaround time, and pricing (even even though we aren’t convinced that their rates are particularly attractive).

Limited customer support

Smaller companies in formation tend to be nimbler, more efficient, and more affordable than their larger counterparts. However, many smaller formation companies do not have the support staff that the larger players have.

BetterLegal is no different here.

While the BetterLegal website provides an online chat feature but there’s no contact information to be located on their main page. To find these pieces of information, you’ll need go to the bottom of the company’s privacy webpage. There, too is no information on the availability of phone lines or how fast email responses are made.

BetterLegal, it seems similar to other companies in their field – heavily rely on automated customer service.

The ideal scenario is that your order is likely to go off without a hitch, and you’ll never have to reach out to the service representative. We still see the lack of service rep availability as an issue, though.

 

BetterLegal Services

Below, we’ll discuss some of the most important services related to formation that BetterLegal offers. We’ll go over when and why you might need each service, and we’ll also include the prices offered by BetterLegal.

LLC Formation and Incorporation



$299 + state fees

BetterLegal can help you fill out and file the key documents for forming your LLC or for incorporating your company.

LLCs, or Limited Liability Companies, are among the most well-known businesses in the United States. More flexible and simpler to manage than standard corporations (C-corps) LLCs are able to meet less requirements for compliance and recordkeeping. They can also confer some important tax benefits via pass-through taxation.

Corporations have more cumbersome requirements, however they can provide some structural or tax advantages, depending on the size of your business and field of operation.

If you’re uncertain whether you’re unsure if an LLC or an organization is the right business model for you, talk to a small business expert or an accountant who is certified.

Both corporations and LLCs are created by state law, typically through a department’s Secretary of State office.

Every state has its own rules and regulations concerning the creation of LLCs. Learning about all the procedures and laws relevant to you can be a significant time-sink.

A lot of new business owners employ an organization service, such as BetterLegal to fill in and file their paperwork for them. For LLCs, this is filling out Articles of Organization. For corporations, that means filing Articles of Incorporation.

In their normal formation program, BetterLegal will file your documents and submit it to state authorities. The process is easy and is completed online. You’ll just be asked some simple questions about your company, e.g., its name and the name of its owner(s) and member(s) as well as its field of business and address. Is An Llc A Corporation

BetterLegal will also run an instant name check to make sure your LLC or company’s name isn’t already taken (which can result in an application being rejected).

As we stated at the top of this description The $299 registration fee does not include state filing fees, which may range anywhere between $40-$500, according to the state in which you’re filing.

EIN Filing



In the formation package

An EIN, also known as an Employer Identification number, is one type of tax ID that the majority of new businesses must acquire. Assigned to the IRS, EINs are legally required for companies with employees and are also necessary when you are planning to open a business bank account.

It’s easy to imagine your EIN as a bit similar to your company’s Social Security Number. Each is unique, and they’re utilized by the IRS to track your business’s activities.

Thankfully, acquiring an EIN is a very easy process. You can apply on the internet, by using the IRS’s EIN application page, in just moments. You simply fill in a few lines of info on your business, and you’ll be assigned an EIN on the spot.

Because making an application for EIN is easy and simple, we suggest against any fee-based EIN filer. Unfortunately, whereas most firms offer the option to file for your EIN for an extra fee (or within a more expensive formation program), BetterLegal automatically includes EIN filing within the sole formation package.

You can opt to remove EIN filing from your cart when you pay, but it won’t reduce the cost of filing at all. We’re not pleased by the way BetterLegal “builds in” the price of EIN filing and doesn’t give the customer a discount when you drop the unnecessary service.

Operating Agreement or Bylaws



In the Formation package

An Operating Agreement is one of the most crucial legal documents that can be used by an LLC. Operating Agreements lay out the fundamentals of how an LLC will be managed. They typically include information like:

  • Who an LLC’s owner(s) or member(s) are, in addition to how their ownership split between them
  • How and by whom is the LLC managed? LLC will be managed
  • How profits are to be distributed
  • What to do if the owner or member of the group leaves or dies
  • …plus other important pieces of info

Only a few states are required to have an Operating Agreement. California, Delaware, Maine, Missouri, and New York – legally require the Operating Agreement. However, even in these states, you do not have to file the contract with your state. it’s just a matter of having to keep it in your possession.

However, we suggest that all LLCs, in all states, create operating Agreement and keep it on hand.

An Operating Agreement establishes your LLCs liability protections. Since liability protection is one of the main benefits offered by LLCs, it’s unwise to forgo them.

Operating agreements also aid to provide guidance in the event of unexpected circumstances. Most likely, you don’t enter business expecting your partner to quit or a dispute about profits to arise – however, having a well-written operating agreement in your possession can help you get through such situations more easily.

If you’re in the process of incorporating rather than making an LLC, then you’ll require corporate Bylaws in lieu of operating agreements. Corporate Bylaws work much similar to they provide the same advantages to operating agreements.

As part of their primary setup package, BetterLegal will help you to draft a legal Operating Agreement or Corporate Bylaws.

Banking Resolution



It is included in the form package

A banking resolution is a basic, but important document. A bank resolution defines which member(s) of an LLC are authorized to open a business bank account and participate in any other banking-related activity.

Banks require you to submit an official resolution to the bank when you open a business bank account.

As part of their formation package BetterLegal will prepare a bank resolution for your business. All you have to submit is information on who is allowed to start and / or have access to a bank account under your LLC’s name.

Services offered by the website



In the formation package

BetterLegal is one of only a handful of companies that offers a web domain in addition to the formation service. Unfortunately, details on the service are scarce.

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

There is evidence of upselling in this area too The following sentence is: “As your business grows, transition to a paid plan to unlock more features and customization.”

BetterLegal has a ribbon from GoDaddy on their homepage However, the company explicitly state which third-party domain hosting service provider. There isn’t even a name given when you dig through the company’s terms of services.

We’re all about honesty, and we’re disappointed with BetterLegal here. We always recommend directly going to a domain host or business website builder anyway.

Plenty of companies are specialists in those categories There’s no reason to purchase these services through a business formation.

Registered Agent Service



$90 for the annum or $0 monthly

All LLCs and corporations are legally required to have a registered agent. Although it might sound like a fancy term, the role of a registered agent is very simple – they receive official correspondence and service of procedure (legal notices, for example, lawsuits) on behalf of a business.

Registered agents must be present during business hours, and they must be based in the same state your LLC or corporation is based.

Properly receiving official correspondence and being able to respond promptly is vital.

If you fail to comply with an compliance notice from the state or federal government, your business may lose its good standing or be assessed charges or fines, or be dissolved. And if you don’t respond to a court order and you miss your court date, your case can be automatically forfeited.Is An Llc A Corporation

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

Technically speaking, you could be the registered agent for your company. There are various reasons why many business owners choose to utilize an registered agent service.

We recommend using the registered Agent service when:

  • You frequently travel and are not always at a single address
  • You are not a resident within the United States
  • Your business is operating in multiple states
  • Your name and address made public accessible

Similar to other formation firms, BetterLegal offers a registered agent service. And, like most other small formation companies, BetterLegal contracts this service out to an outside party.

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

If you can bypass the transparency issue the BetterLegal registered agent service is offered at a reasonable cost. It costs either 10 dollars per month, or $190 each year. This latter price is extremely cost-effective – many major companies in the industry charge $150 per year or more.

BetterLegal’s registered agents service is also an add-on – it is not included in their basic formation package. This makes them an outliersince many competitors include registered agent services as part of the formation package, often offering the first year of registration for no cost.

Business License Search



$125

Based on the kind of business you manage, what industry you’re in, and where you’re based, you may require a couple or a lot of licences and permits. They may be required at the local, state, or federal level.

Licenses can be quite a hassle to handle, but they’re absolutely necessary. If you’re in violation and are found to be in violation, you could face an enormous fine, or even get your business shut down temporarily or even completely dissolved.

Finding out what licenses and permits are applicable to your specific business requires quite a bit of research. Instead of sifting through lots of legal and red tape yourself, you can hire a firm such as BetterLegal to perform the search for a business license.

A lot of companies that form businesses provide this service. You’ll enter info on your company, and BetterLegal will run a thorough search, compiling all the permits and licenses relevant to you and providing guidelines on how to fill them in.

Note that BetterLegal does not do the filing for you, but it gives you the tools and details to file them on your own. Still, this can be an enormous time saver, particularly for businesses that are highly regulated.

Annual Compliance



$90 for the annum or $0 for each month

The majority of state governments require LLCs and corporations to file an annual report. They aren’t usually too complicated or thorough. They’re merely an avenue for states to keep tabs on businesses that operate within their territory.

The filing deadline may be set (e.g. every business have to submit a report in December) or dependent on your company’s founding date (e.g. If you formed in August of 2021, you’ll file your first annual report in August of 2022). Some states only have you submit a report every two years.

The annual report you file may seem like a burden, but it absolutely shouldn’t be a snooze. If you do not submit your annual report in time you could be charged a fee or lose your status with the government.

Many of the formation companies, like BetterLegal offers an annual service for compliance. For a monthly, or yearly fee, BetterLegal will send you reminders of your annual report due date. Then, once you’ve entered the relevant info the firm will draft your annual report and send it off to the state for you.

A majority of states have a modest (under $100) cost for filing annual reports – BetterLegal will collect that fee from you and send it on to the appropriate agency.

Third-Party Offerings



Included with form package

BetterLegal also offers a small selection of third-party services within their corporate formation service.

Business checking: You’ll be set up with a free minimal business account online. You’ll receive debit cards associated with your account. You’ll also be able to send physical checks through your online account.

Tax Analyse: Analysis and advice from a “leading virtual tax service”. It’s not clear how thorough the analysis is, and what sort of questions you’ll have the ability to ask.

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

Payroll Benefits, Payroll, and HR Platform The most comprehensive option that, unlike other offerings, does not come free in your formation packages. A wide variety of services are offered, all of which are provided by third-party providers.

It’s likely that business owners get value out of these add-on services, we tend to stay clear of “offers” like these. Most of the time, these services are just opportunities for companies to promote their business to their partners.

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

As for bank accounts, it’s usually beneficial to use an institution that you already have an established relationship with. However, if you’re not able to find a bank that fits that description for you, BetterLegal’s partner offer might be a good one.

Additional Filing Services



Prices differ

BetterLegal offers a variety of filing services for one-time use that aren’t part of its main setup package. Here, you’ll find those which we think will be the most useful to business owners starting out, along with BetterLegal’s fixed-fee for each.

Foreign LLC that is domestic Your company’s primary state in the to another state, $299

Restate LLC, or a corporation: Reinstates an LLC or a company that has been dissolved and is worth $199.

Ending a corporation or LLC: Legally dissolves an LLC or corporation, $199

Request a Certificate of Good Standing: Get a certification from the business’ home state proving that you’re current with all your expenses and in compliance with the state permit and license laws. $25

Register foreign LLC in a new state. allows an LLC that was established within one jurisdiction to operate in a different state. Also called a “Foreign Qualification,” this procedure typically involves submitting a “Certificate of Authority” – in essence, a permit do business in a specific state, $199

Change the principal office address: Your business’s address is changed from the one you originally listed on the Articles of Organization or Incorporation to a different address. $99

Remove or add directors, members, and shareholders. The company’s official record to reflect changes in the company’s members, directors, or shareholders, $99

Since BetterLegal does have solid reviews, an easily navigable site and a solid track performance in terms of turnaround times, we’re comfortable recommending these services.

Many entrepreneurs who are new to business prefer to file their initial filing and add-on paperwork in one place we realize that this suggestion won’t be applicable to all.

If you want to learn more about the offers offered by competitors, check out some of the many reviews available right here!

BetterLegal FAQs

What is BetterLegal?

BetterLegal’s primary goal will be LLC registrations, formations, and incorporations. They also provide many solutions related to creation and operation of companies which include searches for business licenses, registered agent service, compliance services, as well as amendment filing services.

How much will it cost to create an LLC with BetterLegal?

BetterLegal’s LLC formation package costs an affordable $299, which includes the state fee. The package comes with Articles of Organization and an Operating Agreement however it does not provide a registered agent service.

Is BetterLegal legit?

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

Who is BetterLegal the best choice for?

BetterLegal is the best choice for those who want to pay a little extra to have a speedy solid LLC creation and incorporation.

What are the advantages of using BetterLegal?

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

What states do BetterLegal serve?


BetterLegal covers 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. Is An Llc A Corporation

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.

>>Click this link now to start your business in 10 minutes or less!<<

error: Content is protected !!