Limited Liability Company Book

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Limited Liability Company Book

In this review, we will get straight to the point and discuss the essential information you need to know about BetterLegal such as:

  • The real cost for BetterLegal’s LLC formation services
  • Expected turnaround time for formation
  • BetterLegal’s reliability, customer reviews as well as support services, and much more

We’ll also provide detailed explanations of the numerous other pertinent, formation-related services that BetterLegal provides.

Below is a quick summary of our findings. Below, you’ll see our comprehensive review, which outlines our findings as well as describing all you need to know about BetterLegal.

Is BetterLegal the Right Choice for You?

BetterLegal is different from other establishment companies because it only offers 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 as well.

Overall, we were delighted with the ease of use on BetterLegal’s website and its easy-to-use online filing system. The costs of services offered were easily found generally.

BetterLegal’s prices on recurring services, including registered agent service and annual compliance, were reasonable. They also 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 assess BetterLegal’s’ service, read on!

BetterLegal Quick Overview

It was founded in 2017 and is with its headquarters in Austin, Texas, BetterLegal is a relatively small player within the business formation sector.

As with many of its younger peers, BetterLegal tries to emphasize its efficiency. On their website you’ll see the words:

We’re a 21st century business which makes the process speedy simple, affordable and cost-effective without the time and paper.

The company is indeed able to boast impressive turnaround times and an extremely user-friendly website.

Similar to several other small-scale creation companies, BetterLegal uses third parties to provide a number of its services, such as the registered agent program. They also provide a range of services through their partner companies, including banks and online accounting firms and at least one insurance company.

Though they focus primarily on business formation, BetterLegal provides many other services that are related to the process of starting and running a business. The other services BetterLegal offers are:

  • Operating Agreement and Bylaws drafting
  • A business license and permit search service
  • Compliance services, such as preparation of annual statements
  • Amendments to your filings, like ones required to change your business’s name location, state in operation or even member info

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BetterLegal Pricing

The structure of pricing for formation at BetterLegal is straightforward. Unlike their competitors, who tend to have several different packages of formation, BetterLegal offers its formation package for a flat price.

BetterLegal’s Formation Bundle is available to both LLCs and traditional corporations (C-corps). In the following section, we’ll discuss the features included. BetterLegal also provides a variety of additional services, either with annual subscriptions or fixed fees that are related to business formations. We discuss those further down, within the “Services” portion of this review.

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

BetterLegal’s single service for incorporations as well as formations is similar to many of its rivals’ middle-tier packages. It has more features than a typical bare-bones formation.

For a fixed $299 cost, which includes applicable state fees, here’s what’s included:

Articles of Incorporation or Organization: These documents are the official way to establish your corporation or LLC with your state. BetterLegal promises same-day filing and quick return of documents once the state has approved the paperwork.

EIN filing: EINs (Employer Identification Numbers) are utilized by the IRS to keep track of companies. Most businesses require an EIN. Luckily, the process of filing one is simple. The whole procedure can be completed online in a matter of minutes using this page. IRS’s EIN filing website page.

Operating Agreement or Bylaws: These documents establish the guidelines for the way your corporation or LLC will be managed. While they aren’t legally required in many states, we consider them important to all business owners.

Banking Resolution: The document specifies who is allowed to open a business account and perform other banking activities for a company. This document is required when you plan to establish a bank account for your business.

Website: BetterLegal will provide you with a domain name and create a basic website as well as an “online store with inventory management services.” Business owners may choose that they want to purchase a premium site plan in the future.

Tax Analysis: Basic analysis of the 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 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 that compares BetterLegal’s formation prices against those of its major competitors. Below, you’ll find a table that compares the prices of its main.

Prices quoted in this table are not part of BetterLegal’s package pricing. They are standardized for comparison with competitors.

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

Cancellation policy

For information about BetterLegal’s cancellation policies and refund policy You must comb through a great deal of legal jargon on the Terms of Service Page.

Here’s what BetterLegal has to say about canceling 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.

While it’s not specifically stated, we assume this policy also applies to other recurring-fee services, such as BetterLegal’s annual compliance services. Limited Liability Company Book

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 some of the areas in which we felt BetterLegal was especially strong.

Timely turnaround

BetterLegal provides information about its turnaround time on its main page. They boast of same-day filings for all their formations which means that 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 state that you’ll receive your documents within two days. We suspect that this isn’t accounting for actual state processes, and that can be as long as a few weeks – still, it seems like BetterLegal is doing everything in their power to get things moving as quickly as possible.

A number of reviews support BetterLegal’s claims. A number of reviews we looked at such as the one below, mentioned the company’s quick turnaround time for formations.

BetterLegal’s same-day filing is available to all their orders. You don’t need to pay an extra fee to avail internal prioritization, which is something that some of BetterLegal’s competitors cost for.

A quick turnaround time is often one of the most crucial factors when forming new businesses (the other is the formation cost), this is an enormous benefit for BetterLegal.

Great reviews

BetterLegal is a tiny 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 good.

BetterLegal sports the 4.8 rating out of 5. Trustpilot

They also have a 4.88 rating out of five for their BBB.

The company is Better Business Bureau accredited as well, boasting an A+ rating.

Reviewers of BetterLegal seem to have good things to say all over all areas. They appreciate the company’s clarity, turnaround time, and prices (even though we ourselves aren’t convinced that their rates are very attractive).

Limited customer support

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

BetterLegal isn’t an exception.

While the BetterLegal website has the option of online chat, there is no contact information to be located on their main page. To find these pieces of information, you’ll need to dive all the way towards the end of the privacy page. And, even there, there’s no info on when phone lines are available or the speed with which email responses are made.

BetterLegal It appears that BetterLegal as do 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 the lack of service rep availability as a major drawback however.

 

BetterLegal Services

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

LLC Formation and Incorporation



$299 + the state fee

BetterLegal will assist you to fill out and file the essential documents for forming your LLC or for incorporating your company.

LLCs, also known as Limited Liability Companies, are one of the most popular kinds of business in the United States. They are more flexible and easy to manage than traditional corporations (C-corps) LLCs are able to meet less requirements for compliance and recordkeeping. They can also provide important tax benefits via pass-through taxation.

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

If you’re not sure whether you should go with an LLC or a corporation is the best business type for you, talk to an expert in small businesses or an experienced accountant.

Corporations and LLCs are created by state law, usually with a given department’s Secretary of State office.

Each state has specific rules and regulations regarding the formation of LLCs. Getting informed about all the procedures and laws that apply to you could be a major time drain.

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

As part of their standard training package, BetterLegal will file your documents and forward it to state authorities. The process is easy and can be completed completely online. It’s as simple as asking straightforward questions about your business, e.g., its name as well as its owner(s) or member(s), its industry and address. Limited Liability Company Book

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

As we noted at the top of this description The $299 registration fee does not include fees for filing with the state, which may range anywhere between $40-$500, dependent on the state you are filing.

EIN Filing



It is included in the form package

An EIN, or Employer Identification number, is one kind of tax identification that all new businesses must obtain. The EIN is assigned through the IRS, EINs are legally required for businesses with employees. They’re also required if you want to start an account with a bank for business.

It’s possible to think of your EIN as sort of being similar to your company’s Social Security Number. Each is unique, and they’re utilized by the IRS to track your the business’s activities.

The good news is that getting an EIN is an easy procedure. You can do it online, using the IRS’s EIN application page and in a matter of few minutes. Just fill in a few lines of info on your business and you’ll receive an EIN in a matter of minutes.

Because the process of filing an EIN is so quick and simple, we advise against any pay-per-click EIN filing service. Unfortunately, whereas most firms allow you to submit your EIN at a cost (or in conjunction with a larger formation bundle), BetterLegal automatically includes EIN filing within its one and only formation package.

You can opt to remove EIN filing from your basket at checkout but it won’t lower the cost of filing at all. We’re not pleased by the way BetterLegal “builds in” the cost of EIN filing and doesn’t give you a discount for dropping this unneeded service.

Operating Agreement or Bylaws



It is included in the form package

The Operating Agreement is among the most essential legal documents required by any LLC. Operating Agreements outline the fundamentals of how an LLC is to be run. They typically include information like:

  • Who an LLC’s owner(s) or member(s) are and how ownership is divided between them
  • Who and by whom who will manage the LLC will be controlled
  • How are profits to be divided
  • What to do if members or owners leave or passes away
  • …plus other key pieces of info

There are only a handful of states that such as California, Delaware, Maine, Missouri, and New York legally require that you have an Operating Agreement. However, even in these states, you do not need to file an agreement with the state. you are just required to keep it handy.

We do recommend that all LLCs in all states, create the Operating Agreement as well as keep the document on hand.

An Operating Agreement provides your LLC with security of liability. As liability protections are one of the main benefits offered by LLCs, it’s unwise to forgo them.

Operating Agreements can also assist by providing direction during unplanned situations. It is unlikely that you enter into the business hoping that a partner will quit or a dispute about profits to arise , but having a pre-written document in your possession can help you navigate these situations more smoothly.

If you’re in the process of incorporating rather than forming the LLC you’ll require Corporate Bylaws rather than an operating contract. Corporate Bylaws function in the same way as they provide the same benefits to, operating agreements.

A part of the overall setup package, BetterLegal will help you create a legally-binding Operating Agreement or Corporate Bylaws.

Banking Resolution



It is included in the formation package

A banking resolution is a essential, yet simple document. A banking resolution outlines the member(s) of an LLC are authorized to establish a business bank account and to participate in any other banking-related activity.

Banks require that you submit an official resolution to the bank before you can open a bank for business account.

In their initial formation process, BetterLegal will draft a banking resolution for your company. All you have to provide them with details about who’s allowed to establish and open a bank account under your LLC’s name.

Services offered by the website



It is included in the 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 offer are sparse.

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

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

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

We’re all about transparency, so we’re disappointed by BetterLegal’s performance here. In any event, we always recommend going directly to a domain hosting service or a business website builder in the first place.

Plenty of companies are specialists in these fields There’s no reason to get these services second-hand by forming a company.

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 simple – they receive official correspondence and service of process (legal notices, for example, lawsuits) for the benefit of the business.

Registered agents must be available during business hours, and they must be located in the same state in which your LLC or company is located.

Receiving official correspondence in a timely manner, and being able to respond quickly, is essential.

If you fail to comply with a compliance notice from the state or federal government, your business could lose its good standing or be assessed charges or fines, or even be dissolution. If you fail to respond to a court order and fail to show up for court, your case can be automatically dismissed.Limited Liability Company Book

The presence of a registered agent Then, it is crucial.

Technically, you are the company’s registered agent. However, there are several reasons that many business owners opt to use an registered agent service.

We’d suggest using an Registered Agent service if:

  • You are often traveling and not always at a single address
  • You aren’t a resident of the United States
  • Your business operates in multiple states
  • Your name and address made public available

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

BetterLegal’s full terms of service are available here.

If you can overlook the transparency issue, BetterLegal’s registered agent service is offered at a reasonable cost. You can choose to pay the monthly fee of $10 or you can pay $90 each year. This latter price is extremely cost-effective – many major companies in the industry cost $150 annually or more.

BetterLegal’s registered agent service is also an add-on – it is not included in their basic formation package. This makes them somewhat of an outlier, as many competitors include registered agent services in its formation plans, often with the initial year of service no cost.

Business License Search



$125

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

Licenses can be difficult to handle, but they’re absolutely necessary. If you’re not in compliance and are found to be in violation, you could face a hefty fine or have your business temporarily shuttered or even completely dissolved.

Figuring out which licenses and permits are applicable to your particular company requires some time and effort. Instead of wading through tons of legal and red tape your own, you can engage a company such as BetterLegal to conduct a business license search.

Lots of formation companies offer this service. You’ll enter info on your business and BetterLegal will conduct a thorough lookup, gathering all licenses and permits that are relevant to your needs and offering directions on how you can complete them.

Take note that BetterLegal will not file these for you – it provides the tools and info to file them yourself. Still, this can be a huge time-saver, especially for highly-regulated businesses.

Annual Compliance



$90 for the year or $10 per month

Most state governments require corporations and LLCs to submit some form of annual report. The majority of the time, these reports aren’t too cumbersome or in-depth. They’re simply a way to monitor the state’s position on the companies operating within their jurisdiction.

Your deadline filing report may be fixed (e.g. every business have to submit a report in December) or dependent on your company’s founding date (e.g. in the event that you started your business in August 2021, you’ll submit the first report of your annual in August 2022). Some states only need you to file a report every two years.

Making your annual report can seem like a burden however it must not be ignored. If you fail to file your report on time, you may receive a fee or lose your good standing with the state.

Many formation services, including BetterLegal offers annually-based compliance programs. For a monthly or yearly cost, BetterLegal will send you reminders regarding your upcoming annual report due date. Then, once you’ve entered all the necessary information and they’ll write your annual report and mail it to the state on your behalf.

The majority of states charge a minimal (under $100) cost for annual report filing – BetterLegal will collect the fee from you then forward the payment to the relevant authority.

Third-Party Offerings



Included with formation package

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

Business Banking: You’ll be set up with a no-fee minimal business account online. You’ll be able to use debit cards that are associated with the account and you’ll be able to make physical checks using the account online.

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

Assessment of Insurance: An evaluation of your company’s specific requirements for insurance. Insurance services are offered through an BetterLegal affiliate, CHUBB Insurance, which is based in New Jersey.

Payroll, Benefits, and HR Platform An even more comprehensive option that, unlike other options, isn’t included when you sign up for your formation package. Many different services are covered, all offered by third-party providers.

While it’s certainly possible that business owners gain value from these additional services, we’re more likely to be wary of “offers” like these. Usually, services like these offer companies the chance to drive business to their partners.

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

For banks, it’s typically to your benefit to use a bank that you already have an established relationship with. If you don’t have a bank that meets the criteria for you, BetterLegal’s partner offer might be a good one.

Additional Filing Services



Prices differ

BetterLegal offers a variety of one-off filing services which aren’t included in its primary creation package. We’ve identified them which we think will be the most useful for business owners who are new, along with BetterLegal’s fixed-fee for each.

Foreign LLC that is domestic Moves your LLC’s state of residence from one state to another. $299

Reinstate LLC or corporation: Reinstates an LLC or a company that has been dissolved or disbanded. $199

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

Obtain the Certificate of Good Standing Get a certification from the company’s home state showing that you’re current on all fees and that you are in compliance with the state permit and license laws. $25

Create a foreign LLC in a new state: It allows an LLC established in one state to legally operate in another state. Also called a “Foreign Qualification,” this procedure usually requires submitting a “Certificate of Authority” – essentially, a permit to conduct business in a particular state. The cost is $199.

Change your principal workplace address Your business’s address is changed from the one you originally mentioned on the Articles of Organization or Incorporation to a new one, costing $99

Add or remove directors, members, as well as shareholders. Officially alters your company’s record to reflect changes in the company’s members, directors, or shareholders, $99

Since BetterLegal has solid reviews with an easy-to-use website, and a good time-to-turnaround record, we’re comfortable recommending these services.

Many entrepreneurs who are new to business prefer to file their initial filing and add-on filing all in one place, so we recognize this advice isn’t for all.

If you’re interested in learning more about the offers offered by competitors take a look at the many reviews available on this site!

BetterLegal FAQs

What does BetterLegal do?

BetterLegal’s primary goal will be LLC formations and incorporations. However, they also provide many options for the formation and operation of companies which include searches for business licenses, registered agent service, amendment and compliance filing services.

What is the cost to form an LLC through BetterLegal?

BetterLegal’s LLC formation package is priced at a fixed $299, plus state fees. This package comprises Articles of Organization and an Operating Agreement however it does not include a registered agent service.

Is BetterLegal legit?

Yes. The company has been operational since 2017 as well as being Better Business Bureau accredited. BetterLegal also boasts an A+ BBB rating as well as an outstanding review rating on Trustpilot.

Who do you think BetterLegal best for?

BetterLegal is best for those who are willing to pay a bit extra to get a quick, reliable LLC creation as well as incorporation.

What are the benefits of the use of BetterLegal?

BetterLegal provides easy online forms and offers excellent speed of turnaround. However, the company’s formation program is a bit pricey. BetterLegal has also contracted a lot of its 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. Limited Liability Company Book

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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