Llc Agreement California


Llc Agreement California

In this review, we’ll get straight to the point and go over the things you should know about BetterLegal, including:

  • The actual cost for BetterLegal’s LLC formation services
  • Expected turnaround time for formation
  • The reliability of BetterLegal, reviews from customers Support offerings, and much more

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

Here’s a brief summary of the findings. In the next section, you’ll be able to see our comprehensive review that outlines our findings and explains all you need to know about BetterLegal.

Is BetterLegal the Right Choice for You?

BetterLegal is different from other firms that offer formation services because it provides only one LLC formation and a single incorporation package. While this package has some amazing add-ons, like Operating Agreement or Bylaws drafting has some unnecessary services too.

In general, we were amazed by the user-friendly website of BetterLegal and easy online filing system. Prices of services offered were easy to find in the majority of cases.

The prices offered by BetterLegal for recurring services, including registered agent service as well as annual compliance, were competitive. They also provided additional filing add-ons than smaller competitors.

You can visit yourself, or, if you want to know more about the factors we used to assess BetterLegal’s service take a look!

BetterLegal Quick Overview

Founded in 2017 and with its headquarters in Austin, Texas, BetterLegal is a relatively small company in the business formation industry.

Like many of its young competitors, BetterLegal tries to emphasize its effectiveness. On their main webpage you’ll see the following statement:

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

The company has amazing turnaround times and an easy-to-use website.

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

While they are primarily focused on business formation services, BetterLegal provides many other solutions for 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
  • Services for compliance, which include submission of annual report
  • Amendment filings, such as those needed to change your company’s name address, the state of operation, or member details

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BetterLegal Pricing

BetterLegal’s formation pricing structure is very straightforward. Unlike their competitors, which tend to offer a variety of formation package tiers, BetterLegal offers its formation bundle at a single cost.

BetterLegal’s formation bundle is applicable to both LLCs and traditional corporations (C-corps). We’ll go over the services included. BetterLegal also offers many additional services, whether with monthly subscriptions, or with fixed costs that are related to the formation of businesses. We discuss those further down, within the “Services” portion of this review.

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

BetterLegal’s sole package for incorporations and forms is comparable to many of its competitors’ middle-tier offerings. It has more features than the standard bare-bones structure.

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

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

EIN filing: EINs (Employer Identification Numbers) are used by IRS to track businesses. Most companies need an EIN. The good news is that the process of filing one is simple. The whole procedure can be completed online in just a few minutes via this page. IRS’s EIN file web page.

Operating Agreements or Bylaws: These documents establish the rules for how your company or LLC is run. Though not legally required in all states, we believe they are essential to all new business owners.

Bank Resolution A document stating who is allowed to establish a business bank account and perform other banking activities on behalf of a business. It is necessary if you plan to create a bank account on behalf of your business.

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

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 the insurance requirements of your company and service offerings provided through a third-party partner of BetterLegal, CHUBB Insurance.

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

BetterLegal vs Competitors Pricing

Below, you’ll find our table that compares BetterLegal’s formation prices with the prices of its primary rivals.

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

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

Cancellation policy

For more information about BetterLegal’s cancellation policies and refund policy it is necessary to comb through a lot of the legal jargon on the 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, or by canceling online through your account portal.

While it’s not specifically stated, we assume this policy is applicable to other recurring-fee services for example, BetterLegal’s annual compliance service. Llc Agreement California

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


BetterLegal Pros

Below are a few of the areas where we believed BetterLegal was particularly strong.

Fast turnaround times

BetterLegal highlights its turnaround times on its main website. They offer same-day filing for all their entities, meaning the Articles of Organization or Incorporation will be sent to state authorities on the same day you send them to 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 several weeks. However, it appears that BetterLegal is doing everything on their end to get things moving as fast as they can.

A number of reviews support BetterLegal’s claims. A number of reviews we looked at such as the one below, mentioned the firm’s speedy turnaround on the formation process.

BetterLegal’s same-day filing applies to all orders. You don’t need to pay an extra fee to avail internal prioritization, which is something that many of BetterLegal’s competitors do charge for.

Since a quick turnaround time is typically one of the two most important aspects for people who are forming new businesses (the other one being the cost of formation) this is an enormous benefit for BetterLegal.

Great reviews

BetterLegal is a small company We don’t have as many reviews to draw from as we’d like. But, the information we’ve got is very solid.

BetterLegal sports a 4.8 rating out of 5. Trustpilot

They also have the score of 4.88 from 5 for the BBB.

They’re Better Business Bureau accredited as also, with an A+ rating.

The reviewers of BetterLegal appear to have positive comments across all areas. They appreciate the company’s clarity as well as its turnaround time and prices (even even though we do not think their pricing is particularly remarkable).

Limited customer support

Smaller formation companies tend to be smaller, more efficient, and less expensive than larger companies. However, many small formation companies also lack the support staff that the larger companies have.

BetterLegal is no exception here.

Although the BetterLegal website offers an online chat option however, there’s no contact information that can be found on their main pages. To locate those bits of information, you’ll need go to the bottom of the company’s Privacy page. And, even there is no information on how often phone lines are open or the speed at which emails are answered.

BetterLegal It seems that the company similar to other companies in their field heavily relies on automated customer service.

Ideally, your formation is likely to go off without a hitch and you’ll not need to call an agent for service. However, we do see the lack of service rep availability as a definite downside but.


BetterLegal Services

Below, we’ll discuss some of the main services related to formation that BetterLegal offers. We’ll explain the reasons why and when you may require each service, and 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 needed to form your LLC or for incorporating your company.

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

Corporations have more cumbersome regulations, but they may provide certain tax or structural advantages, depending on your business’s size and field of operation.

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

Both LLCs and corporations are created on a state-level, generally through a secretary of state office in the State.

Every state has specific rules and regulations concerning the creation of LLCs, and learning about the various processes and laws relevant to you could be a time sink.

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

As part of their standard formation bundle, BetterLegal will file your documents and forward it to the relevant state authorities. The process is easy and is completed online. It’s as simple as asking basic questions regarding your business, e.g., its name and it’s owner(s) as well as member(s), its industry, and its address. Llc Agreement California

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

As we mentioned in the upper part of this review The $299 registration fee does not include state filing fees, which may range anywhere between $40 and $500 dependent on the state you are filing.

EIN Filing

Included with form package

An EIN, also known as an Employer Identification Numberis the form of tax id that most new companies will require to obtain. The EIN is assigned to the IRS, EINs are legally required for companies with employees. They are also required when you are planning to open a business bank account.

It’s possible to imagine 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.

It’s good news that obtaining an EIN is a simple process. You can do it online, through the IRS’s EIN application page, in just few minutes. Just fill in a few lines of info on your business and you’ll receive an EIN on the spot.

Since making an application for EIN is quick and painless, we always recommend against any paid EIN filer. Unfortunately, whereas most firms allow you to apply for your EIN at a cost (or within a more expensive form package), BetterLegal automatically includes EIN filing in the only formation package.

You can remove EIN file from the cart at checkout, but it won’t reduce the cost of filing at all. We’re not happy by the way BetterLegal “builds in” the price of EIN filing but doesn’t give customers a discount for removing 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 lay out the basics of how an LLC will be managed. They generally contain information such as:

  • Who the LLC’s owner(s) or member(s) are and how ownership is split between them
  • How and by whom is the LLC managed? LLC will be managed
  • How are profits to be distributed
  • What do you do when an owner or member leaves or passes away
  • …plus other key informational

There are only a handful of states that are required to have an Operating Agreement. California, Delaware, Maine, Missouri, and New York – legally require you to have operating Agreement. However, even with these, you don’t need to file your agreement with the state, it’s just a matter of having to keep it handy.

However, we suggest that all LLCs across all states, write operating Agreement to keep on hand.

An Operating Agreement defines your LLC’s insurance against liability. Since liability protections are one of LLC’s key benefits it is not wise to leave out them.

Operating Agreements can also assist to provide guidance in the event of unexpected circumstances. You probably don’t go into business expecting a partner to leave or a dispute over profits to occur, however, having a well-written operating agreement on hand can help you to navigate such situations easily.

If you’re considering incorporating, instead of creating an LLC, then you’ll need corporate Bylaws rather than an operating contract. Corporate Bylaws operate in the same way as, and provide similar advantages to operating agreements.

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

Banking Resolution

Included with formation package

A banking resolution is a essential, yet simple document. A bank resolution defines which member(s) within an LLC are authorized to open a business bank account and to participate in various banking-related activities.

Banks require you to submit a banking resolution at the time of opening a business bank account.

As part of their formation package, BetterLegal will draft a banking resolution for your company. All you’ll have to provide them with information on who is allowed to start and / or access a bank account in the name of your LLC.

Services offered by the website

It is included in the Formation package

BetterLegal is one of one of the few formation companies that offers a web domain along with its formation package. Unfortunately, the details of their offer are sparse.

The main page for their service says 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 in the following paragraph says: “As your business grows, transition to a paid plan to unlock more features and customization.”

BetterLegal has a GoDaddy ribbon on their homepage However, the company specify who its third-party domain hosting partner is. There isn’t even a name mentioned in the company’s terms of services.

We’re all about transparency, so we’re disappointed with BetterLegal in this case. We always recommend going directly to a domain host or a business website builder in the first place.

Many companies are experts in these areas, so there’s no need to purchase these services by forming a company.

Registered Agent Service

$90 for the year or $10 per month

All LLCs and corporations must have an agent registered. Although it might sound like a fancy phrase but the function of a registered agent is very easy – they get official correspondence and serve processes (legal notices, like lawsuits) on behalf of the company.

Registered agents should be accessible during working hours, and they must be located in the same state your LLC or corporation is based.

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 lose its standing and be subject to fines or penalties, or even be dissolved. And if you don’t comply with a court summons and miss your court date and your case is not attended to, it could be automatically dismissed.Llc Agreement California

Having an on-the-ball registered agent Then, it is important.

Technically, you can be your business’s own registered agent. However, there are numerous reasons why business owners choose to utilize a registered agent service.

We recommend using the registered Agent service if:

  • You frequently travel and are not always at a single address
  • You aren’t a resident in the United States
  • Your business is operating across multiple states.
  • You don’t want your personal information and address made public available

Like most other formation companies, BetterLegal offers a registered agent service. As with smaller formation firms, BetterLegal contracts this service out to an unrelated third party.

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

If you are able to ignore the issue of transparency the BetterLegal registered agent service is actually a bargain cost. You can choose to pay the monthly fee of $10 or you can pay $90 for the year. The latter cost is highly affordable – many other major companies in the industry charge $150 per year or more.

BetterLegal’s registered agent services are also an add-on – it is not part of their basic formation package. This makes them an outlier, as numerous competitors offer registered agent services with their formation packages, typically offering the first year of service for absolutely free.

Business License Search


The type of business you run or operate in, the type of industry you’re in, and the location you’re located, you could require a couple or a lot of licences and permits. These may be needed at the state, local or federal levels.

Licenses can be quite a hassle to deal with yet they’re necessary. If you’re in violation and are found to be in violation, you could face an enormous penalty or have your business temporarily shuttered or even dissolved completely.

Figuring out which licenses and permits are applicable to your particular company requires an extensive amount of research. Instead of wading through tons of red tape and legalese yourself, you can hire a company like BetterLegal to perform an investigation into your business’s license.

Many formation firms offer this service. The form will ask you to provide information on your company, and BetterLegal will run a thorough lookup, gathering all permits and licenses pertinent to your business and giving guidelines on how to fill them out.

Note that BetterLegal will not file these for you – it provides the tools and information to file them yourself. However, this could be a huge time-saver, especially for companies that are heavily regulated.

Annual Compliance

$90 per calendar year, or $10.00 per month

The majority of state governments require corporations and LLCs to submit some form of annual report. Usually, these reports aren’t too complicated or thorough. They’re simply an avenue to monitor the state’s position 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 in December) or depending on the business’s creation date (e.g. in the event that you formed in August of 2021, you’ll submit an initial annual report by August of 2022). Certain states need you to submit a report every two years.

Filing your annual report may appear like a hassle however it must not be ignored. If you do not submit your annual report in time you could be charged the cost or lose good standing with the state.

Many of the formation companies, like BetterLegal provide annual compliance services. For a monthly or annual cost, BetterLegal will send you reminders regarding your upcoming annual report deadline. Then, once you’ve entered all the necessary information, they’ll draft your annual report and send it off to the state for you.

The majority of states charge a minimal (under $100) fee to file annual reports. BetterLegal will collect the fee and forward it to the relevant agency.

Third-Party Offerings

In the form package

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

Business checking: You’ll be set up with a no-fee, no-minimum business account online. You’ll be able to use debit cards that are associated with your account. You’ll be able to make physical checks from an online bank account.

Tax Analyse: Analyses and guidance from an “leading virtual tax service”. It’s not clear how thorough the analysis is, and what kinds of questions you’ll be able 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 located in New Jersey.

Payroll Benefits, HR, and Payroll Platform The most comprehensive offering that, unlike the others, is not free in your formation packages. Many different services are covered, all offered by third-parties.

While it’s certainly possible that some business owners will get value out of these services, we’re inclined to stay clear of “offers” like these. Usually, services like these are merely opportunities for businesses to sell their products to partners.

We suggest contacting specialists for payroll, tax, insurance, and HR needs.

For bank accounts, it’s generally advantageous to choose a bank that you already have a relationship with. In the event that you do not have a financial institution that fits that description for you, BetterLegal’s partnership offer may be an attractive one.

Additional Filing Services

Prices vary

BetterLegal also provides a range of filing services for one-time use which aren’t included in its main formation package. We’ve identified them which we think will be of the greatest value for business owners who are new and BetterLegal’s fixed fee for each.

Domesticate foreign LLC Your company’s primary state in the state to another, $299

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

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

Get a the Certificate of Good Standing Get a certification from the business’ home state that proves you have a current status on all fees and are in compliance with state permit and license regulations, $25

Register foreign LLC in a new state. allows an LLC that was established by a state in another to legal operate in a different state. Also called a “Foreign Qualification,” this procedure usually requires submitting the “Certificate of Authority” – basically, a permit to do business in a specific state, $199

Change the principal Office Address: It changes your address for business from that mentioned on the Articles of Organization or Incorporation to a new address, at a cost of $99

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

Since BetterLegal does have solid reviews with an easy-to-use website and a solid track time-to-turnaround record We’re confident in recommending these services.

The majority of new business owners prefer to keep their startup paperwork and add-on paperwork 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 on this site!

BetterLegal FAQs

What can BetterLegal do?

BetterLegal’s primary goal will be LLC formations and incorporations. They also provide many services related to the formation and operation of companies such as business license searches, registered agent service, compliance services, as well as amendment filing services.

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

BetterLegal’s LLC formation package is priced at an affordable $299, which includes state fees. This package includes Articles of Organization and an Operating Agreement but does not provide a registered agent service.

Is BetterLegal legit?

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

Who is BetterLegal the best choice for?

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

What are the advantages of using BetterLegal?

BetterLegal offers convenient online forms and offers excellent time-to-turnaround. However, the formation program is a bit pricey. 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. Llc Agreement California

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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