How Much To Create An Llc In Ohio
In this review, we will get straight to the point and explain the essential information you need to know about BetterLegal such as:
- The actual cost of BetterLegal’s LLC formation services
- Expected turnaround time for formation
- BetterLegal’s reliability, customer reviews, support offerings, and much more
In addition, we’ll give detailed explanations of the numerous other pertinent, formation-related services that BetterLegal offers.
Below is a quick summary of what we’ve learned. Below, you’ll find our more comprehensive review, which outlines our findings and explains 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 creation and a single incorporation package. While the package includes amazing add-ons, like Operating Agreement or Bylaws drafting offers a few unnecessary services too.
Overall, we were delighted with the ease of use on BetterLegal’s website and its easy-to-use online filing system. The prices of the services provided were easily found, for the most part.
BetterLegal’s rates for regular services, such as registered agent service and annual compliance, were competitive. Additionally, they offered more filing options than other smaller competitors.
You can go to BetterLegal.com yourself, or, if you want to know more about the factors we used to rate BetterLegal’s service, read on!
BetterLegal Quick Overview
Established in 2017, and located in Austin, Texas, BetterLegal is a relatively tiny player in the business formation sector.
As with many of its younger peer companies, BetterLegal tries to emphasize its efficiency. On their website you’ll see the following statement:
We’re a 21st century business which makes the process speedy, easy and inexpensive without the waste of time or paper.
The company has incredible turnaround times as well as an extremely user-friendly website.
Like several other small-scale formation companies, though, BetterLegal uses third parties to provide many of its services, like its registered agent service. They also provide a range of services through partner companies which include banks as well as online accounting companies, as well as at least one insurance company.
While they are primarily focused on business formation, BetterLegal provides many other services related to the process of starting and running a business. Some of the other services BetterLegal provides include:
- Operating Agreement and Bylaws drafting
- A permit or business license for a search service.
- Compliance services, such as the filing of annual reports
- Amendment filings, such as ones required to change your business’s name address, state of operation, or member info
BetterLegal’s formation pricing structure is straightforward. Contrary to their competitors, who typically have multiple different packages of formation, BetterLegal offers its formation bundle for one flat fee.
BetterLegal’s Formation Bundle is available to LLCs as well as standard corporation (C-corps). We’ll go over the services included. BetterLegal also offers many additional services, either with monthly subscriptions, or with fixed costs for 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 only service for incorporations as well as forms is comparable to a lot of its competition’s middle-tier offerings. It has more features than the typical basic formation.
For a set $299 cost, which includes applicable state fees, here’s what’s included:
Articles of Organization or Incorporation The official documents that establish your corporation or LLC with your state. BetterLegal promises to file your documents on the same day and a speedy return of your documents after the state has processed the paperwork.
EIN filing: EINs (Employer Identification Numbers) are used by the IRS to keep track of companies. The majority of companies have an EIN. It’s good to know that the process of filing one is simple. The whole procedure can be completed online in just a few minutes via an online application on the IRS’s EIN file web page.
Operating Agreement or Bylaws: These documents establish the guidelines concerning how your LLC or corporation will be managed. While they aren’t legally required in most states, we believe they are essential to all new business owners.
Bank Resolution An official document that outlines who can open a business account and carry out other banking transactions on behalf of a business. This document is required when you are planning to open a bank account for your company.
Websites: BetterLegal will provide you with a domain name and set up a basic website or “online store with inventory management services.” Business owners may choose to upgrade to a paid website plan in the future.
Tax Analysis: A basic analysis of your company’s tax situation performed by a third-party associate of BetterLegal.
insurance evaluation: An evaluation of your business’s potential insurance needs, with service offerings then made available through a third party partner that is part of BetterLegal, CHUBB Insurance.
We’ll provide more details on the overall value of this package in the next paragraph within the report.
BetterLegal vs Competitors Pricing
Below is a table which compares BetterLegal’s prices for formation against those of its major rivals.
Prices quoted on this page are independent of BetterLegal’s pricing for packages. They are standardized to compare against competitors.
We will define Fundamental Formation, Full Form and Full Formation plus Website below in the table.
For information about the cancellation and refund policies of BetterLegal You must comb through a great deal of legalese 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 firstname.lastname@example.org, or by canceling online through your account portal.
While it’s not specifically stated We assume that this policy is applicable to other recurring-fee services for example, BetterLegal’s annual compliance services. How Much To Create An Llc In Ohio
For other fixed-fee options BetterLegal’s terms are clear: “All purchases through the Website are final and will not be refunded.”
Below are a few of the areas we felt BetterLegal was particularly strong.
Solid turnaround times
BetterLegal showcases its turnaround times on its main website. They claim same-day filings for all of their establishments, meaning you’ll be able to submit your Articles of Organization or Incorporation will be submitted to the authorities of the state within the same day as you file them with BetterLegal.
They also say that they’ll send you your documents within two business days. We assume this isn’t accounting for actual state processes, and that could be as long as a few weeks. However, it seems like BetterLegal is doing everything in their power to move things along as quickly as possible.
Many reviews confirm BetterLegal’s claims. A number of reviews we looked at, like this one, mentioned the company’s quick turnaround on the formation process.
BetterLegal’s same-day filing applies to all their orders. There is no need to pay an extra fee to avail internal prioritization which is something many of BetterLegal’s competitors do charge extra for.
As a fast turnaround time is often one of the two main factors for those creating new businesses (the other one being the cost of formation) This is a big plus for BetterLegal.
BetterLegal is a tiny company We don’t have as many reviews to go off of as we’d prefer. Still, what’s available is pretty well-constructed.
BetterLegal sports a 4.8 from 5 Trustpilot
They also have a 4.88 rating out of five for their BBB.
They’re Better Business Bureau accredited as also, with an A+ rating.
Reviewers of BetterLegal seem to have nice opinions all over all areas. They are pleased with the clarity of the company as well as its turnaround time and pricing (even though we ourselves do not think their pricing is especially remarkable).
Limited customer support
Smaller formation companies tend to be more agile, efficient, and more affordable than larger companies. But, many small-sized formation companies also lack the support staff that the larger companies have.
BetterLegal isn’t an exception.
Although the BetterLegal website has an online chat option but there’s no contact information that can be 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 page. There, too is no information on when phone lines are available or the speed with which emails are responded to.
BetterLegal, it seems similar to the majority of their competitors – heavily rely on automation for their customer service.
In the ideal scenario, your registration will go through without a hitch, and you’ll never need to contact an agent for service. However, we do see the lack of service rep availability as a definite downside, though.
Below, we’ll discuss some of the primary services related to formation that BetterLegal offers. We’ll discuss when and why you might need each one, and also include the prices offered by BetterLegal.
LLC Formation and Incorporation
$299 plus state fees
BetterLegal will assist you to fill out and file all the necessary documents required to establish your LLC or incorporating your business.
LLCs, or Limited Liability Companies, are among the most well-known kinds of business across the United States. They are more flexible and easy to manage than conventional corporations (C-corps) LLCs are also able to handle lower requirements for recordkeeping and compliance. They can also provide serious tax benefits through pass-through taxation.
Corporate entities have more stringent requirements, but they can provide some tax or structural advantages, based on your business’s size and industry.
If you’re unsure if you’re unsure if an LLC or a corporation is the best business type for you, consult with an expert in small businesses or an experienced accountant.
Corporations and LLCs are formed at the state level, generally through a department’s Secretary of State office.
Every state has specific rules and regulations regarding the formation of LLCs, and learning about the various processes and laws relevant to you can be a significant time sink.
Many new business owners hire a formation service, like BetterLegal, to fill out and complete their paperwork on their behalf. For LLCs, this means filling out Articles of Organization. For corporations, that involves filing Articles of Incorporation.
In their normal formation bundle, BetterLegal will file your documents and forward it to state authorities. The process is easy and is completed online. It’s as simple as asking simple questions about your company, e.g., its name and the name of its owner(s) as well as member(s) as well as its field of business, and its address. How Much To Create An Llc In Ohio
BetterLegal will also run a quick name check to ensure your LLC or company’s name isn’t already taken (which can result in a rejected application).
As we stated at the top of this review the $299 price for the initial registration does not include fees for filing with the state which can vary between $40-$500, depending on your state of filing.
In the Formation package
An EIN, or Employer Identification Numberis the kind of tax id that most new businesses will need to get. The EIN is assigned to the IRS, EINs are legally mandatory for businesses that have employees. They are also required for those who want to establish your own business bank account.
You can consider your EIN as a bit the equivalent of your business’s Social Security Number. Every one is unique, and is used by the IRS to keep track of the activities of your business.
The good news is that getting an EIN is an easy process. You can do it online, using the IRS’s EIN application page, in just moments. Just type in a few pieces of info on your business and you’ll receive an EIN on the spot.
Since filing for an EIN is easy and painless, we always recommend against any paid EIN filer. Unfortunately, whereas most firms allow you to file for your EIN for an extra fee (or in conjunction with a larger formation program), BetterLegal automatically includes EIN filing as part of the only formation package.
You can eliminate EIN filing from your cart when you pay however it will not reduce the price of your purchase in any way. We’re not happy that BetterLegal “builds in” the price of EIN filing, but doesn’t offer the customer a discount when you drop the unnecessary service.
Operating Agreement or Bylaws
Included with formation package
The Operating Agreement is one of the most important legal documents for any LLC. Operating agreements outline the basics of the way in which an LLC is run. They usually include info like:
- Who the LLC’s owner(s) or member(s) are, as well as how the ownership of an LLC is distributed between them
- Who and how is the LLC managed? LLC will be controlled
- How will profits be distributed
- What should you do if an owner or member leaves or dies
- …plus other crucial pieces of info
A few states – California, Delaware, Maine, Missouri, and New York – legally require you to have the Operating Agreement. Even with these, you don’t have to file the agreements with state authorities, you are just required to keep it in your possession.
However, we suggest that all LLCs in all states, create an Operating Agreement and keep it on hand.
An Operating Agreement defines your LLC’s insurance against liability. Since liability protections are one of the main benefits offered by LLCs, it’s unwise to forgo them.
Operating Agreements can also assist in providing guidance during unexpected events. You probably don’t go 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 get through such situations more easily.
If you’re considering incorporating, instead of creating an LLC, then you’ll need corporate Bylaws rather than an operating contract. Corporate Bylaws work much like they provide the same advantages to operating agreements.
In their main setup package, BetterLegal will help you to draft a legal Operating Agreement or Corporate Bylaws.
In the form package
A banking resolution is a basic, but important document. The resolution of a bank outlines which member(s) of an LLC have the authority to establish a business bank account as well as participate in other banking-related activities.
Banks require that you submit a bank resolution at the time of opening a bank for business account.
In their initial formation package BetterLegal will prepare a bank resolution for your company. All you’ll have to submit is information on who is allowed to establish and open a bank account under your LLC’s name.
It is included in the form package
BetterLegal is one of only one of the few formation firms that offer a web domain along with its formation package. Unfortunately, details on their offerings are limited.
Their main package page states that you’ll be able to “Set up a free website or online store with inventory management.”
However, there’s evidence of upselling in this area too in the following paragraph is: “As your business grows, transition to a paid plan to unlock more features and customization.”
BetterLegal has a ribbon from GoDaddy on their main webpage However, the company explicitly state the name of its third-party hosting provider is. It’s not even a name that is listed in the company’s terms of service.
We’re all about openness, but we’re not happy with the BetterLegal experience in this case. In any event, we always recommend directly going to a domain host or a business website builder in the first place.
Many companies are experts in those categories, so there’s no need to obtain these services through a business formation.
Registered Agent Service
$90 for the calendar year, or $10.00 monthly
All LLCs and corporations are legally required to have a registered agent. While it sounds like a fancy phrase however, the job of an agent registered is simple – they receive official correspondence and service of procedure (legal notices, such as lawsuits) for the benefit of a business.
Registered agents must be present during working hours, and they should be located in the state where your LLC or corporation is based.
Being able to properly receive official correspondence and being able to respond promptly is crucial.
If you don’t respond to a compliance notice issued by the state or federal government, your business may be in trouble or be assessed fines or penalties, or even be dissolution. 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 forfeited.How Much To Create An Llc In Ohio
The presence of a registered agent This is why it’s vital.
Technically, you are your business’s own registered agent. However, there are numerous reasons why business owners opt to use an agent registered with the company.
We recommend using the Registered Agent service if:
- You travel frequently and are not always at a single address
- You are not a resident within the United States
- Your company is present in several states.
- You don’t want your name and address made public available
As with other formation companies, BetterLegal offers a registered agent service. As with other small formation companies, BetterLegal contracts this service out to a third-party.
The complete terms of service for BetterLegal are available here..
If you’re able to overlook the transparency issue BetterLegal’s registered agent program is offered at a reasonable price. You can choose to pay $10 per month or $90 each year. The latter cost is highly affordable – many other large companies cost $150 annually or more.
BetterLegal’s registered agent service is also an add-on – it is not part of their regular formation package. This makes them somewhat of an outliersince numerous competitors offer registered agent services with their formation packages, often including the first year of service for absolutely free.
Business License Search
Based on the kind of business you manage, what industry you’re in, as well as where your business is located, you might require several or even a number of permit and licences. 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 in violation with the law, you could be handed an enormous penalty or be forced to shut down your business temporarily or even dissolved completely.
determining which licenses and permits are applicable to your particular company requires quite a bit of research. Instead of sifting through lots of legal and red tape your own, you can engage an organization like BetterLegal to conduct an investigation into your business’s license.
Lots of formation companies offer this service. Enter the information about your company, and BetterLegal will do a comprehensive search, accumulating all permits and licenses that are relevant to you and providing guidelines on how to fill them in.
Take note that BetterLegal doesn’t make these filings for you; it gives you the tools and information to file them your self. However, this could be a huge time-saver, especially for highly-regulated businesses.
$90 for the calendar year, or $10.00 monthly
Most state governments require corporations and LLCs to file an annual report. They aren’t usually too cumbersome or in-depth. They’re merely an opportunity for states to keep an eye on the businesses operating within their jurisdiction.
Your deadline filing report may be fixed (e.g. every business are required to file their annual report in December) or dependent on your company’s founding date (e.g. If you were founded in August of 2021, you’ll submit your first annual report in August of 2022). Certain states require you to submit a report once at least every 2 years.
The annual report you file may seem like a burden, but it absolutely shouldn’t be a snooze. If you don’t file your report on time, you may receive a fee or lose your excellent standing in the eyes of the State.
Many formation services, including BetterLegal offers an annual service for compliance. For a monthly, or yearly fee, BetterLegal will send you reminders of your 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.
A majority of states have a modest (under $100) cost for annual report filing – BetterLegal will accept that fee from you and forward it to the appropriate authority.
In the form package
BetterLegal also offers a limited range of third-party products within their corporate formation service.
Business Checking: You’ll be set up with a free, no-minimum online business bank account. You’ll be able to use debit cards that are associated to the account. You’ll be able to issue physical checks from your online account.
Tax Analysis: Analyses and guidance from a “leading virtual tax service”. It’s not clear how thorough the analysis is and what sort of questions you’ll be able to ask.
Insurance Evaluation: An evaluation of your company’s specific insurance needs. Insurance services are offered through a BetterLegal affiliate, CHUBB Insurance, which is located in New Jersey.
Payroll, Benefits, and HR Platform: A more extensive offering that, unlike the other options, isn’t included with your formation packages. Many different services are offered, all of which are provided by third parties.
It’s likely that some business owners gain value from these add-on services, we’re inclined to avoid “offers” like these. Usually, services like these are just opportunities for companies to promote their business to their partners.
We recommend contacting specialists for your payroll, tax, insurance, and HR needs.
In the case of banks, it’s typically to your benefit to use a bank that has an established relationship with. However, if you’re not able to find a financial institution which fits this description for you, BetterLegal’s partnership offer might be a good one.
Additional Filing Services
BetterLegal also offers a bunch of filing services for one-time use that aren’t part of its primary setup package. Below, we’ve listed the ones which we believe to be the most useful to business owners starting out and BetterLegal’s fixed-fee for each.
Foreign LLC that is domestic Your LLC’s state of residence from one to another, $299
Reinstate LLC or corporate: Reinstates an LLC or a company that has been dissolution or disbanded. $199
Terminate LLC or Corporation: Legally dissolves an LLC or corporation for $199.
Request a Certificate of Good Standing: You will receive a document from your company’s home state proving that you’re current on all your fees and that you are in compliance with state permits and license laws. $25
Register foreign LLCs in a different state: It allows an LLC established within one jurisdiction to function in another state. Also called a “Foreign Qualification,” this process usually involves applying for the “Certificate of Authority” – in essence, a permit do business in a specific state. It costs $199.
Change the principal office address: It changes your address for business from the one you originally mentioned on your Articles of Organization or Incorporation to a new address, costing $99
Remove or add directors, members, or shareholders: The company’s official record 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 an impressive track time-to-turnaround record We’re confident in recommending these services.
The majority of entrepreneurs who are new to business prefer to keep their startup paperwork and add-on paperwork in one location, however we realize that this suggestion won’t be applicable to everyone.
If you want to learn more about the offerings of the competitors look over some of the reviews here!
What can BetterLegal do?
BetterLegal’s main focus is LLC formations and incorporations. However, they also provide a variety of services related to the creation and running of companies which include searches for business licenses as well as registered agent service. compliance services, as well as amendment filing services.
How much will it cost to form an LLC using BetterLegal?
BetterLegal’s LLC formation package is an affordable $299, which includes state fees. This package comprises Articles of Organization and an Operating Agreement but does not provide a registered agent service.
Is BetterLegal legit?
Yes. The firm has been operating since 2017 and is Better Business Bureau accredited. BetterLegal also boasts an A+ BBB rating as well as an outstanding review rating on Trustpilot.
Who is BetterLegal most suitable for?
BetterLegal is the best choice for those who are willing to pay a little extra for a fast and reliable LLC formation as well as incorporation.
What are the advantages of using BetterLegal?
BetterLegal provides easy online forms and has fast time-to-turnaround. However, the company’s formation package is on the expensive side. BetterLegal has also contracted a lot of its services to third party partner companies.
What states does BetterLegal serve?
BetterLegal is available to all 50 states.
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. How Much To Create An Llc In Ohio
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.