More people are setting up their own business, but it’s not as simple to do as many people think. To set up a company requires filing paperwork with state officials, obtaining tax id numbers, and selecting a registered agent, all of which can be a little confusing to new business owners.
To help, business formation companies like BetterLegal, which is located in Austin, Texas, offer all the services budding entrepreneurs need to set up a business and comply with both state and federal governments.
BetterLegal offers a cheaper package than competitors and uses electronic processing to get it done quickly and easily.
The demand for these types of business services is increasing in the United States. Business owners want to spend more time on their businesses and worry less about paperwork and state-issued deadlines, which is why utilizing LLC formation services is a good idea.
What features does BetterLegal offer?
Entrepreneurs turn to a business formation company to get help setting up a company. They might not know what kind of company to set up, what paperwork to file, or which state agency should receive the paperwork. A business formation company can handle the entire process.
There are several business formation companies out there, including IncFile, LegalZoom, and ZenBusiness, but BetterLegal will:
- File your business formation documents for an LLC or a corporation
- Obtain an EIN (Employer Identification Number)
- Help you create an operating agreement
Every state requires business formation documents. The name of the documents vary, but they’re usually called Articles of Organization or Certificate of Formation. These documents ask for the owner’s contact information, basic business information like the business name, and the name and address of a registered agent.
A registered agent will receive official documents for your company, like tax notices or legal documents. The owner can serve as the company’s registered agent, or you might consider using a registered agent service. Most business formation companies, including BetterLegal, offer this service.
For a small yearly fee, BetterLegal will accept official documents for your business and notify you when they come in.
Aside from the filing of the certificate of formation, most businesses need an EIN. This nine-digit number is issued on the IRS website and is needed to file taxes and hire employees.
Companies like BetterLegal can also help create an operating agreement, which, as the name suggests, explains how the company will operate.
How is BetterLegal different from other sites?
Two primary differences that make BetterLegal different from other business setup competitors. Those two differences are:
- Setup time
BetterLegal.com uses all the latest technology to the advantage of entrepreneurs to make business setups quick and easy. BetterLegal users can set up an LLC or corporation by filling out a quick form. Entrepreneurs then receive their documents showing a legally-owned business in their state in two business days.
It takes people longer to fill out forms with other business formation companies because they must sit through several advertisements before actually getting to the form. It also takes others around seven days to get business owners their documents.
BetterLegal services are priced lower than competitors too. The cost is a flat rate of $299 with BetterLegal. There is an additional state filing fee. Competitors charge more than $400 along with an additional state fee. Plus, competitors don’t offer a fast turnaround time.
Another advantage of BetterLegal over other website business operators is it services all 50 states. Not every company services in all states. BetterLegal files businesses with the state the same day it receives the application.
Who is BetterLegal best for?
Anyone can use BetterLegal to set up their business, but those who find it most helpful are new entrepreneurs who aren’t experienced in the regulatory aspects of establishing a business. For these entrepreneurs, the flat fee, quick application, and fast setup is what they need to get their business going.
New entrepreneurs typically start their business as a side job and are anxious to make it into a legitimate full-time business. Using BetterLegal has advantages for them because a business can be fully organized and set up in days instead of weeks. This allows them to get going with their business plan faster.
The application form on BetterLegal is perfect for those unfamiliar with legal filings. Most can fill it out in under 10 minutes, but some customers state they filled it out in four minutes!
What features do customers enjoy?
BetterLegal offers a range of services within its business formation packages. Its business formation services for both LLC and corporations include many free things including:
- A website
- A business checking account
- Free tax analysis
- An insurance evaluation
BetterLegal also has links to other important business elements like benefits, an human resources platform and payroll.
While business owners could purchase all these things separately elsewhere, BetterLegal saves money in the long run by providing them for free as part of a startup package. All of these services provided in one package makes it easier to manage as BetterLegal is the contact for all of them. That is much easier to manage than dealing with various people from different companies.
Having validated, professional links to things like human resources are valuable to new business owners. The only other option is to research and find professional services and that can be hit and miss. Business owners can enjoy a more worry-free startup experience by having recommended professionals at their fingertips rather than spending hours in research, interviews, and looking at reviews.
The company offers a great user experience and more services beyond the initial business formation package. Entrepreneurs can have them as a registered agent and there is an additional service to make sure a business remains within state compliance.
BetterLegal offers permit and licensing search and document and amendment research. Amendment and document research are free to customers who use BetterLegal for business formation.
BetterLegal doesn’t end the relationship with customers once the business is formed. It has many other services to help business owners as they grow and change. Those other services, such as reinstating a corporation or changing a principal’s address, which are filed through amendment forms, take one to three weeks to complete. Each service has its own cost associated with it.
What pricing does BetterLegal offer?
The flat cost for business formation with BetterLegal is $299. The company doesn’t try to upsell customers or require other services to be added as part of the formation. There is an additional state filing fee and that cost depends on the state.
The flat fee relates to both LLC and corporation formations. The fee includes filing the business, getting a federal employer identification number, drafting an operating agreement and providing a banking resolution and documents, and all the free items included in the package.
Extra services such as getting a registered agent, state compliance services cost, and license searches anywhere from $90 a year to a flat $125 fee. BetterLegal offers a host of other services for those seeking changes to their business, such as adding and removing directors or registering as a foreign corporation. Prices for those services range from $25 to $199.
Does BetterLegal have customer support?
BetterLegal has customer support for those who actually purchase from them. There is no customer support page on their website for a non-customer to ask questions. However, there is a chat service.
Customers who use BetterLegal said the company kept them well informed without the need for customer follow-up. BetterLegal uses text, email, and voicemail to keep customers up-to-date on their business formation progress and anything that comes up afterward. Phone support is limited. There is no phone number listed on the homepage of the website.
BetterLegal customers all state they are extremely happy with the customer service. All said BetterLegal representatives were extremely responsive and offered great information.
Pros of BetterLegal
There are obvious advantages to using BetterLegal over other similar services. Advantages include:
- A lower price
- Quick application time
- Fast setup time
- Hassle-free regulation compliance
BetterLegal provides a hassle-free experience with things that can be unfamiliar, such as setting up an EIN number. Dealing with the federal government to get an employment number can be challenging, especially for those who don’t know how to do it or have never done it before.
For those new to the business, obtaining an EIN can take a couple of weeks. BetterLegal can get it done as a part of your formation and entrepreneurs will have it in a couple of days.
There are nearly 200 customer reviews about BetterLegal on TrustPilot, many of which give the BetterLegal website an A+ rating. Customers are thrilled with the services provided through the company. Customers said the experience was fast and straightforward. Others said BetterLegal guided them through the whole process of business formation.
All customers said they got their paperwork with an EIN number in a couple of days and the service was incredibly professional. There were no negative reviews on this independent site.
Cons of BetterLegal
The one disadvantage of using this service is the lack of personal connection. There isn’t one representative you work with and phone support is limited to non-existent. While many customers don’t need that type of support, some may want to be able to talk to a real person about their business formation rather than chat or by email or text.
Given its name, you might expect BetterLegal to provide legal advice. However, that’s not the case. The website has a disclaimer at the bottom that says the company is not a law firm, does not provide legal services, and will not provide any direction on legal matters.