The Beginning Of Your Business
When forming a new company, all new business owners will be required to choose from several types of business structures depending on the enterprise’s needs and budget. For many companies, the advantages of an LLC (limited liability company) outperform the costs and vulnerability of other business structures like sole proprietorships and partnerships. Organizing your systems can be one of the main difficulties with starting an LLC, as it can be taxing, especially if you do not have the knowledge or patience to deal with the paperwork. Hiring a registered agent to help satisfy the necessary documentation before filing the articles of the organization is a great idea. A registered and reputable agency service or LLC filing platform protects your personal information from leaking to the public. This is where LLC services come in; you can have someone else do the heavy lifting, thereby saving time spent filing and researching.
What Is The Difference Between An LLC And A Sole Proprietorship
A sole proprietorship is the most flexible business structure because of its minimal legal requirements. If you run an online dropshipping business, you are the only employee of that enterprise unless you decide to take on other employees. Then, you might want to try another business structure.
A partnership is similar to a sole proprietorship because the business is not incorporated. It is a formal agreement between two or more parties to operate the business and share profits. This article’s topic is the formation of an LLC or limited liability company. These legally incorporated business entities combine partnership, sole proprietorship, and corporation elements. LLCs may seem suited to a more extensive bureaucracy, but even one person can form a single-member company.
There are critical differences in the formation, operations, and legal protection offered to each business structure. A sole proprietorship which is the easiest to form, only requires you to get a business permit and register the trade name. The LLC, or limited liability company, which is the most complicated, requires articles of incorporation, business permits, and a registered trade name. Partnerships would need submissions of name, nature of the business’s activities, and the number of people working for the company.
Your Liability Is Limited
Your legal protection is also distinguishable as an LLC business owner. Business owners are not personally liable for the business’s debts or litigation. It is one of the main reasons business owners prefer this business structure. You would incur liability for all accidents or disputes for both partnerships and sole proprietorships. However, the corporate veil does have its limits for LLCs. Suppose one of the directors is found to have purposefully committed a crime or violated some of his fiduciary obligations to the organization. In that case, they will become personally liable.
With LLCs, the owners can share the decision-making or appoint a manager responsible for the future of the company; compared to partnerships, or sole proprietors, the owner is the one that has the final say. Paperwork and compliance, though, are the responsibility of the LLCs managers. Owners with these structures have to renew business licenses, file annual reports, and hold member meetings. Partnerships and sole proprietorships have much fewer maintenance needs, only requiring the payment of taxes and the renewal of business licenses.
Form An LLC – Limited Liability Company
LLC services are not essential to open a business. As a business owner, you can do everything these services do. Though, it is significantly easier for those business owners who want a guide through the process. LLC services also provide legal services to those business owners who wish to amend their current LLC structure. These platforms typically offer services like trademark advice, partnership agreements, and the creation of articles of incorporation, to name a few.
Customer Support
Choose a legal service that has that personalized touch. There will always be a time when you need fast correspondence from customer service staff if you go that route. If you choose a platform that does not prioritize quick communication, it might cost you. Some online LLC filing organizations claim they can offer same-day filing or next-day processing, which means they will complete registering the business entity within a day. Other platforms say they provide seven-day document filing. The faster the turnaround time, the more you will likely pay for the service. It depends on the task’s urgency, which brings us to the next factor, your budget.
LLC Formation Expenses
Even though the cost is not the most important thing you need to factor in, it is a factor when choosing an LLC formation service. It depends on the business’s requirements and what you can afford at the time. Several LLC registration packages come with various benefits. At the base level, LLC Name Validation, Articles of Organization Filing, Automated Error Checking, and Customer Service Phone Support are typical provisions. Premium packages come with different conditions like IRS applications, Business Forms, and Priority Rush Filing. The value of these packages vastly differs; of course, if the standard rate is $50, the express option could cost as high as $300.
Legal Services
If you are a business owner who frequently needs legal services such as access to contracts and business document templates, then obtaining a platform that helps with these tasks can save you much money. Rather than hiring a lawyer with a specialty or being charged by the hour by a law firm, an online LLC formation company can help with inexpensive legal advice and filings.
LLC Legal – Online Reviews
Before deciding on the service for your LLC business filings, it is essential to check their online reviews. You’ll get to know what other customers are saying about their business. That includes feedback on customer support, operations, and pricing, and it’ll give you a good idea about the quality of the service compared to others in the same market. Seeing several positive reviews is a good sign because it shows the company has prioritized customer satisfaction. Check multiple review sites for the same platform because companies can sometimes purchase positive affirmations.
Consider the Range of Services
You’ll want to choose service providers offering the best features that suit your needs. Look out for those companies that claim to provide solutions even when they know it will be hard to deliver on their promise. The best LLC services should offer a range of services tailored to suit the objectives of your specific business. You will need to research several options to find the right one. Here are a few services to get you started.
Rocket Lawyers is described as one of the best online legal services to assist in the formation of an LLC. This online tool can help you form the proper business structure from LLCs to corporations. You can access contracts, online forms, and discounted attorney rates instantly. The diversity of its services is why it is a favorite option for consumers.
There are specialists available to answer any questions or issues you may have. For example, the ‘ask a lawyer’ service means you are one click away from answers to any preliminary questions when getting started. Rocket Lawyer can prepare the articles of organization for a fee. Once this is done, the platform will file them to the appropriate agency. It also does a name availability search to confirm that your desired business name is available. Rocket Lawyer also offers operating agreement templates to ensure the business runs smoothly. You can get company alerts that remind you of the deadline to perform tasks like annual reports. It is integrated within the registered agent services. The company has also taken steps to ensure all personal information is always safe. They’ve implemented SSL and 128-bit encryption to ensure that the data is safely transferred and stored.
The first seven days are free for premium package members upon signing up. They can access free document protection, 30-minute consultations, and opportunities to ask the lawyer for any legal queries. The incorporation filing is free but charged at a 24% discount afterward. If you decide to hire a lawyer, it will be 40% off, courtesy of the platform. Understandably, the non-member is charged much more. Legal documentation is $39.99, while attorney services are $9.99 per document. They offer a free consultation service to premium members, which would cost $59.99.
LegalZoom is one of the most popular business formation approaches, as they focus on providing complete legal services after the creation of the Limited Liability Company. Though its moniker may imply differently, LegalZoom is not a law firm. The company partners with thousands of consultants nationwide to assist customers with business-related endeavors.
LegalZoom has three packages which are Economy, Standard, and Express-Gold. At the base level, the company offers name checks and filing of the articles of incorporation within 30 days. A definitive next-steps guide for LLCs and lifetime customer support, along with financial account authorization, is also provided. The standard package entails a processing time of 15 days. They include official certificates and seals to record the ownership of the business. LegalZoom provides VIP Processing, which guarantees that the representatives will prioritize the order internally to ensure processing. The highest package is the gold package which provides the amenities available with the standard though there is rush processing with the documentation and shipping at seven business days.
The economy package costs $79, while the Standard level is $329. The Express Gold package is $349. Each of these fees is not inclusive of the state filing fees.
ZenBusiness is a platform that specializes in business formation. Though it is relatively new, many customers have left positive reviews of its services. Part of ZenBusiness’s success is its low-priced plans and excellent customer service. You can choose one of three plans for LLCs as well.
Zen Business provides a seamless experience, especially for first-time business owners, by carefully guiding them through the entire process. After finalizing the order, the platform’s dashboard will guide you through the progress of the formation of the LLC in real-time. You will also get notifications and updates during the formation process. Other critical services provided include federal employer identification numbers and registered agent assistance. ZenBusiness also has add-on features like complimentary assessments from certified accountants to set up accounting and tax considerations.
There are three packages to choose from depending on the number of features you need. The starter package costs $49 and features business filing, name availability search, and phone support. You will also receive a complimentary year of registered agent support, which will cost $119 going forward. ZenBusiness Pro is $179 annually, adding expedited filing, employer ID number creation, and other compliance checks. At the highest level is the ZenBusiness Premium which includes every service the platform provides at $299 a year. This is an excellent alternative for business owners who want all-inclusive service to handle all of the work with beginning a new business. ZenBusiness also features an A-la-carte service that offers a build-your-package service, giving you more flexibility with purchased services. To access this service, you must register for an account and provide more personal information.
Northwest is a well-reputed LLC service offering guidance on business filings. They also have very organized customer service and a streamlined order placement system. You’ll have the option of completing some services within one day with their express service. NorthWest has successfully operated in this field for over two decades, providing customer satisfaction to thousands of businesses.
Northwest features a platform for digital storage, business funding analysis, and tax planning. All your files are kept safe in a library, which you can access anytime. The platform also delivers hard copies of files to the location of your choice. NorthWest also has a team of consultants who advise you on all things tax filing and planning. The goal is to help you save as much money as possible through lesser-known rebates. Business funding analysis is also provided for insight into funding your startup. The experts at Northwest will show you how to make it happen.
Northwest features up-front and monthly payment features with Basic LLC filing, registered agent services, and operating agreement options. Basic filing costs $100, and the state fee when paying upfront. Registered agents also cost $125 per year for this package. They are inclusive of the monthly package, however. EIN and Tax ID are priced at $50 for the up-front package but are included in the monthly payment scheme.
Though it is one of the least-known companies in the LLC service field, File-Now features quick and affordable services worth mentioning. The company currently has 24/7 online customer support and guarantees zero error money-back if you are unsatisfied or have issues with the LLC filing.
The File-Now platform does not have hidden fees. It also does not have paperwork requirements, as the team will handle that side of incorporation. You also get unlimited phone and email support, which is excellent because of the personalized touch. As well as being affordable, FileNow also has same-day expedited filing options. That means you can be a business owner within hours of beginning the filing process. The sites and agents are on hand to assist quickly during the process. As a bonus, there is 24-hour order processing which is the fastest in the industry, and it is at no additional cost. Express shipping and electronic delivery are included to obtain your documents quickly.
There are two packages available, including the starter and the premium. The first costs $49, along with the state fee. The Premium package is higher priced and includes everything not present in the basic option, such as banking resolution, 24-hour order processing, and EIN. For this one, you get filing services, business tax consultation, online order status tracking, and delivery of state documentation.
IncFile has assisted in registering hundreds of thousands of LLCs since 2004. They have a team of experienced specialists who will guide you through the registration and filing process to get things done quickly. Whether you want to begin a new company or would like assistance restructuring the current one to your needs, it is an excellent option.
IncFile’s primary function is to assist business owners with formation processes. They offer next-day processing and quick claims turnaround regardless of your state jurisdiction. The platform also acts as a registered agent for any business through its site, complying with the country’s business laws. IncFile also offers a trademark registration package, including a search of current trademarks, legal counsel, and filing of a trademark application. Document templates are also available as operating agreements outline the business rules and provisions.
Incfile offers customer support from Monday morning to Friday evening CST. A customer support request form on the site indicates someone will respond as quickly as possible to the submitted queries.
The silver package, the bare-bones version, is free though you will pay the state fees. In that arrangement, you get the articles of organization and a free year of the platform’s registered agent service. There is the gold plan as well, which costs $149, not inclusive of the state fees. You would get a business tax number, business resolution drafting, online access dashboard, and unlimited phone support for that. At $299, you get the platinum plan that includes everything offered in gold with some extras.
Hashtag Legal is an excellent online business service option for entrepreneurs because of its customized services. Hashtag Legal offers more in-depth legal advice than other services. However, it is also suitable for those who do not have a lot of legal requirements for their business formation.
Hashtag Legal is the go-to option for business owners with more complex situations, performing in-depth entity formation, intellectual property services, and contract drafting. Their experts will show you every loophole or consideration you’ll want to pay attention to, not to mention legal strategy outside general counsel. One of the best things about Hashtag Legal is the company’s ability to customize packages for the clients’ business needs. The formation and filing services are attached to legal advice, which helps you know if an LLC is the best approach. You usually pay a little more for a custom legal package.
Considering Hashtag Legal offers customized services for individual clients, there are no priced packages. Hashtag Legal customer support agents are standing by to take your call.
Inc-Authority is a good solution for small businesses considering they have a dedicated team of startup specialists available to assist customers at every juncture. Its moniker is similar in name and services to IncFile, which is also on the list, but these are separate companies. One of their selling points is offering a free business information package. The only payment is the state billing fees.
Your Inc-Authority agent will make a comprehensive 5-point trademark inquiry to confirm that the selected company name is available. During that time, you can track the progress from the dashboard. Inc-Authority will even offer digital copies of the company registration documents and the corresponding files for support. IncAuthority will also provide a customized Operation Agreement tailored to your particular business structure. Other services available include the Employee Identification Number or EIN application and the unique tax ID number for filing business taxes. If you’re in a hurry to incorporate before the next tax filing period, IncAuthority offers expedited service for a one-off fee. The company has an Express Processing add-on which will speed up the registration process as agents take care of the physical filing and forwarding everything to the Secretary of State department.
There are four IncAuthority packages available. These include the Entry, Standard, Executive, and Tycoon levels. The entry-level is the lowest priced as you do not have to pay anything so long as you only require the LC to file an S-Corp election. However, if you require an Employee Identification Number filing, it will be an extra $49. The Standard package costs $399, including operating agreement drafting and EIN filing. The executive level goes for $499, including the amenities provided by the Standard package but adding the Business License Search. For $799, you are at the Tycoon level, which comes with standard and executive provisions for expedited business day filing. Like the entry-level package, customer service consultation is free for one year but costs $99 per year afterward.
