What Is BetterLegal?
BetterLegal is an online formation service that allows you to create and register a limited liability company (LLC) or corporation. BetterLegal guides you through each step making the process easy and efficient. BetterLegal doesn’t complicate things with pricing options, upsells or distracting advertisements―it’s one flat price for everything you need.
All of the essentials included:
- State formation filing
- EIN
- Operating agreement of bylaws
- Express processing
Featured Partners
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ZenBusiness
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LegalZoom
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Northwest Registered Agent
$39 + State Fees
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How BetterLegal Works
BetterLegal files your business formation documents with the state on the same day it receives your order. This applies to all formation entities. As soon as the state approves the documents, BetterLegal will then obtain your EIN, compile your operating agreement and send you all the necessary documents, including additional information via email.
What Sets BetterLegal Apart
One thing that sets BetterLegal apart from its competitors is that it offers a single flat-fee pricing package. The purpose for this is to simplify the process, giving every client everything they need in one click with no unnecessary upsells or confusing options. It’s a great option for anyone who doesn’t have the time or resources to file with the state themselves or deal with too many options and confusing add-ons.
Pros
BetterLegal is known for its excellent turnaround time as some competitors can take weeks to file or deliver documents. Some are also add-ons, and you have to pay an additional fee for expedited services. This is a great perk for anyone who is trying to get their business up and running quickly. Take into consideration that state processing times can also vary according to your specific state and any backlogs. All documents are delivered to you via email making the process even faster.
BetterLegal also has a helpful live interactive dashboard that allows you to make any changes down the road, showing you the most updated information about your business. Here, you can access reminders when compliance filings are due and make changes to name, address or ownership. BetterLegal will also share banking, accounting and insurance recommendations and a library of commonly used contracts and agreements for free.
Cons
BetterLegal does not do a name search for you―but has a page with direct links to where you can do it yourself for your state―and, if your company name is rejected by the state, this could delay the business formation process by a few more days. Be sure to do a name search to see if it is available beforehand. The upside, BetterLegal allows you to provide two alternative names if the first choice is not available.
BetterLegal also does not offer a free trial or a free formation plan as some competitors do.
You’ll be required to pay a one-time fee for the service and sign up with the company with no money-back guarantee.
BetterLegal Services
Let’s look at what’s included for both LLC and corporation business formation with BetterLegal:
- State formation filing: This document officially establishes your LLCas a separate legal entity in your state.
- EIN: BetterLegal will file your EIN or tax identification number (TIN) for you, this is obtained from the IRS. It will be required to establish a bank account for your business and is also necessary if you will have any W-2 employees.
- Operating agreement or bylaws: Both operating agreements and bylaws are important components of any business structure. BetterLegal will provide these documents to set forth the organizational rules of your business.
- Banking resolution: This formal document authorizes an LLC or corporation to open a bank account. It identifies which members can access the company bank accounts.
- Website: Website service provided by Square is included as a free service. BetterLegal provides you with the tools to set up a free website or online store with inventory management. As your business grows, you have the option to transition to a paid plan with Square to unlock more features and customization.
- Tax analysis: A tax analysis is provided by Taxfyle―a third-party partner with BetterLegal―and is included as a free service.
- Insurance evaluation: BetterLegal has partnered with Sure to offer customers business insurance powered by Chubb.
- Express processing: Expedited business formation filing and fast turnaround in two business days.
- Name availability search: BetterLegal provides a link on its website to perform a name search in the state you wish to run your business. This link will take you directly to the secretary of state office website to run the search.
- State compliance services: BetterLegal can take care of state compliance reports for $90 per year or $10 per month. However, this service is an add-on.
- Registered agent services: BetterLegal can serve as your registered agent for $90 per year or $10 per month. This service is also an add-on.
- Business forms, including S corporation (S-corp) election form: BetterLegal includes several optional business forms, such as change of office designation, meeting minute templates, IRS S-corp election instructions and form and ownership amendment.
- Business checking: Services are provided by Mercury, a BetterLegal partner for business checking. There is no deposit minimum or balance requirements with Mercury.
- Payroll benefits and human resources (HR) platform: Services are provided by Square, a third-party BetterLegal partner. Square is a payment processor that handles invoicing, website/ecommerce, email marketing, payroll and proactive credit lines.
BetterLegal Pricing and Plans
LLC/Corporation Formation Service
BetterLegal has simplified its business formation services into one flat fee plan for both LLC and Corporation that costs $299.
What’s included:
- Two-business day turnaround
- EIN
- Operating agreement or bylaws
- Banking resolution and business documents
Getting Started With BetterLegal
BetterLegal claims that its formation process takes less than 10 minutes to complete, but it’s best to have everything prepared ahead of time to ensure all of your information is on hand and accurate. We’ve broken down the steps for you, so you’ll have an idea of what to expect.
Step 1. Tell BetterLegal About Your Company
Here, you’ll let BetterLegal know if you are forming an LLC or corporation. Remember to make sure your business name is available beforehand. BetterLegal also holds you responsible for any mistakes on the form so it’s important to double-check for accuracy:
- What is the name of your company?
- Where would you like to form your company?
- Which industry best describes your business?
Step 2. Who Are the Owners and Operators?
Here, you will let BetterLegal know who the members and managers are for your business. In an LLC, an owner is called a “member” but does not necessarily make decisions pertaining to its operations and an operator is called a “manager,” who is essentially the director of business operations. A single person (or business) can be both a manager and a member but all members can be involved in management roles when forming an LLC:
- Name, email and address of members and managers
- Ownership percentage of each member
Step 3. Registered Agent and Address
Every LLC must have a registered agent to receive important notices concerning any legal documents, taxes, compliance reports and more. The registered agent must be present at the address provided during normal business hours. This is public information, so if you decide you do not want this information public, BetterLegal can serve as your registered agent for an additional cost of $90 per year or $10 a month. You can provide registered agent name and address or choose BetterLegal Services as your agent.
Step 4. State Compliance
States require businesses to file annual compliance reports to stay in good standing. Here, you can choose BetterLegal to handle your state compliance or provide the information as to who is responsible for filing these reports. Ask yourself if you would like BetterLegal to handle your state compliance. If not, provide the name of the owner and operators who will handle your state compliance.
Step 5. Continue to Payment and Review
After answering all the questions, review your information carefully before proceeding to payment. Make sure you have included any optional add-ons that you might need, such as providing payment information.
Step 6. File for an EIN
BetterLegal can file the EIN for you, or you can choose to file it yourself. After your business formation has been approved, your EIN will be filed directly with the IRS.
Step 7. Prepare your Operating Agreement
At this time, BetterLegal will prepare your legal documents concerning the “internal” rules of your business properly.
Step 8. Receive All Documents by Email
As soon as everything is processed and finalized with the state, you will receive all of your completed documents via email. You can also access these documents from your personal customer dashboard through the BetterLegal website at any time.
To finalize, the process is straightforward as long as you are prepared. Keep a good eye on accuracy. If the formation filing cannot be completed because of your inaction, errors or missed payments, BetterLegal will not be responsible. It only guarantees any missed deadlines that might incur as part of its compliance service.
You can review and change any of your personal information by logging into your account on the BetterLegal website. You can also correct or delete any personal information by sending an email to email@betterlegal.com.
Turnaround times are estimates only and are not guaranteed due to the speed at which the state government office is able to process the filings after submission. Check with your specific state for estimated filing turnaround time. For same-day filing, you must submit your order to BetterLegal by 3 p.m. Central time. Otherwise, it will be filed the following business day.
Remember, you are responsible for paying yearly fees for add-ons, renewals and any state filing fees.
Customer Service and Support
I made three attempts to contact BetterLegal customer support through email, online live chat and direct phone call.
The first attempt was through email, the second attempt was a phone call to the number provided on its “contact us” page and the third attempt I submitted a question through live chat on its website.
Unfortunately, each attempt failed. When I called, an automated message answered and said there was no one available to take the call and to please leave a message. The online chat forum also said there was no one available online to chat. I was asked to leave a name, email, company name and phone number for a return call.
I did not find it necessary to leave any personal information as I believe that should come when or if I decide I want to use its services. I did, however, send an email with a few questions and after four days, I still had not received a response. For this, I wasn’t too impressed with its customer service as I believe it’s important for an agent to be available to chat with potential customers during business hours.
On a positive note, Betterlegal has received excellent reviews on Trustpilot. Most customers claim to have had a great experience stating the service was fast, accurate and responsive:
Customer Service
Monday to Friday, 9 a.m. to 7 p.m. Eastern time
(855) 612-0480
(512) 969-2339
BetterLegal website states customer service will follow up with any calls or messages that are received outside of regular service hours the next business day.
Additional Services Worth Noting
Registered Agent and Address
As an add-on service you can choose BetterLegal to be your registered agent representative. This is an additional cost of $90 per year or $10 per month. You can choose this option if you prefer to keep your personal address private and any important mail, such as state compliance notices, reports or lawsuits, will be received through BetterLegal so nothing is missed.
State Compliance
As an add-on service you can choose BetterLegal to handle your state compliance requirements. This is an additional cost of $90 per year or $10 per month. States require businesses to file annual compliance reports to stay in good standing and failing to do so can result in termination of your business as well as the loss of your liability protection and other benefits. You can choose BetterLegal to file these reports on behalf of your LLC or corporation.
Permit and License Search
You may be required to obtain permits and licenses to operate your business in compliance and each state will have its own specific rules and regulations. If you are pressed for time or you’re not sure what those requirements are, BetterLegal can do the research for you. You’ll receive all relevant documentation forms along with instructions on how to complete them. This is an add-on service and will cost you $125.
Filing Services
BetterLegal also offers many other filing services specific to your state and business type. It is set up on the website so that you can click on the filing or service name by state which will show you exactly what the filing fee is for your state, what the BetterLegal fee is and the approximate turnaround time. Some examples include:
- Domestic foreign LLC
- Change business purpose
- File doing-business-as (DBA)/trademark name
- Adding shareholders
BetterLegal Alternatives and How They Compare
BetterLegal vs. Rocket Lawyer
The main difference between BetterLegal and Rocket Lawyer is that Rocket Lawyer offers legal services vs. BetterLegal, which does not. With Rocket Lawyers monthly membership at $39.99 you’ll get free LLC formation and access to legal forms at no added cost as well as lawyer consultation services.
If you do not need lawyer services and want business formation, it is $99 with Rocket Lawyer with the additional cost of legal documents at $39.99 per form. BetterLegal, on the other hand, includes everything you need at a flat fee of $299.
BetterLegal vs Inc Authority
Both BetterLegal and Inc Authority focus only on business formation and have helped thousands of businesses form and incorporate. BetterLegal is a one-stop shop for business formation needs with a flat fee of $299, which include articles of organization and an operating agreement with the plan. If you form your LLC with Inc Authority you’ll receive a lower base plan but additional services are considered add-ons.
It offers fast processing times and affordable registered agent services. With Inc Authority you can opt to use its registered agent services for free the first year and with BetterLegal you will have the option to pay $99 a year or $10 a month.
BetterLegal vs Incfile
BetterLegal offers one formation plan vs. Incfile which offers three formation plans.
Incfile offers a free formation plan plus state fees, including the first year of registered agent services at no charge but that only includes the filing of the articles of organization, a name search and free registered agent service for a year.
While BetterLegal offers only one formation plan, it is a good choice for customers looking to form a business quickly with everything included. Incfile does not make its pricing plans transparent on its website and you’re required to provide personal information and the type of service needed before receiving a final price.
Who is BetterLegal Best For?
BetterLegal is great for anyone who wants to set up their business quickly. The company offers same-day filing for LLC and corporation formations.
Although it doesn’t offer a free plan, the website is easy to navigate and its pricing is transparent and reasonable. It is an ideal choice for those who want to know exactly what they are getting and exactly what they are paying in one convenient cost. For some, a flat fee can be considered a money-saver without having to deal with any surprise costs as it includes everything you’ll need to get your business running. No distracting upsells or time spent navigating the website for hidden costs. In addition, it also offers an array of add-ons that are optional.
Featured Partners
1
ZenBusiness
$0 + State Fees
Varies By State & Package
2
LegalZoom
$0 + State Fees
Varies By State & Package
3
Northwest Registered Agent
$39 + State Fees
Varies By State & Package
Our Expert Take
Personally, I like BetterLegal for it being a one-stop shop but that may not be the case for everyone as we all have different needs. Two things that stand out with BetterLegal is that it offers a single package at a flat fee and it advertises fast turnaround time but let’s look at this.
BetterLegal prides itself on rapid formation turnaround time but when you read its terms of use, it does state that the turnaround times it displays on the website are estimates only and can vary due to state government processing times. So, remember, even though the fast turnaround speed is appealing, this is not a guarantee.
BetterLegal is also not a law firm nor is it a substitute for an attorney and it does not perform services that may otherwise be provided by a licensed attorney. It also makes no guarantee that its documents are completely current. You are encouraged to always review your forms before signing them and should consult with an attorney if you have any questions or concerns.
For a $299 price point, take into consideration whether this package offers a strong value for your needs. If you are looking to save money it’s good to know you can do a lot of your own filing for free but if you’re concerned with legal matters it might be best to pay the additional cost and consult with an attorney.
Frequently Asked Questions (FAQs)
Do I need an EIN for a DBA?
What documents would I need to form an LLC?
Not all documents are required, so make sure you check with your state. Generally, the most common documents include; IRS Form SS-4 for an EIN, name reservation application, articles of organization, operating agreement, tax registrations and business licenses and permits.
Does an LLC protect my personal assets?
Yes, an LLC provides protection between business liabilities and personal assets.
