Starting a business is one of the most exciting decisions an entrepreneur can make. However, the legal steps involved in setting up a company can often be overwhelming. From deciding on the best business structure to navigating the maze of paperwork required to make your business official, it can quickly become complicated. This is where services like BetterLegal come in to simplify the process.
BetterLegal, founded in 2016 and based in Austin, Texas, is an online platform that promises to streamline the formation of LLCs (Limited Liability Companies) and corporations. It’s aimed at entrepreneurs who need to form a business quickly, with minimal hassle and no hidden fees.
Whether you’re a first-time business owner or looking to restructure an existing company, BetterLegal claims to make the process faster and more affordable than traditional legal services.
What sets BetterLegal apart is its emphasis on simplicity and speed. Unlike some of its competitors, it offers a straightforward, flat-rate pricing structure, which means no surprises or additional fees once you sign up. Their primary service includes forming LLCs or corporations, obtaining an EIN (Employer Identification Number), and providing essential documents such as operating agreements and banking resolutions. With BetterLegal, the formation process is designed to be completed in as little as two business days, which is considerably faster than many other services.
While BetterLegal does offer a solid package of services at an affordable price, it’s important to consider the additional options available, such as registered agent services and compliance monitoring, which come with extra costs.
This review will dive deeper into the features, pricing, and customer feedback surrounding BetterLegal, so you can decide if it’s the right choice for you when starting your business. Whether you’re looking for fast and transparent service or need help deciding between BetterLegal and its competitors, this guide will provide you with everything you need to know.
What is BetterLegal?
BetterLegal is an online service that helps you form a limited liability company (LLC) or corporation (Inc) in the United States. The company was founded in 2016 and is headquartered in Austin, Texas. Unlike traditional law firms, BetterLegal aims to simplify the process of setting up a business by offering an affordable, streamlined platform for entrepreneurs.
BetterLegal primarily focuses on making the process quick, transparent, and cost-effective. The company’s offerings cater to entrepreneurs who want to get their businesses off the ground quickly but don’t want to navigate the complexities of legal paperwork themselves. For those who have little legal experience, BetterLegal presents a more accessible way to deal with these bureaucratic steps.
BetterLegal Services
BetterLegal’s main service is the formation of LLCs and corporations. The process is designed to be as easy as possible, with a clear step-by-step system. Let’s break down what you get with BetterLegal’s LLC formation package.
1. Business Formation
The core service BetterLegal offers is the formation of LLCs and corporations. Whether you’re launching a new business or restructuring an existing one, BetterLegal can file the necessary paperwork for you. Their team will handle the preparation and submission of your Articles of Organization (for LLCs) or Articles of Incorporation (for corporations). This is one of the most critical parts of setting up your business and requires detailed knowledge of legal requirements.
The good news? BetterLegal claims that they can process LLC formations in 2 business days, which is notably faster than some of their competitors.
2. EIN (Employer Identification Number)
An EIN is a unique number assigned to your business by the IRS for tax purposes. It’s essentially your company’s Social Security number, and you’ll need it to open a business bank account, hire employees, and file taxes.
BetterLegal includes the EIN application as part of their LLC and corporation formation package, which is a great convenience for entrepreneurs. Rather than dealing with the IRS directly, BetterLegal handles this step for you.
3. Operating Agreement (LLC Only)
For LLCs, BetterLegal provides a customizable Operating Agreement. This document outlines the ownership and organizational structure of the company, as well as the members’ roles and responsibilities. While not required in all states, having an operating agreement in place is a good idea to protect the limited liability status of your LLC.
4. Banking Resolution
BetterLegal’s banking resolution is a helpful tool for opening a business bank account. This document authorizes someone to open the account on behalf of your LLC or corporation. If you want to keep your personal and business finances separate (which is strongly recommended), you’ll need this document.
5. Business Website
BetterLegal also offers a basic website creation service. While this isn’t the most robust website-building service out there, it does provide a simple landing page for your business, which is often all you need to start.
6. Additional Services
Beyond formation, BetterLegal offers several other services to help businesses with ongoing operations. These are available for an additional cost and include:
- Registered Agent Service: An essential service for businesses, a registered agent is someone who can receive official correspondence on behalf of your company. You can either serve as your own registered agent or hire a service like BetterLegal to do it for you. The cost for BetterLegal’s registered agent service is $90 per year.
- Compliance Services: This service helps you maintain your company’s good standing by ensuring that you stay up to date with required filings and deadlines.
- Amendments and Filings: If you need to make changes to your LLC or corporation, such as adding a new member or changing the business name, BetterLegal can handle this process as well.
- Business Insurance: Through a partner, BetterLegal offers business insurance to protect your company from risks and liabilities.
- Accounting and Tax Filing: BetterLegal partners with third-party providers to offer accounting and tax services.
How Much Does BetterLegal Cost?
BetterLegal’s pricing is straightforward, with a flat-rate fee for its LLC or corporation formation service. The service costs $299 plus state filing fees. This is a relatively affordable price compared to other services like LegalZoom, which can charge upwards of $400 for similar offerings.
Breakdown of BetterLegal’s Pricing:
- LLC Formation: $299 + state filing fees
- Corporation Formation: $299 + state filing fees
- Registered Agent Service: $90/year
- Compliance Service: $90/year
- Amendments and State Filings: Varies depending on the complexity of the filing
- Business Insurance, Accounting, and Tax Services: Varies depending on the services you need
BetterLegal’s pricing model is simple, with no hidden fees or upsells. This can be a huge relief for entrepreneurs who don’t want to deal with confusing pricing structures.
BetterLegal’s Turnaround Time
One of the standout features of BetterLegal is its speed. BetterLegal promises to complete your LLC or corporation formation in just two business days, which is much faster than many competitors. For instance, LegalZoom can take up to a week to complete the same process.
BetterLegal’s quick processing times make it a great choice for entrepreneurs who need to get their business up and running as soon as possible. If you’re ready to get started and need your business formed quickly, BetterLegal’s fast service could be the solution you need.
Customer Reviews and Feedback
Customer feedback is always an important part of evaluating any service. So, what do BetterLegal customers have to say?
Overall, BetterLegal has received positive reviews, especially for its affordable pricing and quick turnaround times. Many customers appreciate the transparency in pricing and the fact that there are no hidden fees. Additionally, users note that the process of forming an LLC or corporation with BetterLegal is quick and straightforward.
However, like all services, BetterLegal is not without its criticisms.
Positive Feedback
- Quick Process: Many customers appreciate the fast turnaround time. Getting your LLC or corporation set up in just two business days is a huge plus, especially for entrepreneurs eager to get their business off the ground.
- Transparent Pricing: BetterLegal’s transparent pricing structure is a major selling point. There are no hidden fees, and the costs are clearly laid out from the beginning.
- Easy-to-Use Platform: The BetterLegal platform is intuitive and easy to use. Customers report that the steps are clearly explained, and the whole process can be completed in under 15 minutes.
Negative Feedback
- Customer Support: Some customers have reported difficulties with customer support, especially when it comes to reaching someone during off-hours. While support is available, it’s not always as responsive as users might like.
- Cancellation Process: A few users have reported challenges with canceling services, citing unclear procedures and unexpected charges. It seems that some customers have had a hard time stopping the services they no longer need.
BetterLegal vs. Competitors
BetterLegal isn’t the only company offering LLC and corporation formation services. Let’s compare it to some of its top competitors: ZenBusiness and LegalZoom.
BetterLegal vs. ZenBusiness
ZenBusiness is another popular service for forming LLCs and corporations, and it offers a free plan (you only pay state fees). However, BetterLegal’s base package offers more comprehensive services, including an EIN, operating agreement, and banking resolution. ZenBusiness’s free plan doesn’t include those features.
ZenBusiness has a slightly longer processing time compared to BetterLegal, with formation taking up to three business days. ZenBusiness also offers a registered agent service, but at a higher cost of $199 per year.
Overall, ZenBusiness is a more affordable option if you don’t need all the features BetterLegal offers upfront. But if you want a complete package with a faster turnaround time, BetterLegal may be the better choice.
BetterLegal vs. LegalZoom
LegalZoom is one of the most well-known names in the business formation world, but it comes at a higher price. LegalZoom’s basic LLC formation package starts at $408. This is significantly more than BetterLegal’s $299 package. LegalZoom also offers a range of additional services, but they are often priced separately, and it’s easy to end up paying much more than you expected.
In terms of processing times, LegalZoom can take up to seven days to complete an LLC formation. This makes BetterLegal’s two-day turnaround a major advantage.
Both LegalZoom and BetterLegal offer comprehensive services, including registered agent services and legal document templates. However, BetterLegal stands out with its faster, more affordable pricing structure.
Pros and Cons of BetterLegal
Pros:
- Quick Turnaround Time: LLCs and corporations can be formed in as little as two business days.
- Transparent Pricing: No hidden fees, and the costs are clearly laid out upfront.
- Easy-to-Use Platform: Simple, user-friendly platform makes the process fast and straightforward.
- Comprehensive Package: The base package includes services like EIN application, operating agreement, and banking resolution.
Cons:
- Customer Support: Limited support availability and slow response times at times.
- Add-On Costs: Additional services like registered agent and compliance monitoring come at an extra cost.
- Cancellation Process: Some customers have reported difficulties in canceling services and dealing with unexpected charges.
Final Verdict
Overall, BetterLegal is a solid choice for entrepreneurs who want an affordable and efficient way to form an LLC or corporation. The quick processing time, transparent pricing, and comprehensive services make it an appealing option. However, the extra costs for additional services and the reported issues with customer support are worth considering.
If you’re looking for a hassle-free and fast way to get your business up and running, BetterLegal is a great choice. But if you’re more concerned about cost and only need basic services, competitors like ZenBusiness may be worth considering.
In conclusion, BetterLegal offers a great balance of speed, affordability, and transparency, making it a solid choice for new business owners.
FAQ’s
What services does BetterLegal offer?
BetterLegal primarily offers LLC and corporation formation services, including preparing and filing Articles of Organization (LLC) or Articles of Incorporation (Corporation). Additional services include obtaining an EIN (Employer Identification Number), providing an operating agreement (for LLCs), a banking resolution, and a basic website. BetterLegal also offers optional add-ons like registered agent services, compliance assistance, and business insurance.
How long does it take to form an LLC or Corporation with BetterLegal?
BetterLegal is known for its fast turnaround time. Typically, LLC and corporation formations are completed in 2 business days. This is much faster than many competitors, which can take up to 7 days.
How much does BetterLegal cost?
BetterLegal charges a flat-rate fee of $299 for LLC or corporation formation, plus state filing fees. This includes essential services like EIN application, operating agreement (for LLCs), and banking resolution. Additional services such as registered agent, compliance monitoring, and business insurance are available for an extra cost.
Does BetterLegal offer registered agent services?
Yes, BetterLegal offers registered agent services for an additional $90 per year. A registered agent is required for LLCs and corporations to receive official documents on behalf of the business.
Can I cancel my BetterLegal services?
Yes, you can cancel your services with BetterLegal. However, some users have reported challenges with the cancellation process, citing unclear procedures and unexpected charges. It’s important to review the terms carefully when deciding to cancel any services.