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BetterLegal Review
| BetterLegal Solutions LLC | |
|---|---|
| Founding Year: | 2016 |
| LLC Formation Service Price: | $299+ state filing fees |
Pros:
- Best Value Premium Filing Option on the Market
- Registered Agent Service is one of the most affordable at $90 per year
- Includes Tax Analysis, Insurance Evaluation, and Employer Consultation
Cons:
- No Basic Low Cost Filing Option
- Does Not Include Free Registered Agent Service
BetterLegal Review Table of Contents:
BetterLegal Overview
BetterLegal is a newer provider in the business formation space founded in 2016 and is based out of Austin, Texas. While BetterLegal is a smaller business, they’ve done an excellent job providing great value to their customers. For those wondering, yes, BetterLegal is a legit company and is A+ rated and accredited by the Better Business Bureau.
BetterLegal’s approach is very oriented around providing a premium service that has exceptional value for its customers. They offer straightforward pricing for both their LLC and corporation formation services at $299 +state filing fees. Overall, they provide some of the best value for the money of any business formation provider on the market.
Customer Feedback and Reviews
While BetterLegal does not have the same amount of reviews as other providers, but their ratings are extremely positive. Their rating on Trust Pilot is a 4.8 out of 5 with 216 reviews as the writing of this review. What is very impressive is that out of their 216 reviews, they have only 1 real negative review, which is extremely impressive. Furthermore, BetterLegal has an A+ rating with the Better Business Bureau and a customer review score of 4.86 out of 5 with only 1 complaint filed in the last 3 years. Overall customer feedback seems to be one of, if not, the best of any provider we have reviewed within the business formation industry.
Evaluating BetterLegal’s Business Formation Service
BetterLegal’s approach is a bit different from other providers in the business formation space. Most providers offer a 3-tiered package offering, however, BetterLegal’s pricing get’s right to down to business. BetterLegal’s business formation service allows you to form an LLC or corporation for $299 +state filing fees.
What’s Included in BetterLegal’s Business Formation Service:
BetterLegal’s business formation packages include all the essential items you would need to start a business off on the right foot. The package includes:
- Formation Document Filing
- Employer ID Number (EIN) Obtainment
- Operating Agreement or Corporate Bylaws
- Banking Resolution Document
- Business Website
- Free Tax Analysis
- Business Checking Account
- Insurance Evaluation
- Payroll, Benefits, and HR Platform
Is BetterLegal’s Service a Good Deal?
Yes, BetterLegal’s business formation service is a very good deal for the $299 +state filing fee price. While they are not the cheapest service on the market, they provide the best value of any premium formation package on the market, in our opinion. BetterLegal provides all of the core services and features at the same price or cheaper than all other premium options we evaluated. We rank them as a better value compared to other providers that are priced the same due to the fact that offer an insurance and employer consultation that no other provider to our knowledge offers. Here’s how they stack up vs 2 other most prominent premium options available from ZenBusiness and LegalZoom:
| Feature Name | ZenBusiness Premium |
LegalZoom Express Gold |
BetterLegal |
|---|---|---|---|
| Formation Document Filing | |||
| Employer ID Number (EIN) | $60 | ||
| Operating Agreement | $99 | ||
| Banking Resolution | |||
| Business Website | |||
| Tax Analysis | |||
| Business Checking Account | |||
| Insurance Evaluation | |||
| Payroll, Benefits, and HR Platform | |||
| 1st Year Registered Agent Service | $149 | $249 | $90 |
| 2nd Year+ Registered Agent Service | $199 | $249 | $90 |
| Average Processing Time | 2 Business Days | 10 Business Days | 1-2 Business Days |
| Package Price | $299 +state fees | $349 +state fees | $299 +state fees |
BetterLegal is our #1 Rated Premium Formation Service
If you’re looking for a premium business formation service we recommend using BetterLegal. BetterLegal charges less than most other premium services and offers more in their service than other providers like ZenBusiness does for the same price. That’s why we rated BetterLegal as the #1 premium business formation provider in 2021.
Alternatives to BetterLegal and Competitor Comparisons
While BetterLegal’s service is some of the best value for the money you can get we realize that not everyone is in the market for a premium-priced service. With this in mind here are 3 competitor alternatives that fit the 3 prime ways new business owners shop for a business formation service:
- Cheapest Basic LLC Formation – For those looking for the absolute cheapest option available to form an LLC, regardless of other add-ons or other features.
- LLC Essentials – In our opinion, the most valuable collection of items should include the essentials you’ll need to get your LLC off the ground. This includes the LLC formation itself, EIN, and Operating Agreement.
- Premium Package – For those seeking a full service that includes the essentials and other valuable add-on features.
Cheapest Basic LLC Formation Alternative
For those who are seeking the lowest cost option for assistance forming their LLC regardless of other features, Inc Authority is your best option. Inc Authority offers a free formation option where you only pay state filing fees and includes 1 year of registered agent service for free. This effectively makes their service like getting free help, since you’ll only be paying state filing fees, which is the same as if you completed the filing on your own. As with most free models, Inc Authority will pitch other upsell services while you checkout but you can simply choose the ones that you see as the best fit for you.
Cheapest Basic LLC Formation Recommendation
Inc Authority’s free formation service allows you to get professional filing assistance for free by only charging state filing fees. On top of this they also provide 1 year of registered agent service for free. If you want other services you can simply choose those during the checkout to create your own custom package. Inc Authority is the best offer on the market for those looking for the lowest cost option.
LLC Essentials Alternative
When forming an LLC, there are core items that we refer to as “LLC essentials” that every LLC should have. Outside of the LLC formation itself, these items are:
- Operating Agreement
While they are not legally required, we recommend that every LLC have an operating agreement. An operating agreement is a document that outlines key things like owner contribution, ownership percentages, operational processes, who has authority to make financial decisions, profit distribution frequency, formal methods to resolve owner disputes, and how owners can be bought out or leave the business. This document is a key to maintaining an LLC’s main feature of limiting the owner(s) personal liability. - EIN Obtainment
Every multi-member LLC (every LLC with 2 or more owners) is required to obtain an EIN. In addition, any LLC that will be required to pay federal excise taxes or will have W-2 employees is also required to have an EIN. Even if not required, an EIN is highly recommended as most banks require an EIN to open a business bank account. Having a business bank account is also a necessity to maintaining the limited liability status of an LLC. - Registered Agent Service – Optional
While you can serve as your own registered agent if your meet the requirements, using a registered agent service can be helpful. Using a third-party registered agent serves as an extra form of insurance as you’ll have a designed contact that is legally obligated to receive vital documents and updates from the state regarding your LLC. This ensures that you’ll always be aware of important deadlines and when your annual report filing is due.
While BetterLegal does provide these if you feel like you only need these services and want a lower price there are 2 providers who are slightly cheaper: ZenBusiness and Inc Authority. Here’s a quick comparison table for the LLC essentials so you can see which fits best for you:
| Feature Name | ZenBusiness Starter | Inc Authority |
|---|---|---|
| Base Fee | $49 +state filing fees | $0 +state filing fees |
| Articles of Organization Filing | ||
| EIN Obtainment | $70 | $49 |
| Operating Agreement | $89 | |
| Rush Processing | $50 | $49 |
| Registered Agent Service | $149 for 1st Year $199 per Year After |
Free for 1st Year $99 per Year After |
| Price for LLC Essentials w/o Registered Agent | $119 | $138 |
| Price for LLC Essentials with Registered Agent | $268 | $138 |
Our Recommendation for LLC Essentials
- Don’t want or need Registered Agent Service
Go with ZenBusiness Starter plan and add the EIN option during checkout for a slightly lower price.
Choose ZenBusiness Starter - Want to have Registered Agent Service
Choose Inc Authority as you’ll get the first year free, and it renews at half the rate of ZenBusiness.
Choose Inc Authority
Premium Service Alternative
As we previously mentioned, BetterLegal’s service is a great premium filing option that provides exceptional value for their $299 +state filing fee price. However, if are looking for a premium LLC formation option that offers a lower upfront price you may want to consider using Northwest Registered Agent’s Monthly VIP Service.
Norwest Registered Agent is a business formation service provider founded in 1998. They are well known for their excellent customer support. Northwest’s Monthly VIP Service is a great option for those seeking a premium service that includes registered agent service.
The great thing about their Monthly VIP Service is that you pay a low monthly price and you get a premium service. While Northwest’s service doesn’t include the free consultations that BetterLegal’s service includes, it still includes all of the core services and documents. The monthly price includes the state filing fee so you can actually form your LLC for an initial payment that’s only about 1/3 of the state filing fee. The monthly price will vary because of the difference in the state filing fee but ranges from $30-$73 per month, with the average being about $38.
- Business Formation
- Registered Agent Service
- Free Business Address
- EIN Filing
- Operating Agreement or Corporate Bylaws
- Banking Resolution Document
Who is BetterLegal Best Suited For?
BetterLegal is a great premium filing service for those who want all the essential documents and filings completed to start their LLC or corporation. BetterLegal provides the best premium filing option available on the market, in our opinion. While there are services that are cheaper, you won’t find a better value for the price, based on our research.