Starting a business is an exciting venture, but navigating the legal requirements can be overwhelming for new entrepreneurs.
That’s where services like BetterLegal come in. With a focus on simplifying the business formation process, BetterLegal promises to take the headache out of handling legal paperwork and ensure a smooth start for your company.
Founded in 2017, BetterLegal aims to offer a streamlined, no-frills approach to business formation, standing out from other providers with its transparent, flat-rate pricing and fast turnaround time. Unlike many competitors that overwhelm you with numerous upsells, BetterLegal keeps things simple.
For a flat fee of $299 plus state filing fees, you get everything needed to form your LLC or corporation, including obtaining an Employer Identification Number (EIN), drafting your operating agreement, and providing banking resolutions. They also boast a speedy processing time, often delivering documents within two business days, which is impressive compared to other services that may take weeks.
While BetterLegal offers an easy-to-use platform, fast service, and a transparent pricing structure, there are a few things to consider before deciding if it’s the right fit for your business. Although their base package is comprehensive, certain essential services, such as registered agent support and compliance monitoring, are offered as add-ons at an additional cost. Furthermore, customer support, while available, can be a bit limited, with some users reporting slow response times.
In this review, we’ll break down BetterLegal’s services, pricing, pros and cons, and alternatives to help you make an informed decision about whether BetterLegal is the best option for forming your business. By the end, you’ll have a clear picture of whether BetterLegal’s approach to business formation suits your needs.
BetterLegal Overview
BetterLegal was founded in 2017 and is headquartered in Austin, Texas. The company’s main goal is to simplify the legal side of business formation by providing an affordable, user-friendly platform for entrepreneurs. BetterLegal seeks to distinguish itself from other providers by focusing on providing only the essential services, without upselling unnecessary add-ons.
The company has a clear mission to make business formation quick and accessible. Despite being a relatively young player in the field, it has earned a solid reputation for its efficiency and no-frills approach. The company prides itself on offering flat-rate pricing with no hidden fees, a feature that many of its competitors cannot match.
Packages and Pricing
BetterLegal offers a single business formation package priced at $299 plus state filing fees. This package is designed to cover all the basics you’ll need to get your LLC or corporation off the ground. It includes:
1. State Formation Filing
BetterLegal takes care of submitting the required paperwork to the state, which is the first step in officially registering your business. This includes your LLC Articles of Organization or Corporation Formation documents.
2. Employer Identification Number (EIN)
The EIN is essentially the social security number for your business. This number is required for tax purposes, hiring employees, and opening a business bank account. BetterLegal will obtain your EIN for you, saving you the hassle.
3. Operating Agreement or Bylaws
An operating agreement is an essential document for LLCs, outlining how the business will be managed. For corporations, BetterLegal prepares bylaws. Both documents ensure your business is structured properly and help prevent future disputes.
4. Banking Resolution
BetterLegal also prepares a banking resolution, which is needed to open a business bank account. This document provides proof that your business is legitimate and that you’re authorized to open an account on behalf of your LLC or corporation.
5. Express Processing
BetterLegal offers expedited processing, so you don’t have to wait around for weeks to get your business formed. Most customers report receiving their formation documents within two business days.
While the base package covers most essential services, there are a few add-ons that BetterLegal offers for an additional cost.
Add-ons By BetterLegal
While BetterLegal’s base package offers the essential services for forming your business, they also provide several valuable add-ons to further streamline your operations. These additional services can help with ongoing compliance, privacy, and even business growth. Let’s take a closer look at what BetterLegal offers beyond its core package.
1. Registered Agent Service
For $90 per year, BetterLegal will act as your registered agent. This service is necessary for businesses that want to keep their personal addresses private, as the registered agent’s address is the one listed publicly for legal documents. It’s also essential for businesses that aren’t physically located in the state where they’re registered.
2. Compliance Service
For $90 per year, BetterLegal offers a compliance service to help you stay up to date with your ongoing state requirements. This is particularly useful for businesses that may forget about crucial filing deadlines and risk penalties.
3. Permit & License Search
BetterLegal offers a permit and license search for $125, helping you find out which permits and licenses you need to legally operate in your area. While this is helpful for many new business owners, it’s an additional cost that you’ll need to consider.
4. Amendment & Document Research
BetterLegal offers free amendment and document research services to customers who use their service for business formation. However, this is not available to customers who opt for other services outside of BetterLegal’s base package.
When Should You Hire BetterLegal?
You should consider hiring BetterLegal when you need a straightforward and quick business formation service. If you’re looking for a simple, no-frills package with fast processing times and a transparent pricing model, BetterLegal can help you get your LLC or corporation up and running efficiently without unnecessary delays.
1. When You Need Fast, Efficient Service
If you’re looking to start your business quickly and don’t want to deal with a long processing time, BetterLegal’s two-business-day turnaround is a great benefit. Many users appreciate the speed with which BetterLegal processes their applications, especially when compared to competitors that can take weeks.
2. When You Want a Simple Package
BetterLegal is ideal for entrepreneurs who just need the basics and don’t want to get bogged down with upsells or unnecessary extras. If you want a straightforward, no-frills business formation service, BetterLegal’s flat-rate pricing model is a great option.
3. When You Have the Budget for It
If you’re okay with spending $299 plus state fees for the base package, BetterLegal offers a solid service with an efficientturnaround. For those with a little more budget flexibility, this could be a perfect solution.
BetterLegal Pros
1. Affordable, Transparent Pricing
BetterLegal offers a clear and affordable pricing structure with no hidden fees. You pay a flat rate of $299 plus state filing fees, which covers the basic business formation process. This simplicity is appealing for those who don’t want to deal with unexpected charges.
2. Fast Turnaround
Unlike other legal service providers that may take weeks to process your business formation documents, BetterLegal prides itself on its rapid processing. Many users have reported that they received their documents within two business days.
3. Comprehensive Package
The base package includes a variety of services necessary for forming a business, including obtaining an Employer Identification Number (EIN), preparing operating agreements, and facilitating the process of opening a business bank account.
4. User-Friendly Platform
BetterLegal has an easy-to-navigate platform, making the entire process of business formation straightforward and hassle-free. The website offers a clean, simple interface for users to easily follow and complete their filings.
BetterLegal Cons
1. Limited Customer Support
One of the significant drawbacks reported by users is BetterLegal’s limited customer support. While it does offer email support, there are complaints about slow responses and long wait times on the phone. For business owners needing quick resolutions to their problems, this could be frustrating.
2. No Free Services
Unlike other services, such as IncFile, which offers free LLC formation (with only state fees required), BetterLegal charges $299 for its basic package. This cost might be a dealbreaker for new entrepreneurs on a tight budget.
3. Limited Services for Non-LLC Business Types
BetterLegal is primarily focused on LLC and corporation formations. If you’re looking for services related to other business types (like nonprofits or partnerships), you may need to consider alternatives.
BetterLegal Review: Available Alternatives
If BetterLegal doesn’t meet your needs or budget, there are several alternatives worth considering:
1. ZenBusiness
ZenBusiness is one of BetterLegal’s main competitors. They offer affordable LLC formation services starting at $0 plus state fees, with a premium plan that includes additional services like operating agreements and EIN filings. ZenBusiness also provides great customer support, making it a strong alternative.
2. IncFile
IncFile is another great option for entrepreneurs looking for affordable business formation services. They offer a free LLC formation package (you only pay the state fees), and their services are reliable and widely praised. They also offer a registered agent service, compliance assistance, and more.
3. LegalZoom
LegalZoom is one of the most well-known names in business formation. Although they tend to be a bit more expensive than BetterLegal and other competitors, they offer a wider range of services, including trademark registration, legal advice, and ongoing compliance monitoring.
Conclusion
In conclusion, BetterLegal offers a streamlined and efficient service for those who need to quickly establish their business. It’s particularly beneficial for entrepreneurs who want a simple, affordable solution without extra upsells or hidden fees. However, it’s not the best option for those looking for a free service or who need extensive customer support. Before making a decision, be sure to weigh the pros and cons to determine if BetterLegal aligns with your business needs.
FAQs
Is BetterLegal a legitimate company?
Yes, BetterLegal is a legitimate company that provides business formation services in all 50 states. They have been in business since 2017 and are highly rated by many users for their fast and transparent services.
How long does it take to form an LLC with BetterLegal?
BetterLegal prides itself on fast turnaround times. Most customers report receiving their formation documents within two business days. However, processing times may vary depending on the state’s processing time.
Does BetterLegal offer a refund?
BetterLegal’s refund policy is not clearly stated, so it’s advisable to reach out to their customer service for clarification before purchasing their services.
What is the cost of a registered agent service with BetterLegal?
BetterLegal offers a registered agent service for $90 per year. This is an optional service, but it is necessary if you want to keep your personal address private or if your business is located out of state.
