Starting a business can be exciting, but navigating the legalities and paperwork involved in LLC formation is often a confusing and overwhelming task. That’s where services like BizFilings come into play. BizFilings, a subsidiary of Wolters Kluwer, has been providing LLC formation, registered agent services, and compliance tools to entrepreneurs and businesses for over two decades. But how does it stack up against the competition? Is it the best option for your LLC formation needs? Let’s take a deep dive into what BizFilings offers, its pricing, upsells, customer service, and more.
LLC Formation Services: A Breakdown of BizFilings Packages
BizFilings offers a range of LLC formation packages aimed at different business needs. Depending on what you’re looking for, BizFilings provides essential services that can help you get your business started with ease. However, each package has its strengths and shortcomings that you should carefully consider.
Basic Package – $99 + State Fees
If you’re looking for a no-frills LLC formation package, BizFilings’ Basic Package might be the right choice. Priced at $99 plus state fees, this option covers all the basics for getting your LLC officially formed. The Basic Package includes:
- Business Name Availability Search: BizFilings checks to ensure your desired LLC name is available in your state. This can save you time and effort in case your preferred name is already taken.
- Preparation and Filing of Articles of Organization: This is the core component of any LLC formation. BizFilings will prepare and file the necessary documents with the state to legally form your LLC.
- Six Months of Registered Agent Service: A registered agent acts as your LLC’s official point of contact for legal and government correspondence. BizFilings includes six months of this service in the Basic Package, which can be helpful if you’re starting out and want to save on additional expenses.
- BizComply Compliance Alerts: Staying compliant with state requirements can be complicated. BizFilings includes six months of BizComply, a tool that sends you reminders about important filing deadlines and other state-specific requirements for your business.
While the Basic Package is budget-friendly, it lacks some of the advanced features that other packages offer. If you want additional benefits like expedited processing or an LLC kit, you’ll need to upgrade to one of the more expensive plans.
Standard Package – $229 + State Fees
For businesses that want a bit more help with their LLC formation, BizFilings’ Standard Package offers a better value. Priced at $229 plus state fees, this package includes everything in the Basic Package, plus:
- LLC Kit & Seal: This is a nice perk that provides a binder to store your business documents, a seal to formalize your LLC, and membership certificates and transfer ledgers for your LLC owners.
- Sample Operating Agreement & Other LLC Forms: The Standard Package gives you templates for an operating agreement, which is a key document for LLCs that outlines the ownership and management structure. This is essential, particularly if you have multiple members in your LLC.
- Expedited Processing: If you want to get your LLC formed quickly, BizFilings offers expedited processing with this package. Depending on the state, this can significantly reduce your formation time.
This package is ideal if you’re willing to pay a little extra for faster service and more comprehensive support. However, it’s still missing some advanced services, like a federal tax ID (EIN), that might be essential for certain businesses.
Complete Package – $359 + State Fees
BizFilings’ most comprehensive offering is the Complete Package, priced at $359 plus state fees. This package includes all the features of the Standard Package, plus some additional perks for those who want a full-service experience. The Complete Package comes with:
- Federal Tax ID (EIN) Number: Obtaining an EIN is crucial for tax purposes and allows you to open a business bank account. BizFilings will apply for your EIN on your behalf, saving you time and effort.
- “Now That You’re Formed” Compliance DVD: This DVD is an educational resource to help guide you through the next steps in running your LLC, such as managing finances, taxes, and legal responsibilities.
The Complete Package is a great choice if you want to streamline the process and ensure that all aspects of your LLC formation are taken care of without having to go through multiple service providers.
Turnaround Time: How Fast Can BizFilings Process Your LLC?
When it comes to LLC formation, time is often of the essence. BizFilings generally takes a few days to a few weeks to form your LLC, depending on your state’s processing times. For example, states like Delaware and Wyoming often have faster processing times compared to states like California and New York.
If you’re in a rush to get your LLC up and running, BizFilings offers expedited processing for an additional fee. The expedited service will speed up your filing, which could be a game-changer for businesses looking to start operations quickly.
Upsells: What Additional Services Does BizFilings Offer?
BizFilings offers several add-ons and upsells that you may find helpful, especially as your business grows. However, these services come with an extra price tag, so it’s important to decide if you need them.
EIN Number – $79
BizFilings charges $79 to obtain an EIN on your behalf. While this service is convenient, it’s worth noting that you can apply for an EIN directly through the IRS for free. For entrepreneurs who are looking to save a few bucks, handling this yourself may be the better option.
LLC Kit – $99
The LLC Kit includes a binder, membership certificates, and a seal. While this can help you organize your business documents, it’s not essential, and many entrepreneurs prefer to create these items themselves. $99 might be a bit steep for something you could easily DIY.
Certified Copy – $39
A certified copy of your LLC formation documents may be needed for certain business activities, like opening a business bank account or securing financing. BizFilings charges $39 for this service. While it’s a convenient option, it’s another fee that you may be able to bypass by handling it yourself through your state’s website.
Sales Tax Registration – $99
If your business sells taxable goods or services, you’ll need to register for sales tax in your state. BizFilings offers this service for $99, which can save you the hassle of navigating state tax systems. However, this is another cost that may be avoidable if you handle it directly with your state’s revenue department.
Payroll Tax Registration – $99
For businesses with employees, payroll tax registration is a must. BizFilings offers to handle this process for $99, which can be useful for business owners who don’t want to get bogged down in the details of payroll tax regulations.
Business License Application – $99
Depending on your business type and location, you may need several licenses to operate legally. BizFilings offers a business license application service for $99, which is helpful if you don’t have the time or know-how to research and apply for the appropriate licenses.
Other Services Offered by BizFilings
In addition to LLC formation, BizFilings offers a variety of services designed to help businesses maintain compliance and stay on track. Here are some of the key services:
Registered Agent Service
BizFilings provides registered agent services, which is essential for any LLC. This service includes mail forwarding for legal documents, compliance alerts, and document storage. After the first six months, BizFilings charges $220 per year for registered agent services.
While BizFilings offers a solid registered agent service, the annual fee of $220 is a bit on the higher end compared to some competitors. If you’re willing to shop around, you might find other providers offering the same service for less.
BizComply Compliance Tool
BizComply is an optional service that helps businesses track compliance deadlines and requirements. For $75 per year, BizComply sends alerts for important dates and stores your business documents in one place. While it’s helpful, some users find it unnecessary and feel that it’s an added expense that could be avoided.
Business License Research
BizFilings can also assist you in identifying which business licenses are required for your specific type of business and location. This service can be incredibly valuable for business owners who may not be familiar with the licensing requirements in their area.
Annual Report Service
Most states require businesses to file annual reports to maintain good standing. BizFilings offers an annual report service, helping you avoid late fees and penalties. This service is available for an additional fee and can be a time-saver if you don’t want to deal with the paperwork yourself.
Vague Language and User Experience
While BizFilings generally offers a user-friendly experience, some customers have reported that the website’s language can be vague at times. For example, it’s not always clear what’s included in each package, and some upsells may not be well-explained upfront. This can be frustrating for users who expect full transparency regarding what they’re paying for.
Additionally, the process of upgrading from a Basic Package to a Standard or Complete Package can sometimes feel confusing, with hidden fees or unclear explanations. It’s important to thoroughly review the details before committing to any package or upsell.
Customer Service: Are They Responsive?
BizFilings offers customer support via email, phone, and live chat. Most users report that their support team is responsive and helpful. However, response times can vary, and some customers have mentioned that the quality of assistance may not always be as in-depth as they would like. For complex inquiries, such as those involving state-specific regulations, it may take a little longer to get a satisfying answer.
That being said, BizFilings does offer a knowledge base and FAQs that can help answer common questions. For quick and general inquiries, the support system works well.
Registered Agent Service: Is It Worth the Cost?
BizFilings’ registered agent service is one of the more expensive options on the market, priced at $220 per year after the first six months included in your formation package. This service includes mail forwarding, compliance alerts, and secure document storage. While these features are valuable for business owners who want to stay organized and compliant, the cost may be higher than other registered agent services.
Mail Forwarding
The registered agent service includes mail forwarding, which ensures you don’t miss important legal documents and notices from your state. This feature is essential for maintaining compliance and avoiding penalties.
BizFilings Review Verdict: Is It a Good Choice?
BizFilings is a reputable and established company with a range of LLC formation services designed to help entrepreneurs get their businesses off the ground. The packages are straightforward, and the added services like expedited processing and registered agent support are useful for many business owners.
However, some users have noted that the pricing for certain services, like the registered agent fee and additional upsells, can be on the expensive side compared to other providers. Additionally, while the customer service is generally responsive, there are some reports of vague language and a lack of transparency in the website’s descriptions.
Ultimately, BizFilings can be a good choice if you’re looking for an all-in-one service provider with a solid reputation and decades of experience. However, if you’re trying to save money or are looking for more affordable alternatives, it’s worth exploring other providers as well.
In conclusion, BizFilings is a solid option for LLC formation and registered agent services, but it may not be the best fit for everyone, especially those with a tighter budget or a desire for more straightforward pricing.
FAQs
What is the cost of BizFilings’ Basic LLC formation package?
The Basic Package costs $99 plus state fees.
Does BizFilings offer expedited LLC formation?
Yes, BizFilings offers expedited processing for an additional fee.
What services are included with BizFilings’ registered agent service?
The registered agent service includes mail forwarding, compliance alerts, and document storage.
How much does BizFilings charge for an EIN application?
BizFilings charges $79 for obtaining an EIN on your behalf.
Is BizFilings’ BizComply service worth the cost?
BizComply helps with compliance alerts and document storage for $75 per year, but its necessity depends on your business needs.
