by Luke IovinoCreating an LLC is a huge accomplishment and an exciting step toward building your business, but it can be an intimidating process.
If you live in Massachusetts and are uncertain about starting an LLC, don’t worry! We’re not only here to help but we’re happy to walk you through it!
Let’s start with the basics: what does an LLC do and do you need one?
Simply put, an LLC protects your assets — Your personal assets are vulnerable if you have a business (sole proprietor) and something goes wrong. Having an LLC in Massachusetts can protect you and your personal assets.
Creating an LLC can impact how you file your taxes and that could lead to large savings each year. Getting an LLC might seem last on the list but could be needed before you know it!
Although forming an LLC takes time, it allows certain flexibilities when it comes to management and taxation. We highly recommend that you create an LLC if your company.
If you are looking for the best state to form your business and you want to understand the costs involved, check out our company formation calculator.
This will help you grasp the costs involved in filling a business.
LLC stands for “Limited Liability Company”. Let’s not get lost with those fancy words, an LLC creates a legal separation between your personal life and your business.
It’s a way to keep your business away from your personal assets. Anything that happens under your company will stay in your company and your personal life won’t suffer from the circumstances.
It’s a simple yet important form of coverage.
Choosing a name is an exciting step! It makes your business feel closer to becoming a fully functioning company.
First, you need to choose a name you want your company to be. Next, search through the Massachusetts state registry to make sure it’s not taken already.
In order to file for an LLC, you need to come up with a unique name that is not confused with another business and under Massachusetts law.
Lastly, another requirement is it must have LLC at the end or some form or abbreviation of LLC at the end name of your business.
A registered agent is required under Massachusetts law for a company.
A registered agent is an individual or a business that handles all documents that passed through the state that your LLC resides in.
A registered agent isn’t just a requirement, it can be extremely helpful in the future when you least expect it.
A registered agent needs to have a physical address in the state that you establish your company.
If you need to find a registered agent, many companies offer services to set you up with a registered agent in your area.
We have an article with the best recommendations for registered agent services if you need extra help!
This certificate of organization is required in the process of creating your LLC. This document needs all the basic information about your business.
You will need the name registered for your business, address, purpose of your business, dissolution, names of agents and managers, all members associated with the foundation of your business and important additional information necessary.
You can file your certificate of organization by mail or online and will cost about $500.
An operating agreement isn’t required for a Massachusetts LLC but is highly recommended.
An operating agreement is a legal document that outlines owners/members’ responsibilities, expectations and procedures to keep everything legally clear and reduce potential misunderstandings.
We highly recommend you create an operating agreement! We believe it will help keep everyone in your company on the same page and prevent future miscommunications.
An EIN is similar to your Social Security Number and is a significant number associated with your business for taxation purposes.
An EIN is an EIN but every state has its own lingo. Below is a list of EIN synonyms:
An EIN allows you to set up a separate bank account under your company name. Your EIN number is issued by the IRS and will be used when filing taxes for your business each year.
It is highly recommended to wait for your Massachusetts LLC to be approved before you apply for your EIN. This is important because if your LLC is not approved then you’ll have an EIN attached to a fictitious LLC.
Filing annual reports is a requirement in the state of Massachusetts. It is important to note that you must also file a Massachusetts LLC annual report with the Secretary of the Commonwealth Corporations Divisions to file your annual reports.
The information in the annual reports must contain the identical information as the certificate of the organization.
You can do this online or mail it in. The cost is $500 by mail and $520 online. The process takes a few days to approve.
This isn’t a requirement but it is something to consider. Will your business need to expand or do you want it to expand?
It’s worth considering and thinking about the bigger picture of your business. LLCs are easy to create and maintain if you want to secure your option to expand in other states.
We have other articles and resources if you need guidance creating an LLC in other states like Maryland of Texas.
If you got up to step 7 congrats! You’re done with what you need to form your LLC in Massachusetts!
Now there’s just a few more items on the list that we need to take care of. Let’s talk about permits.
Permits are often required for specific industries. Some examples: business permit, alcohol permit, building permit, etc.
There are thousands of codes and licenses in the state of Massachusetts. You can do this yourself but we highly recommend hiring a professional incorporation service.
Companies like LegalZoom or Incfile can help you figure out which licenses and permits needed and help prepare the applications.
Not complying with licenses and permits can lead to penalties and fines.Note: LegalZoom is a very known LLC filing service but if you’re looking for alternative formation services check our ZenBusiness or Northwest Registered Agents.
Taxes might not be the most exciting topic but they sure are important to your business (and your pocket!).
We recommend you get started by overviewing all the information about Massachusetts taxes on the government website.
Since taxes can be a complicated topic, we highly recommend seeking professional assistance to manage your taxes for you.
If you can, hire a bookkeeper to maintain your finances and an accountant or tax professional to help.
It’s worth the investment and can save you money long term.
That’s all you need to form your LLC in Massachusetts! It might seem intimidating but it doesn’t have to be!
The cost of acquiring an LLC is small compared to how much it can save you in the future.
We have more information about the cost of filing your LLC to check out. Just use this list as your guide and you’re good to go!
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post How to Form an LLC in Massachusetts appeared first on FinancePond.
]]> by Luke IovinoIf you’ve done some research on forming a company, you’ve probably come across a lot of business forming services and registered agents. LegalZoom is one of the first to enter this highly competitive branch way back in 2001.
In almost 20 years, LegalZoom has faced a lot of newcomers. Some offer better services, some offer better prices, and to be honest, some are just trash.
Not sure if LegalZoom is the way to go? There are alternatives that might end up fitting your needs better. We created businesses with 5 of the following formations services and reviewed them.
Let’s take a look at today’s best business formation and incorporation services.
Don’t have time to go in-depth? Here’s a quick rundown of LegalZoom’s competitors:
#Ranking
Basic Package cost
Key Features
1. ZenBusiness
Starting from $39
Low cost, Fast & Simple, best value for money
2. Incfile
Starting from $0
User-friendly Interface, Low cost
3. Northwest Registered Agent
Starting from $79
Excellent customer support, Fast LLC approvals,
4. IncAuthority
Starting from $0
Free LLC set-up, great customer support
5. CorpNet
Starting from $79
Affordable, secure information, great customer support
Even though some of the competitor’s starting prices are higher, In the long run, you might end up saving money on additional costs. With more expensive packages, you’ll get more benefits that you won’t have to pay for if required.
We strongly encourage you to do extensive research when picking out a package. At the end of the day, you don’t want to pay for something that you won’t use. Find out more about costs to set up an LLC.
Note: If you are looking to calculate the cost of forming a company, check out our calculator.
ZenBusiness is a direct competitor to LegalZoom. They offer similar services both at reasonable prices. ZenBusiness tends to give its primary focus on forming an LLC and incorporating a business.
On the other hand, LegalZoom has a broader focus like also providing tax advice, guidance, or attorney help.
Forming an LLC with ZenBusiness will cost you around $40 with the base package. Even if you opt for the more expensive packages, ZenBusiness is significantly cheaper and offers more value for the same price.
If you go for the Premium package ($249), ZenBusiness includes a website for your business. But for the Starter and Pro package, you’d have to pay an extra $100. This is a great way to attract customers since nowadays having a business website is a must.
When comparing their customer service, we’d have to give it to LegalZoom. Their representatives are ready to help you or answer any questions 7 days a week.
In our experience, whether it’s been a chat, an email, or a phone call LegalZooms was easier to reach and faster to reply.
We also have to mention that ZenBusiness discloses that business formation will take about two to three weeks.
ZenBusiness also upsell an offer to “expedite” or get things done quicker for an additional fee.
Over 4000 people reviewed ZenBusiness with an average score of above 4.5 stars on Trustpilot.com. Their quality of work is exceptional and they always tend to satisfy the customer no matter what.
Incfile is an easy pick when compared to LegalZoom. Starting from the price, Incfile is known for offering the lowest price for an LLC filing service. Their starting price ($0 + state fee) beats out every other competitor.
Comparing LLC service packages, Incfile has the upper edge since it’s more affordable than LegalZoom.
Incfile also offers a whole year of a registered agent for free with any LLC service package.
In addition, Incfile includes a 30-minute business tax consultation.
Sounds great, doesn’t it?
But aside from business filing and formation, Incfile doesn’t provide any other legal advice. As we previously mentioned, LegalZoom also provides tax advice, guidance, or attorney help.
When it comes to approval or filing speeds, Incfile is the better of the two options.
No matter which package you have, Incfile processes business formation filings by the next day. LegalZoom charges extra to speed up or “expedite” the process.
Representatives from Incfile are also known for trying to upsell more expensive packages.
Incfile’s customer support is excellent. Their staff is super knowledgeable and friendly.
They are available 5 days a week, where Legalzoom offers weekend phone support as well.
We have a separate extensive article about how these two companies compare. Check out our Incfile vs LegalZoom review.
Another great competitor or alternative to LegalZoom is NorthWest Registered Agent. Their business strategy is different from the rest of the competition.
NorthWest’s strength comes from its outstanding customer support.
The high-quality Corporate Guides service works incredibly well. Each customer’s account is directly appointed to a Corporate Guide. That representative is there to help you with whatever problem you might be facing.
It’s super convenient when you call back and the same person picks up.
This way you won’t have to waste time and explain your issue all over again.
In our experience, LLC filing, and approval was much quicker with NorthWest. It takes about 2-7 business days to get approved while LegalZoom can take up to 15 business days.
When signing up for a registered agent, you’d pay a little more for LegalZoom, and there’s a reason.
Northwest doesn’t provide other legal advice that’s not related to business formation and registered agent services. However, you can find financial guidance, legal advising, estate planning, and much more on LegalZoom’s side.
NorthWest is also a very well trusted company in the eyes of the consumers. Rated at above 4.5 stars on Google, it’s hard to find a bad review.
Even when customers are unhappy, Northwest is quick to respond and resolve the issue. Find out more about NorthWest registered agent services here.
IncAuthority has recently taken the market by storm. Even though they date back to 1989, their services have improved significantly.
To begin with, both companies have been in the market for a long time. Legalzoom has formed over 2 million business entities, while IncAuthority has only 130,000.
But this shouldn’t discourage you to consider IncAuthority since they offer excellent services. Plus there’s a personal feel, unlike the bigger companies where everything is systematic.
The customer service of IncAuthority was way quicker in our experience. They are ready to assist you from Monday to Friday. On the other hand, LegalZoom’s customer service is also available on weekends.
Another note to add is that IncAuthority has more affordable pricing than LegalZoom.
IncAuthority provides a free formation package for $0+ state fees!
In the free formation package you receive a business name search, document preparation, document filling and 1 year of registered agent service.
You can’t get a package like that with LegalZoom.
Turnaround times are pretty similar. We give IncAuthority the advantage since they don’t upsell packages for faster filings and approvals.
Our final competitor is a well-trusted company with great cost to value services.
It’s important to mention that both companies don’t offer registered agent services for their base packages.
Note: other competitors are known for doing so!
CorpNet’s prices aren’t the cheapest on the market, but they aren’t exaggerated.
If you aren’t satisfied with your purchase, they offer a 100% satisfaction guarantee. That means you get 60 days to ask for a refund.
Turnaround times are primarily based on the state you wish to form your LLC. CropNet’s filing and approvals are known to take a couple of days.
We must note that there were occasions where business owners waited for more than a few weeks.
Comparing customer reviews, CorpNet outshines LegalZoom by a lot. LegalZoom isn’t known for great customer reviews, but they certainly get the job done.
CorpNet is currently rated at 4.9 stars from almost 500 reviewers on Trustpilot.com
We left out a lot of other service providers, but these 5 give you plenty of versatility to choose from. All of them offer excellent services but with their personal twist.
Well, which one should you go for?
To conclude LegalZoom’s competitors:
ZenBusiness offers the best value for money.
Incfile offers the cheapest services.
Northwest Registered Agent offers the best customer support.
Inc Authority offers business care.
CorpNet offers the most variety of services.
LegalZoom’s customer reviews aren’t that great. But regardless over 2 million business entities have been formed under their wing.
Aside from business formation, their legal consulting is on point. They offer much more legal advice and guidance than their competitors.
But as always, we encourage you to do your own research before signing with service providers. It’s sure important to dig a little deeper when trusting your business in other people’s hands.
Checking in with us is a great start!
Check out what we think are the best incorporation services for your business.
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post 5 Best LegalZoom Alternatives 2020 appeared first on FinancePond.
]]> by Luke IovinoLooking for the best LLC formation service or are you simply looking to incorporate your business?
Starting a new business venture can be intimidating at first. Think of everything that needs to be set up; from legal documents to developing your website to accounting.
Man, wouldn’t it be incredible to have an automation service that took care of your basic start-up needs? Voila! Believe it or not, it already exists and it’s called ZenBusiness. Think of an automation software designed for entrepreneurs and their basic start-up needs.
In this article we are going to go over everything you need to know about ZenBusiness and if there a suitable business formation service for you. We spend hours researching ZenBusiness, so do yourself a favor and read on!
The platform was founded in Texas, in 2015. The idea stemmed from helping entrepreneurs cover basic operations. Whether it’s legal needs, website domains, LLC paperwork, etc, ZenBusiness is a fantastic guidance for any business owner.
Think of ZenBusiness as a checklist that you don’t have to worry about.
ZenBusiness offers 3 packages at a low cost. Their business automated services cover logistical needs so business owners don’t have to think about it. Its goal is to save time and money, while helping you grow your business.
When starting a business, you don’t have a checklist of what is needed. But think of ZenBusiness as a way to guide you while checking off items without you having to worry about them! We’re going to dive into a ZenBuisness review and whether or not it’s worth it.
ZenBusiness is your standard website. You can make a login to access a portal and all your information and statuses.
ZenBusiness offers 3 different tiers depending on your business needs. Three package options: starter, pro, and premium. The prices range from $49 to $299 billed, once a year.
Each package adds additional features and allows a start-up to progress.
The first option is their starter package. It offers their basic formation services, such as providing a registered agent.
Assigning a registered agent is unique to ZenBusiness. It means you’re assigned to a registered agent in the state of your company.
This agent is responsible for all government notifications, correspondence, legal and logistical basics. Their job is to ensure your business is legitimate.
Having a registered agent makes your life much easier and less to think about.
The starter package also includes LLC formation and operating paperwork. Everything you need for the logistics of starting a business, without the hassle and at an affordable cost.
The starter package is exactly that: it gets you started with your business and files your LLC. The standard filing fee and the yearly cost is only $39 which is reasonable when its competitors are almost double the price and without a registered agent.
The next package ZenBusiness has to offer is its pro package. This package upgrades everything you get with the start package, for an additional $100, for an annual fee of $149.
Although it seems like a big jump from the starter package, the cost is still worth what you get.
In addition to having a registered agent, LLC formation, and documentation, you will have your business assigned an EIN.
An EIN stands for: Employer ID Number. Your EIN number is for tax purposes when you file your taxes under your business name.
It can be a tedious process but all taken care of under the ZenBuisness platform.
Even better, with the pro package you will have a CPA assessment for your business. This package also offers an operating agreement template for legal operation agreements.
You will have all of these features at a faster pace than the starter package. The pro package is the most popular because of how much you can have completed without the worry and all at a reasonable, one-time annual fee.
This is the last package option for ZenBusiness and the most costly at $249 per year.
You get everything you would under the pro package option but more features to help grow your business faster.
In addition to the features you get with the pro package, with the premium package, you have features that help launch your website. The platform will help establish your website host and domain.
This package will also help create your business email account so you don’t forget to create it. Everything to launch your online business platform is taken care of in one seamless transaction.
Along with creating the foundation for your online platform, the premium package offers bank resolution and helps guide you through establishing a company bank account, while still offering a CPA assessment.
The ZenBusiness premium package takes care of all of your basic business needs so you can focus on running your business. This package is ideal for those who need extra help through start-up procedures and don’t want stress while trying to keep track of these items and manage to complete them in a timely fashion.
It’s also helpful to have all the legal documents to be secured under one platform for easy future access.
Now that we have gone over the ZenBusiness starter, pro and premium package. In the chart below our team compared the packages head to head.
| Products & Services | Starter | Pro | Premium |
| File LLC | ✓ | ✓ | ✓ |
| Name availability search | ✓ | ✓ | ✓ |
| Phone & email support | ✓ | ✓ | ✓ |
| Online Document Access | ✓ | ✓ | ✓ |
| Credit card offer | ✓ | ✓ | ✓ |
| Accounting consultation | ✓ | ✓ | ✓ |
| Business guide | ✓ | ✓ | ✓ |
| Registered agent | ✓ | ✓ | ✓ |
| Operating agreement template | ✓ | ✓ | ✓ |
| Google ads credit | ✓ | ✓ | ✓ |
| Standard filing speed | ✓ | ✓ | ✓ |
| Expedited filing | +50 | ✓ | ✓ |
| Rush filing | +100 | +100 | ✓ |
| Banking resolution template | +30 | ✓ | ✓ |
| EIN | +70 | ✓ | ✓ |
| Worry-free compliance | +110 (annually) | ✓ | ✓ |
| Business website | +50 (annually) | +50 (annually) | ✓ |
| Business domain | +25 (annually) | +25 (annually) | ✓ |
| Domain name privacy |  |
|
✓ |
| Business email | |
|
✓ |
ZenBusiness, Northwest and LegalZoom some of the best know LLC formation services. In this section, we are going to take ZenBusiness vs LegalZoom and face them off.
ZenBusiness and LegalZoom are often compared as the best in the business formation industry since their products overlap necessary categories and both handle logistics pertaining to a business.
LegalZoom has been around for a while, longer than ZenBusiness. It initially started as just a LegalPlatform for individuals and businesses, offering advice and templates for basic legal needs.
Now they’ve branched off and offered more features for start-up business needs.
For everything you need for your start-up, both of these services comparably have lots of guidance and useful resources for a new business owner. We went through the pros and cons of each platform and we feel you get more bank for your buck when you go with ZenBusiness.
For starters, ZenBusiness is much cheaper annually, almost by half, than LegalZoom.
Plus, you have a registered agent to help guide you through documents for the first year; you don’t have that option with LegalZoom.
Additionally, LegalZoom has extra options for added costs while Zenbusiness is a flat annual fee with lots to offer.
While LegalZoom is perfect if you’re looking for more legal resources, assistance and information, if you just need help with basic start-up protocols, ZenBuisness still makes the most sense and is at a cheaper cost.
We have also researched Incfile and LegalZoom and wrote a separate article.
We believe ZenBusiness is an affordable and incredible program for any start-up or small business.
Depending on your needs, you can have extra help starting up your business without the hassle or additional costs if you were to handle everything.
The packages cover the basics but Zenbusiness offers more features for seamless business growth; such as getting a business credit card or business bank account.
Starting a business is already stressful, so why not make it easier on yourself?
ZenBusiness provides relief to have a pre-programmed checklist and assistance with basic questions. It’s an easier and cost-effective way to handle start-up business logistics without stress.
You can even add features on for extra fees if there’s additional help you need but don’t have the time. Zenbusiness makes a start-up protocol seamless.
The prices compared to competitors are fairly low, considering what you’re getting. Having your own agent assigned to your business helps.
Our verdict? After reviewing ZenBusiness, we think it’s 100% worth the investment. In fact, based on customer reviews and our first-hand experience with ZenBusiness, there a winner!
Clients are generally happy with their platform and customer service. You can always start with their starter package and upgrade if you’re happy with their service. You don’t have much to lose and if you’re still skeptical, just start with the lowest package since it’s only $39.
A business venture is an investment; it’s an investment in money and in time. ZenBusiness is an LLC formation service that saves time and money, while relieving you of some stressors that inherently come with start-up business ventures.
All of ZenBusiness features will help you grow your business faster. And for a small price, you don’t have to worry.
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post ZenBusiness LLC Review appeared first on FinancePond.
]]> by Luke IovinoAre you a business owner looking to register your LLC?
In this article we are going to go over everything you need to know about Northwest Registered Agents and if they are the right formation service for you.
We formed an LLC using Northwest Registered Agents and examined their platform, features, prices and customer service. In out review we will explain what Northwest Registered Agents are all about and how they compare to competitor LLC formation services.
Let’s take a look at what separates Northwest Registered Agent from the competitors. Almost every competitor offers LLC formation and hiring a registered agent.
Northwest pays attention to the smaller things and features that others neglect. Although you can find cheaper services, we assure you the difference is worth it.
Getting a registered agent gives you the comfort of not dealing with business notices, lawsuits, official mail, or tax notices. All these responsibilities are received by your registered agent on your behalf.
Even if the business has a physical address, you can use the Northwest Registered Agent address in your state.
If you want your LLC to be taken care of by a professional while enjoying the services from a registered agent, then this service is perfect for you.
The price is a mix between the filing costs ($100) and the registered agent fee ($125). On top of these charges there is a state.
State fees may vary depending on the state you wish to form your LLC.
We can confidently say that Northwest offers one of the best registered agent services. But we strongly encourage you to do your research before making the final decision.
Corporate Guides is a service Northwest is really proud of. And they should be since it’s proven to be helpful and effective.
Besides filling your LLC, all other paperwork is handled by their representative. Also if you need any assistance, a local professional is appointed to you incredibly fast.
Their representatives are very friendly and have better knowledge than any other we have come across.
It’s commonly feared when signing up for almost anything that your data might be sold for other purposes (by the way, we’re not into any of that monkey business).
Many other companies sell their client’s data, and they end up being targeted by advertisers. Well, when signing up with Northwest you are assured your data will remain safe.
Also, Northwest doesn’t distribute documents for scanning, copying, printing. They do it locally in their own office.
Taking into account the fast pace of the modern world, things are transitioning to being available with just a click of a button. Another benefit you receive with Northwest is the use of their online tools.
Any document you might need can be scanned and sent to you really fast. You’ll have remote access to your documents anytime if something needs to be adjusted.
Northwest gives you the option to use their address for your business privacy. This way your business’s address won’t show on public records.
The state’s databases are publicly available, so your address might end up appearing in unwanted places. Read the privacy policy of U.S department of state for more information.
Whichever service you pick, you will enjoy its benefits. Just make sure to put in their address when filing your LLC.
How many times have you called a service provider and been answered by an answering machine?
Don’t even get started with big corporate companies, you might end up waiting half an hour just to speak to a representative.
Well, this won’t be the case with Northwest. We were personally very satisfied with the service provided by Northwest.
We applaud them for making the effort to always satisfy their customers. Whether it’s an email or a phone call, you will always get a proper response from them in a timely manner.
They made sure that there’s always a way to reach them. You can find their contact very easily when navigating through their website.
Besides verbal communication, you can address them through email or their live chat support and get a reply within the same day.
Their team is extremely knowledgeable and qualified, even when it comes to more serious issues.
If you are unsure of which state to form your LLC, they are sure to be helpful.
We noticed that if you call back with another issue, you can ask for the same person that helped you the previous time.
This way they help maintain a trusty relationship between the clients and their employees.
Their customer support is top-notch, and it’s the main reason for the price difference when compared to other registered agent services.
Their standing for registered agent services is on the top spectrum of google reviews. They have a respectable score of above 4.5 stars from more than 150 customers.
Of course, we can’t mention all of the reviews people have submitted, but here are genuine reviews that we found to be as accurate as they can be.
“Their prices were very competitive. Web Page was clear and easy to follow and also clearly showed alternatives to their service without be disparaging, and even providing free documents and forms for the alternatives. Asked a question by Email and Maya quickly responded and was easy and pleasant to work with. All in all the experience has been excellent so far. Very appreciated.”
“I randomly found Northwest Registered Agent through a blog comparing them to Legal Zoom. I am glad I found that blog and went with Northwest. Their pricing was more than fair, the interface to set up my business and access all my documents was clean and intuitive, and their customer service is top-notch. I would get replies to my emails within a few hours. When I needed to talk to a human being, I got voicemail, but they called back in 10 minutes. Northwest got my company set up in ONE DAY! I actually didn’t even request the next day filing. When I saw the time frame and wanted to expedite things, I inquired about them invoicing me to pay the difference. The next email I got was that my company was set up and they didn’t charge me the difference! With that professionalism and customer care I am a Northwest customer for life. I wholeheartedly endorse them for all your legal / business matters that are way too confusing to do yourself!”
Considering that Northwest is one of the bigger registered agent services, it’s bound to have issues and unhappy customers. It’s important to note that the complaints are addressed and you can find replies to see how they resolve the issue.
It’s safe to say that any service you go with, will give you a good enough experience. At the end of the day, you need to find the best option for YOU and your business.
Let’s take a quick look at LegalZoom and Incfile, two top-notch LLC formation services.
When you compare a mid-sized company (Northwest) to an industry giant (LegalZoom), you can assume there will be differences.
LegalZoom is a very trusted service provider in the eyes of the customer, and that comes with the brand power they have obtained.
The main difference lays when comparing the packages they have to offer. Northwest has single pricing for a service, while LegalZooms offers one service at multiple price points.
With Northwest you get same-day processing, wherewith LegalZoom it varies from the package you have.
Overall if you opt for LegalZooms economy package you might end up saving a couple of bucks but end up sacrificing other assets and vice versa.
While it can take LegalZoom’s base package up to 30 days for LLC approval, Northwest usually takes about 2-7 days.
Here’s an article that will help you better understand how long it takes to set up an LLC.
LegalZoom offers excellent customer service, but since Northwest is built around providing premium customer service, it’s safe to say you’d be more satisfied when speaking to a Northwest representative.
Kicking things off with the pricing, it’s fairly similar when it comes to hiring a registered agent. The difference is when we talk about LLC formations.
As was the case with LegalZoom, Incfile also offers different package deals. With any of these packages, your LLC formation is free of charge, while you need to pay $225 with Northwest.
Take a look at how much does it cost to set up an LLC, for further information on LLC pricing.
Also if you’d wanted to use Incfile public address for your business, you’d need to pay an extra fee. Northwest on the other hand, gives you this benefit included in the price.
The pricing definitely sways on the side of Incfile, but as we previously mentioned Northwest customer support is simply superior to any other. Their representatives are far more knowledgeable and are easier to get a hold of.
We have also covered the difference between Incfile and LegalZoom in a separate article.
What you see is what you get. Their business strategy is very simple to understand.
They offer great services to all of their customers and have a stellar reputation. There are no pricing tricks to confuse you into getting what you don’t want.
A single package offer for providing excellent services.
Here’s a quote from Northwest Registered Agent that summarises the review:
“Basically, we’re always thinking and working towards getting you what you need as fast as possible.”
Overall, starting a business through Northwest gives you a lot of upsides for staying on top of the law requirements.
With the services they offer, your business will stay organized which will make your life that much easier.
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post Northwest Registered Agent LLC Review appeared first on FinancePond.
]]> by Luke IovinoWe’re going to make this very straight forward, the best state to form your business is your home state! This may be a shock for you but it’s the truth! The common belief is that some states are better than others when forming a company.
People choose these states because of the policies, governance filing costs and tax implications. You will find a lot of information online about Wyoming, Delaware, and Nevada as some of the best states.
We are going to dig deep and expose the best state to form an LLC. In this article we will explain the different kinds of LLCs, tax implications and other important considerations that you should know about when establishing your LLC. Let’s go!
Deal! ZenBusiness, one of our favorite business formation services is forming LLCs for $39 (40% off!)
There are 2 main types of LLCs, Foreign LLCs and Domestic LLCs.
It’s very important to deeply understand the operations of your business before you choose the state to form your LLC.
Knowing where you stand will direct you towards the best state to establish your business.
Let’s go over the terms, if you create an LLC in your home state, your LLC is called a domestic LLC.
On the other hand, if you form your business outside your home state, you will register your business as a foreign LLC.
The purpose of the foreign LLC is to help you conduct your businesses in several states without setting up multiple LLCs.
As a result, two primary factors determine an LLC:
1. Where you form the company
2. The location/s you decide to operate your LLC
If you are operating your business from another state that is not your home state, you must register it in the two states.
But if you are operating it solely in your local state, you would form a domestic LLC.
This explains why it is not the best choice to register your business outside your home state.
Simply put, business operations in more than one state will result in more state fees and payments.
Important note: You will pay registration fees twice in two states. You will also have a registered agent in the other state where you are not physically present.
Before your LLC needs expansion, it is recommended to set up your business in your home state. It is like the popular saying that there is no other place like home.
Your home state will make the whole process easier.
You are probably familiar with the laws of your state and you know how to get information. Also, you will enjoy easy access to government offices.
All of these make it an excellent place to form your limited liability company.
If you’re forming an LLC, S-Corp, or C-Corp, paying taxes will be an annual routine. With that said, as you set up your business, note the need to pay tax.
When you form an LLC in a foreign state to save tax, you very well might be doing it wrong.
Let me explain.
Assuming you create an LLC in Texas and operate the business in your home state (a different state, let’s say Maryland), you will still pay taxes in the two states.
In the United States you pay tax where you make money.
It is even possible that you will pay more taxes and fees in Texas.
Every state has its own laws for establishing an LLC. Some states have strict rules while others are more lenient.
You must weigh your options on all fronts before deciding the state you will form your LLC in.
Growth is important when building a business and your home state can only expose you to so many clients.
If you are running a large corporation, you may consider leaving your home state to expand your business. For this, you need to identify the most convenient states for your business operations.
There are plenty of good states for your LLC to grow and prosper. Three awesome states are Delaware, Wyoming, and Nevada.
These states have specific enabling factors for every business.
Let’s check them out!
Delaware is among the top states to form an LLC. More than half of the publicly-traded businesses in the US registered in Delaware!
With their simple filing process, Delaware makes it easy to start an LLC and to operate it. Delaware gives room for businesses.
Establishing a business in Delaware also comes with low taxes and fees. Another note worth adding, Delaware doesn’t tax out-of-state income so your foreign LLC will enjoy fewer fees.
Delaware tries to entice business owners with its low filing fees and taxes on the franchise. Delaware Chancery Court takes on business cases only. This helps you resolve business cases faster than the average state.
The state doesn’t give residency mandates for registering an LLC. At the same time, the disclosure agreement and reporting are limited.
Registering an LLC in Delaware is easy. The information is available on the state’s website.
Another good state for your establishing LLC is in Wyoming. Wyoming is a business-friendly state that offers a minimal level of reporting obligations.
As a business owner you do not pay corporate income, franchise, or personal income tax. The state offers a lifetime proxy to business owners.
With a lifetime proxy, you can choose a person to represent your place in the business. That gives LLC owners the choice to stay anonymous.
Another plus for Wyoming is that the sales tax rate is extremely low compared to other states.
All of these advantages make it easy and exciting to set up an LLC in Wyoming. If you are thinking about setting up a foreign LLC in Wyoming, check out the Wyoming secretary of state site here.
Nevada is another ideal state for your company.
In Nevada LLC owners do not pay a corporate income tax or franchise tax.
The state offers a high level of privacy and you can stay anonymous during your public filings. Similar to Wyoming, Nevada is notable for its high level of confidentiality to LLCs.
Nevada will not share your information with the IRS and you don’t have to set up an operating agreement (although it’s highly recommended!).
If you do choose the state of Nevada to file your LLC, be prepared to pay annual filing and fees for your business. You will get the information on how to set up an LLC in the state on their website.
Forming your business outside your home state is a good decision for large businesses that are interested in growth. Make sure you, just choose carefully.
Let the needs of your business allow you to choose the right location to form your LLC. A small business may need to be formed in another state. As mentioned before, the best state to form you LLC highly depends on the operations of your business.
Let me take you through some examples to explain.
If you are running a real estate business and you are invested out of your state, it is recommended to form an LLC in that state.
In that example, you will operate and generate the income of the business in a specific state, where the property is located. Therefore it is best to form an LLC where you have your properties.
This will limit your costs.
What I am saying is simple. If you live in New York and own a property in Nevada, you will do all business operations in Nevada.
Many business owners think that they can create their LLC wherever they want because they have an online business
While that may be true, our experience shows that registering an online business in your home state as the best option.
Why?
There are many internet-based business owners that work from home, coffee shops or local libraries. From a legal point of view, the state where you run your business is the state that you should form your LLC.
The fact that your clients or customers are scattered throughout the country doesn’t matter.
The authorities expect you to establish your company in the state that you have the “biggest time investment in”. For an online business, that is almost always your home state of residency.
However, if you have to travel around the country to consult, registering your business in other states that you operate in could be an option.
Wherever you set up your LLC, make sure it works well for your business needs. Your home state is the first place to check. If you want to expand, seek other states with enabling policies. The nature of your business is the decision-maker.
The post What is The Best State to Form Your LLC? appeared first on FinancePond.
]]> by Luke IovinoFor those of you in a hurry, we completely understand. Here are the top 5 registered agent services:
As a businessman, you need to be a master of many trades and your time is very valuable. We get that.In this review, we are going to get straight to the point so that you can find the best-registered agent for your business. After you read this you will know why you need a registered agent, if you can be your own registered agent and which registered agent service is best for your business.Our team analyzed countless LLC formation services to find the best-registered agent services available. The top 5 registered agents are based on Value to Cost, Document Management, Customer Service, and Compliance. Let’s dive into this review!
Deal! ZenBusiness, one of our favorite business formation services is forming LLCs for $39 (40% off!)
| #1ZenBusiness
9.8 |
#2Incfile
9.6 |
#3Northwest
9.4 |
#4Rocket Lawyer
9.1 |
#5LegalZoom
8.9 |
|
| Value-to-Cost | 10 | 10 | 9.5 | 9.5 | 9.0 |
| Document Management | 9.5 | 9.0 | 9.0 | 9.0 | 9.0 |
| Customer Service | 9.5 | 9.2 | 9.0 | 9.0 | 8.5 |
| Compliance | 10 | 10 | 10 | 9.0 | 10 |
There are numerous registered agent services online that can help you get your business on its way.
With all the information out there it’s easy to get overwhelmed, but we didn’t have that problem.
We focused on the registered agents that offer the best value to cost, the highest levels of document management, top of the line customer service, and compliance with the necessary requirements.
These are the 5 Registered agents that made the list:
If you’re looking to incorporate your business or form an LLC, these guys can help you get that done as well.
Before we get into the breakdown of the top registered agent services, let’s understand if you personally need a registered agent.
If you own a small business or are in the process of forming an LLC, you probably need a registered agent.
One of the unique benefits of owning an LLC is that the business structure is treated as a separate legal entity.
On top of the professional credibility that comes along with an LLC, the legal separation as an owner gives you limited liability protection from lawsuits and creditors.
That’s the reason why it’s called a Limited Liability Company (LLC).
Since your LLC is separate from you, your LLC has requirements as to how it should contact the state and representatives of the legal world.
This is where the registered agent comes into play
Most states (not all) in the U.S require businesses to have registered agents. Even if your state doesn’t demand you to have a registered agent, it’s a pretty good idea to have one.
A Registered agent is a responsible third party (an individual or a business) who resides in the same state as your business.
They are designated to receive service of process letters, take care of state compliance, tax notices, and other issues on behalf of your LLC or corporation.
Simply put, registered agents are responsible for receiving important legal documentation in the name of your business.
Each state is a little bit different and uses different “lingo” to express registered agents. Your state might ask you for:
All of those terms above mean the same thing.
Yes, but it’s not that straight forward. Let me explain.
You can be your own registered agent if you have a street address located in the state where you are forming your LLC. Usually, this is your home address.
Being your own registered agent is definitely convenient, but you might not want to mix your business and your personal life.
By being your own registered agent you take on the responsibility of being on top of important notices and you make your home address public.
Registered agents are specifically important for businesses that are not based in the state that they are doing business.
For example, you’re located in Texas but you sell goods or provide services in Maryland. If you’re looking to save money here and you have a home address in the state you’re doing business, you might want to consider being your own registered agent.
Now that you understand whether or not you need a registered agent, let’s get into the full review and find the best-rated register for your business.
ZenBusiness is one of the best-registered agent services online. They take care of the communication with the secretary of state and other governmental agencies so you can focus on your business.
If you’re looking for an all in one service ZenBusiness offers LLC formation and incorporation services for $39 (that includes a registered agent for one year!).
On the other hand, if you already formed your business and you need a quality registered agent, ZenBusiness are your guys!
The yearly price for a registered agent with ZenBusiness is $99. They really offer high value for a low price.
ZenBusiness is a reliable registered agent that prides themselves on compliance, high protection, and organization.
These guys offer a great price and are very professional, but that’s not all. While researching Zenbusiness we found over 3,000 reviews from customers. Not all of their customer feedback was golden, but the majority of customer reviews were positive.
ZenBusiness is a great partner to help you easily run and grow your business
Incfile is a service that understands how hectic life can be running a business. They can provide you with everything you need so you can run your company.
Like ZenBusinee, Incfile can also register your company and give you a year free of registered agent services. The outrageous thing here is that whether you are an LLC, corporation, or non-profit they will file your business and give you a year of register agent service all for $0!
That deal might be too good to pass up. For more information check out Incfile.
Anyway, back to the review- Incfile is no doubt a top challenger in the list of the best rated registered agents.
They are dependable and experienced specialists that offer a low cost registered agent service. If you’re looking for more than just a registered agent, Incfile has a bunch of other services that you can add on such as custom business documents, specific templates, and much more.
Aside from their professionalism and low price services, Incfile has great feedback. We found thousands of positive reviews from their customers. Their clients seem to love to talk about how helpful they are.
With great reviews and over 250,000 businesses successfully launched since 2004, we can confidently say that Incfile is worth trusting as your registered agent.
If you’re looking for a transparent registered agent with no upsells or hidden fees, Northwest Registered Agents are a great choice!
Northwest Registered Agents are pros at business formation. If you haven’t not legally formed your business and you’re looking for a formation service Northwest Registered Agents can help.
They file LLC, Corporations, and Nonprofits and include a full year of registered agent service for $49 + state fees.
As mentioned, Northwest offers a wide array of formation and legal filing services, but they are famously known to be great registered agents (it in their company name!).
A registered agent for $125 a year can be pricey for some. If you take a registered agent in more than five states, Northwest will give your business a nice discount. The discount varies but the average comes out to $100 per year.
The main reason why these guys made it to the best-registered agents is because they are business formation and registered agent experts!
We found countless reviews from customers saying how helpful they were with their personal formation/registered agent questions.
They are totally available for their clients. Give them a call, they keep their phones open (509)-435-9053.
Rocket Lawyer offers many services in the formation of your business. They are known to get the job done, and when it comes to register agents, they are one of the best.
$149.99 a year for a registered agent isn’t cheap but if you subscribe to their premium membership you get:
The prime package costs $39/month.
Rocket Lawyer made the list because they have well rounded positive reviews and they are very experienced.
Since Rocket Lawyer opened their doors in 2008, they have helped over 20 million people! They strongly believe in making legal services available and affordable.
LegalZoom may be on the most expensive end, but they are more than qualified as one of the best registered agent services.
LegalZoom is probably one of the best-known business formation services. Using LegalZoom as your registered agent should really lower the
LegalZoom are entrepreneurs themselves and understand what it means to hustle and what it means to give good service.
They stand by a 100% satisfaction guarantee. If you are unhappy with the service provided by LegalZoom you can get a full refund if you request within 60 days.
LegalZoom offers great formation services as well if you haven’t legalized your business. There is no donut that they are more expensive than the other contentions, but they have the experience that others don’t have.
As of 2001 they have helped launch over 1 million businesses.
LegalZoom are not only great registered agents they also provide a bunch of extra tools to help your business.
If you’re looking for a more in-depth review, we compare Incfile and LegalZoom head to head.
The legal side of creating a business can get overwhelming. Take every stage slowly and make sure you do your homework (like you are right now!).
Our goal is to help you grow your business and choose the best online registered agent for your company.
If you’re still not sure which registered agent is for you, no worries. Well break it down a bit further.
Zenbusiness is best for– Entrepreneurs that are looking for quality support and overall great value for money.
Incfile is best for- Businesses looking for low priced legal services that offer a whole lot more than just a registered agent.
Northwest is best for- People who are interested in great customer service that will answer your questions whenever you need it.
Rocket Lawyer is best for- Anyone looking for a solid online platform and overall quality services.
LegalZoom is best for- Companies that are looking for experienced registered agents.
As a business owner you have to juggle a lot of responsibilities at once. One of them is to choose the right business organization for your registered agent.
Our goal was to point you to the best registered agent so you can focus on your business.
Whichever register agent you choose, you should know that you’re in good hands. Each one of the registered agent services above were analyzed and handpicked by our team.
Now that you found the best registered agent for your business, get back to work and keep grinding!
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post Best Registered Agent Services: Top 5 Rated Services in 2020 appeared first on FinancePond.
]]> by Luke IovinoAre you ready to incorporate your business? If you are, you’re in the right place! Forming an LLC or Incorporating a business can be costly and time-consuming if you do it yourself (DIY). Thankfully for us, there are online incorporation services that take care of the paperwork. These services focus on the legal side of things, so you can direct your attention to running the business! If you want a professional business to file the paperwork for you, you’re in luck. We spent countless hours researching the web until we cornered the top online incorporation services. We based our analysis on Value-to-Cost, Features, Customer Service, and Ease of Use. Our research left us with the top 5 incorporating services.
In this article, you will find how the best incorporation services compare against one another. Check it out!
Deal! ZenBusiness, one of our favorite business formation services is forming LLCs for $39 (40% off!)
| Overall | #1 ZenBusiness 9.8 |
#2 Incfile 9.5 |
#3 Northwest 9.4 |
#4 Legalzoom 9.1 |
#5 BizFilings 9 |
| Value-to-Cost | 10 | 10 | 10 | 9 | 9 |
| Features | 10 | 9 | 8.5 | 8.5 | 8.5 |
| Customer Service | 9 | 9 | 9.5 | 9.5 | 9 |
| Ease of use | 10 | 10 | 9.5 | 9.5 | 9.5 |
On the web, there are dozens of online incorporation services that can help you file your business. Out of the many online incorporation services that we analyzed, these 5 legal service companies made the cut:
These business formation services can also help entrepreneurs establish the following structure:
Although the 5 companies offer different legal services, they all cover the basic incorporation and filing procedures.
The legal services tend to follow a 3-series structure. While each business names its package differently, we choose to organize them by Basic, Traditional, and Supreme packages.
Below you’ll find an in-depth head to head comparison of services and features that they offer.
| ZenBusiness | Incfile |
Northwest | Legalzoom | BizFilings | |
| Price of Package (without state fee) | $39 | $0 | $79 | $149 | $99 |
| Processing Time | 2-3 weeks | next business day | 3-5 business days | 30 days | 4-6 weeks |
| Registered Agent | 1st year free, following year $119 | 1st year free, following year $119 | 1st year free, following year $125 | $159 per year | 6 months free, then $164 per year |
| Operating Agreement | ✓ | $40 extra | X | $99 extra | X |
| EIN Registration | $70 extra | $70 extra | X | must be bundled with Operating Agreement, $159 | $79 extra |
| Annual Compliance | $110 yearly | ✓ | ✓ | 1st month free, $320 per year | ✓ |
| Additional Advisory Services | worry-free CPA assessment | 1 hour of Tax consultation | X | X | X |
| Web Domain | $25 extra | X | X | X | X |
| ZenBusiness | Incfile |
Northwest |
Legalzoom | BizFilings |
|
| Price of Package (without state fee) | $149 | $149 | $179 | $329 | depends on state |
| Processing Time | 5-8 business days | next business day | 3-5 business days | 15 days | next business day |
| Registered Agent | 1st year free, following year $119 | 1st year free, following year $119 | 1st year free, following year $125 | $159 per year | 6 months free, then $164 per year |
| Operating Agreement | ✓ | ✓ | ✓ | $99 extra | ✓ |
| EIN Registration | ✓ | ✓ | ✓ | must be bundled with Operating Agreement, $159 | $79 extra |
| Annual Compliance | ✓ | ✓ | ✓ | 1st month free, $320 per year | ✓ |
| Additional Advisory Services | worry-free CPA assessment | 1 hour of Tax consultation | X | X | X |
| Web Domain | $25 extra | X | X | X | X |
| ZenBusiness | Incfile | Northwest | Legalzoom | BizFiling | |
| Price of Package (without state fee) | $249 | $299 | $199 | $349 | depends on state |
| Processing Time | 2-4 business days | next business day | Same day | 7-10 business days | next business day |
| Registered Agent | 1st year free, following year $119 | 1st year free, following year $119 | 1st year free, following year $125 | $159 per year | 6 months free, then $164 per year |
| Operating Agreement | ✓ | ✓ | ✓ | $99 extra | ✓ |
| EIN Registration | ✓ | ✓ | ✓ | must be bundled with Operating Agreement, $159 | ✓ |
| Annual Compliance | ✓ | ✓ | ✓ | 1st month free, $320 per year | ✓ |
| Additional Advisory Services | worry-free CPA assessment | 1 hour of Tax consultation | X | X | Informational DVD |
| Web Domain | ✓ | ✓ | X | X | X |
Each of the following online business formation services offers different services at different price points.
These are the top 5 rated online incorporation services based on Value-to-Cost, Features, Customer Service, and Ease of Use.
Now that we understand the pricing and features of these services, let’s dive into a review of each one of them!
ZenBusiness is one of the top business formation services. The company was founded back in 2015 by 3 entrepreneurs driven to help small business owners incorporate.
ZenBusiness offers an unbelievably affordable price point of $39. They top the list of the best all-around online incorporation service company.
We paid close attention to customer feedback with our research. Almost all of the reviews that we read were positive when it came down to online incorporation and ZenBusiness!
ZenBusiness does a great job of giving legal online service. To be honest we had to search to find a negative aspect of their business. We noticed that they aren’t completely accurate with their turn around time estimates. Truth be told, they are usually faster than their advertised turn around time.
Bottom line, ZenBusiness can help you register your business fast and easy.
Incfile is a top performer providing online incorporation services. This company offers many useful features to help your business get off the ground.
If you want to pay close to nothing without compromising the service, Incfile might be right for you. Incfile provides 3 packages to incorporate your business: Silver, Gold, and Platinum.
Incfile offers strong customer service and has thousands of positive reviews. Nearly all of the reviews we found were positive.
We found that Incfile and Zenbusiness offer very similar packages. Anyone one of them would provide great legal services.
If you want an online incorporation service that will guide you throughout the process, don’t overlook Northwest.
Northwest made the top 5 best online incorporation service list because they cut out the fluff and do great work.
In addition to their great prices, Northwest makes the incorporation process fast, easy and straightforward. They offer everything you need!
Legalzoom is one of the best known incorporation services out there. They opened their doors back in 1999, making them one of the most experienced online legal formation services in the field.
Legalzoom has an easy to use platform and great customer service. If you are unhappy with their service, they also offer a 100% money-back guarantee if submitted within 60-days of your purchase.
Unlike the other companies we discussed, Legalzoom doesn’t offer free registered agent service (an additional $159). Legalzoom is a good incorporation service to use, but keep in mind that there a bit pricey
BizFilings has been in the legal business for over 20 years and has remained a respected player.
BizFilings has an easy to use platform and a straightforward pricing method. They also offer free educational content on their website. The content available is super helpful for entrepreneurs who want to understand the legal process.
When it comes down to it, BizFilings offers top-notch legal services. Their price point is fair and the value to cost is more than reasonable. Overall they provide good value for money.
Incorporating a business can get a little overwhelming. Our goal is to find you the best online incorporating service for your needs. That way you can get back to your business!
If you’re still struggling to choose the most suitable incorporation service, let us help you.
ZenBusiness is best for- Entrepreneurs that want the best value for money when incorporating.
Incfile is best for- Anyone looking for an easy to use free incorporation service.
Northwest is best for- Business people looking for an incorporation service with a top of the line customer service team whenever you need it.
Legalzoom is best for- Anyone looking for an incorporation service with a strong reputation. Legalzoom is a bit pricey, but they have the experience that others don’t have.
Bizfilings is best for- Employers looking for an incorporation service with a solid platform and a strong overall value with loads of add on services to choose from.
Hiring an online incorporation service to file your paperwork can save you a lot of time and money. These services take care of the legal headache so you can focus on running your business.
Wherever you decide to incorporate your business, you should know that you’re in very good hands. Each one of the incorporation services above offers top-notch legal help at affordable prices.
The best part of these services is that they are a “one-stop-shop.” You can take care of your basic legal filing compliances in one place.
It’s important to note that there isn’t an alternative for personal legal representation if a lawsuit comes your way. All online incorporation services above cover the basics that you need.
Now that you know the best online incorporation service for you, get back to the business!
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post Best Online Incorporation Services: Top 5 Rated Services (2020 Updated) appeared first on FinancePond.
]]> by Luke IovinoAre you ready to form an LLC? Forming an LLC can be costly and time-consuming if you do it yourself (DIY). Thankfully for us, there are online LLC formation services that take care of the work. These services focus on the legal and filing side of things, so you can direct your attention to running the business! Creating a strong profitable business isn’t a walk in the park. At a certain point, It’s important to protect yourself by creating a limited liability company (LLC).
Online LLC formation services can help you tackle legal issues without having to pay hundreds or even thousands of dollars to a lawyer. Whether you’re looking to form an LLC, Corporation or Partnership, Online formation services make it easy. To help you get ahead we researched the major online formation services. Incfile and Legalzoom stood out, that’s why we made a special review for the two top providers.
Deal! Incfile, one of our favorite business formation services is forming LLCs for 0+state fees (60% off!)
Our team studied these two LLC formation services to better understand what they offer and how they differ.
Here is a quick side by side:
In this article, we compared Incfile vs LegalZoom to get a better understanding of these LLC formation services.
Keep reading to find out which one better suits your business.
Incfile began its journey back in 2004. Since then they have become one of the best LLC formation services, helping over 250,000 businesses get up and running.
There are dozens of LLC formation services out there, but Incfile has definitely made it to the top.
Before we get into the package breakdown, check out the basic pros and cons of Incfile:
Legalzoom is an online formation service that opened their doors back in 2001. They are designed to be a “one-stop-shop” for your legal formation needs.
Legalzoom has one of the strongest reputations and has helped launch over 1 million businesses.
Legalzoom focuses on small business/entrepreneurs that don’t have in house lawyers.
Check out the basic pros and cons of Legalzoom before we compare the two online formation titans:
In this review, we outlined all the key factors of both Incfile and Legalzoom. You will find pricing, features, customer feedback and more in this review
So which LLC formation service is right for you? Incfile or Legalzoom? Continue reading to find out how these giants matchup!
Incfile and Legalzoom both offer LLC formation and legal services online, but they each put an emphasis on different sectors.
| Legal Service | Incfile | Legalzoom |
| Form an LLC |  |
|
| File a Patent or Copyright |  |
|
| Prepare & File Tax Returns | |
|
| Custom Legal Forms | |
|
| 1 Year Free Registered Agent Service | |
|
| Speak to a Lawyer | |
|
Incfile focuses on filing and forming an LLC. They continue to offer business and tax help as you further your business.
Legalzoom also pays close attention to the initial stages of forming an LLC, but they’re more of an “all service” legal provider. They cover more specific legal needs such as trademark applications or drafting a contract.
A bonus with Legalzoom is that they can connect you to a lawyer if you need more specific legal help.
Now that you understand how these two LLC formation services work, let’s dive into a deeper comparison.
Incfile and Legalzoom do a great job of making your life, the business owner, simple. They understand that LLC formation and legal filing can be expensive and time-consuming. These platforms offer fundamental legal services for relatively low fees.
These platforms do not supersede the help of a lawyer. If you have a more complicated legal situation or a lawsuit pending, then you should probably hire a lawyer.
Again, Incfile and Legalzoom cover the basics, providing fast and easy to use legal services.
In this section, we will look over the fine print and compare the two platforms head to head.
As mentioned above, Incfile and Legalzoom provide more than just the LLC formation service. Both platforms offer 3 packages to choose from. Some of the services can be purchased independently.
Below we will go over the packages they offer so you can better decide which establishment offers the features that you need.
| Incfile “Silver” | Legalzoom “Economy” | |
| Package Fee (State Fee Not Included) | $0 | $79 |
| Processing Time | Next business day | 30 days |
| Registered Agent | 1st-year free, $119 per year following | $159 per year |
| Operating Agreement | $40 | $99 |
| EIN Registration | $70 | Must be bundled with Operating Agreement, $159 |
| Annual Compliance | Free (company alerts) | 1st month free, $320 per year |
| Counseling Services | 1 hour of Tax consultation | X |
| Incfile “Gold” | Legalzoom “Standard” | |
| Package Fee (State Fee Not Included) | $149 | $329 |
| Processing Time | Next business day | 15 days |
| Registered Agent | 1st-year free, $119 per year following | $159 per year |
| Operating Agreement | ✓ | $99 |
| EIN Registration | ✓ | Must be bundled with Operating Agreement, $159 |
| Annual Compliance | Free (company alerts) | 1st month free, $320 per year |
| Counseling Services | 1 hour of Tax consultation | X |
| Incfile “Platinum” | Legalzoom “Express Gold” | |
| Package Fee (State Fee Not Included) | $299 | $349 |
| Processing Time | Next business day | 7-10 business days |
| Registered Agent | 1st-year free, $119 per year following | $159 per year |
| Operating Agreement | ✓ | $99 |
| EIN Registration | ✓ | Must be bundled with Operating Agreement, $159 |
| Annual Compliance | Free (company alerts) | 1st month free, $320 per year |
| Counseling Services | 1 hour of Tax consultation | X |
Incfile offers 3 LLC formation services, Silver, Gold, and Platinum.
Silver offers next day filing of formation papers. Gold includes an operating agreement and an EIN registration. Lastly, the Platinum package includes a business website and a domain name.
Legalzoom has 3 LLC formations services, Economy, Standard, and Express Gold.
The main difference in the packages that Legalzoom has to offer is the speed and processing time of the order.
Incfile and Legalzoom are great businesses to form an LLC online. After looking over the similarities and differences in the packages they offer, we felt the need to compare the essentials.
Below we analyzed 4 key categories of business management. This is how Incfile vs Legalzoom compare:
Incfile and Legalzoom are some of the best-represented businesses in online legal services. No matter who you decide to go with, you’ll make a good choice.
To make the most educated decision ask yourself what YOU really need, cutting out the fluff. Then go over the services we laid out in the article. That way, choosing between Incfile and Legalzoom will be easy.
If you’re a small business and you need assistance along the way with taxes, Incfile is more affordable and might be the right option for you. If you need access to legal forms or possibly a lawyer, give Legalzoom a try.
Whether you decide to go for Legalzoom or Incfile, truth be told, you’re in very good hands. Incfile and Legalzoom offer top-notch legal help at affordable prices.
The best part of these services is that they offer a “one-stop-shop.” You can take care of your basic legal filing compliances in one place. Although there isn’t an alternative for personal legal representation, both Incfile and Legalzoom cover the basics that you need.
Now that you have your LLC situation figured out, get back to the business!
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post Incfile vs Legalzoom appeared first on FinancePond.
]]> by Luke IovinoOne of the biggest questions for business owners, when they’re getting started, is deciding how to structure their company. Structuring your business is a big choice and with all the options available, it can get overwhelming. Small business startups and entrepreneurs usually narrow the choices down to 2, Sole Proprietor or Limited Liability Company (LLC).
Both Structures have their positives and negatives. After reading this article, we hope to give you a simple framework and understanding of the 2. Read along to figure out what’s right for your business.
Sole Proprietor… LLC… What are these things? Let’s get into it!
A Sole Proprietor is what you are if you sell a product or a service. It is not a choice, you are a sole proprietor by default
The moment you start marking money, in the eyes of the Internal Revenue Services (IRS), you are a Sole Proprietor.
Bottom line, in the eyes of the government, YOU ARE YOUR BUSINESS.
Sole proprietor literally means:
Sole- Only/One
Proprietor- Business owner/Property owner
If you put that together, being a Sole Proprietor is being on a one man show. A one-person business.
Easy right? Let’s get further into detail:
Although a Sole Proprietor is the most simple business structure, that doesn’t mean you can ride it out on autopilot.
To establish a Sole Proprietor, as the business owner you must file necessary legal documents with local and state authorities. Depending on your industry and location, you may have to comply with obtaining business licenses and permits to be legitimized.
With a Sole Proprietor, YOU (the business owner) are personally responsible for everything.
Any financial or legal liability is 100% the responsibility of the Sole Proprietor owner.
Due to the fact that you are the business in the eyes of the law, in the event that your business is sued, you are personally responsible for all liabilities and debts.
A Sole Propriety offers no protection whatsoever.
As a Sole Proprietor, you can open a separate checking account for your business (which you should do on day first).
Go to any bank of your choice and ask to set up a DBA account (Doing Business As). DBA is also known as a “fictitious business name”.
A DBA allows you to open a bank account, receive checks or payments under your business name and not your personal name even though you’re a Sole Proprietor.
This keeps your business organized and tax season will be that much easier when it comes around.
Good question, any money that you make through your Sole Proprietor must be reported on your personal tax return.
The IRS looks at the profit (Income minus Expenses) you made and taxes you at your tax bracket plus something called Self Employment Tax.
Self Employment Tax is a tax that covers your social security and medicare expenses. Today Self Employment Tax is 15.3%.
So you are taxed at your personal tax bracket PLUS and Self Employment Tax.
let’s move over to LLCs and see how they compare.
LLC stands for a Limited Liability Company, and that’s exactly what it is. A company that you form, that has Limited Liability for the OWNER.
An LLC is a recognized legal entity that can be used to run a business or hold assets.
Structuring your business under an LLC gives your business its own identity. As the owner of an LLC, you set up a separate entity that runs the business, that is the business, but that ISNT YOU.
Yes, you OWN that entity and you might work for your entity, but you are not it and it is not you.
Forming an LLC isn’t as difficult as most people think. It is important to understand that forming an LLC is a more time consuming and expensive process compared to forming a Sole Proprietor.
We’ll run through the steps so you can get an idea of how to set up an LLC.
Remember, this is a macro view of the process of filing and legalizing your LLC. Depending on your state, details will vary.
Having an LLC can come in handy when lawsuits emerge. An LLC is like a barrier, wall or fence, however you want to think of it, that separates YOU from IT.
That means that your personal assets are separate from your LLC. An LLC owner is largely protected from creditors or legal trouble.
One of the first things you want to do after opening your LLC is to open a business bank account.
The process is very straight forward. Head over to the bank of your choice and be sure to have the following documents:
Unlike a Sole Proprietor, you don’t need a DBA because you LLC operates under its own name.
The main difference between having an LLC is that your LLC has to file “its own” tax return. Remember, your LLC is its own entity separate from you.
The Profits of your LLC (Income minus Expenses) are then Passed Through to you, the owner of the LLC. You actually pay taxes on those profits, on your personal tax return at your personal tax bracket.
Just like a Sole Proprietor, you also have to pay Self Employment Tax, which is 15.3%
Now what we have an understanding of a Sole Proprietor and an LLC lets compare:
Filling
Forming as a Sole Proprietor is much easier and less expensive. There’s no comparison.
Liability
LLCs were designed to protect business owners and their personal assets from the liabilities of their LLC. Simply having a Sole Proprietors doesn’t offer protection.
Bank Account
Essentially, they both offer the same thing. The main difference is that you’re not legally protected from creditors or lawsuits with a Sole proprietor. With an LLC you are.
Tax
Both Sole Proprietor and LLC take advantage of “Pass Through” deduction and are relatively similar in the taxation process. At the end of the day, there is more possibility to receive tax benefits/breaks with an LLC. We recommend speaking with an accountant on this topic.
There is no doubt that setting up a Sole Proprietor is much easier and less expensive than an LLC.
There’s also no doubt that an LLC protects you as an owner from legal trouble.
Both Sole Proprietor and LLCs have their upsides and downsides. No business model is perfect.
The difference in making the right decision for your business will fall on the amount of due diligence that you do. Before making the final decision, speak with a financial planner to work out the small details.
We hope you gathered the right information and found our resources helpful. If you have any questions, feel free to leave a comment down below.
Good luck with your business structuring journey!
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post Sole Proprietor vs LLC: What’s Right for Your Business? appeared first on FinancePond.
]]> by Luke IovinoIf you’re interested in creating an LLC in the lone star state, you’re not alone! Texas has one of the highest rates of newly formed LLCs in the country! Each state has slightly different laws when setting up an LLC. If this is your first time setting up an LLC, congratulations! We put this free guide together to help you get through the confusion of creating an LLC in Texas.
In this guide, you will find recommendations and detailed steps to help you form your LLC in Texas. Make sure to follow the steps in order. This article is for blossoming business owners who want to know the process of forming an LLC in Texas. Read along closely, we explain the required steps, tips and what to look out for when creating your own LLC in Texas.
Deal! ZenBusiness, one of our favorite business formation services is forming LLCs for $39 (40% off!) Check out our ZenBusiness review
Before we dive in, I want you to truly understand what a Texas LLC is and if it’s right for you.
An LLC is a legal business structure that offers the owner/s personal liability protection. In the scenario that your business is sued, YOU (your personal assets) will be protected if you have an LLC.
You can use an LLC to run a business or purchase assets. The main idea of owning an LLC in Texas is that you are protected from lawsuits.
If you are looking for more information on business structures, I wrote an in-depth comparison between Sole Proprietor and LLC.
If you’re looking for great LLC formation services that are inexpensive and get the job done right, we have two options that can make your life a whole lot easier.
Incfile and Legalzoom both offer great LLC formation and legal services online. They are both slightly different and emphasis on various sectors.
| Legal Service | Incfile | Legalzoom |
| Form an LLC | |
|
| File a Patent or Copyright | |
|
| Prepare & File Tax Returns | |
|
| Custom Legal Forms | |
|
| 1 Year Free Registered Agent Service | |
|
| Speak to a Lawyer | |
|
If you’re interested in a more in-depth comparison, check out our review.
Legally forming a business can be confusing at first, but stay with us, well show you what you need to know.
Before you start filing forms, start thinking about your LLC name. It is very important that you follow the Texas LLC naming requirements. Below are 3 points to check this out:
Take your time choosing your LLC name. It’s important to have a few options if your number 1 choice is taken.
Texas used to be very strict about LLC names and their availability. Now Texas is more lenient, although, most LLC rejections are directly related to name issues.
If you decide to get in contact via phone or email, we recommend double-checking that your name really is approved with a phone call.
Most rejections are based on the LLC name, because of that, we would recommend playing it on the safe side and double-checking.
A Registered Agent is a person or company that agrees to receive legal notice (“Service of Process”) and maintain good compliance with the state. For example, if your LLC is involved in a court case, your Registered Agent will be summoned. This is a law in all states.
Incfile offers Free Registered Agent service for the 1st year!
Well, not exactly.
For your LLC, a Registered Agent must be a resident with an address in Texas. You can be your own Registered Agent or ask a friend/family member if they have an address in Texas.
If you don’t live in Texas and you don’t know anyone there, you can hire a Registered Agent. The cost ranges from $100-$300 a year.
check out our review of the best registered agents, we cover everything you need to know.
Certificate of Formation (aka “Articles of Organization”) are documents that outline the initial statements required by the state of Texas to form an LLC.
There a few methods that you can choose to file your Certificate of Formation:
Secretary of State
PO Box 13697
Austin, TX 78711
1019 Brazos
Austin, TX 78701
There is a flat fee of $300. If you are a Veteran owned LLC there is no fee! Thank you for your service!
On average it takes 5-7 business days to receive approval by mail and 2-3 business days online. If you decide to walk-in, you will get an answer on the spot.
Upon approval, you will receive a Certificate of filling along with a stamped Certificate of Formation. If you mailed your Certificate of Formation, then you’ll receive it back in the mail stamped (if approved). If you sent it online, you’ll get an email.
An Operating Agreement is a legal statement that explains how your LLC is managed. It is recommended that single and multi-member LLCs create an Operating Agreement.
An Operating Agreement is a testimony to the fact that the LLC is a separate legal entity. If you are ever summoned to court, it is a good thing to have.
It is critical to add how your LLC is controlled and operated in your Operating Agreement. Key subjects to go over are:
In Texas, the Operating Agreement is called an “Internal Document”. That means that the state authorities do not request it and it is not a requirement to receive LLC approval in Texas. Although it’s not a demand, it is highly recommended.
An Employer Identification Number (EIN) is a 9 digit identification number that is given to your LLC. The EIN is directly connected to your LLC by the Internal Revenue Services (IRS) to identify taxpayers.
It is important to apply for your EIN only AFTER your LLC is approved. If you apply for an EIN before you are LLC approved, your EIN will be connected to your personal ID.
This will result in having an EIN attached to a non-existing LLC. It’s not the end of the world, you can always cancel your first EIN and apply again.
An EIN is free and will be issued by the IRS.
Having an EIN for your LLC in Texas allows you to open a separate bank account for the business, apply for licenses and permits and handle employee payroll.
Texas requires an EIN Responsible Party when applying for an EIN for your LLC.
An EIN Responsible Party is basically a contact person. That person will be the go-to guy if the IRS needs something from your LLC.
If you are a single member of a Texas LLC, you are the EIN Responsible Party.
If you are a multi-member of a Texas LLC, one of the members will be the EIN Responsible Party.
Once you’ve completed steps 1-5, you’ve legally established an LLC in Texas! Now we are moving to the permits and licensing section.
To have a running LLC in Texas you must follow local, state and federal regulations. Failing to comply can cause serious difficulties in the future.
Remember that this is a guide to help you create an LLC in Texas, but you must follow your local regulations. Details of business licensing and permits may vary from city to city.
If you want to stay focused on running the business, have a professional online formation service take care of it.
Incfile offers a lifetime of company updates, that way you can focus on running your company and they can focus on the LLC legal requirements.
Alright, let’s jump in!
Texas, being the unique lone star state, has a Franchise Tax report and a Public Information Report while most states just have LLC Annual Reports.
Franchise Tax is a tax that an LLC must pay for doing business in Texas. It is called a “privilege tax”.
All Texas LLCs are required to file both a Franchise Tax and a Public Information Report EVERY YEAR.
Your LLCs initial Franchise Tax reports are due after your first year as an LLC. Reports are due every year by May 15th.
After you obtain your Texas LLC approval letter, you’ll shortly after receive a Welcome Letter.
In the letter, there is an 11 digit number which is your LLCs Texas Taxpayer Number. It is very easy to mix up your Texas Taxpayer Number (11 digits, state-level) and your EIN (9 digits, federal level).
We strongly recommend that you have a quality accountant who can guide you through your yearly financial obstacles.
Things vary by city and by industry in Texas and therefore Business licenses and Permits really depend on your business and where your LLC is located.
Texas doesn’t have a statewide general business license. Therefore, it is important to check what you need specifically for your industry.
Municipalities in Texas require specific licenses for businesses. Again, It depends on your industry.
For this reason, we recommend you get in touch with the borough that your LLC is located in.
Texas.gov is a website that offers a list of business licenses, permits, and personal licenses. You can also renew any of your licenses online through the website.
If your LLC buys goods/materials from other businesses, your LLC will need a Resale Certificate.
Let’s look at an example
You sell furniture. If your LLC builds the furniture and buys the raw materials from an external seller then you want to show them your Resale Certificate.
A Resale Certificate basically allows your LLC to avoid paying sales tax on goods (only the end customer pays sales tax). The customer who will buy your furniture will end up paying the sales tax.
Your LLC will collect the sales tax on behalf of your local and state government.
Let’s talk about getting your Sales Tax Permit
If your LLC sells/leases personal property or provides taxable services in Texas, you will be required to obtain a Sales Tax Permit.
It is very easy to achieve a Sales Tax Permit and there is no charge. Log onto tx.us and look for “Texas Sales and Tax Registration. It’s as easy as that.
If you have any questions about sales tax, check out this FAQ.
Taxes can be a challenging topic. We’re going to make it as easy as possible and break down what you need to know.
First, you need to understand that there are 3 levels of Tax:
Each municipality system works slightly differently from the next. Make sure you speak with your accountant, it really depends on where your LLC is located.
There is no state income tax in Texas (one of the few in the country)! Although, there is a Franchise Tax report, as mentioned above.
Most LLCs in Texas are Tax Reporting entities (as opposed to Tax Paying). Just so that you have a quick understanding of the two, let me explain:
Tax Reporting basically means that information is sent to the IRS but not money.
Tax Paying means money is sent to the IRS
If your Texas LLC is a single or multi-member, you are Tax Reporting.
This means that LLCs are “pass-through” entities. LLC owners report and pay taxes to the IRS on their personal income tax return (with form 1040).
Taxes can get complicated. We feel that it’s important for business owners to have an overview of what’s going on. Getting into the nitty-gritty is the accountant’s job.
The main idea of creating an LLC is to form a protective wall between your personal assets and your LLCs liabilities. Using your personal bank account can lead to potential personal liability issues if you end up in court.
We strongly recommend opening up a separate business bank account for your Texas LLC.
Your records will be more organized and I’m sure your accountant will be happy!
Opening a bank account is a simple process. The main documents that you’ll have to bring are the following:
Each bank is slightly different from the next, so we recommend calling the bank beforehand to double-check what is required.
Applying for a credit card is a helpful resource to have in a business. On top of that, having a credit card is a great start to building credit for your business.
There are a ton of credit cards to choose from. If you’re interested in cashback rewards we have a super informative article on Chase Sapphire Preferred vs Capital One Venture which are both great credit cards for businesses.
If you’d like to keep things separate and organized, having a separate business number is a good idea.
Instead of buying a new phone, you can just purchase a line with Phone.com or Sonetel. They both have very affordable plans and good customer service.
If this is your first time setting up an LLC don’t get stressed. Take each stage one step at a time.
If you have any questions or encounter a roadblock, just leave a comment.
Luke is the Cheif Operating Officer of FinancePond. He is a certified public accountant (CPA) and started off his professional career at PWC practicing in real estate tax. His passion is to empower small business owners to make the right financial decisions.
The post How to Create an LLC in Texas appeared first on FinancePond.
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