BetterLegal Review: LLC Formations Service Analysis (2021)

    by Benjamin Aronson
Updated September 5, 2021

When it comes to forming an LLC, it can be a hard process to pull off on your own. On top of that, compliance mistakes could cost you dearly.

That’s where companies like BetterLegal come in.

BetterLegal takes the formation process out of your hands while helping you focus on your business.

This review will help you decide if BetterLegal is the right formation service for you. To do this, we will break down the costs, outline their pros/cons, and compare them with their competitors.

When it comes to LLC formation services, we have lots of experience. Our team of researchers and business developers have formed LLCs ourselves and made many reviews about related services.

In other words, this review is best that you’ll find on BetterLegal

Let’s dive in!

Top Alternitive LLC Formation Services

Incfile logo

Incfile

• Form an LLC for $0 + State Fees
• FREE Registered Agent Service for a Year
• Trusted by over 500,000+ Businesses
• 100% Transparency

ZenBuisness

• Form an LLC for $49 + State Fees
• FREE Registered Agent Service for a Year
• Launched over 80,000+ Businesses
• 100% Accuracy Guarantee

Northwest logo

Northwest

• Form an LLC for $225 + state fees
• Registered Agent Service included ($125)
• Forming Businesses Since 1998
• 100% Error-Free Guarantee

BetterLegal is a legal services provider at its core, specializing in the online formation of LLCs and corporations.

However, they also provide compliance services to keep your company in good standing after formation.

More specifically, BetterLegal will form your company in a couple of days and take care of the compliance part for you.

Forming a corporation is not only troublesome for someone who isn’t used to the process. It can also be costly in the long run if something isn’t done right from the start.

But people think they can save some money by undertaking the formation part themselves. This couldn’t be further from the truth for another important reason.

The time you will spend learning the ins and outs of forming your company, you could devote to running your business. And we all know that time is money.

Besides, BetterLegal is the king of “value for money” formation service providers. They will take care of the formation/compliance process for a very competitive price.

Bottom line, If you’re looking to save money in the long-term and you’re allergic to hidden fees/upsells, then you’re going to love BetterLegal.

Speaking of saving money, let’s break down how much you should expect to pay here…

Value to cost

High

Ease of Use

Easy

Speed

Fast

Customer Care

High

Reputation
Trusted
More services
Many

The Cost of BetterLegal

BetterLegal, like Northwest, is one of the few formation service providers that offer only one package of services.

That’s going to be a great deal for those who want to keep things simple. Besides, most of the services in the package are things that you’re going to need anyway.

But for those who love many options, BetterLegal has already gotten them covered.

BetterLegal provides a basic package, but they also offer additional services to choose from.

Now that we have a birds eye view of BetterLegal, let’s dive into the package and services that they provide.

LLC/Corporation Package:

Their basic offer for both LLCs and corporations costs $299 + state fees and includes:

Articles of Organization
The articles of organization is a mandatory document that you file with the state to form your company. BetterLegal will prepare and file it in a couple of days, offering one of the fastest formation services without charging you extra.

Employer Identification Number (EIN)
The Employer Identification Number is basically a social security number for your business. It allows you to file your taxes, employ people, open a business bank account, etc.

Operating Agreement
An operating agreement is simply a document that outlines every member’s duties and rights. This will help you keep track of every little corporate detail. BetterLegal provides an easy to use template to get your operating agreement rolling.

Banking Resolution
The banking resolution’s purpose is to officially determine who can use the bank account of your business.

Website
Companies nowadays, no matter the industry, are in need of an online presence. BetterLegal will create a free website for you. Note that this will have some basic limitations that free hosting/domain plans come with.

Business Checking
BetterLegal’s partners will open a bank account for your business on your behalf. For the price you pay here, it’s really awesome that they provide this service. Opening a business checking account and be a real pain.

Tax Analysis
This service will help you analyze your tax situation for your newly formed company.

Insurance Evaluation
BetterLegal will analyze your business’s insurance needs to come up with a plan provided by Chubb Limited.

1 – 3 Days Turnaround
This means that you will be able to start doing business as soon as the state allows you to. BetterLegal’s formation process is as fast as it gets if you consider how competitors have a minimum of 20-30 days for a basic plan.

Extra Services:

There are many basic services that BetterLegal provides like adding a member and making changes as to the directors of the company.

The extra services that most customers will probably need right away are the following.

Subscription Services:

→ Registered Agent ($10/month or $90/year)
A registered agent is a representative of your business to receive important official documents. These can be anything from service of process to regulatory notices. You can choose to pay $10 per month if you want to stay flexible with whom you get this service from. But you can also choose to pay $90 per year if you want to save some money.

 

→ State Compliance Services ($10/month or $90/year)
Every state has its own regulations which you must follow to keep doing business. BetterLegal will help you completely avoid the details that come with staying compliant with your state. They will be filing the right paperwork at the right time. You have the option to go with either a monthly or yearly subscription plan here as well.

Research Services:

→ Permit and License Search ($125)
To do business in a certain state, you will need to get some permits/licenses. Figuring out which ones you will need on your own can be hard. BetterLegal will do the necessary research for you and help you get access to permits and licenses.

Pros and Cons of BetterLegal

Pros:

???? No Unnecessary Upsells
Unlike Incfile and LegalZoom, there are no upsells with BetterLegal.

Many LLC formation services appear cheap by charging an outstandingly low fee for their most basic package. In reality, they actually overcharge you.

That’s because you will definitely need to buy additional services that bump up the overall cost

With BetterLegal, you know what you pay for right from the start. There are no hidden fees and with their only package, you will be able to form your company with no problem.

Above, we mentioned a couple of additional services. The service above have nothing to do with the LLC formation itself and were never hidden.

Their transparency sets a great example for their competitors.

???? Super-Fast Turnaround Time

The time it will take you to be up and running with BetterLegal is exceptional and it’s one of the things that sets them apart.

Most of their competitors promise a turnaround time that’s at least 3 weeks to 1 month. For a faster turnaround, you will need to pay extra.

BetterLegal doesn’t share this tactic with them. They will have you ready to do business in a couple of days.

Note that though they’re very fast to file the paperwork and deliver it back to you, the time it will take to form an LLC also depends on the state you want to form your LLC in.

???? Easy and Fast to Complete your Application

You do not need to get in your car and meet an attorney, or anyone for that matter. BetterLegal provides a fully digital platform so that you can file your LLC fast. Just because its digital doesn’t mean you’re alone. BetterLegal is available and has representatives to help along the way.

After 10 minutes, give or take, you will have submitted all the necessary information and  they will take of the LLC formation from there.

???? Long Term Value

BetterLegal isn’t super cheap when compared to other big names out there. But they provide a lot of value with only a single package. So much that you will save more money in the long-term than if you went with any competitor.

???? Tools

Their platform allows you to make changes to your company’s structure and corporate details without having to call anyone.

You just point and click (and yes, you may need to type a little).

Cons:

???? No Free Registered Agent Service

Most LLC formation service providers out there offer a free registered agent service for 6 months to 1 year.

Unfortunately, BetterLegal doesn’t.

You will have to pay either $10 per month or $90 per year right from the start

The positive side is that most charge a price of $120- $200 per year for this service. So if you decide to go with the yearly plan, you will save money in the long term.

???? A Fairly Young Company

BetterLegal was established in 2016, making it a fairly young company and a relatively new player in the LLC formations services.

Trust is harder to come with less established companies. But it needs to be acknowledged that they have overwhelmingly positive BetterLegal reviews so far (more about that in our review, read on).

BetterLegal vs LegalZoom vs Bizfilings: A Head-to-Head Comparison

Let’s now compare BetterLegal’s package with the starting packages of two competitors; LegalZoom and Bizfilings.

BetterLegal LegalZoom Bizfilings
Starting Price (without state fees)

$299

$79

$99

Turnaround Time

2 Business Days

7 Business Days

7 Business Days

EIN Registration

✔️

????

????

Operating Agreement

✔️

????

????

Banking Resolution

✔️

????

????

Tax Analysis

✔️

????

????

Insurance Evaluation

✔️

????

????

Free Registered Service for a Period

????

????

✔️

Yearly Registered Agent Service Cost

$90/year

$159/year

$199/year

Yearly Compliance Cost

$90/year

$280/year

$75/year

5-Year Cost After Opting In to Subscriptions

$1,199

$2,994

$1,364

As you can see, BetterLegal will deliver much more value in the long term for the money you will pay.

We also need to note that you basically get all that you need to start doing business for Bette3rLegals price of $299.

With the other formation service providers, you will pay far more in the long run.

Of course, if you want to pay less when you form your company and are not in a hurry to get the other vital services, LegalZoom and Bizfilings will do the job.

For a comparison between BizFiling and LegalZoom, check out our review.

BetterLegal Reviews: What Do Customers Have to Say?

Source Average Score
Better Business Bureau (8 reviews) 4.88 out of 5
Trustpilot (198 reviews) 4.8 out of 5

The reviews from third sources are overwhelmingly positive for BetterLegal. They deliver exactly what they promise. The general pattern after reading the customers’ reviews that stands out is:

  • Great customer service
  • User-friendly platform to fill the application form
  • Fast filing
  • Reasonable pricing

For a relatively new company, their reviews are both plenty and positive.

This counterbalances the fact they’re not as established (based on years of experience) as others.

The Final Verdict on BetterLegal

BetterLegal is one of the best value-for-money formation service providers out there, no doubt. We haven’t seen formation services providing so much value for that price.

The one thing that sets them apart is definitely their transparency about the cost, customer support, and services.

If you’re looking for simple pricing and fast delivery, then BetterLegal will serve you well.

If you found our review helpful, consider sharing it with friends what will benefit from this reivew. And if you have any questions, feel free to drop a comment in the section below and we’ll get back to you.

Thanks for reading and take care…

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