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Written by: Natalie Fell
Published on August 16, 2022
Updated on December 26, 2022
If you’re starting a business, the business entity formation process is one of the first and most important hurdles. This step can be terribly complex and time-consuming, which is why many entrepreneurs turn to a professional formation service.
One of the top options is BetterLegal But is it the best service? And is it the right choice for you? This review takes a closer look — putting ourselves in the shoes of an entrepreneur — to help you choose the formation service that will put your business on the road to success.
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 4.2/5
BetterLegal handles the business formation process for you, making it nearly seamless while offering additional services that can make life easier for a new business owner. Whether you’re forming a limited liability company (LLC) or a corporation, BetterLegal takes care of all the red tape so you don’t have to.
BetterLegal offers one comprehensive LLC formation package and a handful of a la carte options. Their signature LLC formation service costs a one-time fee of $299 plus any state filing fees. The included features are listed below.
| Services | Included |
|---|---|
| Certificate of Formation | √ |
| Employer Identification Number (EIN) | √ |
| Operating Agreement | √ |
| Banking Resolution | √ |
| Website | √ |
| Business Checking | √ |
| Tax Analysis | √ |
| Insurance Evaluation | √ |
| Amendment or Document Research | √ |
Note that state filing fees still apply with this service. Fees vary by state, which we have listed below.
The $299 LLC Formation Plan includes an operating agreement, employer identification number (EIN), and the business formation service. It also includes amendment or document research services and a business website.
The BetterLegal LLC Formation Plan also includes a federal tax identification number. You’ll need this number to open a business bank account to pay your employees as well as your taxes when they become due. The plan also comes with free website services, insurance evaluation, and tax analysis. BetterLegal is known for being a leading tax services provider, so you can rest assured that you’ll receive expert tax advice.
You’ll also receive amendment or document research services, minute templates, officer designation, banking resolution, and S corp tax election tools.
Note that this plan does not include registered agent services. You can add those services for an additional $10 per month or $90 per year.
| Service | Price |
|---|---|
| Registered Agent | $10 per month or $90 per year |
| State Compliance Services | $10 per month or $90 per year |
| Permit & License Search | $125 one time fee |
In addition to these a la carte services, BetterLegal offers individual filing services. For each filing, you’ll pay the BetterLegal fee plus the state filing fee. Prices vary, but there is a drop down menu for you to choose your particular state to get an accurate estimate.
If you purchase products a la carte, you need to be a bit careful, as things can add up. If you are planning to start an LLC, your best bet is to go with the $299 LLC formation package instead of choosing each individual filing separately. However, if you need to make any changes down the road, using BetterLegal might save you the hassle of trying to go through the state on your own.
Your LLC must be formed with your state by filing articles of organization, sometimes called a certificate of organization or a certificate of formation. This can be done online or by mail. BetterLegal handles the filing for you online, and the LLC approval time varies by state.
This can be a time-consuming and difficult process for an entrepreneur and getting customer support from your state government office is often a challenge. With BetterLegal, you have access to customer support Monday through Friday from 9 a.m – 7 p.m EST.
Once your LLC is approved and official, you can access your formation documents on the BetterLegal website at any time.
When you form your LLC, depending on the state where you want to register your business, there will likely be an added state fee. Below we have listed the fees for each state so you can calculate the overall expenses for creating your LLC.
Please note that the state fees are costs that you will pay in addition to the BetterLegal formation service costs, or any other formation service you would choose.
Use our dropdown calculator to check how much LLC formation will cost using BetterLegal. Simply choose a plan, a la carte services, and the state where you want to form an LLC to calculate the exact cost based on your needs and preferences.
In most states, when you form an LLC you need a registered agent. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business.
For $10 per month or $90 per year, BetterLegal can act as your registered agent and ensure that all official correspondence is handled on time and properly filed. They also keep track of deadlines and send reminders of things you need to file, such as tax forms and annual reports.
A registered agent service will help keep you in compliance with the law and save you time by keeping track of key documents and filing deadlines. The agency will also provide support if any issues arise.
BetterLegal’s registered agent services will enable you to have flexible hours. If you are your own registered agent, you must be personally available from 8 AM to 5 PM at your registered agent address. If you use an agency, they are available during those hours so you can focus on growing your business.
If you use a national agency like BetterLegal, you can also form an LLC or corporation in another state or multiple states where you do not have residency.
Using BetterLegal also offers you a level of privacy, as you would never be served with a summons at your business in front of customers or employees.
BetterLegal offers an operating agreement template customized for your state. An operating agreement for an LLC is an important legal document that details who owns the business and also provides essential information pertaining to member duties.
An LLC operating agreement establishes the financial relationship between business owners (“members”) and the basics of the working relationships between those owners and the managers who oversee daily operations.
By using the BetterLegal template, you can just fill in the blanks, rather than having an attorney draw up the agreement for you from scratch. Only a handful of states require an operating agreement, but having one is highly recommended. The operating agreement is included in the LLC Formation Plan, which is a good value compared to the attorney fees you would otherwise pay.
We tested the BetterLegal customer service experience from every angle. Here’s what we found.
When you first arrive on the BetterLegal landing page, you’ll see a drop down menu where you can select the state in which you’re filing, and then you can click the Set Up Your Business button to begin.
On the next screen, you’ll select whether or not you want to form an LLC or a corporation. Click the Form an LLC button to proceed. Next, you’ll choose whether you want to form a single or multi-member LLC. Make your selection and also make sure the appropriate state is selected from the drop down menu.
Next, you’ll be prompted to answer a series of questions to provide all the pertinent information needed to file. The questions are essentially to collect what will ultimately wind up in your articles of organization. The whole process takes about three minutes.
You’ll also be asked if you want to use BetterLegal as your registered agent or appoint your own.
After you answer all of the questions, you’ll move on to the payment screen. You’ll be able to take one final look at your selections before completing the process. You can also leave notes for the filing team and make changes to any optional add-ons before paying.
The formation process was simple and quick and took around three minutes, just as the website suggested. There were also informative video clips throughout the process to help explain certain elements of the process, like what information to provide about your LLC members and whether or not your business needs to file certain tax forms.
One of the downsides is that there’s no option to save your information as you’re filing or the ability to come back to your filing later on. Once you make it to the payment screen, clicking your browser’s back button causes you to start the process all over again.
BetterLegal is known for its outstanding turnaround times, offering same-day filing services for all formations. Your articles of incorporation or certificate organization is submitted to your appropriate state on the same day you file, and payment is processed. Keep in mind that state processing times vary greatly and the total turnaround time will depend on the state.
BetterLegal is committed to ensuring you receive all pertinent business documents within three business days after your state starts processing your filing.
Overall, the site is easy to use if you’re ready to go, and just want to complete the process. Otherwise, information can be difficult to find and state websites can be cumbersome to navigate.
We appreciated the way the final page of the formation process was set up and that it clearly outlined everything that’s included in the package as well as our add-on elections. Everything was clearly presented and there was no upselling, aside from the option to choose BetterLegal as a registered agent. The website was no-nonsense and all information was transparent.
If you aren’t satisfied with your services, BetterLegal has a 100% money back guarantee, minus any external expenses, such as state fees. Note that once payment is sent to the state, they cannot cancel or change your filing.
Because the BetterLegal LLC Formation package is a one-time fee, there is no cancellation process needed. However, if you choose the registered agent subscription service, you can cancel by calling customer service at (855) 612-0480 or sending an email to [email protected]. You can also cancel online through your account portal.
You are then responsible for assigning another registered agent in your particular state or acting as your own registered agent. You’re also responsible for paying all fees related to changing your agent. Additionally, you must notify BetterLegal that you have properly changed registered agents by the next billing date and provide written proof that BetterLegal or its Registered Agent is no longer listed as your registered agent.
You can handle this by phone, email, or through your online account portal.
We tested all three forms of BetterLegal customer support. Our findings are detailed below.
When we tested the customer service response time through the online chat option, we received a response within a few minutes.
The question we asked was about turnaround time for filings. The representative told us that they offer same-day filings for all formations. They also mentioned that state filing timelines may vary. The customer service agent was concise and polite and we did not encounter any upselling.
Support Rating:
Response time:
Very quick
We called BetterLegal to ask a question about registered agent services. Our call was answered almost immediately, and the question was answered promptly. The question was whether registered agent services are included in any of the plans, and the answer was no.
The customer service representative explained that we could choose to add the service for $10 per month or $90 per year. The customer service representative was professional and polite and made no sales pitches.
Support Rating:
Response time:
Immediate
We asked the same question via email about registered agent services and received the same response within a few hours. Our question was answered thoroughly and politely. The person who responded made no sales pitches.
Support Rating:
Response time:
Very quick
To understand how real BetterLegal customers feel about the service, we examined customer reviews at the Better Business Bureau and Trustpilot.
BetterLegal has an A rating from the BBB.
BetterLegal has an A rating from the BBB with 5/5 stars in customer reviews. They have been an accredited BBB business since 2017. They received three complaints which were closed in the last three years and two complaints closed in the last 12 months. This is one of the better BBB ratings amongst LLC formation services we’ve encountered.
However, we noticed that there is only one customer review, from 2019, and with five stars, and no negative reviews. This could mean that BetterLegal has been overzealous in deleting fake reviews – which are a real industry problem – and has also included negative reviews in its sweep.
You can read more information on the BBB website.
BetterLegal has a very high trust score rating on Trustpilot.
The Trustpilot score for BetterLegal is 4.9/5 stars.
The BetterLegal reviews from Trustpilot have the following range:
Positive reviews highlight fast turnaround times and exceptional customer service. One customer mentioned how easy the formation process was and that they completed everything within 10 minutes. Another review specifically called attention to how well informed they felt and that BetterLegal kept them up to date throughout the entire process.
Negative reviews mentioned not receiving certain filings or an EIN number. One review called the customer service team incompetent. However, BetterLegal did make a solid attempt at clearing up any discrepancies and it seems as though at least one of the negative reviews was fabricated.
You can read reviews on the TrustPilot website.
Overall, BetterLegal’s services offer advantages and drawbacks, as detailed below.
BetterLegal is based in Austin, Texas, and was founded in 2017. They are mostly known for their legal services and are a fairly young firm compared to the competition. According to LinkedIn, the current CEO of BetterLegal is Blair Drenner, who has been in the position since 2020. Currently, the company has fewer than 10 employees.
BetterLegal focuses on business formation for LLCs and corporations. They outsource many of their services, including the registered agent service. They also work with partner firms for banking, insurance, and accounting services.
We explored several services similar to BetterLegal to see how they stack up.
BetterLegal is a bit more expensive compared to competitors. However, their registered agent services are better priced and offer a monthly payment option, which is unique.
LegalZoom has three packages of services compared to BetterLegal’s single offering.
None of the LegalZoom plans come with an operating agreement service. It costs $99 extra for the service. Annual compliance services are also not included in LegalZoom plans, and are also an add-on with BetterLegal. Turnaround times with LegalZoom are longer.
Similar to BetterLegal, Swyft Filings is not a subscription service. They charge a one-time fee for each of their three packages, and other ongoing services can be added.
BetterLegal’s only package is the same cost as the most expensive offering from Swyft Filings and does not include as many benefits. Like BetterLegal, Swyft Filings is known for their speedy processing. Their signup process is quick, and they have fast business formation turnaround times.
Incfile has very competitive pricing. Their basic package, called the Silver Package, is free and includes registered agent services for a year. Their Gold Package is only $149 and includes the operating agreement as well as a banking resolution. Their Premium Package is $299 and includes some additional services that BetterLegal does not.
Overall, BetterLegal provides extremely valuable services for aspiring business owners. They can ensure that your new business gets off on the right foot. Their service is easy to use and offers a great customer experience, which we learned from testing their support services and reading countless customer reviews.
BetterLegal can take the time and hassle out of starting your business and the ongoing process of staying in compliance with your state’s laws. Their pricing is very competitive, so you’ll get outstanding value for what you pay. We highly recommend BetterLegal.
As a leading entrepreneurial advisory site, we take our responsibilities seriously. We understand that countless entrepreneurs, and potential entrepreneurs, rely on our judgments and insights, particularly when it comes to creating their business.
As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In this case, we:
Thanks to this full immersion in the actual customer experience, our reviewer and team are able to provide the most complete and insightful review of BetterLegal’s LLC formation services.
A service like BetterLegal can make the business formation process easy for you and ensure that it’s done correctly. They provide customer support and additional services to support your business.
BetterLegal offers business formation services to handle the paperwork and cut through the red tape with your state, so you don’t have to. They also offer additional services, including registered agent services and annual compliance.
The BetterLegal LLC Formation Plan offers a name availability search, LLC formation filing with your state, unlimited phone and email support, and a free accounting consultation. You’ll also be able to access your LLC documents online at any time.
The Formation Plan costs a one-time fee of $299. The plan includes an operating agreement, employer identification number (EIN), and the business formation service. It also includes amendment or document research services and a business website.
The BetterLegal registered agent service is a professional service that will handle official correspondence and documents for your business. They will ensure that all correspondence is handled on time and keep copies of documents for you. They will keep track of deadlines for you and send you reminders of things you may have to file, such as tax forms or annual reports.
Registered agent services from BetterLegal cost $10 per month or $90 annually.
BetterLegal has an A rating from the BBB with 5/5 stars in customer reviews. They have been an accredited BBB business since 2017.
With BetterLegal, you can cancel your plan or services at any time by calling customer service at (855) 612-0480 or send an email to [email protected]. You can also cancel online through your account portal.
Yes, overall BetterLegal offers great value and excellent support for business owners. Their pricing is very competitive, and they offer many supplementary services that can make life much easier for new business owners.
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