BetterLegal Review: Pros, Cons, & Alternatives

BY Reviano Team, Jun 22, 2023

BetterLegal is a great option if you're looking to get your business registered stress-free in just two business days. Their straightforward pricing of $299 removes the dilemma of figuring out what plan to subscribe to, although it also eliminates the flexibility of filtering out what you don't need. Also, that price tag can be too high for some startups.

There's the good, and there's also the bad, as with all services. In this BetterLegal review 2023, we discuss all you need to know about the LLC formation service, its pros and cons, and whether it's right for you.

As your registered agent, BetterLegal will receive legal mail (such as lawsuits) on your behalf and then forward it to you. BetterLegal's registered agent services cost $10/month or $90/year, so you pay separately if you'd like to appoint them as your registered agent.

BetterLegal will also help you apply for Employer Identification Number when you hire them to do your business filing at no extra cost. EIN (Employer Identification Number) is required when opening a business bank account. You also need it if you want to hire employees.

When you form a nonprofit, you must follow many rules and regulations to get tax exemption. Like the C Corp, S Corp, LLC, Incfile takes $0 formation fees. You only pay for state fees. In addition to the zero formation fees, clients said that Incfile took care of everything.

Your operating agreement or bylaws spells out how your business will be run; roles, rights, responsibilities, and hierarchy of members.

For $10/month or $90/year, BetterLegal will take care of your state compliance so you don't incur fines, back taxes, and other financial penalties. Most states require that you file annual compliance reports and stay in good standing, or else lose your legal right to do business there.

Certain professions require permits and licenses to practice within the state. If you're not sure what licenses you need and are pressed for time, you can have BetterLegal conduct the search for you. This service costs an additional $125.

Banking resolution is the document that authorizes your LLC to open a business bank account. It also names the company member(s) with authorized access to the account. BetterLegal sends you this document alongside your LLC formation documents.

Get a free tax analysis with a leading virtual tax service when you hook up with BetterLegal. This comes as a freebie alongside the LLC formation service. However, the tax analysis is done by Taxfyle, another partner of BetterLegal.

BetterLegal partners with Sure to evaluate your business insurance.

BetterLegal offers you a free website domain through Square. They provide you with the domain name and a basic website or online store that you can go on to design to your taste. You might subscribe to the paid plan with Square to unlock more website customization features.

Next up on our BetterLegal review, let's see what customers say about the service.

With a 4.6 star rating on Trustpilot, BetterLegal has proven satisfactory to most users. Some reviewers consider it the best business formation company they want to work with. But as you could rightly guess, there have also been a few negative reviews.

For example, one user complained of being unable to get their EIN for over a month. BetterLegal customer support claimed the issue was with the IRS, but the team didn't respond for some time. A customer service agent responded to the BetterLegal review on Trustpilot, stating how the information provided wasn't good enough, forcing them into an extra process with no definite timeline.

Erkan Kalafat, another user, wrote a BetterLegal review and gave 3 stars, complaining of a lack of communication from BetterLegal customer support. Although the filing process was as fast as advertised, there was a problem logging in and problems getting a response from the team. Thankfully, they later responded, and everything was sorted.

Robby Stillwell, who used BetterLegal to file his LLC in Delaware, was very disappointed for never receiving his business documents even after 20 days. Hence, he dropped a negative BetterLegal review.

That said, most customers are more than happy to have chosen BetterLegal for their Business formation.

We noticed that most BetterLegal reviews commended the company's fast turnaround time. This is one benefit that clearly stands out. Many also mentioned their efficiency and how easy it is to fill out the forms and register their businesses.

Compared with other LLC formation services, how does BetterLegal stack up? Let's find out.