BetterLegal Review: Pros, Cons, & Alternatives
BY Reviano Team, Jun 22, 2023
Business Formation Services
State fees + $0
BetterLegal can help register your business in just two business days, along with your EIN, Operating Agreement, registered agent, and Banking Resolution.
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.
What is BetterLegal?
BetterLegal is a business formation service that can help you form your LLC or Corp in two business days. They also provide you with your EIN, Operating Agreement, Banking Resolution, and leading virtual tax service in addition to the business formation, while their registered agent service comes at a small additional cost ($10/mo).
Although named BetterLegal, they're neither a law firm nor offer legal nor tax advice.
Who Would Benefit from the Services of BetterLegal?
What are the Services that BetterLegal Provides?
BetterLegal Services in Detail
Business Formation Services
BetterLegal will help you officially establish your LLC or corporation by filing it with the secretary of state on your behalf so you can focus on other things.
Registered Agent Services
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.
Federal Tax Identification Number (EIN) Filing
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.
Operating Agreements or Bylaws
Your operating agreement or bylaws spells out how your business will be run; roles, rights, responsibilities, and hierarchy of members.
State Compliance Service
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.
Permit & License Searches
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.
Free Tax Analysis
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.
Business Insurance Evaluation
BetterLegal partners with Sure to evaluate your business insurance.
Payroll & HR Services
BetterLegal also offers HR platform services through its third-party partner Square. Square specializes in invoicing, payroll, email marketing, and other outsourced business processes.
Free Website Domain
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.
BetterLegal Services Pricing
How BetterLegal Works
Yes, BetterLegal is legit and BBB-accredited. Founded in 2017, the company has garnered hundreds of impressive reviews on Trustpilot, with a 4.6-star rating.
BetterLegal's LLC formation package costs $299 + state filing fees. This flat fee includes your operating agreement, articles of organization, and EIN, but not registered agent services.
BetterLegal charges $10 per month or $90 per year for their registered agent service. This is relatively cheaper in the long term than other companies like LegalZoom, which charges $299 yearly for its registered agent service. Most of the BetterLegal top alternatives we reviewed offer their registered agent services for over $100 yearly. When you add up the small savings from BetterLegal every year, they can become significant with time.
But here's the problem. Full LLC formation from BetterLegal in the first year will cost $299 (for filing) + $90 (for Registered Agent), which equals $389. This is relatively expensive. See any cost savings from the registered agent service renewal will take years.
No, every payment made on the website is final.
It takes only two business days for BetterLegal to file your LLC. However, this depends on the state. For states that take longer, you might not be able to get your company registration approved within that time window.
The best part about BetterLegal is their fast turnaround time and single pricing, which makes choosing easy. Although the pricing only includes things essential to business formation, you can select add-ons like registered agent service, but these will increase the final price.
BetterLegal business formation + registered agent service costs $389, which may not be cost-effective for a small startup business.
BetterLegal is best for business owners willing to pay more to get their company registered with lightning speed (within two business days).
BetterLegal isn't the cheapest LLC formation service, but it isn't the cheapest. For the same perks, BetterLegal charges less than Zenbusiness and Legal Zoom. However, Northwest offers far better pricing. Aside from the fast turnaround, not much makes BetterLegal stand out among other formation services.
While you can act as the registered agent of your own business, we recommend hiring a service as it can be a full-time job. Filing compliance and tax documents are sensitive tasks, and lateness can attract penalties. Plus, if you won't always be physically available to receive tax and legal documents, better to hire an RA to receive them for you. Registered agent service is your best bet if you also want to keep your address off public records.
You can cancel your BetterLegal registered agent services through the BetterLegal website by calling their customer service line or emailing them at email@BetterLegal.com.
BetterLegal can help you obtain an Employee Identification Number even when you don't have an SSN or ITIN, but it will take about two weeks. That's because they would send the application by fax to the IRS.
BetterLegal serves all 50 states.
No, BetterLegal is not a law firm and does not offer legal services, contrary to what the name suggests.
Yes, BetterLegal offers state compliance services.
Yes, BetterLegal can handle your tax, accounting, and bookkeeping services.
Yes, you can set up an LLC in a different state even if you don't live there. Just ensure you hire a registered agent who is physically present in that state.
What Do Customers Say About BetterLegal: BetterLegal Reviews
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.
BetterLegal Alternatives & Competitors
Compared with other LLC formation services, how does BetterLegal stack up? Let's find out.
Northwest Registered Agent is one of the best alternatives to BetterLegal and is our recommended pick for registered agent services. Northwest Registered Agent also provides other services for managing your business entity, such as virtual office and compliance. They'll form your business for $39 + state filing fees, and offer free registered agent services for the first year, which will renew for $128 annually.
With Incfile, you only have to pay the state filing fees to register your business. That is, Incfile incorporates your business for free! Their registered agent service is also free for the first year, after which you'll start paying $119 subsequently.
Incfile's pricing looks attractive until you discover that, to get express business filing plus add-ons, you have to pay $299, which is the same as BetterLegal.
Zenbusiness offers multiple plans, with the starter package costing $0 + state fees. However, getting your LLC at this price will take 2-3 weeks. That's a pretty long time. You won't get add-ons like compliance, EIN, and Operating Agreements.
To get those add-ons plus faster filing, you must go for pricier packages costing $199/yr or $299/yr. These prices do not include registered agent service.
The Zenbusiness starter plan can be more affordable if you have enough time. But if you want the full features, BetterLegal becomes more cost-effective.
As the name suggests, Legal Zoom offers legal services in addition to its business formation and registered agent services. You can access data protection, identity theft protection, credit monitoring, and a compliance calendar. You can also obtain trademarks and copyrights from Legal Zoom.
Inc Authority can help you file your LLC, obtain EIN, and do a name check for free; you only need to pay your state filing fee. They top this off with a free tax planning consultation, financial analysis, and preparation of all your formation documents. This is one area where Inc Authority really sets itself apart.
Unlike BetterLegal, Inc Authority offers legal services such as trademarks and assistance with business credit, funding, and marketing.
If you need a professional service that doesn't only handle business formation service but one you can also discuss sensitive information, Rocket Lawyer might be a good fit.
The company offers a host of legal features like attorney consultations. You can get a free LLC formation by opting for Rocket Lawyer's legal services membership. You pay $39.99 monthly as a membership fee. For non-members, Rocket Lawyer gets much pricier than its competitors.
The company formation costs $99.9 + state fees, while registered agent service costs $149.99 yearly.
Now that we've come to the end of this BetterLegal, on to the million-dollar question: should I use BetterLegal?
The answer? Conditionally!
The service is good, and most users have been impressed. The fee for registered agent services per year is also affordable compared to other great LLC formation services.
If you need lightning-fast business filing and can spare some bucks, BetterLegal isn't a bad choice.
But if you're looking for the best value for money and aren't hurrying to approve your filing, you might be better off using Northwest Registered Agent, Incfile, or Inc Authority.
And that's a wrap for this BetterLegal review!