Starting a new business: Do you need to use an LLC formation service?
So far, 2020 has been a busy year for startups. Indeed this is partly attributed to high unemployment and the American spirit to keep head above water. The question is do you need to use a lawyer or formation company, or is this a DIY activity?
Starting a business can be a stressful process, but it doesn’t need to be. Making use of a business formation can save indirect costs such as saving on time. Many business formation services also provide additional features in their packages that can benefit a newly formed business. It can not only be overwhelming to file on your own, but using a professional service can also avoid costly delays in starting the business. Below are a few of the benefits of using a business formation service to help potential business owners decide whether to use professional assistance.
Saving time and costs
An established and reliable formation service will know the required processes and procedures for various states. This can save greatly on registration time. Mistakes can happen when a person is not familiar with the exact documentation required which in turn causes delays in opening the business. Any operation delays result in a direct loss of potential income. Below are 5 of the top business formation companies to use.
- ZenBusiness
- IncFile
- Northwest
- Rocket Lawyer
- LegalZoom
All of the above mentioned companies provide 3 different packages at various price points. They not only assist with forming an LLC, but also have many other helpful features offered to benefit a newly formed business.
Added features
Many of the business formation services provide other helpful features to their clients. These added features vary from company to company, but all are helpful. Some examples of added features offered are:
- Operating Agreement
- Advisory Services such as CPA assessments, tax consultation and discounted costs on attorney fees.
- Web domain name, website and business emails
- Web hosting services.
Utilising the resources these services provide could mean the success or failure of a business. Northwest for example provides their clients with Corporate Guides which are trained business experts specifically tasked to answer any questions or queries. Rocket Lawyer and LegalZoom provide legal services for businesses that require assistance in this regard. Others such as ZenBusiness include an Operating Agreement for free even in their starter package and IncFile gives their clients a 1 hour free tax consultation.
All of these additional services are helpful to any business and by utilising the same company for formation services as well as other features, it could again save on costs.
Customer Service
Using a business formation service can avoid unnecessary frustrations throughout the registration process. A reputable company should have an excellent customer service system that is able to assist a client with queries and questions. It can save a great deal of time when dealing with a single contact source. Formation services usually offer a number of different ways of contacting them through email, telephone or online chat.
Easy access to important documentation
One thing most business owners can agree on is that paperwork can be a nightmare. Even companies with the best filing systems in place can sometimes misplace an important document. Some formation services provide online platforms that can be accessed at any time where essential documents are saved. This can provide a great deal of peace of mind to know that the documents are secure and can be found easily if and when required to do so.
It is possible to form an LLC on your own, however it can be risky. Utilising a formation service can save on costly mistakes and delays that may occur when a person files on his own. The added services and features provided are great tools that benefit a business and can make the business formation process an easy and pleasant process. The companies mentioned above are great options to look at when trying to choose the right formation service. They differ in their offerings to suit a variety different LLC start-ups and all come with the essential features for forming an LLC. Compare here to decide which formation service is best for you.
Author: Jacob Maslow
Ontario Businesses Look for Solutions to Rising Energy Prices
