For many entrepreneurs in the US, starting a business formation may take tremendous effort. With so many hoops to jump before you see your business fully incorporated, you may be tempted to give up. However, with incorporation companies in place to help you with the paperwork, your incorporation journey may be as easy as a walk in the park.
Most of these incorporation firms offer online services. In this case, you can access their websites, fill in some forms, and in a few minutes, you will be good to go. Additionally, the majority of them have an FAQs section that answers most of your queries.
With so many things to concentrate on when starting a business, you may likely get confused on the best LLC formation company to choose. It’s imperative to note that as much as they are many, their services vary. The same case applies to their pricing and other add-ons.
LegalZoom, IncFile, Northwest Registered Agent, and CorpNet are some of the LLC formation firms. Their operations differ, from the amount of time taken to incorporate, to the number of services and products they offer. It’s upon you to do research depending on what your business needs.
In this review, we are going to compare CorpNet and GovDocFiling. We will look into details, their services, pricing, pros, cons, and much more. By the end of it, you should know which of the two suits your firm.
This LLC service company first opened its doors to customers in the year 1997. Ever since it started its business, it has seen more than 100,000 corporations and limited liability companies stand on their feet. As an LLC formation service provider, their services increase day by day. Here are some of their products and services.
Name Availability Check
One of the mandatory requirements for your company is the business name. More often, the name of your choice may be taken by another business. In this case, you need to change it. Running name availability checks is one of the CorpNet areas of expertise.
In case your name is taken, they will guide you on how to come up with another suitable one. This service is available in all three packages: basic, deluxe, and complete.
Documents in the process of incorporation are unavoidable. One of the critical reasons for documentation is taxation. CorpNet will prepare your records within 24 hours. However, this service is available to customers in the deluxe and complete package. A $49 fee will apply if you will need this service for those on the basic package.
Articles of Organization
While establishing a corporation or LLC, you must outline some things correctly. For instance, it’s paramount to outline the LLC or corporation members’ duties, liabilities, and duties. Official articles of organizations are used when crafting some of these crucial issues.
CorpNet will help you with the official article of the organization. Luckily, this service is available to all their customers regardless of the package.
Corporate Compliance Tool (BIZ)
Compliance tools help you run tests and assess their success for your business. CorpNet will give you free BIZ in all three packages.
Registered Agent Services
In any business entity, you are free to act as a registered agent or, better still, go for a third party for the services. A registered agent usually receives all the legal documents for your business. Also, they will inform you of impending lawsuits.
Although the law allows you to be a registered agent for your company, it’s advisable to use a third party like CorpNet. There are compelling reasons to let other firms handle the tasks. Here are some of them.
Registered Agents Act as the Contact Person
A contact person shouldn’t be absent at any given time. Generally, due to some circumstances, you may be missing from the office. In this case, if you are a registered agent for your company, vital information may not reach you on time.
Unlike you, registered agents are available during all working days and hours. They will ensure that they pass the information at the right time to avoid non-compliance.
Trust and Security
In most cases, registered agents are a liaison between your business and the government. Legal documents should be received and forwarded accordingly. Failure to adhere to some instructions may lead to some legal issues between your company and the government.
It’s also essential to highlight that not all information is fit for all the firm’s employees. Having a registered agent service away from your office will ensure safe custody of sensitive information.
That said, it’s important to highlight that CorpNet offers you the services of a registered agent. While for other LLC service providers, you have to pay for this service; Corpnet gives you these services free of charge. However, it’s only for a certain period.
For those on the basic package, you have 60 days to access a registered agent’s services, after which you will have to pay for the services. For deluxe and complete packages’ customers, the period to access free registered agent services is one year.
Securing Employer Identification Number (EIN)
The employer identification number is a must-have for all businesses. The IRS uses the number for taxation purposes. Here are some of the uses of the EIN.
- It’s used to hire new employees
- It’s used for tax filing and payroll services
- Used for opening business bank accounts
CorpNet helps your business secure an EIN. However, this service is available for those on deluxe and complete packages. Those on basic plans need to dig deeper into their pockets to raise $69 to secure one.
Some business entities need an operating agreement. A partnership would be a perfect example in this case. The contract shouldn’t only be crafted but also crafted perfectly to avoid future misunderstandings.
CorpNet will not only help you come up with an operating agreement but also official minutes. However, it’s imperative to mention that this service is only accessible for those on the complete package. For the basic and deluxe plan, a fee of $69 applies.
LLC Kit and Seal
As a reward to their complete package customers, CorpNet offers them customized LLC kits and seals. For customers on the deluxe and basic package, a fee of $100 applies to get this service.
CorpNet offers print delivery to their clients, especially those on the deluxe and complete packages. This service is also available for basic clients at a fee of $29.
Shipping and Handling
In case your business needs to ship goods, CorpNet will do this on your behalf. Also, after goods are received, they will handle them until you are ready to receive them. However, for these services, it doesn’t matter which package you are using. In all the plans, you will have to access this service at $29.
Unlike other LLC service providers that process your order depending on your package, CorpNet’s processing speed is uniform in all three plans. For them, it will take a period of fifteen to twenty days of processing, depending on the state you want your business incorporated.
This incorporation firm first opened doors for its customers in the year 2016. They offer various services that other incorporation companies don’t provide. Another feature that makes them unique is the pricing. Unlike CorpNet, which offers services based on packages, GovDocFiling pricing is purely based on the type of business entity.
Apart from incorporation services, GovDocFiling offers additional benefits. Here are some of them.
As a small business owner, coming up with a perfect payroll may be a daunting task. But not anymore; With GovDocFiling, everything on payroll services is sorted.
In each state, there are federal regulations to be followed by businesses. While you may not know about some of the laws, there’re harsh repercussions for those who break them. Mind you. Some may cost you lonesome, which rising as a new business may be challenging.
GovDocFiling offers legal services, which include advice that you may direly need. I am sure; as a new business, you don’t want to be on the other side of the law.
Application for a DBA
For those who need to operate businesses without using legal names, a DBA is pivotal. In most cases, this service is used by those willing to run non-related enterprises and remain relevant.
Additionally, those willing to collaborate with well-known companies need a DBA to boost credibility. GovDocFiling will help you apply for a DBA for your business.
Bookkeeping is pivotal to any organization. At the same time, it needs a lot of space and time. As an amateur company, doing it well may be problematic. In this case, GovDocFiling will ensure that all the bookkeeping for your firm is done and done perfectly.
As a business owner, finances while starting may be an issue. GovDocFiling offers legal aid in the form of loans to ensure that you make your dreams come true.
Website Design and Marketing
In the era we are in, marketing is usually done via social media platforms and websites. For any new brand to do well in the market, it should do marketing. This LLC service provider will ensure that they don’t only design your website professionally but also market your brands.
As mentioned earlier, pricing for this company is done purely on the business entity. For non-profits, estates, and trusts, you will need $195 for a start. In return, you will be entitled to some services. Here is what you get.
- Tax ID Filing with IRS
- Processing of your Filing within the same day
- Delivery of your Employer Identification Number(also Federal Tax ID Number) to your email
- You get customer support via phone, email, and chats
For sole proprietorship and partnership, the price is still $195, although with some products and services added. Apart from all the services offered to trusts and estates, you get; Legal document templates. Some of these documents include agreements. Here are some of them.
- Independent contractor
- Non-disclosure agreement
- For partnership, you get a partnership agreement
For limited liability companies and corporations, the cost of incorporation is relatively high compared to other entities. If you use GovDocFiling to incorporate any of this entity, you will need $345.
The cost is high considering that there is only an addition of one service for any entity. For LLC, You will get a member agreement which may be either multi or single (depends on your company). If you intend to incorporate your business as a corporation, you will benefit by getting corporate bylaws.
Comparison on Pricing
Comparing GovDocFiling and CorpNet based on pricing, we would go for CorpNet. Their basic package starts from $79 plus the state fee, which is quite reasonable to small business owners. On the other hand, the GovDocFiling fee of incorporation is relatively high, especially if your interest is in a Limited Liability Company or corporation.
For CorpNet, it’s easy to adjust. While beginning, you may go for the basic package. Consequently, you will adapt to deluxe or complete packages as your business grows. This adjustment isn’t possible for GovDocFiling. As we have seen, they don’t have plans.
If you need to save a dime at the initial stages of incorporation, go for CorpNet. On the other hand, if you are satisfied with GovDocFiling products and services and you can afford them, you can go for them.
Comparison on Services
As seen earlier, GovDocFiling offers additional services on top of incorporation. If you need services such as financing and web design, GovDocFiling should be your choice. Additionally, they offer bookkeeping as a service which CorpNet will not provide for you.
Use GovDocFiling if you need additional services. However, it’s imperative to note you will get the benefits at a fee. The fascinating thing about CorpNet is the services of a registered agent.
While for most LLC service providers, you have to pay for a registered agent’s service, CorpNet offers this service free to their consumers at the beginning. Although it’s for a limited time, it’s worth saving a dime whenever possible.
Comparison Based on Filing Speed
While some starting a business may be a well thought and planned affair, for some, it’s just an immediate idea that needs to be implemented as soon as possible. If you need your business incorporated faster, GovDocFiling is a suitable choice for you. Typically, their filing may take one day.
CorpNet, on the other hand, takes fifteen to twenty working days to process your order. This period may be way too long for you if you’re in a hurry to start. Nonetheless, if you are not in a hurry, you may give them an opportunity since they are much more affordable than GovDocFiling.
Comparison Based on Customer Support
How you respond to customer queries is quite pivotal to your business. Both CorpNet and GovDocFiling have active support where you can reach them during working hours. If customers’ reviews are anything to go by, clients are satisfied with both companies’ customer support.
Comparison Based on Reviews
Both GovDocFiling and CorpNet enjoy positive ratings from the majority of their happy clients. GovDocFiling enjoys a rating of 4.5 on TrustPilot. Also, most of the clients are satisfied with the services they received from CorpNet. In this case, separating these LLC service providers based on reviews would be almost impossible.
We wouldn’t be wrong if we say that both firms are good at what they do from the customer feedback. Nonetheless, there are still customers who left negative feedback. In this case, we would understand since it’s hard to satisfy every need.
Pros of Using CorpNet
- They are cheap compared to GovDocFiling
- They offer packages for various business levels
- They provide services for a registered agent free of charge for 60 days for the basic plan and one year to deluxe and complete package clients
- They have a 100% refund policy in case you aren’t satisfied with their services. However, the refund policy doesn’t cover fees paid to a third party, state, or any federal organization
- CorpNet has an active customer support
- There are still other LLC service providers that offer lower prices than CorpNet
- Their turnaround time is relatively slow compared to GovDovFiling
- Pros of using GovDocFiling
Pros of Using GovDocFiling
- They offer additional services such as bookkeeping and financing
- Filing with them will only take few days
- They have an active customer support
GovDocFiling doesn’t offer various formation packages.
They are expensive compared to CorpNet and other LLC service providers.
Starting a business may be breathtaking. The situation gets worse if you don’t know where to start. Incorporation companies like CorpNet and GovDocFiling will guide you with the paperwork.
Businesses’ needs vary. In this case, make sure that you go for the best choice for your business. The same factor applies while applying for the packages. CorpNet is the best at offering packages. Go for the offer that your business can afford.
As a small business owner, it’s advisable to go for the option that may save you a dime. For instance, using a free registered agent service on CorpNet may save you a penny. By the time the benefit expires, you would have gauged their importance.
If you still find the service necessary to your business, you may pay for them. On the same note, if the service doesn’t add much value to your business, you may do away with it.