A day in an entrepreneurs’ life has a lot to be done. Juggling between making profits and ensuring compliance can be overwhelming. Filing legal documents needs one to exercise patience and caution at the same time. At this point, the do it yourself idea flies out of the window. Unless you’re a seasoned business owner, you want someone to guide you through a smooth process. The task at hand is to find an LLC service provider that offers the best business formation service.
Business structures come in different forms, including partnerships, S-Corporation, C-Corporation, and LLC companies. All of them require an additional business formation process. I chose to form an LLC and, as such, did a review of two online LLC formation services.
The joy that comes with seeing your company growing is on another level, but this can be short-lived should a lawsuit be thrown at you. An LLC protects personal assets should such a scenario arise, and this is why setting up an LLC is the best thing you can do as a business owner.
However, before you begin the process, you need to do a lot. The most important thing is to ensure that you comply as required by law. As a business owner, you need legal advice and legal service representation and meet all the government requirements.
The process of incorporation is cumbersome. Not to mention the many requirements that you need to meet before you start a business operation.
In this era, everybody who yearns for specific information will be quick to check online. Consequently, there are hundreds of thousands of pieces of information, trying to solve your query. In this case, you will be looking for business formation related information. Some information may be unverified, and you cannot rely on it.
Finding the best company offering LLC service and corporation services may be a daunting task. The main reason for this is that most of them offer their services online. The question of how you deal with a person you can’t see arises. The situation may worsen if you’re new in business and can’t do it on your own. If you are at such a crossroads, this Corpnet vs ZenBusiness review is for you.
Many incorporation service companies have come to lend a helping hand by understanding how hard business incorporation is. These companies offer the necessary service you need and, even better, represent you by providing online legal services. Among the top companies involved in business incorporation are, CorpNet, Swyft Filings ZenBusiness, LegalZoom, BizFilings, Harbor Compliance, and Rocket Lawyer.
Any of these companies can help you form an LLC company. However, having done reviews of the companies mentioned above and seeing what they do to set up your business, I decided to put them head to head. Thus, in this piece, we shall do a Corpnet vs ZenBusiness review.[toc]
Both ZenBusiness and CorpNet, offer company formation services, including LLC formation services, at very affordable rates.
Corpnet came into being in 2009 though they have roots dating back to 1997. For years, they have established themselves among the best companies offering business formation services. They are fast and easy to use, are reliable, affordable, and they guarantee you that they will deliver.
ZenBusiness was established in 2015 to make starting a new business an easy task.
You know, owning a business and having it run successfully is a dream most entrepreneurs don’t come to realize. Thus, ZenBusiness came to give small business owners worry-free services to make their businesses thrive.
Although they provide almost similar services, they differ in some aspects. Choosing between either of them may be subject to some factors.
In this review, we will look at their services and make a comparison. In the end, you will be able to make an informed decision on who to take you through the business formation process. The results will see you get more out of your business and grow as an entrepreneur.
Services they Offer
Business Formation Services
It would be best if you started from somewhere, and this is the first step when starting a new business. The business can be a simple DBA, incorporation, or a partnership. Remember that, the way your business is set up determines the liability, taxation, and other factors that may be of concern to the business.
You must align this process with the local and state regulations to operate and cushion itself from risks that may arise.
Crafting operating agreements
This agreement is a document that contains the rules that govern your LLC. Here, the management structure and responsibilities are defined. To put it simply, it shows how the partners are serious in carrying out their duties.
Compliance support services
Compliance is the process of making sure that rules and regulations are followed. In this case, the business rules as set out in agreements. Thus, the tax has to be paid, annual reports filed and initial reports and statements prepared. Not doing so has consequences to the business.
Help in the application for employer identification number EIN
EIN is a unique number that identifies the business for tax purposes, especially for companies that retain workers. Thus, Corpnet and ZenBusiness will help you apply for the number and make your tax obligations.
Other reasons why you need the EIN are:
- To protect your business identity.
- Add credibility to the company.
- Be able to make loan applications.
- Opening a bank account for the business.
- Build trust.
- Create business credit.
- Be able to hire workers.
- Offer Registered Agent Service.
A registered agent is a person or entity outside the business who acts as a contact for your LLC. They receive tax and legal documents on your behalf.
With Zen Business, you pay $99 annually for an existing business. An upgrade of the complete package is available for $149 per year, including the Worry-Free Compliance Guarantee. Here, you receive alerts so that you don’t miss out on important dates which might cost your business.
Corpnet, too, can serve as your designated registered agent at a fee of $149 per year. Their services have the satisfaction that is 100% guaranteed.
Crafting annual reports
An annual report is a document filed showing the company’s financial position in the previous year. The state gets information regarding an LLC’s directors’ names, addresses, company address, and the registered agent address.
ZenBusiness will help you avoid costly mistakes by filing your annual reports at $75 plus state fees. Their personalized website will help you track your documents.
Tax filing information
Taxation is done at different levels. Thus it is vital to understand the processes and procedures involved to avoid double taxation or missing tax filing. Not filing tax might hurt your business.
The faster you want your LLC established, the more you need to start things rather quickly. With a personalized dashboard, LLC formation can be as easy as a walk in the park. Both companies have done their best to enhance quick online operations.
The first decision you ought to make is the type of business entity you want. You can either choose to start a corporation or LLC. Either way, Corpnet or ZenBusiness will help you establish the business structure of your choice.
Financial ability differs from one individual to another. That is why both companies offer different plans to fit all pockets, such as the starter plan and premium plan. The starter package allows you to spend less. You pay more with the premium package and enjoy better services.
ZenBusiness offers the most competitive package plan for the two companies. With only $39 on their starter pack, you are ready to go. Remember to add the state fee, though. Apart from offering business filing services, they also provide a registered agent service at the same cost.
Additionally, on this starter pack, ZenBusiness will help you formulate corporate bylaws in the form of an LLC operating agreement. They will also offer consultation services. However, you can always upgrade to the package of your choice from the three formation packages they offer.
On the pro plan package, you will get all the starter pack services mentioned above. The pro plan is charged at $149. Additionally, ZenBusiness will offer banking resolution service and help you apply for an Employer Identification Number (EIN). They monitor your legal compliance through worry-free compliance. You get an expedited filing service, which is between 6 to 9 days.
The third plan is the premium package, which again is an upgrade of the starter and pro packages. It goes for $249, and like the rest, you need to add the state fee. You get rush filing, business domain name and a business website.
CorpNet has three plans, which are the basic package, deluxe package, and the complete package. For CorpNet, the option may not determine how long you may wait before the whole process is completed. Their cheapest pack goes for $79. This fee is way more if you compare it to ZenBusiness’s starter pack, which costs $39 and includes the registered agent service.
Looking at all the other business formation companies, none of them charges that kind of fee. The amount is paid for a new business and billed annually. At the end of the year, it will renew at $119 per year. Again this includes the registered agent service.
Another thing worth highlighting is the shipping fee. CorpNet has an extra $29 for each package to cater for the shipping fee. This fee has made their rate way too more expensive, especially for new businesses.
However, among all, ZenBusiness has the most affordable starter pack at $39. Additionally, their starter pack has the necessary features with an included registered agent service trial for one year.
However, if you need a registered agent’s services, be ready to add $ 159 to $ 299, depending on your plan, which may be too expensive. Neither ZenBusiness nor Corpnet offers free registered agent service.
Comparing all LLC formation companies in terms of pricing, I would highly recommend ZenBusiness. Their starter pack fee is competitive compared to CorpNet.
The longer you stay in business, the more you are likely to learn the ropes and deliver services efficiently and effectively.
CorpNet is amongst the oldest LLC formation companies in the incorporation industry. They started their operations in 2009 though their roots go back up to 1997.
Since they started operations, they have provided legal services to almost 1 million business entities. With their ever-growing passion for seeing many businesses established, they have helped more than 100,000 companies.
If customers’ reviews are anything to go by, CorpNet is doing a great job in this industry.
ZenBusiness started operating in the year 2015. Although they may be presumed new in the industry, they have achieved a lot in such a short period. They have helped thousands of businesses in LLC formation.
Like their counterparts, ZenBusiness has received a lot of positive reviews. If you were to rate both companies based on clients’ ratings, it would be hard for you to make a decision.
However, CorpNet stands in a better position in the experience area. Having been in the business long enough, they have what it takes to make your LLC formation process quite an easy task.
Both companies offer online LLC formation services. In any online service, user experience is paramount. With ZenBusiness, you need to choose a formation package suitable for you. Once you have selected that, provide the necessary information they need, and you will be good to go.
It’s important to say, over time, the process has been simplified, and Corpnet is doing well in this area. One of the features that make them unique is how their calculations appear in real-time.
Before choosing any package, you should be aware of how much you will spend on the process. The packages offered sell services provided by the formation service, and they don’t include the state fee.
Corpnet charges an extra $79 even when you opt not to use them as your registered agent which is a considerable amount to save, especially if you’re new in the business.
The turnaround time for your business formation is quite essential. In ZenBusiness, the formation time depends on the formation package you choose. If you can afford only the starter plan, you may have to wait for a month. However, if you are in the pro package, you will only wait for only 1 to 2 weeks.
The deal becomes too good if you opt for a premium package since, in between 1 to 5 days, your business incorporation process will be complete. ZenBusiness is the only company that includes the duration of the incorporation process in their packages.
CorpNet’s turnaround time depends on the state you choose. It’s imperative to note that a state’s processing speed may vary from one state to another. However, with CorpNet, be guaranteed 24-hour document preparation regardless of your package.
In this regard, it would be advisable to go to CorpNet. Regardless of your financial ability, I believe you ought to receive services equally. You may see the incorporation of your LLC in days or even weeks, depending on your state.
On the contrary, ZenBusiness will process your documents depending on your package, which is quite unfair.
In any organization, customer service is quite pivotal. How well you receive communication from clients, and your response speed may make a huge difference. You can reach ZenBusiness via phone, email, or even better through their website.
If you email them, it will only take a day for you to receive a response. Their representatives are friendly and offer quick solutions.
The experience is even better if you opt for Corpnet. They offer multilingual services. If, for instance, you communicate well in Spanish, you will still get served effectively. If customers’ reviews are anything to go by, then the CorpNet support team is doing a great job.
In this area, I wouldn’t favour any side. However, the bilingual feature on CorpNet customer service may entice many, especially other languages native speakers.
Going by the clients’ review, both LLC formation companies are doing a great job. The majority of the clients appreciate their customer support for being friendly and quick in resolving their issues.
Looking at ZenBusiness, customer review shows how quick and easy it is to use their services. Another customer says they have excellent customer service. There is yet another one who talked of an inexpensive process after he initially wanted to use an attorney and spend five times.
Corpnet has good reviews with customers making high recommendations to use their services.
ZenBusiness Review on Better Business Bureau
ZenBusiness Review on TrustPilot
Corpnet Review on Better Business Bureau
Corpnet on TrustPilot
Pros of Using ZenBusiness
- Have the most competitive fee of $49 on their starter package.
- They offer excellent customer service and enjoy positive customer reviews.
- Free business name check for your LLC.
- Easy online LLC formation.
- They provide extra services, such as reporting. Additionally, they may help you come up with a business website and help out with annual filing.
- All services use technology to make them quick.
- They offer corporate social responsibility services. In the year 2020, small businesses have benefited from grants amounting to $100,000.
- Their payments plans are transparent. No hidden fees.
- They have a refund policy. If you request a refund before LLC filing is over, you will get your entire amount less than 25% of their expenses and any other fee incurred by ZenBusiness during incorporation.
- One year free trial registered agent services.
Cons of Using ZenBusiness
- The turnaround time is dependent on your plan.
- Sometimes their turnaround time may be longer than expected.
Pros of Using Corpnet
- They enjoy longevity in this industry, which has given them an edge over others.
- You are sure of 100% satisfaction, and in case you opt-out, you will get your refund back.
- It’s easy to start an LLC with them.
- They have impeccable customer service that has attracted many clients.
- The use of technology makes its services relatively quick and simple.
Cons of Using CorpNet
- Their packages are quite expensive.
- They have little influence over the turnaround time depending on which you want your LLC established.
- 60 days only of a trial of registered agent services.
What to Consider When Choosing an LLC Formation Service
Understanding the basics of LLC or corporation formation is quite essential. Thus, before business formation, consider the following factors.
All LLC formation companies offer different packages depending on features. Ideally, the more you spend, the more you are likely to get more features. It’s wise to know the features that are essential for your business. Understating them will help you choose the best package for your limited liability company.
Except for ZenBusiness that processes your incorporation depending on your package, all the other companies rely on the state. Each state has its filing procedure, which may vary from one state to another. It’s advisable to conduct your research on the best state to establish your LLC.
If ZenBusiness turns out to be your ultimate choice, be informed that the quicker you want your business entity established, the more you need to dig deep into your pockets.
Pricing and Value
You will agree with me that the price of any commodity is essential. The same is true when it comes to LLC formation services. It’s important to compare all companies and deduce the company with the most competitive prices. Who doesn’t want to save a dime anyway?
Which is the Best LLC Formation Company
Choose Corpnet if you:
With great reviews on the web, Corpnet shines bright. So if you’re looking for a company that has excellent customer reviews, then Corpnet is a sure bet for you. When you are rated four or five in a review, it means you are good at what you do.
It is important to note that Corpnet is more experienced in the business formation industry, having been in existence since 2005. The group that owns Corpnet has been in the incorporation business since 1997. Thus, Cornet wins in terms of experience.
Document preparation during incorporation may take time. As a new business owner, you would want a process that is fast enough. With Corpnet, your documents will be prepared and submitted within 24 hours. But that is with the deluxe and complete package.
Choose ZenBusiness if you:
Looking for great service at an affordable rate. At $39 for a business formation package, Zenbusiness stands out. The pricing and value for money offered by ZenBusiness are outstanding. Looking at reviews for all the business formation companies, ZenBusiness is the only company with the cheapest package. What more would you want? ZenBusiness gives you a package that includes business formation, registered agent services, bylaws for the organization, and in-house consultation at only $39.
The $149 package has add-ons, including annual reports, compliance, resolution for the bank, and, most importantly, the EIN.
How easily you can use a product is essential. ZenBusiness simplifies the process of incorporation by allowing you first to choose a package that suits you. They then get the necessary information about you and the business and then proceed to form your company. Their dashboard is easy to manoeuvre, and hence less time is used to understand what is happening next.
Starting an LLC or Corporation isn’t a matter of life and death. Evidently, before establishing either of these business entities, you need to do a lot. However, with various LLC formation companies, you don’t have to sweat it out alone.
Both CorpNet and ZenBusiness offer online LLC formation services and are good at it. With different packages, you’re at liberty to choose the most economical plan for you. However, the cheaper the program, the more chances you are likely to miss some essential features.
Though CorpNet is the oldest company in the industry, their pricing is a little bit high.
For a starter, ZenBusiness is the ultimate choice. Though not old enough in the industry compared to others, they offer the most competitive pricing rates. Everything is clear from the beginning, and once you have filed the legal forms, they work on the rest.
Customers who have used ZenBusiness services give excellent reviews, which shows they are happy with the services.
Additionally, there are other benefits to enjoy with ZenBusiness, such as one-year free trial registered agent services. Since some of these services may be quite expensive, it’s good to seize such an opportunity and save cash, which you need most as a starter in the industry.
Apart from ZenBusiness and Corpnet, it’s good to be aware of other competitors such as LegalZoom and Rocket Lawyer. Comparing all of them and their pricing won’t do you any harm.
How Long Does It Take to File An LLC Through CorpNet?
The time as highlighted earlier depends on the state you wish your LLC established. However, it may take between one to ten days to complete the filing. The time varies due to different filing procedures in other states.
What Is an Operating Agreement, and Why Do You Need One?
An operating agreement is a vital business document when it comes to LLC management. It’s a document that outlines the company’s rules, regulations, and provisions. In other terms, we can refer to it as a binding document that governs the company’s operations and especially internal ones.
Some of the key points highlighted in operating agreements may include ownership percentage and voting rights. Additionally, there is a stipulated formula for sharing profits and losses. The rights and responsibilities of managers are also in this agreement.
It’s crucial and diverse in protecting your business entity. Protection can be either from employees or also from the state. Here is why it’s of much importance.
Protects the Business Nature
Limited liability comes with some benefits in nature. These benefits are only present in the operating agreement document. Lack of it may mistake your LLC Company for other business forms such as partnership and sole proprietorship.
To Reinforce State Rules
All states have rules that govern LLCs. However, some of the regulations aren’t straight forward. It’s essential to come up with an operating agreement to reinforce some of the requirements by state. States may tend to respect operating contracts in case of a conflict.
Important in Conflict Resolution
Employees are required to sign an agreement before commencing work. However, that alone won’t help in times of conflict. An operating agreement here plays a vital role since you can refer to it in case of a dispute.
Does Either of These Services Have a Refund Policy?
Changing your mind regarding a particular LLC company is okay. However, if you had already paid for a specific package, you may need your money back, right? Well, the refund policy differs from one company to another. For ZenBusiness, you may get a refund of 25% less if the filing process had begun.
For other companies such as LegalZoom, you need to make a refund request before 60 days. For CorpNet, if you aren’t satisfied with their services, they guarantee you a 100% refund of any fees paid to them.
What Is The Purpose of a Registered Agent?
Each LLC or corporation should have a registered agent in the state that the business entity operates. You may have a registered agent being a company’s employee or a third party. A registered agent is a contact person responsible for receiving all legal information from the state.
Registered agents receive all the documents on behalf of the LLC or corporation. They will receive and inform you about tax and legal documents. They are critical to ensure that you don’t miss any legal information about your business entity. Some of them may be impending lawsuits and judgments.