Owning a business, whether large or small, takes tremendous effort. It takes a special kind of person to dive into unknown territory. The world of entrepreneurship is filled with limitless opportunities. At the same time, it’s filled with uncertainties and endless pitfalls.
As an entrepreneur looking to open a new business, the best thing you can do is to incorporate the company. All it takes is a single lawsuit to bring your aspirations tumbling down, which is one of the reasons why you need to shield yourself and the business from such eventualities.
When it comes to registering your business, you have the option of choosing to run as a sole proprietorship, Limited Liability Company, Corporation, Doing Business As (DBA), Non-profit, and so on. Your choice of entity will have far-reaching legal implications; hence take your time while deciding.
According to Just Business, Sole Proprietorships are the oldest and most popular business entity in the US. However, it has disadvantages to the business owner as you are personally responsible for all the business’s liabilities and debts.
In layman’s language, this means that if someone wins a lawsuit against you, they can take your assets- including your home, car, personal bank accounts, etc.
All this can be a bit confusing.
Fortunately, several online business formation companies can offer you legal help while incorporating your business. Thanks to firms like GovDocFiling, incorporating your business today is much easier than it was 20 to 30 years ago.
They do all the heavy lifting, from offering Registered Agent Service to providing an Employer Identification Number (EIN); these firms handle all the paperwork; this way, you can focus on building your business empire.
In this GovDocFiling review, I shall be taking you through the entire process of registering a business with the state. I will let you know what I love about the company and their services and what I dislike about them.
This way, you will be in the best position to make an informed decision on whether or not they sound like a reliable partner for your business.
Related: Best LLC Services Online
The online (DIY) business formation firm is a national business resource for start-ups and new businesses looking to set-up in the US, across all 50 States. It first opened its doors to customers in 2016 and has never looked back since then.
To date, the firm has managed to assist hundreds of thousands of aspiring entrepreneurs to go after their dreams. They make the process of registering your business with the local and state governments a breeze.
To do this, they’ve partnered with some of the largest firms in the business world, from ADP for payroll and HR compliance services, to Rocket Lawyer, for legal forms and help. Additionally, the company works hand in hand with WCAP Financial as the premier technology company for payment processing.
You can’t use online business formation firms such as GovDocFiling and LegalZoom to substitute your lawyer. If you require legal services, you need to approach a reputable law firm.
As earlier stated, the type of business entity you choose matters. GovDocFiling recognizes this and offers assistance in picking the ideal entity for your needs. Currently, clients can take advantage of the business formation expertise in setting up any of the following entities:
The Internal Revenue Service defines a Sole Proprietorship as an individual who owns a business that’s not registered/incorporated with any State as an LLC. Setting up a sole proprietorship is easy and straightforward, something that makes it desirable.
Unfortunately, since the business doesn’t exist separately from the owner, you are responsible for the business’s debts and liabilities.
Limited Liability Companies have been steadily gaining popularity in the US. There is a myriad of benefits to forming an LLC. It enables you to reap the benefits of incorporating without having to wade through the murky legal waters extensively.
Any person running an LLC stands to benefit from tax deductions, privacy, protection from the business’s liabilities, ease of raising capital, and so on.
There are two main reasons you would put together an estate. First to protect your minor beneficiaries and protect adult beneficiaries from poor decisions, creditors, hefty taxation, spouses, and outside influence. Without proper planning, they stand to receive much less than initially anticipated.
Unlike for-profit businesses, Non-profits typically serve the greater social, ideological, spiritual, political, and environmental good. Any profits derived from the organization are geared toward accomplishing the institution’s goals.
Setting a non-profit offers protection from any liability; you get to enjoy tax benefits, appear more legitimate in the general public and offer a bit of anonymity.
C-Corps, like LLCs, are quite popular in the US, and for a good reason. For one, they offer infinite potential through the selling of stocks; this, in turn, attracts wealthy investors. Additionally, C-Corps have no limit to the number of shareholders the business can have.
When looking to get into the business, you have the option of either going at it alone or into a partnership with two or more parties. Both options have their benefits and disadvantages. Partnerships have the advantage of being able to raise capital.
There’s also the ease of access to finance, division of labor, and diversity in thoughts. Partnerships are also taxed as a pass-through entity. Hence, you pay taxes on your share of business ownership.
From a legal perspective, a trust can be defined as a fiduciary relationship in which the trustor gives the trustee the right to hold title to their property on behalf of a third party. Why should you open a trust? For one, the tax filing requirements vary depending on the purpose and how the trust was formed.
No business entity is perfect; apart from LLCs, S-Corps are always recommended for small business owners. Like most corporations, what draws entrepreneurs to S-Corps is tax benefits, where they are taxed on a pass-through rate. Like LLCs, they also offer asset protection and ease of conversion.
Personal Service Corporation
A Personal Service Corporation is designed where shareholders are considered as employees. To save on taxes, industry professionals form C-Corps, where they perform their services. Since a C-Corp offers tax advantages, this tends to lower some of the taxes they pay.
Church Controlled Organization
Church Controlled Organizations are generally controlled by an entity that engages in non-profit worship services. Such entities are tax-exempted.
Church Controlled Organizations can either be qualified or non-qualified. The former includes seminars and schools, hospitals, retirement homes, and daycare under the latter. Both organizations fall under 501(3)(c), but some can invest in retirement plans that go into church maintenance.
Getting started on GovDocFiling is simple and straightforward. All you need to do is click on “Form Your Business Online.”
The next step is to pick your desired business entity. Ensure to conduct thorough research on this beforehand. Once more, if you are in doubt, approach the support team for further guidance or clarification.
The third step involves providing primary contact information. These are the details the company will use to get in touch with you, so ensure that they are correct.
The fourth step is by far the lengthiest. In the subsequent drop box menus, you’ll need to provide information about the business, including each member’s names. Remember the data you provide needs to match your legal documents, including your Social Security Number.
Fill in the LLC members information
and the process continues…….
More information needed
This is the upsell stage. You have the option of adding Registered Agent Service to your package for $129 a year. GovDocFiling charges a fee of $95 to apply for an EIN. Your EIN is the business’s tax ID number.
It’s used in filing the business’s taxes, open a business account, hire employees, carry out payroll, and much more. You can apply for an EIN for free via the official IRS website.
The last step is to settle the payment and make it official. Customers can do this via plastic, i.e., Credit card, and PayPal Credit, and PayPal. Unlike other business formation firms such as Corpnet, MyCorporation, and many more, I love that the platform offers PayPal as a payment solution.
If you prefer to pay using a card ;
To smooth line the process of running your business, GovDocFiling offers a multitude of enterprise-grade products and services. These include:
Carrying out payroll can be pretty stressful. Having professional help will not only ensure that the job is done but done correctly. Recruit, hire, and manage your team with confidence. ADH payroll solution comes with unlimited 24/7 live customer support backing.
Getting quality legal service doesn’t require a massive army of attorneys. GovDocFiling has partnered with Rocket Lawyer to provide world-class assistance with business-related legal issues. However, as earlier stated, they can’t use them to substitute a lawyer.
Bookkeeping is time-intensive and demanding. It’s essential that each transaction gets logged correctly and promptly. It’s easy to lose track of crucial legal documents necessary for your reports. The last thing you need is a mistake in your journal when it’s tax season.
Financing and Loans
As an entrepreneur, raising capital to bring forth your idea can be a bit challenging. But, with GovDocFiling, it’s as simple as booking a free consultation to discuss potential funding and other resources you may need. It’s free, and you are not obligated in any way to sign on.
DBA (Doing Business As)
If you are an entrepreneur wishing to run your business under a name that’s different from your official legal name, you’ll need to file for a DBA. DBA’s offer you a degree of anonymity, thus enhances privacy, increased flexibility in doing business, and targeted branding.
Payment Processing Solutions
As people are increasingly moving further away from cash, it’s prudent that your business moves in tandem with industry payment trends. Currently, Square is increasingly enjoying adoption on all fronts. Companies can effortlessly take almost any form of payment quickly, securely.
Website Design and Marketing
Effective marketing is just as important as having the next big product. Irrespective of how excellent the product/service is, it will never realize its full potential if your marketing is insufficient. Hence, GovDocFiling offers help in creating outstanding, professionally looking websites.
While picking a DIY business registration website, you need to make time and go through a firm’s review online. This way, you can avoid potential scams. Reviews are great as they save you time, money, and headaches.
Apart from social media platforms, independent third-party websites such as TrustPilot aggregates customer feedback to paint a picture of the company’s ability, products, and customer service.
The business filing company manages to score highly on TrustPilot. It manages to achieve a 4.7 out of 5-star rating. A good majority of these reviews- 97% are excellent, with most clients being willing to recommend the platform to others. Most are in praise of the firm’s great customer service.
The Better Business Bureau has been in the industry since 1912, serving as a non-profit organization whose mission is to advance marketplace trust. Hence, most consumers rely heavily on the BBB while making decisions. This is how they have rated GovDocFiling.
Ratings only tell you superficial details regarding a business. If you want to get into the meat and potatoes of things, you need to go through customer feedback. This is where you’ll hit the jackpot. Let’s have a look at what some past clients have to say.
Unfortunately, most BBB customers didn’t have too many pleasant things to say regarding the firm. Issues range from the slow pace of service to failure in capturing accurate information, with some asking for refunds.
- Unlike other incorporation firms such as LegalZoom, IncFile, MyCorporation, etc., GovDocFiling doesn’t have too much upselling on the platform.
- The business registration service is simple and straightforward. You can register your new company in three easy to follow steps. They take care of all the legal paperwork, including applying for a tax ID for your business.
- They have excellent ratings and customer feedback. This is immensely beneficial as it indicates the filing company knows what it’s doing. It downplays any fears of a scam.
- They have a reliable customer support team that’s available 24/7, ready to help answer any question.
- Unlike most businesses, they offer PayPal as a payment solution. This is particularly important as most online businesses today transact via PayPal.
- Having been formed recently, the company is still green and doesn’t possess extensive experience setting up businesses.
- Unlike its competitors, you don’t have the option of picking a business registration package.
- They charge a hefty amount for applying for your business’s EIN number, considering it’s FREE on the IRS.
- Their LLC, Corporation, S-Corporation services are among some of the most expensive in the industry.
Despite being wet behind the ears, the firm has managed to do well for itself. The high appraisal by the Better Business Bureau, the high-flying rating on TrustPilot, coupled with tons of positive feedback attests to the company’s professionalism and determination.
If you are looking for a company with years of experience, then you may find the company wanting. However, if you are the kind of person that relishes taking the time to get to know the firm, you’ll discover a firm that’s punching way above its weight.
Hence, I would recommend the firm to anyone that requires world-class business-related legal service. They have thought of everything you will need to get your new business off the ground.
Why not give them a try and see for yourself!