Nearly all businesses start as sole proprietorships. It’s believed that almost 73% of US-based businesses are sole proprietors. Indeed, a good majority of entrepreneurs don’t think much about how and when they should incorporate their businesses.
Interestingly, countless small business owners, particularly those making money online on the side during their spare time, rarely think of themselves as business owners. But from a legal perspective, they are, and incorporating their “side hustle” is a wise business idea.
Incorporating your business comes with a plethora of benefits, including federal tax advantages as they are taxed at a different tax rate, continuity of the corporation, easy access to financing, and so on. However, as a small business owner(a sole proprietor in most cases), I believe the most significant benefit is liability protection.
Considering how simple it is to get sued, one wrong move, and your business is gone. You could potentially lose much more than your business. However, if your company is incorporated, you can benefit from the liability protection that comes with the business entity.
How to Incorporate a Business
When it comes to incorporating a business, you can easily do this by retaining an attorney, DIY, or online incorporation service provider. Each of these methods has its pros and cons.
Over the years, most business owners and startups have increasingly opted to use online incorporating firms like LegalZoom, Swyft Filings, MyCorporation, and so on.
These firms offer a swift, seamless business registration process at a reasonable price. They take care of everything, from Employer Identification Number(EIN) application (which is a taxpayer identification number), registered agent service, articles of organization, opening a business bank account, verification of a business name, filing your documents with the Secretary of State’s office.
The entire process is similar in all online business registration firms. All you have to do is fill up a short, quick questioner onsite and settle the payment. Once ready, you’ll get a confirmation with all the necessary paperwork from the State.
In this article, we shall be comparing two online-based business registration firms- GovDocFiling and Inc Authority. The purpose here is to make it easier for you to make an informed choice while looking to incorporate your business online.
Few things are as important as experience in the business world. It helps build a sense of confidence in your clients. That you are capable of handling most, if not anything, that comes your way; consequently, in this GovDocFiling vs. Inc Authority review, we shall look at both firms’ experience.
GovDocFiling is a new entry in the online business incorporation scene- having been founded in 2016. The California-based firm offers an easy, affordable, hustle-free way of registering your business.
Whether it’s an LLC, Corporation, Non-profit, Estate, Trust, Partnership, Personal Service Corporation, or Church Controlled Organization, their business executives are more than capable of legally registering your business. To date, they’ve managed to help set up tens of thousands of companies across the US.
Inc Authority is one of the oldest online business registration firms out there. It was founded in 1989 when it was known as Inc For Free. The business document filing firm boasts of offering incorporation/LLC services at an affordable price.
Numbers don’t lie. The firm has had an impressive track record over the years. To date, the seasoned filing giant has played a central role in forming hundreds of thousands of new businesses across the 50 States.
Apart from business registration, the firm also offers additional services, including Federal Employer Identification Number, Tax return filing, Registered Agent Services, and much more.
Winner: Inc Authority has been around for over 30 years now, thus, have accumulated years of experience over time.
Limited Liability Company formation packages usually include the various business services that go into registering a business. You can pick one according to your business needs as well as your financial budget. While selecting a package, look at the packages in detail, and stick to one that offers you what your business needs.
Most internet-based business document filing firms offer clients the ability to pick their business formation packages. However, when it comes to GovDocFiling, this is out of your hands. The various business entities and services are grouped into three different packs, with varying prices.
The LLC or Corporation package goes for $345. With it, you get a Tax ID/Employer Identification Number application, Filing for State Articles with the State, Corporate bylaws, etc.
Interestingly, Inc Authority enables any business owner to register their respective businesses for free. They waive all the processing fees; thus, all you need to do is pay the State Filing Fee. However, there’s a catch- you can’t pick your business formation package.
But, this doesn’t mean they don’t have them. Inc Authority offers a total of three packs, the Starter, Executive, and Tycoon packages. These starter packages are significantly discounted, but to access them, you’ll have to call the business startup team of experts.
Winner: I don’t know much about Inc Authority prices, but I believe the Tycoon package is comparable to GovDocFiling’s LLC or Corporation package. The Tycoon plan offers Custom State Filed Articles, Operating Agreement/Bylaws, Federal Tax Identification Number, etc., which I believe offers more perks.
Products and Services
Running an efficient payroll while operating a business can get hectic fast. Outsourcing payroll services free you up to focus on running your business, including matters to do with State tax.
GovDocFiling works hand-in-hand with certified attorneys to offer reliable legal services relating to opening and running your business. However, you can’t use these services to substitute an attorney.
With bookkeeping services, you can rest assured of vital record-keeping of each transaction for tax purposes. This way, once it’s tax season, you’ll have a smoother sailing.
Financing and Loans
One of the challenges of starting a business is finding the necessary financing. Make a free business consultation to identify potential funding.
Doing Business As
If you wish to operate your business under a name that’s different from your legal registered name, you’ll have to file a DBA. It offers you additional privacy.
Partnering with GoNorth company, clients can design beautiful-looking websites that will enable you to market yourself to a more significant effect.
Payment Processing Solutions
Payment processor giant Square allows your business to accept payment from a wide variety of gateways, including plastic (debit and credit card), PayPal, and Stripe.
Getting your hands on a business plan has never been this easy. Let our business executives take care of the research, analysis, projection, writing, and editing of your customized business plan.
Getting access to funding can be a nightmare! The BizFunding Express program is designed to assist you in acquiring much-needed working capital from the best low-interest personal and business loans. Ensure to come with your ID card or Driver’s license.
Website and Marketing Package
With this service, you can easily and quickly attract new business, thereby gaining new clients faster. A business website serves as a public record; it helps in building credibility and confidence with your clients.
Trademarks include any symbols, slogans, name, designs, audio, and video material that’s associated with your business. Trademarking these items ensures no other business entity can use them without your consent.
Revocable Living Trust
You can change a revocable living trust can be changed at any time. It protects the privacy of a trust owner and their beneficiaries by minimizing estate tax and avoiding probate.
Build up business credit rapidly by taking advantage of the BizCredit Express program.
Winner: Both firms offer well-crafted additional services to support your business as it grows in leaps and bounds.
Winner: It’s a tie. Both companies have all the necessary services to get your business off the ground and support it during future phases.
There are no telephone numbers listed on the website if you have a need that requires the support team’s attention. However, you can contact them via mail at firstname.lastname@example.org.
Additionally, you can fill up the contact form on their website. Ensure to fill in your EIN and not your Social Security Number while filling the form.
The support team is available via phone at (877) 462-6366. You can also send your email to Info@IncAuthority.com. The teams’ official working hours are Monday – Friday, 8 am – 5 pm, PT. Lastly, you can send them snail mail through 5605 Riggins Court, Suite 200, Reno, NV 89502.
Lastly, there’s a “contact us” form located on the site, which you use to address your concerns to the support team.
Winner: Inc Authority offers many ways to get in touch with the support team, compared to an email by GovDocFiling.
- The firm offers plenty of additional business services needed to run a successful business.
- They offer support to several business entities, including Personal Service Corporations.
- The support team seems to be on top of most complaints.
- Registering your business with the filing giant is simple and straightforward.
- They offer payment processor Square, which is a trusted and secure payment processor.
- Inc Authority has been helping out entrepreneurs for over three decades now.
- The company allows for free business registration; all you have to do is pay the State fee.
- The business registration process is relatively simple; you don’t require advanced computer skills
- They’ve partnered with the Bank of America to make opening a business account much more effortless.
- Great range of additional business services, particularly those related to building credit.
- You can easily customize the business services to your needs.
- There are currently multiple ways of getting in touch with the support team.
- The support team is one of the most professional teams in the market, with positive reviews.
- Free registered agent service for the first year.
- Their refund policy isn’t all apparent and straightforward.
- There are no telephone numbers on the official website.
- The company’s business registration packages are among the most expensive in the industry.
- They charge for an EIN, yet you can access the EIN application form for free via the IRS website.
- The filing giant doesn’t offer any refunds or money-back guarantees on any purchase.
- Inc Authority charges for EIN, yet you can access it freely on the IRS website. All you have to do is appropriately fill the EIN form online, and you’re good to go.
- The free registration is to reel you in so that you can purchase the additional services.
- Their business formation package pricing isn’t publicly available.
All-in-all, both firms have tons of positive reviews; however, there can only be one winner. I would recommend using Inc Authority because of all the reasons mentioned above in this article. They’ve been around the longest, their services are moderately priced, and the support team is remarkable.
They are not the best in the industry, as Inc File and LegalZoom offer superior services. But to compare GovDocFiling and Inc Authority, the latter wins the race hands down!