A few years ago, businesses were a reserve of a chosen few. Only a few people owned businesses, not because they wouldn’t love to, but because of the challenges associated with starting one. Coming up with a business idea is easy, but getting the capital to start the business with documentation and licenses might challenge a new business owner.
Every entrepreneur faces these challenges, and perhaps the most discouraging one is choosing the right business entity.
There are many entities which include:
- Sole proprietorships
- Corporations (S Corp and C Corp)
- Limited Liability Companies
All of the above are formed differently, and thus it is essential to have information on all of them before opting for one that suits you.
In this article, we are going to deal with LLCs. The formation process is long and tedious and thus requires patience. The need to use an attorney might arise, but they are expensive since they charge per hourly rate. However, things have improved, and now there exists online incorporation service providers or LLC formation service providers.
A search on Google for the best LLC service provider shows a dozen results. Thus, an entrepreneur is supposed to go through them to get to the best. Your choice depends on your needs, budget, and a dozen other reasons.
Other reasons that determine the choice of the LLC service provider including but not limited to:
- Pocket-friendly packages,
- Affordable ongoing services, and
- Quick turnaround time.
This article dwells on research and findings done on LegalNature and GovDocFiling.
LegalNature aims to automate legal documents and the business formation process. To achieve this, LegalNature focuses on making legal systems easy to understand, less time-consuming, and affordable to most small business owners.
The company’s founders were in three diverse yet essential fields. One is an experienced attorney, the other a successful entrepreneur and a reputable web developer.
Together, they formed a company that handled business formation services, legal services, website design, and marketing. LegalNature offers services in business formation, real estate, estate planning, and personal affairs.
Business Registration Process
LegalNature registration process starts with selecting the state of formation and the business entity. There are three types of business entities in LegalNature deals with Limited Liability Company (LLC), S-Corp, C-Corp, and Non-Profit Corporations. LegalNature incorporates businesses in all 50 states.
LegalNature offers three formation packages: starter, essential, and pro. The entire process takes at most 15 minutes, and the blue bar at the top marks the progress.
Standard Business Services
- File and prepare formation papers
- Name Availability Search
- Online Document and LLC Access
- Ongoing Updates and Alerts
- Unlimited Phone and Email Support
- Accounting Consultations
- Statement of Organizer
- Business Website
Premium Business Services
LLC Operating Agreement
The operating agreement will protect you from the probable business liabilities and outline ownership and managerial rights. Creating this document will cost $50.
This document represents the agreement between the members to open a banking account and specifies the signatories. LegalNature creates a banking resolution for $50.
Registered Agent Service
The state requires every operating business to have an agent. LegalNature offers to be your registered agent and ensure your business stays compliant at the cost of $125 per year.
Rushed Filing/ Expedite Filing
Filing time can at times take weeks. LegalNature will speed up the process through the rushed and expedite filing at the cost of $50 and $100, respectively.
Federal Tax ID (EIN)
Every potential employer must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). EIN is necessary for filing your business tax returns and opening a business banking account. LegalNature obtains EIN for you for $70.
Using this package, you can stay worry-free. LegalNature will take care of any process you need to remain compliant. This ongoing package will cost you $125 per year.
LegalNature will ship your original copies of formation documents either by FedEx Express or Standard mail at the cost of $40 and $20, respectively.
License and Permit Search
LegalNature has partnered with LicenseLogix to help you get affordable and personalized research reports on your business’s necessary licenses for $129
State Compliant Documents
This package gives you access to state-compliant documents at a discounted price. Below are the documents in this package.
- Corporate Bylaws-LegalNature will personalize your company guidelines and laws at the cost of $35.
- Corporate Bylaws and Shareholder Agreement-LegalNature will help you outline the relationship between different business shareholders and prepare the corporate bylaws at the cost of $60.
- LegalNature Professional Document Plan-LegalNature will give you access to their document’s library, where you can access all templates at an annual fee of $84.
This kit allows you to safely store and organize physical copies and company membership certificates of all the company documents. The kit costs $105.
Additional Business Services
Certificate of Good Standing
This certificate proves that your business has met all the state requirements and is required when applying for business loans. LegalNature obtains a certificate of Good Standing for $89.
Articles of Amendment
You should file for articles of amendment when changing any information that you had previously recorded with the state about your company. LegalNature helps you file the changes for $75.
Articles of Dissolution
Articles of dissolution help you officially close your business with the state to avoid fines and accumulation of tax. LegalNature will help file the articles at the cost of $99.
Foreign Entity Registration
Foreign entity registration helps your business operate in another state that is different from that of formation. LegalNature will help you register the business as a foreign entity at the cost of $129.
This package makes it easy to create, edit and store your real estate legal documents. There are two types;
- Real Estate Management
These documents are state-specific to help manage tenants-landlord affairs. LegalNature classifies the documents into Residential and Commercial Real Estate Management.
- Property Transfers and Sales
Documents under this category protect you when acquiring, getting rid of, and passing on a real estate property.
This package helps you protect your personal properties like cars, investments, etc.
The documents provide the way forward through distributing property a person dies. Some examples include; last will, Codicil, etc.
The finance documents protect your financial assets during your lifetime and consequently transfers them upon death. Some of the papers include; revocable living trust, power of attorney, etc.
- Estate Management
Documents under this category address the transfer of estate properties after a person’s death. They include an affidavit of heirship and affidavit of domicile.
The documents in this category allow someone else to decide on your health matters when you can’t. Some examples include healthcare power of attorney and living will.
Family and Personal Matters
These documents personally match your family’s needs and issues.
- Power of Attorney
These lawyers act on your behalf, or you can appoint another person to represent you. Such a person can help your finances, real estate, etc.
If you’re about to get married or divorced, documents under this category will help you set everything straight. Examples of these documents include marriage separation agreement, affidavit of marriage, etc.
GovDocFiling aims at making the incorporation of businesses easy, quick, and secure. The company was formed in 2016 to help form and run businesses in all 50 states. To date, they have helped hundreds of thousands of small business owners.
GovDocFiling online LLC formation service guarantees taking care of the paperwork. Additionally, the incorporation service provider offers additional services like bookkeeping, payroll services, payment processing solutions, etc. To ensure efficiency in delivering its services, GovDocFiling has a partnership with other companies like Rocket Lawyer, ADP solutions, etc.
Business Registration Process
The registration process is quick and easy to follow. GovDocFiling helps incorporate businesses in all 50 states. Before starting the registration process, you need to choose the business entity. The company has ten business structures that you can choose from; Sole Proprietor, Limited Liability Company, Estate, Non-profit organization, Corporation, Partnership, Trust, S-corporation, Personal service corporation church-controlled organization.
The registration process has three basic steps;
- Primary contact – Here, you need to provide basic information like the name and the email.
- Application Information – In this step where you need to give the company information and subscribe to a few services.
- Checkout – You will pay for the package.
The process takes 10 minutes at most.
Standard Business Services
- EIN/ Tax ID-The Employer Identification Number(EIN) is vital to potential employers, and they obtain it from the Internal Revenue Service. GovDocFiling will help you get the EIN if you form your business with them.
- Filing for State Articles with The Secretary of State
- Expedited Processing-GovDocFiling will ensure your documents are handled first for a quick formation process.
- Safe and Secure Email Delivery of Completed Filings
- All your filing documents will be availed to you through the email securely.
- Phone, Email, and Chat Support with Humans
- Lawyer-Drafted Legal Document Templates
- You will get access to the following legal document templates that a lawyer has prepared.
- Single and Multi-Member Operating Agreement
- Corporate Bylaws
- Independent Contractor Agreement
- Mutual Non-Disclosure Agreement
- Unilateral Non-Disclosure Agreement
- Employee Agreement
- Start-Up Business Guide
Premium Business Services
These services are purchased independently of the formation package.
Registered Agent Service
The state needs businesses to have an agent who receives legal documents from the state. GovDocFiling will be your registered agent for $129 per year.
Corporate/ LLC Kit
The corporate kit contains a slipcase where you can store important company documents, seals, and membership certificates. GovDocFiling offers you this kit for $85.
GovDocFiling, in partnership with Rocket Lawyer, offers you affordable legal services to protect your business.
GovDocFiling has partnered with the Bench to offer you reliable bookkeeping services and help to monitor financials.
The ADP solutions help you pay the employees quickly, tax effortlessly, and get better human resource compliance solutions.
Doing Business As (DBA)
Filing a DBA is a requirement if your business operates using a name that isn’t your legal name. GovDocFiling will help you file for and take care of the paperwork.
Payment Processing Solutions
GovDocFiling incorporation service has partnered with Square payment processing solutions for easy, quick, and secure payment.
GovDocFiling partnership with GoDaddy will help you create an online presence for your business through cheap web and domain hosting, SSL security, professional email, etc.
- Both GovDocFiling and LegalNature offer business formation and legal services.
- They have articles and guides to help you choose services.
- Both GovDocFiling and LegalNature can act as your registered agent service.
- They reduce the paperwork involved in forming a business.
- Both help you select the right business entity for you through a quick survey.
LegalNature vs. GovDocFiling Comparison
A package’s price is one of the significant factors to consider before choosing an incorporation service provider. Two aspects determine the pricing; the cost of the package and what you get for the money. The best incorporation service should have affordable packages and also offer high-value services for the money.
LegalNature offers three business formation packages; Starter, Essential, and Pro. What’s more, the business formation process will start without displaying the discounted plans in most cases.
- Starter Plan – It This is the cheapest plan LegalNature offers costs $39 + state fees.
- Essential Plan – The plan is the most popular and costs $179 + state fees.
- Pro Plan – It is the most premium plan that LegalNature offers at $ 269 + state fees.
GovDocFiling uses a different approach to pricing. First, its formation packages basis is business entities. Below are the packages.
Non-profits, estates, and trust startup packages-When forming a business using the three entities, it will cost you $195 + state fees.
Sole proprietor and partnership startup package-The two business entities will cost you $195 + state fees.
LLC, Corporation, and personal service corporation startup package-These entities are the most expensive to form with GovDocFiling incorporation service. The startup package costs $345 + state fees.
LegalNature pricing is a bit pocket-friendly. Additionally, the services are what you need when forming a business. On the other hand, GovDocFiling services and packages may be a little confusing.
Customer Review and Support
Customer reviews are an essential consideration when selecting a business formation service. Reviews act like the customer confesses their experiences with the service. On the other hand, Customer support channels give you an idea of how easy you can access help if you get stuck.
LegalNature customer support is available from Monday to Friday starting at 6 am to 7 pm and on weekends from 9 am to 1 am. Additionally, they have a high customer rating of 4.3/5 on TrustPilot. The total number of reviews is 4,592, out of which 84% are 4-stars and above. Below is what a satisfied customer had to say.
GovDocFiling offers two customer support ways; through email or by form. The email support is available 24/7. Additionally, they have a high customer rating of 4.6 on Trustpilot. The sum of reviews is 74 out of which 94% are 4-stars and above. Here is a review from a client.
To compare both services, GovDocFiling has a higher rating than LegalNature but few customer reviews. On the other hand, LegalNature has a robust customer support system compared to GovDocFiling. LegalNature has over 3000 5-star ratings on TrustPilot.
The more experienced an incorporation service is, the higher the efficiency. Incorporation services that have been in the industry longer tend to serve customers effectively. Therefore, small business owners should find checking the experience of an LLC formation service vital.
Three people founded LegalNature; a lawyer, an entrepreneur, and a web developer. The company has a reputable 30 years of experience in business formation services. At the same time, the founders are experts in their chosen fields.
GovDocFiling was formed in 2016 and is therefore fresh in the market. Despite that, the company has helped start hundreds of thousands of businesses.
Comparing both services, LegalNature is undoubtedly more experienced than GovDocFiling. LegalNature has been in the industry for over 30 years helping entrepreneurs form businesses.
Registered agent service
The state requires that every business must have a registered agent. Therefore, this is a very vital service to consider before selecting an incorporation service. Additionally, it is an ongoing service.
LegalNature promises to help you avoid fines and meet all the deadlines if you choose them as your agent. They will help you comply with the state requirement of $125 per year.
On the other hand, GovDocFiling offers to be your registered agent for $129 per annum. As your agent, they will send any document they receive from the state to your email as fast as possible to avoid fines.
GovDocFiling charges more than LegalNature for the registered agent service. Therefore, the latter is more affordable than its counterpart.
Legalnature vs GovDocFiling: Pros and Cons
From the overview, you can identify some benefits and demerits of the two incorporations. Below is a summary of a few pros and cons of the two.
- Offer a 100% refund policy
- Has many legal documents and services
- Has a high customer rating
- They have 11 years of experience
- Offers cheap formation packages
- It has a lot of upsells
- Does not offer legal consultation
- Has a lot of partners
- It offers a lot of business entities
- Unlike competitors, it has few upsells
- It has an easy registration process
- Has expensive packages and services
- They have minimal experience
GovDocFiling incorporation service registration process is easy to follow. On the other hand, LegalNature has been in the industry for over 30 years helping in business formation services. Choosing the best incorporation service depends on your specific business needs. It depends on the particular features that your business needs, your budget, and a bunch of other factors. You should choose GovDocFiling if you are looking for specialized business partners and an easy-to-use business process. On the other hand, select LegalNature if you are looking for discounted, affordable packages, a recommendable experience, and a money-back guarantee.