In these challenging economic times, starting a business has become a necessity for countless individuals. Whether you’ve lost your job or are looking to create a new venture to earn a living or have been in business for a while, you need to ensure to take the necessary steps to safeguard your business.
As a business owner, you can accomplish this by forming either a Corporation or a Limited Liability Company. These business entities separate individual assets, including homes, bank accounts, cars, etc., from the debts and liabilities of the company.
This is crucial if the business gets sued- which has a high probability of happening, especially in the US- the court can’t come after your assets.
Additionally, incorporation enables the business to take advantage of certain tax advantages and flexibility to grow and expand. Incorporation makes it easy to issue share certificates, hence raise the much-needed capital.
Picking the right business structure could mean the difference between succeeding and failing. If you set up a start-up without choosing the right business structure, you may leave the business susceptible to lawsuits, consequently failing your business.
However, registering a company and ensuring that you comply with all Federal and State requirements ensures the company remains in good books with Uncle Sam. Sure, filing taxes and other legal paperwork is boring and tiresome, but you put in the work to avoid doing time.
If you are a large, well-established firm, you may have the funds to retain an attorney to take care of any litigation. However, if you are a small mom-and-pop kind of business struggling to break even, chances are an attorney is outside the realm of reality.
So, what’s the alternative? Online business formation service providers like MyCorporation, LegalZoom, GovDocFiling, IncFile, etc. With these LLC formation service companies’ aid, you can make the proactive decision to protect your small business through incorporation.
Unlike attorneys that bill by the hour, these LLC services charge much lower fees to incorporate your business; this has made online LLC formation firms a darling to hundreds of thousands of entrepreneurs each year.
This article will review two of the most competent business formation firms in the market- MyCorporation, and GovDocFiling. The purpose of this MyCorporation vs GovDocFiling review is to make it easier for entrepreneurs to pick the best of the two.
Similarities between the Two
Despite being different, these two competitors do share a few similarities. They are:
- Ease of Use: Both online business document filing firms make it easy for clients to use their expertise. The formation process with both companies is straightforward. You don’t need to be a computer programmer to get started.
- Customer Support: MyCorporation and GovDocFiling offer their customers lifetime customer support to ensure their businesses success.
- Customer Review: Reviews are crucial to the success of a modern business, and the more positive feedback, the better. Both companies have several positive reviews from happy clients.
- Refund: If you are unsatisfied with the services rendered, both companies shall strive to resolve the issue. In the event you are still unsatisfied, you will receive a refund.
- Expertise: Business filing is a highly competitive niche. The firm with the best products, pricing, features, etc., stands the chance of coming ahead of the competition. Both companies employ some of the best business executives in the industry.
- Business Entities: Both firms support the formation of a multitude of business entities. These include LLCs, Corporations, Estates, and Nonprofits, etc.
Now that we’ve covered both firms’ similarities, it’s time to see how they stack against each other. We will begin our comparison of the differences by looking at the experience.
This online document filing service provider makes it possible to form a Corporation or Limited Liability Company across all 50 States. Since 1997, the firm has assisted aspiring entrepreneurs in achieving their dream of starting a business.
At the time of writing this, the LLC service provider has successfully helped form over 1 million new businesses.
The California-based filing firm’s business executives list comprises business formation rock stars, led by CEO- Deborah Sweeney- a graduate of the prestigious Pepperdine law and business schools.
In addition to document filing services, the company also offers copyright registration, DBA registration, trademark searches and applications, registered agent service, and much more.
GovDocFiling is the younger of the two, having commenced operations in 2016. However, despite being a bit wet behind the ears, the incorporation firm has managed to make a name for itself in the business filing sector.
With its headquarters in California, the company offers seamless end-to-end business formation services for starting, running, building, and growing your business. The company also provides customers with critical tools that are needed to take your business to the next level.
I couldn’t find figures on how many businesses the company claims to have played a role in setting up though. Irrespective of this, MyCorporation has over 30 years around its waist. Consequently, MyCorporation takes on an early lead in the race.
Getting started on the platform is as easy as 1, 2, 3. All you need to do is to fill up a short questionnaire, providing details regarding the business. To that end, the company offers four business formation packages.
They are the Basic package, Standard package, Deluxe package, and package. The four retail for $99, $124, $24 and $324 respectively. For comparison, we are going to focus on the Basic LLC formation package.
For $99, you get Articles of Incorporation, business documents, Name Check, and MyCorp Vault Document Storage.
As far as LLC formation packages go, GovDocFiling is unique. Unlike many other online incorporating firms that allow you to pick an incorporation package, the firm doesn’t allow you to directly select a plan that best fits your business needs.
Instead, they bundle various business entities together, forming three different packages. For instance, if you are looking to set up a Corporation/LLC, it will cost you $345. A sole proprietorship/partnership costs $195, and nonprofits/estates attract a $195 fee.
Please note that these packages are minus the state filing fee, which varies from one state to another. Since we are looking at registering an LLC or Corporation, it will cost $345, which is $23 more than MyCorporation’s most expensive package.
MyCorporation offers the most affordable LLC/Corporation formation packages from the two. This is crucial to ensuring anyone can access their business services. You have the flexibility of picking your packages also. For that, I award the company a point.
Products and Services
Start My Business
- Employer Identification Number
Also referred to as the Federal Tax Identification Number or Federal Employer Identification Number, this nine-digit number is issued and used by the IRS for business tax purposes. You also require the number to open a business bank account.
- Business Licenses
The fact that you have your certificate of incorporation doesn’t mean you are ready for business. In most states, you still require various permits and licenses before officially opening your doors to clients. MyCorporation will carry out a thorough background check to determine if you need any permits within your choice of state.
- Registered Agent Service
As part of the requirements, while filing for a Corporation or LLC, businesses need to appoint an official Registered Agent. This individual will act as a go-between for the company and government. Registered Agents are in charge of handling important document deliveries, alerting you, and sending them over to you.
- Corporate Minutes & Bylaw
As a Corporation, you are required by law to maintain detailed minutes and bylaws. Bylaws serve to define how a Corporation will be run and structured. On the other hand, minutes are a record of what took place during particular Corporate minutes.
- S Corporation Election
When you form your Corporation, you have the choice of having your business taxes as either a C Corp or an S Corp by the IRS. For the business to be taxed as an S Corp, you’ll have to notify the IRS that you are “electing” to have it taxed as such.
- Free Business Consultation
With countless options and considerations to make while beginning the process of starting and maintaining a business, it’s easy to get confused. You’ll need advice along the way. Book an appointment today for free with no obligations on your end.
- Business Compliance Check
A business needs to ensure that it remains compliant with state regulations. That way, it retains its incorporation status. With the Business Compliance Check, you will always have the support of MyCorporations’ business specialists.
- Name Reservations
While registering a Corporation or LLC, you will be required to provide a name for your business. MyCorporation makes reservation of a desired business name stress-free. This way, you can always use it later on when you are ready.
- Website Design
Kick start your business with a beautifully designed website for only $18 per month. Showcase your products to the masses to quickly grow your business to new heights. You don’t have to do any coding, get unlimited pages, one-click SSL certificates, and create custom contact forms with ease and much more.
Run My Business
- Foreign Qualification
If you are looking to conduct business outside your state of formation, you need to file for Foreign Qualification. The document authorizes you to conduct business in the new state. Failure to observe this could open you to legal repercussions.
Your business has run its course, and it’s time to shut it down. As trivial as this may seem, you may find yourself in a tight fix if not handled with the utmost attention. Proper filing for dissolution ensures that you are no longer obligated to pay taxes to the state and so on.
- Initial Report
Also known as Statements of Information, some States sometimes require initial Reports to ensure the business remains in good standing with the law. As the name suggests, this report is typically filed once a corporation is formed. Failure to do this could lead to fees, charges, and even involuntary dissolution of the business.
- Certificate of Good Standing
This legal document is issued to a business that’s legally registered with the state. Also referred to as a Certificate of Status, State-Specific name, or a Certificate of Existence, the document indicates that the said business is in good books with the law.
- Annual Report
Part of remaining compliant with the law is filing annual reports with the state. The purpose of this report is to ensure the state remains updated with your company’s information. Each state has its own unique set of requirements and deadlines for filing this report.
An apostille is a specialized certificate issued by the office of the Secretary of State. This document is attached with your original documents as proof of their legitimacy and authenticity so that they can be accepted by foreign countries that are signatories to the Hague Apostille Convention.
- Stock Certificates
This physical piece of paper represents a shareholder’s percentage ownership of a business. They include vital information such as the number of shares owned, an identification number, corporate seals, and the purchase date.
Payroll refers to the total compensation a business must pay its employees for a given period. Carrying out payroll is involving and quite delicate. Rather than handling payroll issues at the company level, outsourcing is the better option. It ensures you avoid any legal repercussions due to errors. You can also focus more on growing your business.
- Certified Copies
Get legitimate copies of your essential business documents. They may come in handy, particularly if you are working with third-party companies as it legitimizes your business. It also helps with building trust with your clients.
- Payroll Services
Having a payroll means you need to ensure you remain up-to-date with all statutory requirements and legislations. Outsourcing payroll services ensures you pay the right taxes/statutory deductions and saves you time and money.
With the addition of bookkeeping services to your formation package, you can lighten the load on your shoulder. We will ensure proper entry of all transactions, ensuring that you won’t be in a hitch come tax season.
- Legal Services
Who said quality legal service has to be in the form of an army of attorneys, costing you a leg and an arm? At GovDocFiling, you can access world-class business legal services. This is accomplished by partnering with extremely talented and experienced attorneys.
- Website Design/Marketing
Extensive marketing is just as important, if not more essential, than the product you are selling. GovDocFiling realizes this and offers efficient means of marketing your business in mass.
- Payment Processing Solutions
With our payment solutions, you can rest assured you’ll always have your money on time.
From PayPal to Square and Stripe, spend less time and money on your payments while securing your client’s data.
- Doing Business As (DBA)
If you wish to run your business under a different name from your official name of registration, you’ll be required to file for a DBA. This offers you and your associates a degree of privacy while conducting business.
- Financing and Loans
Do you have a great business idea but struggling with raising capital? Please make a reservation with our business executives to discuss ways of getting funding. There are no obligations on your end, and it won’t affect your credit in any way.
Both firms offer a slew of well-crafted additional services meant to ease opening, running, and expanding your business. However, I feel like MyCorporation brings more to the table than the competitor. As such, it scores a point.
Customer Support Team
Great customer support may mean the difference between the success and failure of a business. When faced with a problem, clients desire prompt action to resolve the issues. This means a company has to offer multiple means of getting a hold of the support team.
Like with online businesses, MyCorporation runs an FAQ page for those with ordinary queries or challenges. However, if you can’t find any answers, you have the option of filling up a short form for further assistance.
However, if that isn’t acceptable to you or require urgent assistance, you can call them on 1-877-692-6772. Please note that phone support is only available during work hours, Mon to Fri, 7:30 A.M TO 4:30 P.M PT.
Lastly, you can send snail mail to the team. Address it to
MyCorporation Business Services, Inc.
26025 Mureau Rd, Suite 120
Calabasas, CA 91302
Unfortunately, there are no telephone numbers to call in case you need assistance. The only way of speaking with someone from the customer support team is by mail at firstname.lastname@example.org. This is, unfortunately, terrible and unacceptable.
Both companies operate various social media pages. Consequently, I do believe you can DM them on their Twitter and Facebook accounts. I must say I’m disappointed and horrified by the fact there are no telephone numbers to call on the GovDocFiling website.
Thus, I have to award a point to the team over at MyCorporation for going the extra step and giving out their telephone number.
- Trust Pilot
The incorporation firm manages to attain a rating of 4.1 from a total of 216 reviews. At least 89% of the reviewers rated the firm positively. 6% rated the company bad/poor.
MyCorporation doesn’t have a single customer review on the Better Business Bureau.
- Trust Pilot
The filling company has a total of 74 reviews on TrustPilot. Of the 74, 94% of respondents rated the company positively, with only 3% rating them as bad/poor.
Like its competitor, GovDocFiling doesn’t have a single review on BBB.
- Trust Pilot
- Trust Pilot
- With 30 years of experience backing them, the document filing firm is one of the oldest and well established online incorporation firms out there.
- Getting started using the company’s business formation services is fairly easy.
- A quick look at the reviews indicates that clients are happy with the firms’ customer support team.
- The company offers a 60-day money-back guarantee if you are not satisfied with a product or service. This is minus the state fee.
- The annual report service ensures that you’ll never miss important events; therefore, your business will remain compliant.
- Their incorporation packages, i.e., Basic, Standard, Deluxe, and Premium, are some of the industry’s most competitively priced packages.
- MyCorporation offers free business name checks to ensure that your desired business name is available. This also reduces the chances of your filing getting rejected by the Secretary of State.
- The online business filing firm offers tons of useful business products necessary to run a business or estate.
- Using their formation services is easy; you don’t have to be a computer geek.
- The firm doesn’t have too much up-selling and cross-selling.
- The company has a high rating on TrustPilot and Better Business Bureau.
- A few of the reviews spoke of facing issues while seeking refunds.
- The company charges $100 for rush filing; I find this a bit on the higher side.
- Registered agent service is only available with the Deluxe and Premium packages only.
- The company’s refund policy is a bit gray. They don’t offer any money-back guarantee on their products and services.
- GovDocFiling has been in existence since 2016. Thus, the company’s experience is dwarfed by its competitors, such as MyCorporation.
- They don’t make it possible for you to pick an incorporation package, unlike other business formation firms.
- The fact that there’s no telephone number for easy communication with the firm is horrible.
As we conclude our MyCorporation vs. GovDocFiling review, it’s clear that both firms are in different leagues. With 30 years of experience, MyCorporation is well established and capable of handling any incorporation needs.
They boast of a reliable customer support team and fairly priced services, and, in turn, it has made the firm an entrepreneur’s best friend. I would recommend the firm over GovDocFiling any time.
If you are looking for a seamless, stress-free experience, go with the best option and pick MyCorporation!