Many people pounder several times about how to increase their regular incomes in the most convenient manner. I used to be one of them. There’s nothing more suitable than to start an online home business to boost your monthly earnings.
More often than not, some are highly skeptical about the whole concept of doing business online. However, the trend of earning a living via the ever-expanding world of the internet has been rapidly intensifying over the years.
There are immense benefits of operating a business from home, something that has further fueled this growth. One of the leading benefits is to start a home-based online business; you only require a small budget, and not forgetting- being your boss!
As attractive as the incentives are, we need to also talk about something else- liabilities and lawsuits. Just because your business is online doesn’t mean you can’t get sued; have a look at Google, Facebook’s examples. The difference is they have armies of lawyers; you don’t!
When starting a small business, one wrong move could spell disaster to your entrepreneurial aspirations. Each year, millions of small businesses face litigation in the US. In fact, according to Insurance Journal, up to 90% of US-based firms juggle multiple lawsuits.
As dire as it may seem, there’s something you can do to limit the impact of such an event, as it’s not a matter of if, BUT when. How, you may ask? By forming a Limited Liability Company or a Corporation. No wonder Corporations are increasingly popular in the US.
Why Incorporation Is Great For Your Business
If you’ve been in business long enough, you are probably aware of the benefits that come with incorporating a business. They include:
- Limited Liability: Incorporating your business extends your protection by separating your assets from the company’s debts and liabilities. This way, in case of legal proceedings, your creditors can’t come after your car, house, bank account, etc.
- Potential Tax Savings: The other advantage of an LLC formation is that the business pays a different tax rate than an individual. Incorporating separates the taxes you pay on your personal and business income.
- Succession: Corporations enjoy continuous or perpetual existence, which is crucial when looking at succession planning. In the event of death, a sole proprietor’s net assets are passed on to the heirs. On the other hand, a Corporation follows contracts and agreements previously laid out.
- Income Splitting: Income splitting is possible within a Corporation. Businesses can pay their shareholders dividends derived from earnings. The shareholders don’t have to be active to receive them necessarily. Therefore, your kids or spouse can become shareholders.
- Capital Gains Tax Deductions: This is a bit complicated, so consult a tax professional. You may be eligible for an $ 800,000-lifetime capital gains tax exemption when you want to sell your shares if they are deemed to be Qualified Small Business Corporation shares.
How to Register a Corporation
Seeing you are reading this, chances are you are considering incorporation, which is a sound strategy. A business needs a solid foundation if it’s to succeed. When it comes to business formation, you have three alternatives: a professional attorney, the DIY way, and online LLC service providers (my favorite).
Each of these methods of registering a business has its benefits and shortcomings. However, if you lack the budget, your best options are the DIY and online LLC formation companies such as LegalZoom, Swyft Filings, Inc File, etc.
Lawyers charge their rates per hour rate, and the final bill could be in the hundreds if not thousands of dollars. Swyft Filings and other similar companies ease the business formation process, making it a more pleasant experience.
They don’t simply hold your hand during the entire process; they take over. From tax ID application, Registered Agent Service, Opening a Business Bank Account, Preparation of Articles of Organization, Preparing and Filing of legal documents, etc., these companies handle everything for you.
In the online business incorporation world, two companies have a rivalry as legendary as Tiger Woods and Phil Mickelson’s. These are Swyft Filings and GovDocFiling. Both firms are more than capable of handling all sorts of business entities, from Corporations, LCCs, Non-Profits, and much more.
In this Swyft Filings vs. GovDocFiling review, we shall look at various aspects of both LLC formation firms to make it easier for you to pick the winner. However, you can still find an independent Swyft Filings Review here. So, without further ado, let’s get into it.
The process of incorporating a business demands an entrepreneur to exercise utmost care and attention. Consequently, while picking an LLC formation service provider, always go for one that’s seasoned and experienced. Failure to do so could see you regret the decision later on.
The LLC service provider understands that your business is essential to you. Thus, they strive to simplify the entire process by handling applications for your business’s tax ID Number, opening a business bank account, drafting an operating agreement, providing registered agent service, and much more.
This way, you can focus more on your business than the unnecessary filing in compliance with the State and Federal regulations.
Since 2015, Swyft Filings has continued to play a pivotal role by helping tens of thousands of entrepreneurs launch their small businesses.
With some of the most skilled and knowledgeable business incorporation specialists, you are assured of assistance in every step of the incorporation process across all 50 States.
GovDocFiling specializes in the registration of various business entities, from LLCs, Corporations, Non-Profits, Doing Business As (DBA), Professional Corporations, partnerships, etc. As one of the top-tiered LLC formation service providers, the firm prides itself on providing fast, easier, and more secure business solutions.
Like Swyft Filings, all you have to do is pick a business entity, fill out the provided online business formation application, and the specialists handle the filing per the State and Federal laws.
Since 2016, the incorporation specialist has had a hand in setting up tens of thousands of businesses, enabling ordinary people to realize their dream of owning and running a successful business.
Winner: The clear winner under this category is undoubtedly Swyft Filings. As much as a year may seem like a short period, this translates to a significant difference in the business world.
Guerilla marketing tactics are every marketer’s dream; they require fewer resources in setting up and have a considerable effect on your bottom line. Most businesses- LLC formation firms included- love to employ them in their marketing campaigns.
These companies throw in a couple of additional services such as web design, priority shipping, Federal Employer Identification Number, and much more into their LLC formation packages. This is meant to entice you into picking them.
Therefore, stick to the basics of incorporation while picking a package, and you should be good. We shall be comparing the entry-level packages on each platform.
As a client, you have access to three LLC formation packages. These are Premium, Standard, and Basic packages. Individually, they cost $299, + State filing fees, $149 + State filing fees, $49 + State filing fees.
Please note that each package comes with lifetime customer support, a 100% money-back guarantee, free shipping, real-time online order status tracking, and a dedicated account to access all your incorporation documents.
For $49, the Basic package offers Unlimited Name Searches, Preparation of Articles of Organization, Compliance Guard Company Alerts, Document Filing with Secretary of State, Free Statement of the Organizer, Online Access to Your Incorporation Documents, Free Domain Name, First Class Shipping, and Handling, Lifetime Customer Support (Phone & Email) and Free 30 Minute Business Tax Consultation.
Most internet-based LLC service providers allow you to pick a desired business formation package, usually depending on your budget and business needs. However, GovDocFiling isn’t your typical LLC service provider.
Instead, they have grouped the various business entities into three categories. So, the price of the package depends on your business entity. The starting prices are between $195 and $345. All three packages come with a Federal Employer Identification Number (EIN), used as your businesses’ Tax ID.
Winner: GovDocFilings way of registering a business entity isn’t unique but rare as a few other firms do the same. However, their packages are expensive. At $49, Swyft Filings’s Basic package is more affordable. They offer a slew of benefits, making their packages the better of the two.
Products and Services
The best business partner is one that’s capable of offering most if not all the necessary products and services in-house as your business grows. This way, you only have a single point of contact for your business needs.
Manage Your Business
Annual reports are legal documents that public corporations provide to their shareholders annually. The report entails the corporations’ operations and financial conditions. Most states require corporations to file this report to remain compliant regularly.
As a business owner looking to operate in a state that’s different from your original state of incorporation, you must apply for Foreign Qualification with the Secretary of State in the other state. It’s the first step in expanding your business to new areas.
Most States require newly formed businesses to file an initial report to remain compliant and retain their incorporation status. Scheduling varies from one state to another. Failure to do so may end in fines of cancellation of registration.
Federal Tax ID
Businesses are required to pay their taxes regularly. To do this, you need to apply for an Employer Identification Number or a Business Tax File Number. Most LLC formation firms charge for this nine-digit number. However, you can apply for this state Tax ID at no cost on the IRS website.
Amendments and Name Changes
In case you make any alterations to your business, including things like changing your address, name, contact information, and so on, you’ll have to file the Amendments with the state. This ensures that the Secretary of State’s office has updated information regarding your business at all times.
Are you done conducting business in a Foreign State and need a clean break away? If so, don’t worry as our business experts are more than capable of handling this. Consequently, you’re off the hook with regards to paying taxes and so on in that state.
If your business has run its course and it’s time to shut things down, you’ll need to file for dissolution properly. This way, you effectively inform the state that you are closing the business and are no longer liable to pay any business taxes.
Change of Registered Agent
As part of the incorporation requirements, a business is expected to appoint and manage a registered agent. This individual is in charge of receiving official business-related documents from the government and passing them to you. If you want to change a registered agent service, you have to communicate this to the state in the filing properly.
For $199, Swyft Filing’s business executives can make the transformation from an LLC to Corporation/any other business entity and vice versa more efficient, more accessible, and seamless.
- (3) Application
This particularly applies to non-profits. If you operate a non-profit and require the business to be exempted from paying taxes by the IRS, you’ll need to file a 501(c) (3) form.
Institutions such as the Federal Reserve Bank and regular banks may require certified copies of your business registration to carry out transactions with them. Our business executives are more than willing to assist you in facilitating this.
Certificate of Good Standing
A certificate of good standing is a legal document that indicates that your business is compliant with pre-set State rules and regulations. Banks and other financial institutions require this certificate from companies looking to do business, such as wire transfers, open bank accounts, and much more.
S Corp Election (Form 2553)
According to the IRS, a corporation or any other business entity eligible to be treated as a Corporation if it files form 2553 under section 1362. This could be beneficial, particularly in terms of ta savings as a small business.
Additional Business Services
There are countless hoops to jump through as a business to ensure you remain compliant and in good standing with the law. One of these hoops is ensuring you keep and regularly file business minutes. The minute manager makes compliance more manageable.
Digital Corporate Kit
Running a business requires easy access to crucial business documents. With the digital corporate kit, you can comfortably and quickly access all the necessary documents at any time from the cloud.
Business Licenses & Research
Each state has varying rules and regulations regarding the necessary papers you require before opening up. As a potential future employer, Swyft Filings will conduct thorough research on the required licenses and permits you need to open a business in your choice of state.
Sales Tax ID
As a business, you are mandated to file your business’s tax returns regularly. To facilitate this, you can apply for a taxpayer ID, commonly known as an Employer Identification Number. The IRS uses the tax identification number to identify businesses that have remitted their taxes.
Registered Agent Service
Registered agents play a pivotal role in a business as they act as middlemen between your business and the government. Swyft Filings offers registered agent services across all 50 States at a reasonable price. Pro Tip: You can appoint yourself as the registered agent of your company.
Like the numerous legal documents that give details about your business, Corporate Bylaws define how a corporation will function as well as its purpose. Additionally, it details the responsibilities of each individual that owns the corporation and how the corporation’s stocks are issued.
LLC Operating Agreement
An LLC operating agreement establishes the rights and responsibilities of each member of a Limited Liability Company. It also offers details regarding the LLC’s internal management, operations, and decisions within LLC.
Running the day-to-day operations of a business while maintaining a proper payroll service can be a bit overwhelming. Our Payroll Services ensure that all your payroll calculations, payroll tax returns statements, year-end taxes are filled without failure.
To ensure you are ready for the Federal tax season, you need to keep clear records of your transactions throughout the year. Bookkeeping service keeps a proper record of all financial transactions, including direct deposits, etc., ensuring to adequately capture the businesses’ federal tax ID and ABA number and so on.
So you know, GovDocFiling isn’t a fully-fledged law firm; in fact, they are nowhere close! In case you have any legal issues, consult a registered, licensed attorney. However, they do offer legal services regarding opening and running a business; they liaise with independent lawyers to provide these services.
Financing and Loans
If you are racking your brain on how you can access financing for your business, consider booking a FREE consultation with our business executives. There are zero obligations, and this won’t affect your credit score.
Doing Business As
Doing Business As (DBA) is increasingly popular with entrepreneurs who wish to have anonymity as a business entity. DBA does this by allowing you to conduct business on a different name from your official business name.
Payment Process Solutions
Payment process solutions ensure that you get your money promptly from each transaction. GovDocFiling offers secure and cutting-edge solutions; therefore, you can rest assured that your clients and personal data are safe.
Any business worth the salt runs at least one blog or website. GovDocFiling makes domain registration and website design easy; this way, you can effectively market your product and services.
Winner: Swyft Filings is undoubtedly the winner in this category. They offer tons and tons of business services to support it from its infancy and as it expands.
As an entrepreneur who’s been around for quite some time, I’ve come to appreciate the importance of having reliable customer support for my business. This means you need to have easy access to the team, therefore multiple ways of reaching out to them.
Like most companies, Swyft Filings runs an extensive FAQ list; they cover all the basics, from tax ID application, transit number, registered agent service, how to pick a business entity, tax return filing, and so on.
In a rare move, Swyft Filings enables live chat with a human support team during office hours. Additionally, you can call them on (877) 777-0450 Mon – Fri 9 am – 6 pm. You can address your concerns to the team by mail: email@example.com.
Lastly, there’s a basic contact page you can fill with your queries, and the team will get back to you within 24 hours.
Like Swyft Filings, GovDocFiling offers its clients/visitors access to a detailed FAQ page. However, if you can’t find answers to your question, you can always address your concerns/questions to the support team via email: firstname.lastname@example.org 24/7.
You can also submit a simple “contact us” form with your question to the support team. Both Swyft filings and GovDocFiling operate various social media pages, which you can also use to speak to the various teams.
Winner: Sadly, I couldn’t come across any telephone number you can use to reach the support team on GovDocFiling. On the other hand, Swyft Filings does offer an email, contact us page, telephone number, and above all, live chat! They are undoubtedly the winner here.
More and more people rely on customer reviews in their decision-making process before buying a product/service. Reviews have the advantage of offering would-be clients a glimpse into a product before committing themselves to purchase it.
It is crucial to minimize the chances of tying yourself with a product or service that’s substandard. Here’s what clients have to say about the two firms on our list. You should avoid going with the reviews left on businesses’ websites, as they have been obtained fraudulently.
Instead, focus on third-party agencies, particularly Trust Pilot and the Better Business Bureau. However, you can use any other platform you trust.
Customer review and ratings go hand-in-hand. They paint a clear picture of what to expect if you choose to purchase certain goods/services. Here’s how the two performed individually.
Winner: Swyft Filings has thousands of reviews on both Trust Pilot and the Better Business Bureau. Despite having a few negative reviews (common with most companies), most clients are pleased with the firm’s services.
- Swyft Filings makes business registration easy. You don’t have to be a computer guru to get started.
- A 100% money-back guarantee backs each product/service; this way, clients are assured of quality.
- The company has been around for some time now and has helped set up tens of thousands of businesses.
- Their business formation packages are some of the most reasonably priced products in the market, with the Basic Package going for $49 + State filing fees.
- Swyft Filings’ customer support team is professional and highly reliable. I particularly love the live chat option.
- Unlimited free name searches ensure that you get the name you desire. It also limits the chances of having your registration from being declined also.
- Swyft Filings has a high approval rate going by their rating and hundreds of customer reviews.
- Their business licenses and permit service ensures that your business remains compliant and open.
- Registering your LLC, Corporation, Non-Profit, and any other business entity is pretty straightforward.
- Unlike other LLC formation service providers who support LLC, Corporations, and Nonprofits, GovDocFiling allows you to register estate applications, Trust applications, and much more.
- The application process isn’t filled with lots of aggressive upselling.
- Additional business support services, including bookkeeping, makes running a business enjoyable.
- A quick look at the negative reviews, some clients complain of challenges with getting access to the support team.
- It sucks that they charge $70 for an Employer Identification Number, considering you can get it for FREE on the IRS’s official website.
- No purchases have a guarantee back up.
- The fact that you can’t pick a formation package like with Swyft Filings and other LLC formation firms is a letdown.
- Their business formation packages are relatively expensive. At $195, you could get a Standard package in most firms with extra services.
Winner: The pros and cons speak for themselves. Swyft Filings is without a doubt the winner here.
Despite only having a year between the two firms, there are immense differences. If you are looking for top-notch business formation and support services, I would recommend using Swyft Filings.
I believe the firm is the better of the two and offers more value for your money. In case you are not satisfied with the services, you can always have it refunded to you- minus the State filing fee. Try them out for a “Swyft Filings” today!