An entrepreneur faces many challenges in the quest of starting a business. Most small businesses don’t know what to do when it comes to LLC formation. Online LLC service provides have filled web pages each trying to win a customer or two. You get confused about who has the best deal since as a business owner, everything needs to be in the right place.
As a new business owner, it is okay to be confused, but it’s not okay to be indecisive. Most of the people who call me for advice are hesitant because of two things; lack of proper knowledge about business formation providers and fear of making mistakes. I cannot help eliminate the latter, but I can share some insights to help you decide which business formation service provider best suits you.
This article compares Swyft Filings vs. LegalNature. Similarly, I have compared other business formation services like MyCorporation vs. Swyft Filings review, ZenBusiness vs. Swyft Filings review, Corpnet Vs. ZenBusiness review, among others. Check them out because the more informed you are, the more informed decisions you make.
Meanwhile, let’s see what Swyft Filings and LegalNature have to offer.[toc]
1.It helps in Cutting out the paperwork.
The business formation process is long and tiring. What’s more, it is time-consuming. You have a lot of documents that you have to compile. Since we’re prone to forgetting, you might even overlook some essential documents that will lead to starting the process again.
Swyft Filings and LegalZoom are online LLC formation services that have come to solve this problem. You don’t have to waste your time engaging in a tiresome process. Instead, with just a few clicks on your keyboard, you can complete the process and wait for the formation companies to do the rest.
2. Both offers registered agent service.
The state laws require every business to have a registered agent service that handles any legal document or communication from the government agencies. Swyft Filings and LegalNature are available in all 50 states, and both provide the registered agent service.
3. Both have guides and articles to help business owners choose the right services for them.
Everyone needs help at some point. Swyft Filings and LegalNature understand this, and therefore, they have provided guides and articles that answer every question you may have about their services.
4. Customer support.
Both Swyft Filings and LegalNature provide excellent support. They both treat every case with the promptness it deserves; hence they’re reliable and effective.
5. Customer reviews.
Reviews show the number of clients who love their customer service and the level of experience. With most reviews being positive and above average, this indicates that their services are reputable and, beyond doubt, trustworthy.
6. They offer filing services in every state.
Your business will probably one day grow beyond into the other states and looking for registered agents in every state sucks. Additionally, it will disintegrate your information. However, Swyft Filings and LegalNature offer filing services in every state, and therefore you can assemble all your data and use one service provider.
7. Both charge the same for the employer identification number.
Employer Identification Number (EIN) is a requirement by the state. Without this number, your company neither hires employees nor opens a bank account. Both Swyft Filings and LegalNature charge the same fee to help you obtain this 9-digit number.
- Swyft Filings has been in existence for nine years, while Legalnature has been in for the last 11years.
- LegalNature charges less for the registered agent than Swyft Filings.
- LegalNature charges more for the business license and permits search. Swyft Filings charges $99 while LegalNature charges $129
- Swyft Filings offers you a personal rep, while LegalNature doesn’t.
- Swyft Filings specializes in business formation, while LegalNature offers legal advice and services coupled with business formation services.
Who are Swyft Filings?
Swyft Filings is an online LLC formation company with nine years of experience. The founder started this business formation company to automate the business registration process. Over the years, Swyft Filings has helped in cutting the paperwork involved with forming a new business. Additionally, this business incorporation company has services that keep your business running and in good stand with the government. Such services include registered agent service, minutes manager, among others.
Features of Swyft Filings
Swyft Filings, as an online LLC service provider, offers four types of business formation entities. Like other business incorporation companies, its business entities are Limited Liability Company, C Corporation, S Corporation, and Non-Profit.
Let’s discuss the basics of each lightly;
- Limited Liability Company (LLC). It is by far the most popular business entity among new business owners. Its source of popularity is because of its simplicity in formation. Additionally, this business entity separates personal liabilities and the assets of the business. Therefore, if your business is in debt, the debt cannot be recovered using your (owner) assets.
- C Corporation. It’s the most popular type of corporation. It has its share of benefits. One, it allows the company to trade its stocks publicly to raise capital. Like a limited liability company, C corporation separates the company’s liabilities from the owner’s assets. However, it has its bitter cup too. It is subjected to double taxation, one at the company and the other at a personal level. Double taxation means that the company will pay tax before paying the employer, and the employer will also pay tax when they receive their income. Also, C-corporations involves a lot of paperwork when registering and a complex business structure. Luckily, online LLC incorporation services like Swyft Filings take care of the complex business structure and cut off the paperwork involved.
- S Corporation. It is a modification or a combination of a Limited liability company and a C-corporation. The benefit of S corporation over C corporation is that the former is not subject to double taxation. This corporation undergoes a “pass-through” tax, which the business owners have to request from the Internal Revenue Service (IRS) by filing form 2553. Additionally, S corporation also separates the business assets from the owner’s liabilities.
- Non-Profit. These corporations are for pure charity reasons. They benefit from the public, and in some states, they have exemptions from some taxes. Like other business entities, the corporation shields the owners from the liabilities of the business.
Ease of Registration
The registration process is easy and fast. It takes not more than 15 minutes. To register, you need to select a package and fill in the necessary information.
There are upsells in the process, which does nothing better than slowing you down. The good thing is that you can monitor the bar’s process and know how many steps are remaining.
Federal Tax ID (EIN)
For taxation purposes, the federal government needs to identify your business uniquely. For this reason, the Internal Revenue Service (IRS) has the mandate to give enterprises an Employer Identification Number (EIN). Employer Identification Number is a 9-digit number that uniquely identifies your business, like the social security number that identifies people. EIN is a requirement by the state laws. Additionally, without this number, you cannot open a business bank account. What’s worse, you cannot hire employees. Go to the IRS portal for EIN registration, or you can employ Swyft Filings to apply it for you. The service will cost a one-time fee of $70.
LLC Operating Agreement
An LLC Operating Agreement is a legal document that explains the “what” and “how” in a business. It explains the managerial and financial rights the owners have and to what extent. This definition of rights ensures that the members are liable for their actions. Swyft Filings customizes your LLC operating agreement per your company’s information. This customization costs you a one-time fee of $35.
A banking resolution is a necessity when you are opening a business bank account. This document lists the names of the members who are authorized to open the bank account. It must also document the people who can transact on the account. Swyft Filings will customize a bank resolution according to your company’s information at a fee of $30.
You record these minutes on the first meeting when the members meet and deliberate on forming the business. For this meeting to happen, you must file the articles of organization and the operating agreement. Swyft Filings will make you organizational minutes that are customized using your company’s information. This service will cost you $25.
Electronic Delivery of State Documents
You will receive the state documents immediately Swyft Filings receives them. The documents paperwork will be availed online via your Swyft Filings account for you to download. This service will cost you $20.
Digital Corporate Kit
The corporate kit helps your business stay in good standing with the government. This kit has;
Company seals. Swyft Filings customize the seal with your company information like its name, the year of formation, and the state. You can use this seal to mark all the company documents or other official uses.
20 customized stock certificates. You can distribute these certificates to show formal ownership to the initial owners or shareholders of the company.
Ownership Ledger. You will get a properly designed ledger for your company. You can use this ledger to document all the company’s ownership transfers.
The complete package of the kit will cost you a $99 fee.
Express Filing Time
This service fastens the Delivery of your documents. The charges of this service depending on the state of business formation. For example, forming a limited liability company in California will take 25-30 business days through the standard filing time. However, if you pay a $50 express filing time fee, the filing process will take 15-20 business days. On the other hand, if you form a business in Georgia, it will take 15 business days. However, if you pay a $145 express filing time fee, the filing process will take two days.
This example shows that the express filing time fee depends on the state of incorporating your business.
Every business needs a physical address and not a P.O. Box or a residential address. Swyft Filing offers you a month free business address, which will cost you $29 per month after the one-free month.
Having a business address keeps your home address private. Also, it makes your business more professional.
Registered Agent Service
It is a requirement by the state that every business must have a registered agent. The registered agent is the contact person when the state wants to talk to your business. They receive all the official documents for your business.
You can use your relative as the registered agent, but there are several reasons why that is not advisable; we’ll cover them later in this article. Swyft Filings can be your registered agent for an annual $149 +state fee. Swyft Filings will give you quarterly reports to ensure that your business is compliant with the state.
Business License and Permits Package
Depending on the nature of the business, you need some licenses before you start operating. You need to research to check what kind of permits you need before your business can set shop in a specific state. Licenses are also essential, mostly if your business deals with something professional.
Swyft Filings offers to do the research and give you the report on the licenses and permits you need for your business to start operation. Swyft Filings charges a one-time fee of $99 for the package.
Your business should have meetings several times a year for it to stay compliant with the state. Your business should have a record of these minutes as the only proof that you held the meeting. This tiresome process of recording minutes is forgettable at times. That’s where the Swyft Filings minutes manager comes in. The minutes’ manager will write the minutes for you at the cost of $60.
Seller’s Permit (sales tax I.D.)
Seller’s permit or sales tax I.D. is a permit that allows you to collect your sales tax. Swyft Filings will help you obtain your sales tax I.D. from the state at the cost of $129.
Corporate By-laws and Resolutions
These are the rules that control the daily activities of the business. Corporate by-laws and resolutions govern the conduct of the management. They are also the point of reference in cases where shareholders conflict.
Swyft Filings will provide personalized corporate by-laws using your company information at the cost of $35.
What is LegalNature?
LegalNature is an online incorporation service provider founded in 2010 by three people; a businessman, an attorney, and a web designer. The three professions formed the basis of what LegalNature is today. Over the 11 years of its experience, LegalNature has purposed to make legal advice and services affordable to everyone. The company offers a wide range of products like business formation, property transfer, and residential or commercial real estate management. Additionally, this business formation company provides legal services to keep your business compliant with the law.
Features of LegalNature
Just like other business incorporation companies, LegalNature offers business formation using four business entities. The four business entities are Limited Liability Company (LLC), S Corporation, C corporation, and Non-profit.
Below is a little overview of these business entities.
Limited Liability Company (LLC).
This business entity is prevalent among business owners. Its source of fame is its ability to separate the business owner’s liabilities from the business assets. Liability protection is important as it safeguards family property. What’s more, this business entity does not have double taxation. The taxation of the business is at the business owner level.
Like Limited Liability Company, C corporation separates the business’s liabilities from the business owner’s assets. The fun part and possibly the main reason new business owners form business under this entity is that it allows the company to raise capital by publicly trading its stocks. However, C Corporation faces double taxation because of taxation at the business and personal level. Another shortcoming of this business entity is that it has a very tiresome business structure. However, as a new business owner, this shouldn’t stop you because Legal nature will take care of the paperwork.
It is a simply modified C Corporation. The modification aims at avoiding double taxation experience in C Corporation. S Corporation undergoes “pass-through” taxation by the Internal Revenue Service. The business owners have to request for the “pass-through” taxation by filling for 2553. The business owners fill this form after forming the business successfully
This business entity covers corporations whose reason for incorporation is charity. These corporations have exemptions from many taxes, and in some states, they do not pay state fees. Like other business entities, non-profit corporations separate business liabilities from personal assets.
Ease of Registration
This process takes about 10 minutes to complete. When you start the registration process, you can quickly fill in the business’s contact information and click next. The whole process does not have a lot of marketing or upsell. LegalNature even combines some of the services to shorten the registration process.
Registered Agent Service
A registered agent is a requirement by state law for all businesses. The registered agent must be at the registered address at all times during business hours. The purpose of a registered agent is to act as a link between your business and the state. Every document that your business receives from the state must pass through the office of the registered agent. When LegalNature becomes your registered agent, they will be handling all the legal documents your business receives from the state. This registered agent service by LegalNature costs a $ 125+state fee.
This service aims to reduce filing time. You may be in a hurry to start up your business; expedite filing service helps you meet your deadlines. Expedite service changes depending on the state you want to set up the business. For example, In Alabama, filing a limited liability company (LLC) takes ten weeks. However, using the expedite service, the filing process reduces to 7weeks.
Similarly, if you are starting a business in California, the filing process takes 20 business days. However, if you subscribe to expedite Filing, the filing time reduces to 15 business days. This service will cost you $75.
Employer Identification Number
Employer Identification Number (EIN), also known as Tax ID, is a number that your business receives from the Internal Revenue Service (IRS). This 9-digit number uniquely identifies your business. It is an essential requirement when a company is opening a business bank account. It is easy and free to apply for this number via the Internal Revenue Service online portal. However, LegalNature can make an application for you at a one-time fee of $70.
State Compliant Documents
This package includes all the documents needed to keep your business compliant with the state. These documents are LLC operating agreement, Employer agreement, and corporate by-laws. An LLC operating agreement is a document that explains and guides the management of the business. It is a document that separates the company’s liabilities and the business owner’s assets. On the other hand, corporate laws explain the formality of the shares and ownership. The document also shields the shareholders’ property from the liabilities of the business. LegalNature offers to individualize and customize these documents at a significantly discounted price. This package has three offers;
- LLC Operating Agreement, which will cost you $35
- LLC Operating Agreement and Employer Agreement, which costs $60
- Legal Nature Professional Document Plan, which costs $84 per year
Licenses and Permits Search
Every business needs licenses to make it legal and permits to do a particular type of business. Most professional companies need licenses to validate their professionalism in the industry. For example, if your business is selling arms or selling foods, you need a license and permit to make your selling legal. Searching for the permits and licenses required may be tiresome at times. Additionally, you may forget some of the licenses. LegalNature takes care of this process by obtaining an individualized, affordable, and well-researched report on the business licenses and permits needed in your state. This search will cost you $129.
The corporate kit enables you to safely organize and store all your all-physical copies of essential company documents. It will manage all the documents in one place. Additionally, this corporate kit has a highly- quality and customized binder, a slipcase, and membership certificates. This kit will cost you a one-time fee of $105.
This package enables you to receive the hard copies of all your documents as an addition to electronic Delivery. You can choose either of the two shipping ways;
- FedEx Express will charge $40 for this service.
- Standard mail charges $20 for the service.
Swyft Filings vs. LegalNature- Comparison
The Price of anything is a sensitive topic. Most people have to do things under budget. To most people, the pricing determines if they will buy a service or not. Comparing Swyft Filings vs. LegalNature, the two vary very much in pricing. Let’s check out which works for you.
Swyft Filings offers three formation packages; basic package, standard package, and premium package. If you cannot afford the packages at a go, Swyft Filings has got your back. They allow you to pay for the package in instalments. Below are the services you get in each.
This plan will cost you $49 + state fees. Below are the services you get;
- Verification of the company name and its availability
- Articles of organization preparation
- Filing documents with the secretary of state
- Free statement of the organizer
- Online access to your incorporation documents
- Life customer support (phone and email)
- Free 30minute tax consultation for the business
- ComplianceGuard Company alerts
- A domain name which is free
This plan will cost you $149 + state fees. This package gets you all the services of the basic plan plus;
- Get the Employee Identification Number
- Custom Limited Liability Company Operating Agreement
- Custom Limited Liability Company Banking Resolution
- Custom Organizational Minutes
This plan costs $299 + state fees. You will get the basic and the standard package services and the following;
- Electronic Delivery of state documents.
- Customized Digital LLC Kit.
- Free Business Website and Domain Hosting.
- Standard and express Filing
With Swyft Filings, you can choose any package and then customize it to your will. Therefore, you can select what you need and what you can afford. As a result, this makes the pricing of the packages very friendly.
On the other hand, LegalNature uses a different approach. LegalNature one formation package for business incorporation. Business incorporation service starts at $40 plus state fees.
When you have already selected the business entity from the four available, you’ll start the formation process. LegalNature equalizes all clients by giving them a chance to customize their orders. Below is a list of the business services LegalNature offers.
However, it is essential to note that LegalNature focuses not only on business formations but also on other legal services like estate planning, marriage, and divorce. They are more of an online legal services provider than an online LLC formation services provider.
Comparing the two, LegalNature is cheaper than Swyft Filings. However, Swyft Filings shows more mastery in the formation process because they have specialized in business formation services. They provide more services as compared to LegalNature. Additionally, the different packages are cheaper than customizing.
For example, if you select a standard package by Swyft Filings and then start customizing it by adding everything in the premium package, the cost will be much higher. Therefore, buying in different packages is cheaper.
Winner: Swyft Filings
Registered Agent Service
A registered agent handles all the official communications that your business receives from the government. The state laws require every business to have a registered agent. There are no strict requirements on who can be a registered agent. Below are the requirements for becoming a registered agent:
- To be an agent, you must be above 18 years.
- You must have a physical address in the state where you want to be a registered agent.
- You must be available at the physical address during business hours.
So, can a business be its registered agent? No. One of your employees or a family member can act as the registered agent for the company. However, you may consider rethinking that because many disadvantages come with having an employee or a family member act as the registered agent.
Disadvantages of having a family member act as a registered agent
- Your privacy will be affected. Registered agents receive legal documents from the government. Having your employee act as the agent means that government officials can storm your business at any time. Such circumstances may be embarrassing, especially if your business is sued or served with a court order.
- Your employee or family member may have never been a registered agent before. Therefore, the level of professionalism with which they will handle the matters is low. You can’t be sure they will do the job right.
- Your business may be operating in multiple states. Therefore, you cannot have a single family member act as a registered agent in all the states. Even if you hire several employees, they may be a problem with the centralization of information.
- Some matters served to the registered agents by the state require urgency. Your employees and family members cannot guarantee you that. Family members are used to taking tours and going for hikes.
With the above reasons in mind, the only way that you can be sure that your registered agent will act with professionalism, urgency, and maintain your privacy is by using registered agent service providers. These agents are available in multiple states; therefore, your information will be more centralized.
Comparing Swyft Filings vs. LegalNature, both offers registered agent services in the 50 states of the U.S. Let’s check what sets them apart.
Swyft Filings offers to be your registered agent at the cost of $149 + state fee, subject to renewal annually. With its registered agent services available in all the 50 states, Swyft Filings assures you of professionalism and promptness in all their matters. If your business already exists, you can buy this package independently.
You just need to pay an annual fee of $125+ state fee for LegalNature to be your registered agent. Legal nature promises to keep your business compliant with the law by avoiding fines and legal problems. They will also offer you unlimited storage for all the legal documents, which you can also access remotely through your online account. You can buy this package independently if you have already formed your business.
LegalNature offers registered agents at a price lower than Swyft Filings. Therefore, if you are on a budget, LegalNature would be the best option.
Customer Service and Support
Considering the level of customer service and support is very important. Customer support is the only proof that you will have someone come to your help when you get stuck along the process. It is the weight balance that measures how a business formation service provider values its customer.
You can reach out for customer support using three channels; email, phone call, and chat. The urgency with which they handle the matters when you reach out is remarkable. Their availability is between 9 am and 6 pm during all business days. What will amaze you, even more, is the helpful personal business specialist you are assigned to when you sign up. The business specialist is available and timely.
You can reach out to LegalNature customer service through a phone call from 9 am to 7 pm during business days. Additionally, you can also email them or fill in their contact form on the website. Their email response time is one business day.
Swyft Filings is a timelier than LegalNature on matters of customer support. What’s more, Swyft Filings assigns you a personal business specialist to handle all your issues.
Winner: Swyft Filings
Customer reviews paint you a picture of what you should expect from the business formation company. Reviews and ratings show you the fraction of the satisfied customer against the unsatisfied. As a result, you can be sure of whether to purchase their services or reconsider.
As of writing this, Swyft Filings has 2897 reviews on TrustPilot and over 30,000 reviews online. 93% of the reviews on trust pilot rate above average. With most of the reviews being positive, this shows that you can trust that Swyft Filings will handle your formation with professionalism and come into your help where need be. Below is a review from a happy customer.
On the other hand, legal nature has 4.467 reviews on TrustPilot (at the time of writing this). Of all the reviews, 84% of the reviews are positive and above average. Although they have a few low ratings, most of the customers are satisfied with their services. Below is a review from a happy customer.
The company with the highest experience will likely tackle your order with the highest level of professionalism. Since there is no measurement for expertise, you can only trust that the company that has existed for the longest time is the most experienced.
Swyft Filings was started in 2012 by a lawyer, and over the years, they have accumulated over 2800 reviews on TrustPilot, with 93% of them being positive. This business formation company is undoubtedly doing well.
Founded in 2010, LegalNature has piled up over 4000 reviews on trust pilot, with 84% of them being positive. With 11 years of existence, LegalNature has been a reputable referral for many people.
LegalNature beats Swyft Filings inexperience. The former has more reviews than later as a good existence.
Swyft Filings vs. LegalNature – Pros and Cons
Looking at both LegalNature and Swyft Filings comparatively, you will realize that each excels in its way. Let’s dive into the pros and cons of each
- Offers access to a personal business specialist
- Has three affordable formation packages
- 100% money-back guarantee
- Has a payment plan of 2 instalments
- Electronic Delivery of documents
- Its registered agent service is expensive
- There is too much upselling
- Offers business formation at a low price
- Has 11 years of experience
- 100% money-back guarantee
- Offers other legal services
- Offers registered agent service at a lower price
- Its Licenses and permits search is expensive
- There is too much upselling
LegalNature has 11 years of experience and over 4,000 reviews on TrustPilot. Within the years of existence, LegalNature has mastered what matters most to you. Their affordable registered agent and business formation services ensure you don’t go beyond your budget. Swyft Filings offers the right customer support through the personal specialist to ensure you don’t get a rough time. The payment plan lets you buy their premium products even when you can’t afford them at once. The additional service is good but if funds agree with you. My advice is that you should go for what suits you best as a business owner.