When starting your LLC (Limited Liability Company), you have two options: you can do it yourself or use an online incorporation service backed by a good law firm or legal team. The DIY route is often more affordable. Well there are many things to consider before starting your new LLC, as we will discuss.
Starting a business can be overwhelming. From deciding on your business name to filing legal documents, it takes time and due diligence to ensure your company is compliant. Hiring an attorney to do this for you is an option, but it can be expensive. Thankfully, there are third-party, online incorporation services that can handle your entire business formation process for a reasonable fee.
So what are the benefits of hiring a formation company and a good legal team? The following 5 things represent crucial benefits and should be considered beforehand:
- Expertise knowledge
When running a business, it makes sense to delegate tasks that you’re not an expert in. An LLC formation company has experts who can expedite the formation of your business and ensure that it’s compliant so you can focus your energy on getting your business off the ground.
- Simplified paperwork process
This is one of the biggest reasons why entrepreneurs hire a professional service to do the business formation for them. The amount of paperwork and research it takes to file an LLC can be laborious and monotonous. With an online formation service you simply answer a few questions regarding your business, and they take care of the rest for you. The best filing services will even keep you notified of any legal requirements you need to take care of with the state long after you file your LLC, allowing you to run your business worry-free.
- Free or included registered agent service
Having a registered agent is a legal requirement in all states. A registered agent helps you keep your business compliant and receives and sends legal documents, like tax forms and legal notices, on behalf of your business. Although you can choose to be your own registered agent, ideally, when starting a business, you will want to keep your private address private. Why? The registered agent’s address will be listed on the public record, rather than your company’s. In addition, having an incorporation service handle this part of your business will ensure that you keep track of official notices like annual report filings. They also keep you informed about any paperwork on which you need to take action, ensuring your business stays compliant because you’ll avoid missing filing deadlines.
- Avoiding mistakes
When forming your company yourself, you’ll be faced with many official paperwork and research. Each state has its own laws, fees and requirements. Being uncomfortable with completing the paperwork and legal concepts can easily lead to mistakes which can result in a delay in forming your business. Getting your business created by an online business formation service who knows the requirements of each state and how things work in the state you plan on doing business, can expedite the formation of your company, leaving you stress-free.
- Premium Support
When you form your company yourself, you may not know who to turn to for assistance. Online corporation services offer support by phone, email and online for any questions you may have about the status of your business formation. Some can help you find accountants and legal professionals in your state, a service most LLCs require sometime during their formation.
And two bonus tips you should be aware of?
Value-added services
Most online business registration companies offer additional services, which, depending on your business, you may want to consider. Having this done for you can help eliminate the worry and stress of forming your business, ensuring that you get it right the first time.
EIN
Most online business registration companies offer an EIN (Employer Identification Number) service. Also referred to as a Federal Tax Identification Number, you will use an EIN to open bank accounts for your LLC. It also allows the IRS to keep track of your business’ tax report.
Which filing service is best?
Ultimately, it’s up to you to choose which LLC service is right for your business. This helpful LLC service provider analysis compares, reviews, and ranks the 7 best LLC services of 2020. Each service has their own set of affordable features and pricing for your chosen business structure.
Conclusion
Although it is possible to form your LLC yourself, when starting your business, you will want to spend your energy and time focusing on getting your business off the ground. A filing service can file your legal paperwork, ensure your company is compliant and complete the entire formation of your business faster and error-free.
