Best Online Incorporation Service Reviews
You are thinking about starting a company, aren’t you? We know. (We have ESP.)
NO, we don’t! You’re reading this page, aren’t you? Of course, you are wondering about using an online incorporation service!
We’re here to help you protect your ass by incorporating your business.
This chart summarizes our top picks from 1st to 5th.
1st Our #1 choice! As a pioneer in online business formation services, BizFilings offers a competitive package for setting up your business online. BizFilings is a great alternative to the other companies for online formation services. Six months free registered agent. Guaranteed filing accuracy. Live Chat available. Great customer support. Easy to use. Some Operating Agreements and other forms are not customized to your business. Visit Website
2nd They have been in this business for a long time, they are the original creators of Mycorporation.com. Satisfaction Guarantee, Live Chat available, and they have a helpful Business Structure Wizard. Annoying about their Registered Agent service, Make you jump through hoops, and interface not the easiest to follow. Visit Website
3rd In business since 2004, you can file as non-profit, as well as an LLC, S-Corp or a C-Corp. (Not all companies offer the non-profit option) They offer a variety of services. Lowest prices of any providers we reviewed. Lifetime company alerts. No satisfaction guarantee, no access to lawyers and no live chat.
4th With LegalZoom, business formation is quick and affordable, saving you up to 85% from what an attorney would charge you. Their 3-step online process and affordable pricing makes the online task a pleasurable experience. Unlimited Customer Support. Payment plan available. Access to lawyers available for a fee. 100% satisfaction guaranteed. Complicated website. Lots of negative reviews. No live chat and customer support wasn't the best we have reviewed. Visit Website
5th Around since 2001, they have filed over 40,000 businesses. 100% satisfaction guarantee, good social proof, inexpensive. No live chat, relying on BBB for some reviews, no weekend support. No access to lawyers. Visit Website
We’re Going To Tell You What Incorporation Is- But FIRST, Why Should You Incorporate?
What did we mean by ‘protecting your ass’? Well, your ‘ass’ is your stuff. The things that are not associated with your business. (If you lost it all, then you would likely lose your wife too!) Well, husband, if you’re a chick. Or if you’re gay, you could… oh nevermind.
Incorporating could make it so you can’t lose your personal bank account and your personal possessions in a business lawsuit.
A lawsuit against your unincorporated business could result in a complete financial loss. Like, we mean EVERYTHING YOU OWN!
(Do we hear a country song? “…lose your truck, lose your dog, lose your house, lose your spouse!”)
Letting that happen to you is just dumb. Or, as we like to put it, ‘dumbassery’.
(Incorporate online, silly.)
Also, which business structure you choose is crucial. It can make or break your business. When you incorporate online, you can become a Limited Liability Company, an S-corporation or a C-corporation.
Each has its own unique benefits and/or disadvantages.
Why should you care?
Because it means the difference between success and failure for your biz. You’d better know your business goals so you can choose!
“S Corp, C Corp, or LLC: What Are The Big Differences?”
You will need to do your own research. Here, you can use this handy Incorporation Wizard.
Or, here is a quick overview of the benefits of each business structure:
- No double taxation on income
- Investment opportunities
- Only once-a-year tax filing
- Unlimited growth potential because you can sell stock
- Unlimited shareholders
- Tax-deductible business expenses
Limited Liability Company:
- The most simple of the three as far as paperwork/meeting/filing requirements
- No residency requirement
- Structure -flexibility can be taxed either as a c-corp or an s-corp
“How Do I Go About Choosing My Business Structure?”
This Business Structure Wizard serves most perfectly. Answer the questions and they will show you which structure works best for your situation. If that’s not good enough, we recommend asking your lawyer for guidance.
“What Are Online Business Incorporation Services? What’s Incorporating? I Still Don’t Get It.”
Ok, here’s the deal: incorporating is a legal ‘structure’ or entity that protects your business in various ways. It requires having documents called “Articles of Incorporation”.
These are legal papers that tell what your business does, the name of your business, it’s location and number of shares and class of stock that are issued (If any). Using an online incorporation service is the easiest way to get this accomplished.
The articles get filed with your state. There will be certain fees and different rules you will have to follow depending on which state you incorporate in. Sometimes it involves jurisdiction-specific registration information and fees.
You are required to register an ‘agent’ for your business. Your registered agent must be available during all business hours. In the event that someone wants to sue you, your agent is there to accept the paperwork/be served. It’s also for other legal documents to be sent to you.
You can be your own agent if you are available at the registered address during business hours, or you can hire a service. It’s all for the purpose that you don’t try to do business and RUN, or try to escape litigation.
What are some other ways you benefit? We will tell you:
“How Do I Benefit If I Incorporate Online?”
Told you we would tell you! Ok, how is this important? There are about 7 major things that you benefit from when incorporating a business.
- You’ll Earn Street Cred: Honestly, which would YOU feel better about doing business with? Someone who is a sole proprietor, or someone with INC. or CORP. at the end of their business name? Having INC. or CORP. after your company’s name adds a sense of professionalism and credibility.
- Show Me The Money! Banks dig corporations. They feel more secure lending to a corporation than to a private party, DBA or sole proprietor. Do you need a loan? You had better be incorporated. Also, if you want to take on investors, you will be able to sell shares of stock if you choose the right entity.
- Screw The IRS! Sorry, but you still have to pay them even if you incorporate. However, you will pay less depending on your choice of formation. Because you are incorporated, you are a separate and distinct entity and you may choose how you will be taxed. Because of this, many transactions between you and your corporation can be structured to save you big money tax-wise.
- Juicy Secrets! Certain states, such as Delaware and Nevada offer more privacy protection than most. For instance, in Delaware, you are not required to disclose yourself as the owner to the state. You only must have a registered agent and a designated contact person.
- You Can Be Immortal: When you are a corporation or an LLC, your business has longevity. What do we mean? Well, it can prevail forever no matter what happens to owners, shareholders or officers. On the other hand, if you are a partnership and your partner dies- that partnership is immediately going to be wrapped up in legal tape. Or it may dissolve immediately. Corporations have unlimited life, and you are in control of it.
- Take Your Money And Run: If you want to sell and make a profit (or not) from your company, incorporate it, baby! Incorporated businesses are much safer for a prospective buyer to purchase. Why? Things like this: if someone buys your sole proprietorship, they could be held personally liable for mistakes made by the YOU. It doesn’t matter that the new owner had nothing at all to do with the issue. Would you want to be open to liability from someone else’s mistakes? We hope not.
- ‘Cain’t Touch This’: As stated before, incorporating protects your stuff that is not business related. Nobody can come in and take your life savings or your home if you are incorporated. You are a sole proprietor? Then all bets are off. Your property is free game!
“What State Should I Incorporate In?”
Glad you asked! You may choose to incorporate your business in the state that your business physically resides. However, there might be greater benefits of incorporating in a different state than yours.
Choosing a state with no state tax may benefit you. Or, you may need privacy so people cannot find out that you own it. There are states that can benefit your bottom line. Here are some of the top three states for incorporating. They may not suit you, so do some research on the states and the benefits of each.
Here are the top three most popular states to incorporate online. Click on them to read more about their benefits.
While online business incorporation services come with important benefits, it may not be the best choice for your businesses. A CPA can help you to assess the tax and other implications of incorporating your business.
These online services are not meant to be a substitute for the services a lawyer will provide. Still, millions of businesses have successfully incorporated online without issue.
Our Online Incorporation Service Reviews
We reviewed, researched and went through the same experience that you will go through in the process of incorporating online.
We wanted to find the best online incorporation service in terms of ease of use, customer support, fairness, price and customer reviews.
If you are only looking for ultra-cheap incorporation, do it yourself.
You can get your EIN number, file your own documents, pay the state fees, et cetera, without using an outside company. Just don’t screw it up.
We aren’t going to lie, doing it yourself is a pain-us in the anus. Mistakes can be very difficult to correct down the road. They also take time and may stall your business opening.
Also, you likely have better things to do with your time than the work involved in incorporating your own business. You still have to pay state filing fees even if you do this work yourself.
The Top Two:
They both have the best customer service and customer satisfaction rankings. Their sign up system is easy. They are well liked and are competitive in price, with BizFilings being a little more affordable.
However, CorpNet was a little more difficult to navigate on their website and they (basically) will not let you ‘un-check’ the option of using them as your Registered Agent. They also push the EIN service, AFTER you have already made your picks for extras. (You can get your EIN number for free on your own if you wish)
You can choose not to use CorpNet as your RA if you choose their basic plan but you have to pay them an additional $79 to register your own agent with them, which we think is a total rip-off.
Additionally, CorpNet’s chat service availability seems to be inconsistent.
Your Winner: BIZFILINGS!
BizFilings won us over in our online business incorporation services reviews out of seven services.
They have a good reputation, they have been in business for over 20 years filing over 150,00 companies. They have cool free extras such as a card reader that you can get with your chosen package as well as an incorporation wizard to lead you to choose the right business structure for your unique needs.
BizFilings were not the cheapest online incorporation site but they were cheaper than most of the similar packages that we selected. They have good user reviews and they offer live chat.
We believe live chat is a TREMENDOUS help when you have quick questions that need answering. They are right there to help. Not all online incorporation services offer live chat.
In conclusion, the easiest and cheapest way to incorporate your business, in our opinion, is BizFilings. Cheap incorporation is not the goal, but it is an added benefit of BizFilings.
We found it to be the best online incorporation service out there!