Last updated on: August 4, 2022
Disclosure: We earn a commission from some partner links. Commissions do not affect our editors' opinions or evaluations.
1003 Rio Grande, Austin, Texas 78701
from $299 + filing fee
Starting an LLC has never been so popular among entrepreneurs. More and more people choose this business structure for its flexibility and liability protections. If you plan to launch an LLC through an online LLC service, BetterLegal might be one of the best options for you.
This BetterLegal comprehensive review explores the key aspects of the provider, including the pricing of BetterLegal’s LLC formation services, their support offerings, and main features. The following analysis also covers BetterLegal customer feedback and its overall value to hopefully give you more clarity regarding the compatibility of the service with your business.
What Is BetterLegal?
BetterLegal was founded in 2016 in Austin, Texas. Since then, they have lent their services to thousands of people to set up LLCs, establishing themselves as a reliable LLC formation provider. Their services support all major LLC formation needs, accommodating you at each step of the process.
The majority of BetterLegal LLC reviews found online are positive, citing high levels of customer satisfaction as proof of the quality of BetterLegal services. So if you’re debating whether to open an LLC with BetterLegal, one thing you can be sure of and it’s their capacity for excellence.
By following the motto “everything you need, nothing you don’t, at the speed of the state,” the company strives to provide both speed and transparency. It’s important to understand, however, that BetterLegal is not a law firm. They do not offer legal advice, legal form service, or recommendations regarding your legal rights.
BetterLegal Prices and Features
As for BetterLegal pricing, they follow a simple formation pricing structure by setting one flat fee of $299 (+ state fee) to launch a new LLC business.
But unlike tiered plans with cheaper options, this service package includes almost everything you need for lawful business formations.
They also give you the option to purchase additional business services either through fixed LLC fees or annual subscriptions, for instance, permit and license search or state compliance services.
BetterLegal’s Formation Package
Priced at $299 + the state filing fee, BetterLegal’s sole package covers the following:
- Preparation and filing of the Certificate of Formation: a company’s launch is incited by the Certificate of Formation, specifically its approval by the state after which the entity is considered official;
- LLC Operating Agreement: this document outlines the company’s structure and operational procedures. Most states don’t make the operating agreement a mandatory step. Still, practice shows that creating one can stabilize the internal workings of a company and reinforce its legal protections;
- Federal Tax ID/EIN: this unique nine-digit code assigned by the IRS is required for hiring employees, paying taxes, and opening business bank accounts;
- Banking resolution and access to other helpful documents such as meeting minute templates, officer designation forms, S-Corp tax election, etc.
- Tax Analysis: your company will receive a detailed analysis from a leading online tax service provider;
- Free website: BetterLegal offers to host and develop your business website;
- Free insurance analysis: a qualified insurance specialist will provide a comprehensive analysis of your business;
- Free checking account: BetterLegal will set up an online bank account without any charges or initial deposit;
The fact that this service package is so detailed makes it extremely easy to set up an LLC with BetterLegal.
On the downside, the price point is unreasonably high given the lack of a registered agent for an LLC or state compliance services that most entities require.
Though if you can afford to purchase their registered agent service, it can be done by signing up for BetterLegal subscriptions for $10 monthly or $90 annually.
- Registered agent ($10/month or $90/year): though BetterLegal does not have its own registered agent, they can subscribe you to a professional service;
- State compliance services ($10/month or $90/year): after creating an LLC, your next task is to follow state regulations in order to maintain your good standing throughout the company’s run. BetterLegal business services not only offer to send all relevant alerts for your reports but also can complete and file annual reports on your behalf;
- Permit and license search ($125): if you’re not quite sure what types of licenses and permits your LLC is subject to, just let BetterLegal handle it. They will conduct a thorough license and permit search that your entity may need on federal and local levels, later providing you with all necessary forms.
Advantages & Disadvantages of BetterLegal
- Excellent turnaround times: BetterLegal’s same-day filing can make launching an LLC much faster, including the ability to ship all formation documents within 2 days of their approval by the state;
- Easy-to-use BetterLegal website: their intuitive user interface makes navigation more effortless;
- Great reviews: despite lower feedback numbers compared to some of their competitors, most of the existing reviews speak of overwhelming customer satisfaction;
- Helpful BetterLegal customer service: the service provides real-time business assistance through their online chat or online submission form;
- Online resource center: their website is rife with detailed and useful information relating to business maintenance;
- Affordable registered agent: BetterLegal offers to connect your LLC company to a professional registered agent only for $10 monthly or $90 annually.
- High rates: charging $299 for an LLC launch can be a bit much. Unlike some of its competitors, BetterLegal has no free registered agent which makes their formation package pricing needlessly high;
- Inflexibility: BetterLegal LLC formation packages technically don’t exist in the traditional sense. They offer only one option with upfront payment, while other providers work with multiple packages. Plus their formation package has only a few features apart from the main LLC filing. Even excluding the EIN acquisition won’t impact the overall price;
- Registered agent service as a separate feature: BetterLegal service package lacks even a short registered agent service trial period offered by most competitors;
- Limited customer support: unlike the majority of its peers, BetterLegal only provides customer support through their online chat. Finding other forms of contact like emails or phone numbers is almost impossible, and such as restricted access to customer support is far from ideal;
- No lifetime company alerts: despite providing all necessary tools for compliance control, BetterLegal gives no indication regarding the service duration;
- Third-party upselling: despite being marketed as free services, website development, tax analysis, and insurance consultation are all outsourced, meaning that each offer could potentially charge you extra.
BetterLegal Customer Reviews
As a relative newcomer, BetterLegal currently holds somewhat mixed reviews—a far cry from top LLC formation companies like LegalZoom or IncFile. That being said, plenty of reviews and feedback are rather positive in nature.
Aside from the reviews found on their website, BetterLegal has various amounts of feedback on independent consumer review platforms.
On BBB, they have 8 reviews with a 4,88/5 score and an independently generated A+ rating. On Trustpilot, they hold 201 reviews and an average score of 4,8/5 score.
A cursory analysis shows that BetterLegal customers value their same-day processing policy and subsequent waiting times for an LLC registration. Another strong point aside from the ease with which they create an LLC online is their responsive customer support and relative pricing transparency.
Some of the valuable pros of BetterLegal include favorable feedback, fast processing, and acceptable state compliance services or permit and license search rates.
On the flip side, their online LLC creation service is a bit overpriced, and if you can’t afford to part with such a sum, it’s not that hard to find a fitting alternative.
For instance, a reputable LLC service like Northwest Registered Agent offers to create an LLC entity for $225 while providing one year of a free registered agent service without any third-party involvement.
If you’d like to save up more, you can get a $49 service package with ZenBusiness that also adds a free registered agent service for one year. The company has amassed thousands of positive reviews, making it one of the best LLC services in the field.
Pricing aside, BetterLegal is still fairly effective at forming an LLC business and is unlikely to disappoint.