Direct Incorporation Review 2022: Is This LLC Service Right for You?

Whether you plan to do business locally or expand to other states, opening an LLC, in either case, will require both time and effort.

Even DIY formations are not entirely free, so using an LLC formation service provider makes complete sense. After all, companies like Direct Incorporation can form an LLC business without missing a single detail of the official guidelines.

This Direct Incorporation LLC service review will mostly touch on the company’s pricing and package options, including the types of documentation they handle and how it applies to your business.

But before making a rash decision about hiring this service, let’s first examine the main advantages and disadvantages of using Direct Incorporation.

What Is Direct Incorporation?

Founded in 2003 as a family business, Direct Incorporation started as a local Michigan filing service and continued to steadily expand. Having worked with over 80,000 clients, the company now offers nationwide formations and other features required in the process of starting a business.

In addition to Direct Incorporation’s LLC formation service, their packages also include services like name availability search, LLC website development, including registration of domains and logo design, trademark registration, and much more.

Despite being primarily known as an LLC formation service provider, they work with other entities as well. To start a business with Direct Incorporation, you can choose from five main packages depending on the level of involvement you want.

Direct Incorporation LLC Packages

Direct Incorporation’s pricing policy is not the most affordable out there but still falls somewhere in the solid middle. Each of the five options for LLC formation packages fills a specific niche, so it’s up to you which one fits your particular LLC business needs.

The two plans in the bottom tier (Standard and Premier) and the top three (Elite, Venture, and Venture Plus) all provide basic LLC formations features, but only some of the top-tier packages cover web design, management services, and other extras.

Standard Package: $147 + state fees

As the name suggests, the Standard plan covers basic business solutions and the filing of certain documentation. Out of all Direct Incorporation formation packages, this is the cheapest option for starting an LLC.

This plan is designed to first and foremost draft LLC formation documents, including incorporation. Other essential features include a business name availability check, domain registration under a two-week trial, S-Corporation assistance and prep as well as the option to acquire an EIN from the IRS.

It also provides real-time online access to the website’s client resource center and unlimited customer support. You also get a 3-week executive club trial with premium membership features.

Premier Package: $297 + state fees

Despite the $150 price difference, this package gets the same basic features with minimal deviation. It does add some extras though, mainly the ability to acquire attorney-drafted sample business documents.

This includes a customized operating agreement for an LLC, stock certificates, corporate bylaws, and other sample documents regarding ownership or formality guidelines. In addition to the resource center, the package gives access to helpful guides on how to open an LLC.

Unlike the Standard plan, this option includes a FREE website domain name registration as well as a customized company kit. There, you will find an LLC seal, ledger, and binder.

Elite Package: $429 + state fees

This new Direct Incorporation formation package was introduced to bridge the gap between the two price margins. The plan is notable for its website builder package designed to develop an entity’s online presence. In addition to the domain name, the plan offers DIY website builder software, a professionally designed stock logo, and up to 5 free email accounts all of which can be utilized in the early stages of setting up an LLC.

Venture Package: $873 + state fees

Almost doubling the price of the Elite package, this plan expands to other forms of business management such as trademark protection and more complete ownership and formality document templates. Apart from the trademark protection monitoring service, the package upgrades the Elite options of stock logo and basic business website for an LLC to more personalized products (+ plus 1-year website hosting). The logo is custom designed for every LLC start-up, and instead of a drag-and-drop builder, you will get a professionally designed website.

Venture Plus Package: $1495 + state fees

Compared to the regular Venture plan, this expanded package takes care of specific documentation like DBA filings, subsidiary authorization, and foreign entity qualifications. It also adds the second trademark option and copyright services, plus issuing a Michigan business address and live support for first and subsequent annual meetings.

Direct Incorporation Pros & Cons

At the end of the day, it doesn’t matter how extensive a package is if the policy of the entire service isn’t compatible with your business, so let’s take a look at Direct Incorporation’s advantages and disadvantages.

Pros

• Advanced LLC formation features aimed to satisfy business entities of various sizes and specifications, from the first stages of LLC registration to more complex solutions;
• Support of qualified business attorneys, whether in an advisory capacity or to create custom corporate documents;
• Essential documentation service to help you track tax filings, create formality documents, acquire a federal tax ID number, file for DBA names, and more;
• Full-service web design with custom logos and free domain registration;
• A free trial for Direct Incorporation’s Executive Club and its membership features.

Cons

• Compared to most competitors, Direct Incorporation’s base rate leaves much to be desired. Despite the wide range of package options, their bottom-tier pricing is too high for what they actually offer in regards to starting an S-corp or creating an LLC;
• Lack of customer feedback online, with only 42 reviews available on Google, 25 on BBB, and 12 on Facebook. It should be noted that while the negative reviews do not outweigh the positive feedback, their contents cannot be ignored in good conscience;
• While a good handful of cheaper formation companies offer an entire year of free registered agent service with LLC formation packages, Direct Inc only covers 6 months.

Is Direct Incorporation Right For You?

While Direct Incorporation’s offerings are plentiful—from five extensive formation packages to live customer support and educational resources—it’s not exactly universally applicable. It’s true that the service can form a new LLC in any state, but it seems their practice is best applied more locally, specifically in Michigan.

As far as formations go, they can meet business needs as well as any other company with limited market exposure can. Based on the few Direct Incorporation customer reviews available online, this service can be a hit or miss and there is not a single pattern to it.

When to Form an LLC with Direct Incorporation:

If you work with a rather generous budget and can afford one of their top-tier options, then the features in the Venture package may hold some appeal for your formation strategy. Plus, you can get professional web development and graphic design from Direct Incorporation as long as you buy Venture or Venture Plus plans.

When NOT to Form an LLC with Direct Incorporation:

Although the company’s updated package plans include 6 months of free registered agent service, there is no other information regarding this feature. If the general lack of registered agent service puts you off, then this company might not be for you. Starting an LLC business, operating it, and keeping it compliant relies quite heavily on the competence of your registered agent or lack thereof. Direct Incorporation’s disadvantage also lies in the sparsity of customer feedback as well as gratingly conflicting testimonials.