Incorporating an online business is essential to protect your personal assets in the long run. The guide below discusses the factors to take into consideration when choosing an incorporation service for your business.
How much do incorporation services cost?
Costs vary depending on the service you select, the type of business structure you establish, and the precise features you desire. Most services offer a basic plan for a reasonable fee, as well as one or more premium packages with more features. When it comes to using these services, there are essentially three types of costs: the state filing fees (required), the service’s own fees, and the add-on services you choose.
Each state has its own set of filing fees. Expect to pay between $50 and $300+ for an LLC, depending on the requirements in your area. Corporations are often more expensive, ranging between $100 and $400. To be clear, whether you employ an incorporation service or not, you must pay state filing fees.
This money is given to the state directly. The state charges fees the first year, and there may be recurring renewal payments (but they will be lower than the initial cost). Fees for incorporation services vary depending on the firm and the degree of service you choose.
Expect to spend $50-$100 at the most. Expect to pay $100-$300+ for supplementary features such as an Employer Identification Number or Registered Agent service.
The cost of add-on services varies greatly. Fees for filing yearly reports, for example, could range between $50 and $100 per year. Expedited processing may cost an extra $100 or more. Ongoing Registered Agent services might range between $50 and $125 each year. Most services have a range of add-ons from which to choose, allowing you to tailor your decision to your specific requirements.
Many providers provide pre-built bundles with the ability to add on additional services. In general, the middle option is frequently the best value, but this is dependent on your company’s individual needs.
How to choose an online incorporation service
We’ve done the research and testing for you in order to provide you with the best LLC and corporation creation services available today. The list of our recommendations is provided below. Having said that, it is still beneficial to have a concept of what you should be searching for in these services. Here are some things to keep in mind for small business owners:
When forming a new company, you can choose between forming a sole proprietorship, an LLC, a corporation, or a nonprofit corporation. Limited partnerships (LP) or limited liability partnerships (LLP) may also make sense in specific instances.
Check to see if the service you’re considering provides support for the business structure you want. Also, consider taxation treatment – for example, if you want to elect S-corp status or apply for 501 (c)(3) status for a nonprofit, be sure the provider you choose provides these alternatives.
The top online business creation services include a variety of features to help your company. Look for features such as online document access, ongoing Registered Agent services, continuous compliance help, dedicated customer care, and any other features or services you require.
Pricing and value
What is the cost of the service? Is it in accordance with the average price points (as mentioned above)? More importantly, do they appear to be providing enough value to justify the price tag? Take into account both the initial and recurring costs. That being said, you don’t necessarily want a low price — you want a fair balance of cost and value.
What other benefits does the service provide? Do they provide extras such as a business website or hosting? Do they provide special discounts or deals on related company services and products? Is it possible to have a tax/accounting consultation with a CPA?
Ease of use
The ease of use of a reputable incorporation service is a big selling point. This information can be difficult to assess without actually using the service, but you can rely on consumer evaluations and feedback to get a sense of how things are going.
How long will it take for your documents to be processed? Do the processing speeds of different formation packages differ? Remember that turnaround times may always vary according on the state, but you still want to find a provider that will process your paperwork on time.
Is there a worry-free guarantee or a satisfaction guarantee offered by the service? Do they stand by their products and services if something goes wrong?