BetterLegal is a one-stop shop for your new business. No confusing options; they’ll handle all the necessary filings and generate custom legal docs. Your company will be official in just 2 business days.

HOW IT WORKS

The fastest, easiest, and most comprehensive way to set up your business online.

You tell them what you need

Complete our simple business questionnaire with helpful guidance and instructions. Most customers can finish in 10 minutes or less.

They prepare and file your documents

They’ll file the necessary paperwork with your state on the same day you make your order with them.

The state processes our filing

Most states process filings within 2 business days. You can see the typical processing time for your state when you fill out our questionnaire, or by choosing your state from the dropdown menu above. It’s important to wait for this approval before filing an EIN in Step 4.

IRS Processes our EIN filing

BetterLegal will file directly with the IRS to obtain an EIN for your new business (also known as a Tax ID). An EIN is required to open a bank account or have employees, and you cannot use or transfer an EIN from an existing business or sole proprietorship. However, if you don’t need or want an EIN, you can let us know at checkout.

They Generate your legal documents

This extremely important and often overlooked step provides your new business with the proper legal documents concerning the internal “rules” of your business. Our custom Operating Agreements and Bylaws address such issues as ownership percentages, voting rights, management rights, and how profits are shared. Failing to properly document these matters ahead of time can create major issues down the line.

They deliver everything to you by email

No waiting for documents in the mail at BetterLegal. As soon as we have your documents back from the state, we’ll package everything up and send it to you by email, along with a lot of helpful information about your new business. You can also always access your documents from your own customer’s dashboard.

You grow your business and they help

You’ll be all set once we email your documents, but we’re always here to help. BetterLegal and our affiliate partners can assist you with banking, tax, and accounting services, website design, and a whole lot more. Just let us know what you need, and we’re on it.

Frequently Asked Questions About BetterLegal.com

How does BetterLegal set up LLCs and corporations so quickly?

We’ve got our process down pat. We file your business formation documents with your State on the same day we receive your order. Once the State approves the filing, we immediately obtain your EIN, compile your Operating Agreement, and send you all of the necessary documents that same day. Meanwhile, our competitors sit on your documents for weeks before delivering what we do in a few days and they charge more to do it.

Where should I set up my LLC or corporation?

Most business owners should set up their LLCs or corporation in the State where they live and do business. In some rare cases another option may be better for you, but don’t overthink it unless you have a very good reason to set up your business in another State.

What are my State’s filing fee and turnaround time?

Filing fees and turnaround times vary by State. You can see the typical processing time for your State when you fill out our business questionnaire, by choosing your State from the dropdown menu above

I’m just a small business owner. Do I really need to set up an LLC or corporation?

You don’t have to, but LLCs and corporations provide a lot of benefits no matter the size of the business. Operating as an LLC or corporation can provide liability protection, tax benefits, legitimacy, and more!

to learn about the benefits of LLCs and corporations.

Should I set up an LLC or a corporation for my business?

The vast majority of new businesses are LLCs, and that’s probably what you need. An LLC is easy to set up and manage, provides liability protection for the owners, and is very flexible when it comes to making decisions about your taxes. If you’re not sure what type of business entity you need, go with an LLC. That said, certain types of businesses may benefit from using a corporation (though we don’t typically recommend selecting that option unless you are confident it’s what you need). Still not sure?

I’ve got so many questions.

We know, it can be a little overwhelming. But don’t worry, we can help! Just head over to our Resources

a page for a lot of useful information.

In which State should I form my LLC?

Is one state better than another?

Choosing the right state for your limited liability company (LLC) is an important decision for you to make, and you should carefully consider your options.

By default, you should generally plan to form your LLC in the state where you live and do business. This is particularly true if your LLC will have an office or storefront in your home state, or if the vast majority of your business income will be generated from sales or services in your home state. If you are buying real estate through your LLC, you should strongly consider setting up your LLC in the state where you will own the real property.

There are some situations in which it may be beneficial to form your LLC in another state, and we will discuss that further below (along with some popular options such as Delaware, Nevada, and Wyoming). However, before you consider filing in a state other than your home state, just remember the following:

  • “Taxes are paid where the money is made” – This is an old adage that remains true, but many people believe they can avoid taxes in their home state by filing their LLC in a more tax-friendly state. Maybe you live and work in New York but are considering forming your LLC in Wyoming. Just remember, regardless of where you form your LLC, if your business makes its money in New York you will pay New York taxes. There are of course exceptions, and you should speak to your CPA if your primary reason for picking one state over another is tax savings.
  • Local Registration Requirements – If you form your LLC in another state, but do business in your home state, you still have to register your LLC to do business in your home state. For example, if you live in New York but set up your LLC in Wyoming, you have to make initial and annual filings in Wyoming and pay the associated fees. But if your Wyoming LLC is actually doing business in New York, you will also have to register your out-of-state LLC to do business in New York. This means you’ll have to make initial and annual filings with the State of New York and pay fees there as well!

Still, there are situations when you should consider forming your business in another state. Businesses that generate revenue from all over the country and don’t necessarily have home offices or storefronts – such as online businesses, traveling consultants and service providers, etc. – should consider the tax, filing, compliance, and other factors that may make filing in other states more appealing. Some of the more popular options are:

  • Delaware – Delaware continues to be the most popular option for entrepreneurs starting a new LLC. It is a business-friendly state with some notable advantages. To begin with, Delaware’s initial and annual filing fees are low compared to many other states. In addition, Delaware does not tax out-of-state income, meaning that if you form your LLC in Delaware but do a significant amount of business elsewhere, Delaware will not tax those earnings at the state level. The Delaware Chancery Court is another big plus for businesses concerned about disputes. The Chancery Court focuses entirely on business matters, meaning Delaware arguably has a more sophisticated and fast-tracked business dispute judicial process, with judges well-versed in business law (in other states, judges hear all types of civil disputes and may not be as well-versed in applicable business law). You may also want to consider Delaware if you are planning to raise investment capital. Delaware is still seen as a corporate business haven, and many potential investors will want you to have your LLC registered there.
  • Nevada and Wyoming – In recent years, Nevada and Wyoming have been gaining popularity as pro-business states. Neither state charges business income or franchise taxes, though both have small annual filing fees. In addition, their LLC formation costs are relatively low and their processing times are very fast (Wyoming processes the filing immediately).

Benefits of a separate entity

Do you need a separate entity (LLC/corporation) for your business? Why not just be a sole proprietor?

A separate entity can provide:

  • Potential Tax Benefits – There are often significant tax savings that can be realized by setting up a separate entity. To begin with, it’s simply easier to separate your deductible business expenses from your non-deductible personal expenses. But a properly-structured business can also result in significant savings on self-employment taxes and other business/income taxes. Everyone’s situation is different, so talk to your CPA!
  • Liability Protection – The owners and managers/directors of an LLC or corporation are not personally liable for certain company debts and liabilities, such as (a) company loans and credit cards (unless personally guaranteed); (b) acts of your employees that weren’t your fault; and (c) acts of the other owners, managers, and directors. There are certain exceptions, but this liability protection generally means that your personal assets (your life savings, property, etc.) are not in jeopardy in the event of a debt or other liability of the LLC or corporation.
  • Deal Certainty – With a separate entity and a good Operating Agreement (LLC) or Bylaws (Corporation), the owners and managers of your business all know what their deal is! No more wondering who’s in charge, who owns what percentage of the business, etc.
  • Legitimacy – People tend to see a separate entity such as an LLC or corporation as a more legitimate business than a sole proprietorship. It shows that you take your business seriously and have taken the right steps to protect yourself and your company.

So when should you form a separate entity?

  • If you work alone and are the only owner – You don’t need to form an entity the moment you have a great business idea or decide to start a new business. However, you should get your new entity formed as soon as possible, and at minimum before doing business with others.
  • If you have business partners – Immediately. It’s critical that you get your new business in place as soon as possible so that everyone involved understands their ownership percentages and management rights. This can greatly reduce the chance of arguments months or years down the road.