BetterLegal Review: Features, Cost, Pros & Cons

In the vast, complex world of online legal services, it can be difficult to determine which platform will best meet your business needs. Today, we’re focusing our lens on BetterLegal, a service renowned for its comprehensive solutions and transparent pricing.

Whether you’re an aspiring entrepreneur or an established business owner, understanding the value and offerings of a service like BetterLegal could be crucial in successfully navigating your legal business obligations. So, let’s get started on our deep dive into BetterLegal.

Services Overview

Our Verdict on BetterLegal

Although BetterLegal only offers one plan, while other services provide more affordable starter plans, the BetterLegal plan is highly comprehensive and comparable to the top-tier plans of competitors.

BetterLegal’s pricing is exceptionally transparent, with no hidden fees. We particularly appreciate the monthly subscription for registered agent and state compliance services, which could be suitable for entrepreneurs looking to save on startup costs.

Pricing

Turnaround Time

Help and Support

Customer Satisfaction

Ease of Use

Overall Score: 4.2/5

We recommend BetterLegal due to their excellent customer service, fast turnaround times, and affordable registered agent services.

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Pros and Cons

BetterLegal Services

Business Formation Service

BetterLegal provides services for the formation of both Limited Liability Companies (LLCs) and Corporations.

To establish an LLC, you must file specific documents with your state, typically known as the articles of organization, although they might also be referred to as a certificate of organization or a certificate of formation. This filing process can be carried out either online or via mail. BetterLegal streamlines this procedure by managing the online filing on your behalf. However, please note that the time it takes to receive approval for your LLC can differ based on the specific state.

This can be a time-consuming and difficult process for an entrepreneur, and getting customer support from your state government office is often a challenge. With BetterLegal, you have access to customer support Monday through Friday from 9am to 7pm EST. 

Once your LLC is approved and official, you can access your formation documents on the BetterLegal website at any time. 

Registered Agent Service

In most states, when you form an LLC, you need a registered agent. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business. 

For $10 per month or $90 per year, BetterLegal can act as your registered agent and ensure that all official correspondence is handled on time and properly filed. They also keep track of deadlines and send reminders of things you need to file, such as tax forms and annual reports.

A registered agent service will help keep you in compliance with the law and save you time by keeping track of key documents and filing deadlines. The agency will also provide support if any issues arise.

Operating Agreement

BetterLegal offers an operating agreement template customized for your state. An operating agreement for an LLC is an important legal document that details who owns the business and also provides essential information pertaining to member duties. 

An LLC operating agreement establishes the financial relationship between business owners (“members”) and the basics of the working relationships between those owners and the managers who oversee daily operations. 

By using the BetterLegal template, you can just fill in the blanks rather than having an attorney draw up the agreement for you from scratch. Only a handful of states require an operating agreement, but having one is highly recommended. The operating agreement is included in the LLC Formation Plan, which is a good value compared to the attorney fees you would otherwise pay.

EIN 

An employer identification number (EIN) is a tax-identifying number for your business. It’s required if your LLC has more than one member or has employees. It’s obtained by applying through the IRS.

BetterLegal will handle the application process for you and send you your EIN as soon as it’s approved. EIN (or Tax ID) is included in the LLC Formation Plan.

Permit and License Search

BetterLegal business professionals can help you figure out which permits or licenses you need and help you with the applications for each one at the federal, state, and local levels.

BetterLegal offers a business license research package for an additional fee of $125 + the cost of necessary licenses and permits that your business requires.

IRS Form 2553

You’ll need to file Form 2553 if you want your LLC to have S Corp status. An S Corporation refers to an LLC’s tax classification. It is a corporation or LLC that, by meeting certain requirements, can be taxed as an S Corporation. With an S Corp, as with an LLC, income passes through the business to shareholders or owners without that income being taxed as corporate income. In contrast, in a regular corporation, also known as a C Corp, the corporation and the dividends shareholders receive are taxed, which is sometimes referred to as double taxation.

A corporation or LLC can be classified as an S Corp if it has 100 or fewer shareholders or members. Shareholders pay taxes on their pass-through income at their personal income tax rates. S Corp shareholders can only be individuals, specific trusts and estates, or certain types of tax-exempt organizations.

BetterLegal will provide you with the form and instructions. The service is included in their business formation plan.

State Compliance Services

In most states, LLCs are required to file periodic reports, usually annually. For $10 per month or $90 per year, BetterLegal will file your reports for you. Failure to file these reports can result in the dissolution of your LLC. 

Other Business Services

Website

BetterLegal offers a free basic website for your business. It’s included in the business formation plan.

Banking

With the business formation plan, you’ll receive a free online business bank account.

Banking Resolution

A banking resolution specifies who is authorized to handle banking matters on behalf of the LLC. BetterLegal offers a banking resolution template that you can customize to fit your needs.

Tax Analysis

You’ll get a free business tax analysis with your business formation plan.

Plans and Pricing

Business Formation Plan

The BetterLegal LLC Formation Plan includes a federal tax identification number. You’ll need this number to open a business bank account to pay your employees as well as your taxes when they become due.

It also includes an operating agreement, a banking resolution, a website, a business checking account, and a tax analysis.

BetterLegal is known for being a leading tax services provider, so you can rest assured that you’ll receive expert tax advice.

Turnaround Time and Cancellation

BetterLegal is known for its outstanding turnaround times, offering same-day filing services for all formations. Your articles of incorporation or certificate organization are submitted to your appropriate state on the same day you file, and payment is processed. Keep in mind that state processing times vary greatly, and the total turnaround time will depend on the state. 

BetterLegal is committed to ensuring you receive all pertinent business documents within a few business days after your state starts processing your filing.

Because the BetterLegal LLC Formation package is a one-time fee, there is no cancellation process needed. However, if you choose the registered agent subscription service, you can cancel by calling customer service at (855) 612-0480 or sending an email to email@betterlegal.com. You can also cancel online through your account portal. 

You are then responsible for assigning another registered agent in your particular state or acting as your own registered agent. You’re also responsible for paying all fees related to changing your agent. Additionally, you must notify BetterLegal that you have properly changed registered agents by the next billing date and provide written proof that BetterLegal or its Registered Agent is no longer listed as your registered agent. 

Signing Up Process

When you first arrive on the BetterLegal landing page, you’ll see a drop-down menu where you can type in your business name, choose between an LLC or corporation business type, select the state in which you’re filing, and then you can click the Start Your Business button to begin.

Next, you’ll be prompted to answer a series of questions to provide all the pertinent information needed to file. The questions are essentially to collect what will ultimately wind up in your articles of organization. The whole process takes about three minutes. 

You’ll also be asked if you want to use BetterLegal as your registered agent or appoint your own and if you’d like BetterLegal to handle your state compliance services.

After you answer all of the questions, you’ll move on to the payment screen. You’ll be able to take one final look at your selections before completing the process. You can also leave notes for the filing team and make changes to any optional add-ons before paying.

The formation process was simple and quick and took less than 10 minutes, just as the website suggested. There were also informative notes throughout the process to help explain certain elements of the process, like providing information on owners and operators and the ownership percentage. 

One of the downsides is that there’s no option to save your information as you’re filing or the ability to come back to your filing later on. Once you make it to the payment screen, clicking your browser’s back button causes you to start the process all over again. 

Overall, the site is easy to use if you’re ready to go and just want to complete the process. Otherwise, information can be difficult to find, and state websites can be cumbersome to navigate. 

We appreciated the way the final page of the formation process was set up and that it clearly outlined everything that’s included in the package as well as our add-on elections. Everything was clearly presented, and there was no upselling aside from the option to choose BetterLegal as a registered agent. The website was no-nonsense, and all information was transparent.

Customer Support

We tested all the customer service options by asking real questions through chat, email, and phone. 

Chat support

When we tested the customer service response time through the online chat option, we received a response within a few minutes. 

The question we asked was about the turnaround time for filings. The representative told us that they offer same-day filings for all formations. They also mentioned that state filing timelines may vary. The customer service agent was concise and polite, and we did not encounter any upselling.

Support Rating:

Response time:

Very quick

Phone support

We called BetterLegal to ask a question about registered agent services. Our call was answered almost immediately, and the question was answered promptly. The question was whether registered agent services were included in any of the plans, and the answer was no. 

The customer service representative explained that we could choose to add the service for $10 per month or $90 per year. The customer service representative was professional and polite and made no sales pitches. 

Support Rating:

Response time:

Immediate

Email support

We asked the same question via email about registered agent services and received the same response within a few hours. Our question was answered thoroughly and politely. The person who responded made no sales pitches. 

Support Rating:

Response time:

Very quick

Customer Reviews

The best way to learn about BetterLegal is to see what real customers thought of their experience. We visited the Better Business Bureau and Trustpilot. 

BetterLegal has an A rating from the BBB with 3.75/5 stars in customer reviews. They have been an accredited BBB business since 2017. They received 12 complaints that were closed in the last three years and 10 complaints closed in the last 12 months.

The Trustpilot score for BetterLegal is 4.5/5 stars from more than 300 reviews. 88% of customers rated the company as excellent.

Alternatives to BetterLegal

Bizee

Bizee has very competitive pricing. Their basic plan — the Silver package — is free (save for state filing fees) and includes registered agent services for a year. Their Gold package is only $199 and includes the operating agreement and EIN. Their Premium package is $299 and includes some additional services that BetterLegal does not.

ZenBusiness

ZenBusiness has three plans, including an entry-level plan that costs only state fees. They offer a rich suite of services, have great reviews, and excellent customer service.

BizFilings

BizFilings’ top-tier plan is most similar to the BetterLegal plan but is more expensive. 

Company Background

BetterLegal is based in Austin, Texas, and was founded in 2017. They are mostly known for their legal services and are fairly young firm compared to the competition. According to LinkedIn, the current CEO of BetterLegal is Blair Drenner, who has been in the position since 2020. Currently, the company has fewer than 10 employees.

BetterLegal focuses on business formation for LLCs and corporations. They outsource many of their services, including the registered agent service. They also work with partner firms for banking, insurance, and accounting services.

Our Approach

As an entrepreneurial advisory site, we take our responsibilities seriously. We understand that countless entrepreneurs, and potential entrepreneurs, rely on our judgments and insights, particularly when it comes to creating their business.

As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In this case, we:

• Examined every single page of the BetterLegal website
• Reviewed all of their offerings, from a la carte products to packages
• Put ourselves in the customer’s shoes and tested the formation process
• Communicated with customer service via chat, email, and phone
• Gained a full understanding of the customer experience and service value

Thanks to this full immersion in the actual customer experience, our reviewer and team are able to provide the most complete and insightful review of BetterLegal’s LLC formation services.