There are many LLC incorporation services companies available on the Internet. Their pricing ranges from attorney pricing of close to thousand dollars to extremely cheap services of less than fifty dollars.
With the advancements of the Internet, their websites all look professional and they seem to provide what is required to form a limited liability company. How can you decide which ones to trust and which ones to run away from?
The answer lies in going beyond the first impression and delving deeper into what the company can offer. The following is a list of key factors to research. Take the time to properly choose a proper service provider because being subject to an incompetent or unscrupulous company will result in a lot of headache and delays and even worse- may cause you to have a defective LLC which places your personal protection at risk.
1. Filing Experience. Preparing the necessary paperwork and working with state agency may be mostly administrative, but in the case of legal entities, certain knowledge of the latest legal and regulatory requirements in each state is necessary. It also helps if a business knows the intricacies of working with the state agency and has relationships there.
Unfortunately, there are too many purported incorporation services out there that put up a fancy website but have no experience in this area. Another helpful method to confirm experience is to look up the company with BBB (Better Business Bureau) and review any customer commentary. But do not rely on just this because many of these fly by night companies are too new to have a history, good or bad, on the BBB site.
2. Guarantee. A serious sign of a reputable and professional LLC incorporation company is when it backs its services with a solid guarantee. While a satisfaction guarantee is helpful, it is best to receive what is a known as a compliance certification which states that your limited liability company will be established in compliance with state requirements.
3. Customer Support. An incorporation provider is not a law firm and so cannot offer legal or tax advice. However, they should be knowledgeable about the processing requirements for the administrative process to create a limited liability company. You should insist on using a company that has real staff available by phone, email or chat to help with your general questions and concerns. Always look for a customer support phone number and online answers and articles as evidence.
4. Insist on a US Based Company and Avoid Resellers. Believe it or not, there are some companies selling US formation services that have their fulfillment staff in other countries such as India. And, many online formation companies merely resell the service and outsource the actual work to another company. While this is difficult to ascertain from a website, these structures are signs to stay away. These type of businesses do not have the ability to keep up with the constantly changing requirements of each state and they do not have the real accountability you want from a LLC incorporation services provider.