BizFilings LLC Service Review (Advantages & Disadvantages)
BizFilings opened back in 1996, with hundreds of thousands of businesses formed since then. Even with so many companies offering LLC formation services these days, BizFilings finds a way to remain relevant and popular.
This BizFilings LLC service review is structured to give you an overview of their services in a way that should help you decide if you want to use them to help form an LLC.
Advantages & Disadvantages
Advantages of BizFilings:
– If your state has additional steps involved with your LLC formation, like an initial report or a publication requirement, BizFilings can handle these state-level compliance items. Many competitors don’t offer these services.
– No matter which LLC formation package you choose, BizFilings includes 6 months of registered agent service. Some competitors do offer a full year, but 6 months of registered agent is still valuable.
– Their Business Owner’s Toolkit is a valuable resource including extensive info regarding LLC formation, and many other topics including compliance tips, taxation guides, and much more. Most competitors have a similar feature, but most don’t provide the value that BizFilings does.
– Even if you’re not a BizFilings customer, you can still take advantage of their complimentary business name availability check.
Disadvantages of BizFilings:
– Their prices are higher than many competitors, but BizFilings doesn’t have enough features in their packages to make their rates more easily justifiable. You can save money with other LLC services.
– Not all of their features are clearly explained. For example, they offer “Expedited Processing Service” with some of their LLC formation packages, but if you read the fine print you’ll discover that this does not actually expedite your order with the state.
– There is no reason for anyone to purchase their $219 Standard or $349 Complete LLC formation packages. They’re packed with unnecessary features that drive the prices up to unreasonable levels.
– BizFilings has very few online customer reviews. It’s better than having a bunch of negative feedback, but it’s a bit disappointing that it isn’t easier to get a clear idea of what their customer experience is like.
BizFilings LLC Formation Packages
BizFilings offers 3 packages of LLC formation service: Basic, Standard, and Complete. If you want to review all of the individual features available at each level, take a look at how they present these packages on their website.
Basic = $99 + State Fee
– Articles of Organization (Preparation and Filing): BizFilings will draft and file these documents, which are submitted to your state of formation to officially create your new limited liability company.
– Name Availability Searches: They’ll search through state business databases to ensure that the name you want for your business is actually available. You can do as many searches as you want at no charge.
– 6 Months Registered Agent Service: Registered agents are required for every LLC in America. This is a person or entity that you designate to receive important government documents on behalf of your company. This makes sure that the state always has a way to reach a representative of your LLC. BizFilings will serve as your registered agent for six months, after which they charge $149/year (you are not obligated to purchase this service).
– 6 Months BizComply Tool: This online compliance management tool helps you keep track of state-specific rules, regulations, and filing deadlines. This tool is included with registered agent service, so like that feature this only lasts for six months until you have to pay for a registered agent subscription.
Standard = $219 + State Fee
Includes everything from the Basic package, plus…
– LLC Kit and Seal: A binder with your LLC’s name printed on the spine, along with a decorative seal for stamping documents, custom membership certificates for your owners, and a membership transfer ledger to keep track of how your LLC’s ownership is distributed.
– Sample LLC Forms: You’ll receive a CD that includes customizable templates of business documents like operating agreements, meeting minutes, resolutions, and more.
– Expedited BizFilings Processing: BizFilings will prioritize the processing of your order before they process any Basic package orders received at the same time. If you want to expedite your order with your state of formation, you will still be required to pay that expediting fee.
Complete = $349 + State Fee
Includes everything from the Standard package, plus…
– Federal Tax ID Number (EIN): This number is like a Social Security Number for your LLC. You’ll need an EIN to open a business bank account, hire employees, and more. BizFilings will acquire your EIN from the IRS.
– “Now That You’re Formed” Compliance DVD: This is essentially a video instruction manual for your LLC formation.
– Certified Copy of Your Documents with Overnight Shipping: They’ll acquire a certified copy of your articles of organization from your state after they’re filed, then overnight it to you.
What Are Other Entrepreneurs Saying?
We were only able to find a total of three customer reviews for BizFilings. Despite having customers numbering in the six digits, it appears that none of them ever review their services. Which is odd, isn’t it?
When a competitor like IncFile has a similar level of experience, but with thousands of customer reviews, it certainly makes you wonder what’s going on with BizFilings’ near-complete lack of online customer feedback.
It’s hard to say that a general lack of feedback is an objectively bad thing, but it’s not a great sign either, especially when some of their competitors have hundreds or even thousands of positive customer reviews.
– FitSmallBusiness: 4.0 out of 5 stars (2 reviews)
– Better Business Bureau: 1.2 out of 5 stars (1 review)
Is There a Better BizFilings Alternative?
There are so many online LLC services available these days that there’s really no point in using one that doesn’t feel exactly right for your business.
With that in mind, we should have a conversation about whether there are any better service providers out there. Our preferred alternative to BizFilings is IncFile, a company that offers LLC service at a much lower rate.
IncFile has a base rate of $49, which is less than half of what you’ll pay for BizFilings’ cheapest formation package. Furthermore, every one of IncFile’s LLC formation service plans comes with a full year of registered agent service, compared to the six months included with BizFilings. In addition, IncFile’s customer feedback is tremendous, with very high average rating scores and thousands of reviews.
While BizFilings does still have some things going for them, it’s pretty clear to us that IncFile provides the better bargain for most of our readers.
Is BizFilings Right For You?
BizFilings is a good company with plenty of important points in their favor. They’re not going to be the perfect fit for every business though, so let’s discuss a couple of scenarios that might help you decide whether or not to use their LLC formation service.
When to Use BizFilings:
If your state of formation has extensive local compliance requirements, and you’d rather have some assistance with those than go the DIY route, BizFilings is one of the only major service providers that even offers to take care of these steps.
When NOT to Use BizFilings:
If you want to purchase well-balanced packages with lots of advanced features, if you want to save some money, or if you feel more comfortable using a company that has lots of available feedback from their customers.
BizFilings doesn’t really stand out in any one way from their competitors, but they’re a steady provider of LLC formation service with lots of experience.
Frequently Asked BizFilings Questions
Does BizFilings Offer Any Discounts?
BizFilings does have a Share Program that offers discounts for bloggers and other business influencers, but it obviously isn’t all that widely applicable.
Does BizFilings Have Good Customer Support?
They certainly do. You can contact BizFilings from 9am to 8pm ET Monday through Friday, via phone, email, or web chat. Their incorporation experts are always just a quick call away, and they’re able to solve a wide variety of problems that you may have.
Do They Have a Refund Policy?
They do have a refund policy, but it carries significant processing fees. If you cancel your order before they do your preliminary name check, they’ll refund your purchase price less a $50 processing fee. If you cancel after that, it’s $75.
Can I Form an LLC on My Own?
Sure, you can form your own LLC. In fact, there are quite a few entrepreneurs who do just that. However, we will caution that the DIY route includes a considerable amount of red tape and paperwork, so it can be a hassle. Furthermore, there isn’t one set way to form an LLC, but rather every state has their own requirements, so you’ll need to research the exact process your state uses.