BizFilings LLC Service Review (Advantages & Disadvantages)
BizFilings opened for business 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:
- 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 quite valuable. (What is a registered agent?)
- 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 they don’t have enough features in their packages to make their rates more easily justifiable. In short, you can save some money with other providers. (See Details)
- 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.
- BizFilings does not have many 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 Packages
BizFilings offers 3 packages of LLC formation service, and each has its own set of features to appeal to a variety of business owners. 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.
While it’s true that no two companies are exactly alike and it’s not easy to make a blanket recommendation, the way BizFilings structures their packages makes the decision-making process simpler than you might expect.
The base-level LLC formation package is called Basic and honestly, it’s the only one worth considering. At the $99 price point (plus state fee) BizFilings includes formation basics including a business name availability check and the preparation and filing of your formation documents. In addition, you’ll receive 6 months of registered agent to receive and forward your important government compliance and legal documents, as well as their BizComply company alerts tool and document library.
Next up is the Standard package at $239 plus state fee. This package adds some sample documents, a symbolic LLC kit and seal for organizing company forms, and BizFilings “expedited processing service.” Despite the fact that it has the word “expedited” in it, that feature does not have any impact on the state’s turnaround time. All this does is ensure that BizFilings will process your order before filing an order placed by a non-expedited customer.
Not to sound overly harsh, but I would not pay for any of the features added at the Standard level. It’s $140 more than the Basic package but there is little-added value. Very few business’ need any of this.
Finally, there’s also a Complete level for $349 (plus state fee) that sees the addition of a federal tax ID number (EIN) to enable your business to hire employees or open bank accounts, a certified copy of your formation documents with overnight shipping, and a DVD discussing compliance matters. While most companies do need an EIN, this package still does not make good financial sense because it’s built on the deeply flawed foundation of the Standard level.
All told, the best option for the vast majority of LLCs is to purchase a Basic package and add an EIN, bringing you to a grand total of $178, which is cheaper than the Standard package and also more useful.
What Are Other Entrepreneurs Saying?
There are only a few online customer reviews for BizFilings, and most of those are at least 5 years old. You can see for yourself at Legal Spring, Yelp and BBB.org. It’s somewhat baffling that so few of their hundreds of thousands of customers have written reviews, and there just isn’t much analysis to be done on this small sample of reviews. I will simply note that the most recent positive review is from April 2011.
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.
Should You Use BizFilings?
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 you’re looking for a complete formation package that gives you everything most businesses need to get up and running, the BizFilings Basic package with an EIN added costs $178. That’s one of the lowest rates in the industry for LLC formation, EIN and registered agent all bundled together, although keep in mind that your registered agent service is just 6 months, not a year.
When NOT to Use BizFilings:
If you want to purchase well-balanced packages with lots of advanced features, 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. If you’d like to review your other options, have a look at our list of the top 7 LLC services. Of course, you can also get started with BizFilings right away.