Many small businesses operate as limited liability companies (LLCs). Entrepreneurs prefer LLCs over DBA or sole proprietor entity structures because of the added liability protection. The LLC structure also provides entrepreneurs with tax advantages that leave them in good standing after the tax season. In order to earn these benefits, you need to set your LLC up properly.
Fortunately, there is more than one way to establish your limited liability company. For example, one of the fastest growing LLC formation companies is ZenBusiness. They can help you to start an LLC for a very attractive price and with a very quick TAT. You can read more about them on LLCGuys. Using a service like ZenBusiness is very easy and preferred by most entrepreneurs compared to ones that choose to form an LLC themselves. Continue reading to learn the difference between using an LLC filing service vs. doing it yourself.
Name Search
Firstly, the name search process differs slightly. As an entrepreneur establishing an LLC, you need to ensure that your chosen business name is available. The process entails finding a reputable site to search for business names and inputting information yourself. This method can take entrepreneurs a long time depending on the name availability. In contrast, entrepreneurs using LLC filing services have name search tools right at their fingertips. Their services conduct name searches for them. The best solutions even send you updates when they discover that your name is unavailable. Choose an LLC filing service over doing it yourself if you want to conduct a name search quickly.
Paperwork Process
Similarly, LLC filing services simplify the paperwork process. Paperwork takes even longer than choosing a business name and conducting a name search. Entrepreneurs typically dread the monotonous yet crucial task. Fortunately, you can skip it entirely with an LLC filing service. Your service asks you for a few questions regarding your startup. Then, it takes care of the rest for you. The best filing services even continue to prepare paperwork for you after you file your LLC. They repeatedly file annual reports so you can run your business worry-free. Keep this difference between using an LLC filing service vs. doing it yourself in mind.
Professional Guidance
The level of professional guidance also differs when using an LLC filing service vs. doing it yourself. Many entrepreneurs who file their limited liability companies themselves make crucial errors. LLC filing services are experienced at completing the required paperwork entirely. Their hired experts and advanced automation technologies guarantee entrepreneurs error-free filing processes. Furthermore, entrepreneurs who opt for the do-it-yourself approach need to learn difficult legal terms. You need to understand complicated concepts to fill out the paperwork. Since filing services take care of the whole paperwork process for you, you do not need to worry about learning complex terminology. Prevent errors and save yourself time by using an LLC filing service over doing it yourself.
Filing Process Time Frame
Moreover, LLC filing services accelerate the filing process. When you file yourself, you need to double-check your paperwork to avoid mistakes. Then, send the form to your state’s agency. States accept different sending options, which makes the process a little tedious. It also takes entrepreneurs longer when their states do not allow online filing. Certain states require you to send the forms via mail or fax. When you use an LLC filing service, you do not need to worry about any of this. Your service takes care of the entire process for you. You simply need to confirm the information within the forms. Filing services take care of the rest. Achieve a shorter filing process time frame with an LLC filing service vs. doing it on your own.
EIN Retrieval
In addition to the above differences, the process for obtaining your Employer ID Number (EIN) varies. Traditionally, entrepreneurs had to apply for their Employer Identification Numbers through the Internal Revenue Service (IRS) on their own. The process entails determining your eligibility, filling out the application and submitting it. You need an EIN to operate your company legally, which is why many entrepreneurs include it in the filing process. However, you do not need to waste your valuable time applying for one. Several LLC filing services offer features that simplify and accelerate the application process. Consider this advantage when choosing to use an LLC filing service vs. doing it yourself.
Limited liability companies provide entrepreneurs with liability protection and tax advantages. Reap these benefits and start your own company quickly by either filing with a service or filing on your own. One of the major differences between the two options is the name search task. Filing services offer faster name search tools and take care of the paperwork for you. Additionally, they provide you with expert guidance to reduce errors in forms. Complete the entire filing process faster with a filing service. Finally, use a service to receive an Employer ID Number quicker. Consider these differences before choosing between using an LLC filing service vs. doing it yourself.
