Hey there, friend! If you’re thinking about starting a business, especially an LLC, you’re in the right place. In today’s article, we’re going to dive into the world of LLC formation services, and I’m going to share why Bizee (formerly Incfile) might just be the right choice for you, instead of ZenBusiness. Setting up an LLC is an exciting step towards entrepreneurship, but it’s essential to make an informed decision to ensure your business’s success and your peace of mind. So, let’s get started!
Starting your own business, whether it’s an LLC, non-profit, C Corp, or S Corp, is a thrilling adventure. In this article, we’ll focus on Limited Liability Companies (LLCs) because they are incredibly popular, and for a good reason.
Around 80% of new businesses opt for LLC structures because they offer a cost-effective way to limit personal liability.
Let’s clarify something: LLCs are not about tax advantages. They’re primarily about protecting your assets and reducing personal liability. We’ll discuss potential tax benefits later in this article.
Before diving in, I want to share with you the following video, where I go through every single aspect of ZenBusiness:
On 12/1/23 Incfile rebranded to Bizee as they’re offering a full suite of business services beyond just business formation.
Table of Contents
Our main goal is to help you decide which LLC formation service is the best fit for your business needs. Along the way, we’ll also highlight potential pitfalls to avoid when setting up your LLC. These pitfalls include concepts like “piercing the corporate veil,” registered agents, and commingling funds. If these terms sound unfamiliar to you, don’t worry – we’ll break them down in detail throughout the article.
The process with ZenBusiness involves an automated chatbot that helps determine which package suits your needs.
Provides guidance through an automated chatbot.
Offers compliance tools and assistance.
May be suitable for those who prefer a more interactive experience.
Starting price is $49, higher than Bizee's $0 option.
Registered agent service costs $99/year after the first year.
Potential upsells may increase costs.
Bizee vs. ZenBusiness: Let’s Compare
Now, let’s dive into the main comparison between Bizee and ZenBusiness. To give you a better idea of what each service offers, I’ll dissect the key features and pricing of both. By the end of this section, you’ll have a clear picture of what sets these two services apart.
Bizee: Keeping It Simple
Bizee, in my opinion, is all about simplicity. They lure you in with their “business formation for as little as $0 plus state fee” offer. That’s a great deal, right? But wait – what’s the catch? How does Bizee make money? Well, let me explain.
First, the state fee is something you’ll have to pay regardless of which service you choose. State fees vary from state to state, ranging from about $25 to $500. A crucial piece of advice: always set up your LLC in your home state. Avoid the headache of dealing with foreign and domestic LLCs by keeping it simple and setting up in your own state.
Now, about the $0 fee – it’s not as magical as it sounds. In year two and beyond, you’ll be charged $119 annually for their registered agent service. Remember, registered agents are vital for your LLC’s legal compliance. They receive important documents on your behalf and ensure you stay in good standing. So, while it’s free for the first year, be prepared to pay $119 per year starting in year two.
ZenBusiness: The Chatbot Experience
ZenBusiness, on the other hand, offers a slightly different setup. The process with ZenBusiness involves an automated chatbot that helps determine which package suits your needs. While it can be informative, it may feel a bit less transparent compared to Bizee’s straightforward pricing.
The chatbot asks a series of questions to recommend a package. However, be cautious because their default recommendation might not align with your specific needs. In the chat, I gave the most basic answers – a one-person LLC, no income yet, side business, etc. – and the chatbot still recommended the middle-tier package for $199. That’s $50 more than Bizee’s $149 middle-tier option. Keep in mind that you can explore other options with both services to avoid overspending.
So, what did I choose? In the end, I went with Bizee because I value transparency and straightforward pricing. With Bizee, you can see all the packages and their prices upfront, making it easier to make a decision that fits your budget.
Bizee’s Added Benefits
Bizee offers several features that can make your LLC formation journey smoother. Let’s take a closer look at these benefits.
1. Free Registered Agent Service for the First Year
A registered agent is a crucial component of your LLC’s legal compliance. They receive important documents on your behalf and ensure you stay in good standing. Bizee provides this service for free during the first year, which is a fantastic offer. Just be aware that, after the first year, it will cost you $119 annually.
2. Simple Dashboard and Compliance Management
Bizee’s user-friendly dashboard acts as a command center for your business. It provides a clear overview of your LLC’s status, including important compliance requirements. Managing your LLC’s compliance becomes a breeze with this tool.
3. Business Banking Account
Bizee offers the convenience of setting up a business bank account through Bank of America. This is essential for maintaining the separation of business and personal finances. Commingling funds can create cracks in your LLC, potentially compromising your personal assets. So, setting up a business bank account from day one is a smart move.
4. Easy Access to Completed Documents
Bizee stores your filed articles and statements online, providing easy access to essential documents. This digital storage makes it convenient to review and share important paperwork as needed.
In summary, Bizee offers a transparent and straightforward approach to LLC formation. Their free first-year registered agent service, user-friendly dashboard, business banking account, and document storage make the LLC formation process a breeze.
We’ve seen that Bizee’s straightforward pricing and additional benefits make it an excellent choice for many aspiring entrepreneurs. With Bizee, you get a free registered agent for the first year, a simple dashboard for managing compliance, the option to set up a business bank account, and easy access to completed documents.
While ZenBusiness offers an alternative experience with an automated chatbot, it’s essential to consider the added costs and recommendations it provides.
Your LLC formation journey is a critical step in your entrepreneurial adventure. Making the right choice now can save you time, money, and potential legal headaches down the road. I hope this article has helped you in your decision-making process. Remember, the most crucial thing is to ensure your LLC is legitimate, compliant, and ready to serve as your line of defense against personal liability.
So, if you’re ready to take that first step towards starting your own business, Bizee might just be your best friend on this exciting journey. If you found this article helpful, please consider using the links in the description below to support my work. And stay tuned for more valuable insights on your entrepreneurial path. Good luck with your LLC formation, and I’ll catch you in the next article!
Our content is independently researched and reviewed. When you buy through our links, we may earn a commission. Learn more