Limited Liability Company Formation Service
|With over a century of experience, The Company Corporation specializes in LLC formation and online incorporating services. However, their pricing isn’t super-competitive when it comes to creating an LLC.||Exclusive $50,000 Corporate Veil Guarantee. Standard expedited service for states that offer this. Standard 6-12 months of Registered Agent Service||LLC Operating Agreement is an additional cost. State fees tend to be higher than other online Limited Liability Company formation services.|| |
The Company Corporation was founded in 1899 by those that formed Delaware’s corporate laws. With over a century of experience, The Company Corporation has helped countless small business owners to incorporate online and with the process of starting an LLC (Limited Liability Company).
The Company Corporation’s website allows you to form a corporation, or form a LLC. They do not offer legal services that are not directly related to business entity formation. The focus of this review will be on their Limited Liability Company (LLC) formation service.
Limited Liability Company Formation Packages and Fees
The Company Corporation offers three Limited Liability Company formation packages – Economy, Basic and Premium. The packages range in price from $99 to $399, with the LLC Operating Agreement costing an additional $99 (more about this later).
On top of The Company Corporation’s fee for Limited Liability Company formation, you have to pay the state LLC filing fee. Depending on the state you are are starting an LLC in, these fees range from $50 to $600, with most states in the $100-$250 range.
These fees are paid to The Company Corporation and you clearly see what your state’s fees will be on the LLC application quote screen. Note that The Company Corporation’s state fees are higher than both LegalZoom’s and BizFilings’ for most states, which makes their service that much more expensive than the competition.
Please see the Limited Liability Company Formation Package Comparison Table below to see what comes with each of the three available LLC packages.
Options When Creating an LLC with The Company Corporation
The Company Corporation offers an optional Business License Compliance Package which tells you what business licenses you are required to have, as well as giving you the correct forms and providing you instructions on how to fill out and submit the forms. Please note that you will have to actually fill out the forms and submit them, along with any necessary fees, to the proper government agency.
The Company Corporation also offers an optional service to obtain your Federal Tax ID (EIN), as well as a rush service to obtain the same.
Please keep in mind that these optional services are items that you can accomplish on your own, and possibly for less cost. However, when you are first starting up your business, it is nice to have some of the detail work taken care of for you, freeing up your time to spend on other aspects of starting your new business.
Limited Liability Company Formation Priority Handling
The Company Corporation offers their priority handling as a standard feature of the Premium Package, and as an option for the other two packages. This is nice to have if you are in a rush to get your LLC formation completed. Otherwise, you will be serviced via The Company Corporation’s normal expedited service.
Why You Might Not Want to Use The Company Corporation When Creating an LLC
The one huge drawback to The Company Corporation’s pricing structure is that they charge you an additional $99 for an LLC Operating Agreement. The LLC Operating Agreement is the agreement between the members of the LLC governing the membership, management, operation and distribution of income. As you can imagine, this is a very important document to have as part of your Limited Liability Company formation package and we feel that it should be offered as a standard part of any setting up an LLC package.
The LegalZoom LLC package includes a fully customized LLC Operating Agreement as a standard feature. We feel that the Operating Agreement is a vital part of a Limited Liability Company formation, and we can only surmise that The Company Corporation leaves this out of the basic package to make their prices more competitive with their competition. In fact, their Frequently Asked Questions states “…all Limited Liability Companies (LLCs) must have an operating agreement.” You might as well add $99 to the basic cost of any of The Company Corporation’s Limited Liability Company formation package to include the LLC Operating Agreement. This makes their prices a whole lot less attractive!
A Corporate Veil Guarantee Comes with Your LLC Application
The Company Corporation does have a rather unique offering with all of their Limited Liability Company formation packages. Their exclusive $50,000 Corporate Veil Guarantee is offered at no additional charge and gives you up to a $50,000 reimbursement in legal defense fees if your LLC’s corporate veil is “pierced” in a lawsuit.
One purpose of creating an LLC is to provide your personal assets protection from legal action taken against your company (LLC). “Piercing” the corporate veil means that the plaintiff’s lawyers found some way to tie your personal assets to your LLC and hold you personally liable in a lawsuit. If you follow normal government and general business regulations, you will have a corporate veil that cannot be pierced (under normal circumstances – however, please seek professional guidance in this matter). It is only when you stray from normal business practices do you become susceptible to having your corporate veil pierced (such as mingling corporate and personal funds).
The Company Corporation’s $50,000 Corporate Veil Guarantee will only cover up to $50,000 of your legal defense fees. It will not cover any judgments awarded against you if your corporate veil is pierced.
Considering if you follow normal business practices with your LLC, you will not have to worry about being held personally liable for your business. This being the case, the $50,000 Corporate Veil Guarantee seems to be mainly a marketing gimmick.
Creating an LLC with The Company Corporation – Final Thoughts
The Company Corporation’s website is fairly easy to navigate and the Limited Liability Company formation package quote feature allows for you to easily see what it will cost to start a LLC with The Company Corporation. However, with the additional cost of the LLC Operating Agreement, the cost for using The Company Corporation is higher than using LegalZoom.
The one advantage that The Company Corporation has over LegalZoom is that six months of Registered Agent Service comes standard on all three packages, with one year being standard on all but the least expensive package. If you choose not to be your own Registered Agent, then The Company Corporation may be the Limited Liability Company formation service for you. On the other hand, LegalZoom does offer Registered Agent Service as a package option.
For the money, we feel that starting a LLC with The Company Corporation may not be your best choice. Check out the other form an LLC online service reviews on this site to see what else is available to you.