In this review we will cover everything you need to know about why you should opt for opening an LLC instead of a standard corp, and how a service like IncAuthority can ehl you with their free llc formation services.
Inc Authority has been establishing business entities for over 30+ years!
But, before we get into the formation process, costs, and Inc Authority’s services, get to know what an LLC is and see if it suits your needs.
- So, what is an LLC, and why should you open one? 💬
- What Inc Authority is all about —
- Their LLC Services and Bundles –
- Inc Authority offers FREE LLC formation services.
- Advantages and Disadvantages of Using Inc Authority
- Inc Authority VS other LLC formation services
- So, is Inc Authority Worth it?
- FAQ ❓
So, what is an LLC, and why should you open one? 💬
A limited liability company (LLC) is a hybrid entity that combines the characteristics of a corporation with a partnership or sole proprietorship but offers much greater freedom than a corporation and more solid liability protection than a single proprietorship.
Are you still unsure whether to form an LLC or register as a corporation?
One key difference between LLCs and corporations is their taxation. Corporate profits are subject to double taxation, first at the corporate level and then at the individual shareholder level. This practice has faced criticism from many businesses and investors.
In contrast, limited liability companies can distribute profits directly to investors, taxed only once as part of their personal income.
It all comes down to taxes…
For business owners, being taxed only once on the profits of their business can be very beneficial because it allows them to retain more of their earnings. Since the profits are not subject to corporate tax (which is a flat 21%), the investors’ personal income tax rate will range between 10% – 37%.
Additionally, LLCs offer more flexibility in terms of how profits are distributed among investors. LLCs can be structured to allow for different allocations of profits and losses among members, based on each member’s ownership percentage or other agreed-upon criteria. This can provide greater control and flexibility over the distribution of profits, which can be a significant advantage for business owners.
In the United States, an LLC can be formed with just one person, known as a single-member LLC. The tax benefits of an LLC, including pass-through taxation and flexibility in profit distribution, would still apply to a single-member LLC.
For multi-member LLCs, the same tax benefits would also apply. The LLC can be owned by two or more individuals or entities, and profits can be distributed according to the terms of the LLC operating agreement, which outlines the management structure and profit-sharing arrangements among members.
Ultimately, the tax benefits of an LLC apply regardless of the number of members as long as the LLC is properly structured and managed in accordance with state laws and regulations.
So, to summarise some of the advantages of establishing an LLC:
- Personal asset protection An LLC offers personal asset protection to its owners. This means that in case of bankruptcy or legal action, owners’ personal assets, such as bank accounts, residences, and cars, are shielded from business liabilities.
- Flexible ownership and management: There are very few limitations on who can own or manage an LLC. LLCs offer flexibility in ownership structures and management styles, making it easier to tailor the business to the owners’ preferences.
- Unique business name: LLCs can have an exclusive business name, which helps in branding and marketing efforts.
- Tax flexibility: LLCs offer tax flexibility, with owners having the option to choose how they want to be taxed, either as a partnership or a corporation. This provides greater flexibility in tax planning and can result in tax savings.
- Fewer requirements: LLCs have fewer requirements than corporations, making them easier and less costly to set up and maintain.
- Minimal bureaucracy: LLCs typically have less bureaucracy and red tape compared to other business structures, making them a popular choice for small business owners.
- Profit distribution flexibility: LLCs offer flexibility in how profits are distributed among owners. Profit distribution can be based on ownership percentage or according to other agreed-upon criteria outlined in the LLC operating agreement.
What Inc Authority is all about —
Inc Authority is a popular choice for many new businesses looking for legal support, as the platform offers a free LLC setup – a fantastic deal for any entrepreneur.
Established for over 30 years, Inc Authority is an LLC formation service that offers a range of business formation plans, including payment for state filing fees, filing services, and tax planning consultations. They assist small businesses with state regulatory requirements and provide expert assistance around the clock to help entrepreneurs make the best business decisions.
Additionally, Inc Authority provides a full year of free registered agent services as part of their additional services, making them an even more attractive option.
What distinguishes them from other LLC service providers?
The Inc Authority is dedicated to the best possible client service. Proven with outstanding customer reviews and 100% customer satisfaction, check out their 5-star ratings and A+ Trustpilot ratings.
Their LLC Services and Bundles –
Inc Authority offers a variety of formation packages.
Customers may choose from a starter business bundle or a Fast-Track Business Bundle (previously, an executive bundle or a tycoon business bundle were available but were not visible on their website as of writing this article).
Inc Authority also offers the creation of website domains and provides business funding or business credit; it truly is a one-stop shop.
But what makes it better? Registering your LLC with Inc Authority will provide you with the following incorporation service free of charge. Yes, they offer free LLC services for the following tasks:
- Conduct a Business name check (which must be unique)
- They will become your Registered agent service for the first year
- Delivery and digital storage of LLC startup documents.
- Tax planning consultation
- S-Election services will draft and file your S-election form (Form 2553) with the IRS if the LLC selects the S-corporation status.
- Customer support through their Inc Care
- Business Credit and Business Funding Analysis
Inc Auhority Pricing for Premium bundles
Currently, their website only features their Premium packages which can only be acquired through their Business Startup Experts; however, contacting them directly may unlock a few more bundles.
Note: All price packages exclude State Filing Fees, so remember to include them in the budget.
✅ Starter Business Bundle, which includes the following services for $399,
- Registered Agent Service (1yr)
- Verify Business Name Availability
- Custom State-Filed Articles of Organization
- Complete the Operating Agreement or Bylaws
- Deluxe Record Book
- Stock or Ownership Certificates
- Initial Meeting Minutes & Resolutions
- EIN/Tax ID Number
- Corporate Forms Package
- Annual Compliance NotificationsProfessional Tax Consultation
- Web Domain + 5 Email Addresses
✅ Fast-Track Business Bundle is a Starter Business Bundle with add-on services for an additional $100 (totaling $499)
- INC Success Advisor Package
- Private Banking Specialist
- Personalized Business Advice
- Express Processing
Bundles that are unavailable as of writing this article:
- The Executive Bundle, which is a Starter Business Bundle but with the addition of a price of $499
- Website domain name
- Business license report
- Tycoon Business Bundle is an Executive Bundle but with more add-ons, with a fee of $799
- Expedited processing
- Business credit coaching
- Multi-tier credit building
- D&B credit bureau registration
Other LLC packages you can check out are the Business Credit program, or the BizCredit Express program is intended to assist you in quickly establishing business credit for your new business. The company has corporate credit experts and specialized web tools to help you improve your credit score and profile with major commercial credit reporting bureaus.
Business Credit includes the following services,
- Business Credit Coach is a one-on-one coaching that aims to help you build that A+ business credit.
- The multi-Tiered Credit Building System is developed exclusively to build your credit quickly and efficiently.
- Business Credit LaunchPad: is a proprietary web-based software program equipped with complete steps of your business credit development, including business profile building, beginning vendor credit, and advanced vendor credit. Technical support from a properly trained website administrator is available.
- Dun & Bradstreet, Credit Bureau Registration: helps you draft up your registration and is engineered to give your company an 80 Paydex Score, similar to an A+ grade.
Read more about Inc Authority’s business credit here
Inc Authority also works with GoDaddy to obtain your business a domain name. They can also assist you in creating a website and working on SEO.
Additionally, IncAuthority also offers a service that will assist you in obtaining a trademark for your company’s logo or name.
Bonuses & Special offers.
IncAuthority offers bonuses for new businesses with new Business Bank accounts/ business credit cards from Bank of America. This offer expires on December 31, 2023.
Inc Authority offers FREE LLC formation services.
Yes, free LLC formation services. Meaning, basic LLC filing services are $0.
Why? Because part of the Inc Authority’s mission is to gain its clients’ trust and keep their business for life. Thus, they have waived the fees for their services, labor costs, and overhead. So you only pay the mandated fees, which refer to the Secretary of State Fees, a fee charged to every business owner upon registration.
How do they profit, though? Well, Inc Authority profits from its bundle packages and add-ons, which business owners mostly buy after seeing the company’s efficiency of services.
Advantages and Disadvantages of Using Inc Authority
- You can save from their free LLC formation services and only pay for the state fees.
- Full Year of Registered Agent Service
- They are established and experienced with more than 30 years of existence.
- Outstanding customer support
- Limited Liability Protection, with the protection service, you will not be held liable for any litigation against the company or for any debts. (this applies to having an LLC in general)
- Business Tax Analysis
- Business Funding Analysis
- Not BBB accredited
- Harsh refund policy
- Hard Upsells
- Extra Cost for Employer identification number (EIN) filing
- Premium packages and bundles are pretty expensive compared to competitors
- Entry bundles do not include an operating agreement.
- IncAuthority website does not feature all of its bundles
- Monthly and yearly services of IncAuthority are automatically and without notice renewed.
- Lack of legal services
Inc Authority VS other LLC formation services
ZenBusiness is entirely transparent when it comes to pricing and services. On the other hand, Inc Authority demands you contact their sales staff or begin the checkout process to assess rates for the add-ons required to get your firm up and operating.
ZenBusiness has a bit cheaper packages compared to Inc Authority. For example, ZenBusiness bundles are only for $48, $199, and $299 for paid subscriptions with increasing degrees of service, vs. $399, $499, and $799.
ZenBusiness guarantees a full refund up to 60 days following formation, less any state or third-party expenses. But for Inc Authority, it’s not the case. They have no refund policy, saying, “all sales are final.”
If you’d like to check an in-depth review of ZenBusiness click here
First and foremost, Inc Authority has considerably lower introductory pricing than LegalZoom. They are one of the few organizations to incorporate your LLC for free. Furthermore, Inc Authority includes a year of registered agent service with each LLC establishment, but LegalZoom does not.
Compared to Inc Authority, LegalZoom offers cheaper bundles, with prices ranging from $79, $329, and $349. They give customers who want a simple package option more options.
Both of these firms operate swiftly, and they may have your formation approved by the state in weeks or even days. Moreover, in terms of experience, Inc Authority has founded over 140,000 LLCs and companies since 1989. LegalZoom, on the other hand, has formed over 2 million company companies since 2001.
For $0 plus state fees, Inc Authority and Incfile will handle your basic LLC formation needs. Nevertheless, you may want to upgrade to a higher-level service. In that case, Inc Authority swiftly raises the price considerably over what Incfile charges. Incfile’s Gold plan, which comes after the free package, costs $149. In contrast, Inc Authority’s next tier offer is already priced at $399.
If you choose the basic package for $0 plus state costs, Inc Authority provides additional options that you may find useful. But, if you select the midrange or upper-tier bundle, Incfile delivers essentially the same services for half the price that Inc Authority charges.
Inc Authority Reviews and Quotes –
Most negative reviews about Inc Authority relate to upselling, and that their business formation packages have unnecessary services that jack up the price.
However, there are still numerous positive internet reviews for Inc Authority, and most have nothing but nice things to say about the organization, particularly its free formation services.
“I have been trying to communicate with them for more than a month, and they tell me it still does not come out, but do not issue me in what state or how my LLC is. I really thought it was a good company, but it is unfortunate. I do not recommend it.”
“This being the first time we have opened and started our own business, it was nerve-racking. But the great folks at Inc Authority helped us every step of the way. They were always available for any issues or questions we had. I would recommend their services to anyone looking to start a business. Amazing customer service. Will absolutely be using their services throughout our journey”Kalob Hall
“The most worry and hassle-free experience I’ve ever had with customer service! Kevin Jones did an amazing job helping me get my LLC and signing me up with everything I need to become a successful business owner! Thank you so much, Kevin!”– Norm
“Inc Authority helped me start up my business and get my EIN. The process was straightforward and straightforward, and Mark Wafford was very informative and explained things in great detail and in a way I could understand. Thank you!!”– Jason Rowley.
So, is Inc Authority Worth it?
Starting a new business can be an exciting time, but it can also be overwhelming with the numerous responsibilities that come with it. Seeking the assistance of expert LLC creation businesses like Inc Authority can make the process more manageable.
Inc Authority is an excellent option due to its exceptional customer service and free LLC formation services. All you need to do is complete the order process and pay the state charge to get started. This makes them a practical and affordable option for startups.
It’s important to remember that once you’ve signed up for services with Inc Authority, you should monitor your billing statements to ensure you don’t incur any unwanted charges. And, if you aren’t planning on sticking for the long term, you should also cancel any recurring subscription services you don’t want to continue, as they automatically renew. While this can be seen as a disadvantage, others may find it convenient. Regardless, it’s essential to weigh the pros and cons before making a decision.
What is Inc Authority’s Refund policy? 💲
Unfortunately, Inc Authority still needs a refund policy for their starter business bundle, mainly because the charges incurred are for the state filing fees.
Although, for their paid bundles, if you are dissatisfied with your original online purchase, they offer a money-back guarantee policy for their paid bundles, provided you will contact them within the first 60 days of purchase. They will process your refund less any filing costs paid to state agencies or third-party service partners to assist with order fulfillment.
What’s the turnaround time?
Most states complete the paperwork within two to three weeks, so your business may not be registered for up to a month. But, with express processing, if you avail of the Inc Authority, you will prioritize your paperwork and submit your business file within 24 hours.
Is Inc Authority trustworthy?
Yes, Inc Authority services have been proven trustworthy for over 30 years of service and 250k + business entities formed, and 100% customer satisfaction! Inc Authority is an excellent option for opening up an LLC and considering the additional services they provide in their base plans, such as tax preparation, top registered agent services, company credit, and more. They also offer everything you need to get your business up and running.
What makes Inc Authority’s business formation services unique?
Their free LLC services they offer (free because of their waived labor cost, service fees, and overhead, which lures many business owners, especially those with limited funds), which makes it stand out from other LLC services.