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Imagine going from idea in your living room to officially owning your own business just 30 minutes later. Such a thing would have been unimagineable just 30 years ago. But that’s exactly the convenience and innovation that many entrepreneurs and businesses like us have access to everyday.
Launching a business is exciting, but navigating the formation process can feel overwhelming. That’s where Bizee (formerly Incfile) comes in, promising to streamline your journey and get your entity up and running fast. This review dives deep into Bizee’s features, pricing, and pros and cons, helping you decide if it’s the right fit for your budding LLC, S Corp, C Corp, or Non-Profit LLC.
Forming Your Limited Liability Partnership or Company LLC with IncFile (Bizee.com)
Bizee has been around (formerly known as IncFile) helping people make their LLC, S Corp, C Corp, & Non-Profit ideas become reality for 20 years. To answer your question, yes, they do offer a free LLC setup service for just your state filing fees to get started.
While you won’t get bells and whistles like registered agent service or business permits, the free version is perfect for budget-conscious solopreneurs and startups to get their LLC up and running with no upfront cost. You’ll still benefit from their user-friendly platform, step-by-step guidance, and access to valuable educational resources – all without breaking the bank. Just be aware that add-on services can increase your costs down the line, so weigh your needs before diving in.
And, the price will probably be around $200/year upon plan renewal during your second year. That’s right, you actually get a year of free registered agent service as well with Bizee, which is super competitve for the company formation and filing space.
Pros of Starting Your LLC or Company with Bizee:
- Affordable Pricing: Bizee shines with its budget-friendly options. Their “Free Silver Plan” truly lets you form an LLC for just your state filing fee. If you need more features, their higher tiers are competitively priced.
- User-Friendly Platform: Bizee’s website is designed with simplicity in mind. The intuitive interface guides you through the LLC formation process step-by-step, making it suitable even for complete beginners.
- Comprehensive Services: Bizee goes beyond basic filings. They offer registered agent services, business permits and licenses, EIN acquisition, and even legal document templates. This one-stop-shop can handle many of your early business needs.
- Educational Resources: Bizee provides a wealth of free resources, including blog posts, guides, and video tutorials. This educational approach empowers you to make informed decisions about your business structure and ongoing compliance.
How Bizee Stands Up to Other Popular Online LLC Formation and Registered Agent Services
Here’s a breakdown of its comparison to other popular services.
| Feature | Bizee (Incfile) | LegalZoom | ZenBusiness | Northwest Registered Agent |
|---|---|---|---|---|
| Free Formation | Yes (LLC only) | No | No | No |
| Basic Formation Price | $0 + state fees | $0 + state fees | $0 + state fees | $125 + state fees |
| Registered Agent Service | (Included in paid plans) | $299/year | $199/year | $125/year |
| Ease of Use | Excellent | Good | Very good | Good |
| Customer Support | Mixed | Good | Good | Excellent |
| Mobile App | No | Yes | Yes | No |
As you can see from the chart and IncFile/Bizee’s recent price and package adjustments, they tied with NW Registered Agent as one of the best LLC formation services online.
Bizee (IncFile) Packages
- Basic Formation: Bizee covers the essentials like filing articles of organization, obtaining an EIN, and providing online document storage.
- Registered Agent Service: All paid plans include a year of free registered agent service, a valuable feature for receiving legal documents and ensuring compliance.
- Add-On Services: Bizee offers a broader range of add-on services compared to LegalZoom, including business permits and licenses, legal document templates, and website building tools.
- Limited Mobile Options: Bizee currently lacks a mobile app, which some competitors offer for on-the-go management.
Bizee (IncFile) Price:
- Most Affordable: Bizee’s “Free Silver Plan” truly lives up to its name, letting you form an LLC for just your state filing fee. No other major service offers this kind of free formation.
- Competitive Higher Tiers: Their Gold ($199) and Platinum ($299) packages, with features like registered agent service and business banking help, are priced competitively compared to ZenBusiness and LegalZoom.
- Add-on Costs: Be mindful of potential add-on fees for things like annual reports and compliance filings, which can increase your overall cost over time.
Umbrella LLC or Holding Company with Bizee or Infile.com
A holding company is a corporation or LLC whose primary purpose is to own and control other companies, called subsidiaries. These subsidiaries operate independently, often in different industries, while the holding company provides strategic oversight and manages shared resources. Think of it as a parent company with several children (subsidiaries) under its wing.
It’s also a great way to diversity risk between separate brands or companies within the same space. Holding companies reduce liability and exposure between multiple brands so that the failure of one company or any legal troubles don’t spill over and create an additional legal precedent or liability to be shut down.
For instance, you run a 4 different design businesses where customers request custom art, sometimes using copyrighted images or concepts that you don’t own. You create 4 divisions with separate names and LLCs under one Umbrella LLC so that way, should an unlikely copyright infringement dispute arise from someone seeing a customer’s order on one of their social media posts, you don’t lose your entire business.
Overall, holding companies can offer several advantages, such as asset protection, diversification, and centralized management. However, they are not suitable for every business. Carefully assess your needs and seek professional guidance before embarking on this venture.
C Corporation to S Corporation Conversion or Transfer with Bizee for Small Business
Converting your C corporation to an S corporation can be a strategic move for your business, offering potential tax benefits and simplified administration. But before diving in, it’s crucial to understand the implications and ensure it aligns with your long-term goals.
Pros of C Corp to S Corp Conversion:
- Reduced Tax Burden: S corporations avoid double taxation, a major disadvantage of C corporations. Profits pass through to shareholders and are taxed only at their individual rates, potentially saving a significant amount in taxes.
- Simplified Compliance: S corporations have less stringent filing requirements compared to C corporations, reducing administrative burden and associated costs.
- Increased Flexibility: S corporations can have up to 100 shareholders, providing more flexibility for ownership structure compared to C corporations’ limit of 75.
However, the conversion isn’t without its downsides:
- Potential Built-in Gains Tax: If your C corporation has appreciated assets, you may face a built-in gains tax when converting to an S corporation. This tax applies to the difference between the assets’ fair market value and their tax basis.
- Loss of Certain Deductions: Certain deductions available to C corporations, such as net operating losses, cannot be carried over to S corporations.
- Stricter Shareholder Eligibility: S corporations have stricter shareholder eligibility requirements compared to C corporations. Only U.S. citizens and permanent residents can be shareholders, and there are limitations on the number of shareholders.
Carefully weigh the pros and cons before making a decision. Consulting with a tax advisor or business attorney is crucial to understand the specific implications for your business and ensure a smooth transition. Remember, a C corp to S corp conversion is a significant change, so thorough planning and professional guidance are essential for success.
Cons of Creating Your LLC With Bizee:
- Limited Customer Support: While email and phone support are available, some users report slow response times and frustrations with getting their questions answered efficiently.
- Add-on Costs Can Mount: Though initial packages are attractive, add-on services like annual reports and compliance filings can significantly increase your overall cost over time.
- No Mobile App: The Bizee platform is entirely web-based, lacking a mobile app for on-the-go management. This may be inconvenient for business owners who prefer mobile accessibility.
What Businesses Is Bizee Best For:
- Solopreneurs and Small Businesses: Bizee’s affordability and ease of use make it ideal for solopreneurs and startups taking their first steps.
- Entrepreneurs Seeking Guidance: Those who appreciate educational resources and a step-by-step approach will find Bizee’s learning tools valuable.
- Budget-Conscious Business Owners: If cost is a primary concern, Bizee’s “Free Silver Plan” and competitively priced higher tiers offer an attractive solution.
Bizee (formerly Incfile) stands out in the online space for combining affordability with user-friendliness.
Who Should Look Beyond Bizee and Find Other Options
- Experienced Business Owners: Those comfortable navigating legalities on their own may find Bizee’s services unnecessary, or already have a brick and mortar business with a secretary that can handle these tasks for you (since they’re already getting paid).
- Complex Business Structures: Bizee focuses on standard LLC, S Corp, C Corp, and Non-Profit formations. While they offer holding company LLC formation, businesses with more complex structures may need specialized services and to bring in more experienced staff to handle their day to day or more obscure questions.
- Mobile-First Users: The lack of a mobile app could be a dealbreaker for entrepreneurs who rely heavily on mobile access. However, once these necessary documents are in order, there really is little need to access your dashboard on a daily, weekly, or monthly basis. Most of your business taxes will need to filed quarterly, and most business licenses will need to be renewed yearly with the state treasurer, which Bizee handles for you.
Should I Incorporate My Company with Incfile (Bizee)?
Bizee is a strong choice for startups and solopreneurs seeking a user-friendly and affordable way to form their LLC, S Corp, C Corp, or Non-Profit LLC. Its comprehensive services, educational resources, and competitive pricing make it a compelling option for those focused on getting their business up and running quickly and efficiently. However, consider your specific needs and weigh the potential for add-on costs and limited customer support before making your decision.
Fortunately, Bizee is a veteran in the legal documents space, so there’s a reason why they have such a high TrustPilot rating and 4.8 Shopper Rating.
Remember, Bizee is just one part of your startup journey. Be sure to do your research, understand your business needs, and compare options before choosing the right formation service for your venture.