Adrian
- Introduction
- Why Use an Online Incorporation Service?
- Key Factors When Choosing an Incorporation Service
- Top Incorporation Services Compared
- Firstbase.io
- Clerky
- LegalZoom
- Stripe Atlas
- Comparison Table
- How to Choose the Right Service for Your Startup
- Related Resources
- Setting Up Your Business Infrastructure
- Understanding Delaware Corporation Costs and Responsibilities
- Conclusion
- FAQs
Introduction
Are you looking to register a company in the USA? Starting a company in the US involves navigating legal requirements and paperwork. Whether you're a solo founder, indie hacker or leading a team, choosing the right incorporation service can save you time, money, and future headaches. In this guide, we'll compare the top incorporation services for startups to help you find the perfect fit for your business.
Why Use an Online Incorporation Service?
Looking to register an online business? The process is now more streamlined than ever before. Incorporating a business no longer means expensive lawyer fees and weeks of waiting. Modern online incorporation services have simplified the process, offering several advantages:
- Cost-effectiveness: Online services typically cost $150-800 USD, compared to thousands for traditional law firms.
- Speed: Most services can complete incorporation in days.
- Convenience: Complete the entire process from your computer.
- Guided process: Step-by-step assistance through complex legal requirements.
- Additional services: Many providers offer ongoing compliance and legal support.
Key Factors When Choosing an Incorporation Service
Before discussing specific providers, let's understand what is important when selecting an incorporation service:
- Pricing Structure
- One-time vs. subscription fees
- State filing fees
- Hidden costs
- Service Scope
- Type of legal documents provided
- Post-incorporation support
- Additional business services
- User Experience
- Interface simplicity
- Customer support quality
- Processing time
Top Incorporation Services Compared
Firstbase.io
Firstbase.io is a popular choice for modern startups, particularly those planning to raise venture capital.
Pricing: $399 + state fees.
Key Features:
- All-in-one business formation platform
- Free registered agent service for the first year
- EIN application
- Banking and compliance tools
- Ongoing compliance management
Best For: Tech startups planning to raise venture capital and need a complete business setup solution.
Pros:
- Modern, user-friendly interface
- Comprehensive resources after incorporation
- Excellent customer support
- Free registered agent service
Cons:
- Higher price than some competitors
- Newer company compared to established services
Clerky
Clerky has a strong reputation among startup founders for its quality legal documents.
Pricing: Starting at $819 for Company Lifetime Package.
Key Features:
- Startup legal documents
- Automated document generation
- Cap table management
- 409A compliance tools
- Founder-friendly terms
Best For: Startups planning to raise venture capital and requiring sophisticated legal documentation.
Pros:
- High-quality legal documents
- Trusted by leading accelerators
- Startup paperwork
- Automated processes
Cons:
- Higher price
- Limited services beyond formation
LegalZoom
LegalZoom is a well-known legal service provider for businesses of all sizes.
Pricing: Starting at $149 + state fees.
Key Features:
- Multiple incorporation packages
- Broad range of legal services
- Business advisory services
- Registered agent services
- Compliance alerts
Best For: Small businesses and startups with basic incorporation needs.
Pros:
- Affordable starting price
- Established company
- Wide range of legal services
- Extensive customer support
Cons:
- Less startup focus
- Many upsells
- Basic documents may need modification for VC funding
Stripe Atlas
Stripe Atlas offers a unique incorporation approach for international founders.
Pricing: $500 flat fee.
Key Features:
- Delaware C-Corp formation
- Bank account setup
- Stripe payments account
- Stock issuance
- Tax and legal guidance
- International friendly
Best For: International founders and startups planning to accept online payments.
Pros:
- Streamlined process
- Strong banking integration
- International accessibility
- Startup-focused approach
Cons:
- Limited flexibility in company structure
- Only offers Delaware C-Corp formation
Comparison Table
How to Choose the Right Service for Your Startup
Consider these factors in your decision:
- Business Goals
- Are you planning to raise VC funding? If so, choose Clerky or Firstbase.io
- Are you an international founder? Consider Stripe Atlas.
- Basic small business? LegalZoom might be enough.
- Budget Considerations
- Factor in immediate and ongoing costs.
- Consider what additional services you'll need.
- Cheaper isn't always the best option for long-term success.
- Timeline
- Need quick incorporation? Clerky offers fastest processing.
- Can I wait longer? Other services might provide better value.
Related Resources
Starting a business involves more than just incorporation. Here are essential resources to help you:
Setting Up Your Business Infrastructure
- Professional Accounting Services for Startups - Find the appropriate accounting partner for your startup.
- Virtual Mail and Business Address for Startups - Everything you need to know about establishing a professional business address.
Understanding Delaware Corporation Costs and Responsibilities
- Real Costs of Running a Delaware C-Corp - A clear look at expected expenses.
- How to Dissolve a Delaware Corporation - Important information to keep handy if you need to close your business.
Conclusion
The most suitable incorporation service for your startup depends on your needs:
- Firstbase.io: Best for tech startups wanting a modern, comprehensive solution.
- Clerky: Ideal for startups aiming to raise venture capital.
- LegalZoom: Good for basic incorporation and ongoing legal services.
- Stripe Atlas: Ideal for international founders and payment-focused businesses.
Incorporation is just the start of your startup journey. Choose a service that meets your current needs and supports future growth.
FAQs
Q: What does it mean when a business is incorporated? When a business is incorporated, it becomes a legal entity separate from its owners. This allows the business to own property, enter contracts, pay taxes, and take on debt in its name. Incorporation also provides personal liability protection for the owners, safeguarding their personal assets from business debts and legal issues.
Q: How much does it cost to incorporate a business? Incorporation costs range from $149 to $799+ depending on the provider, plus state filing fees ($50-$500). Additional costs may include registered agent services, EIN registration, and ongoing compliance fees. Basic incorporation can be done for under $500, but comprehensive startup packages may cost $1,000 or more.
Q: How long does incorporation typically take? Depending on the service and state, 1-2 weeks. The process to register a company in Delaware is often the quickest.
Q: Do I need a lawyer in addition to these services? These services handle basic incorporation, but complicated situations might require legal counsel.
Q: Can I switch services later? Yes, but it's easier to choose the right service from the start to prevent complications.
Q: What's the difference between C-Corp and LLC? C-Corps are better for VC funding, while LLCs offer simpler management and tax benefits for small businesses. This is important when deciding how to register for a company in the USA.
Q: Do these services handle state-specific requirements? Yes, all services handle state-specific compliance. Whether you want to register a company in Delaware or another state, they can assist.
Q: What is an EIN and why do I need one? An EIN (Employer Identification Number) is a unique nine-digit number assigned by the IRS to identify your business for tax purposes - think of it as a social security number for your company. You'll need an EIN to open a business bank account, hire employees, file tax returns, and apply for business licenses. Most incorporation services include EIN registration in their packages, saving you the step of applying directly with the IRS.
Disclaimer This article is for informational purposes only and does not constitute legal advice. The information provided is general in nature and may not apply to your specific situation. Always consult with qualified legal professionals for advice concerning your specific circumstances. While we strive to provide accurate and up-to-date information, services, features, and pricing may change. Please verify all information directly with the service providers.