Avoid the Following Pitfalls When Hiring a Business Formation Service

Posted by Business Rocket on March 9th, 2017

One of the most efficient way you can choose to get a corporation formed for your new business is to use an online Business Formation Service. Irrespective of what one wants nowadays, the internet is the go-to method to look for it. Thus, even the business formation services have started providing business formation services such as document preparation and filing services online. There are several online services that can help you Register A Corporation in California .  However, ensure that you research, make comparisons and ensure that you address the pitfalls in order to avoid issues and delays while using such services.

-          Fees for the Services: When it comes to taking help of a company to Form A California Corporation, the first thing that you must look at is the service fee. A lot of websites display attractive introductory rates on their websites. They will offer a very low base fare, however, when you look at the details, a lot of other fees such as processing costs, admin fees, etc. are charged and the overall fee is elevated. In several cases, these service providers don’t prepare your documents for several weeks if you use just the base service fee. Most of the time business owners who are at the point where they cannot wait for 4 to 8 weeks and are forced to pay a higher amount if they want the service urgently.

-          Turnaround time: A lot of business formation services do not state the turnaround times for the services on their website. Most of the low price providers have turnaround times that are too long to be acceptable. A business cannot conduct any business activity until the LLC or Corporation has been formed. Thus, before you use any service, ensure the turnaround time fits your business needs. Therefore, ensure that you compare the turnaround time along with the fees being charged by the service provider and choose a service that provides services within the time that you need.

-          Increase in the Filing Fee: The business formation service provider will not just ask you for the service fees, but will also ask for the state filing fee that needs to be paid whiling filing the documents with your state of formation. Make sure you check the actual fee charged by the state because a lot of companies mark up or increase the state filing fee. Such service providers are deceptive and one must avoid doing business with them. When you compare the services of multiple providers and find a difference in the fee, it is a matter of concern. A state will not charge any extra fees. A lot of California Corporate Agents assume that new business owners do not have knowledge about the fees and may charge extra fees. So make sure you look for a breakdown of the state filing and processing fees to ensure that you are not being cheated.

Make sure you check the above points and choose the right kind of service provider. Also, if you need a range of services for your business, then find a provider that offers several services. For example, if you need aPassenger Carrier License along with the Corporation Formation Service, then look for one reputed service provider for both these services.

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