When you start a new business, you'll already have enough to worry about without thinking about legal documents, regulations, and everything else that comes with your new start-up. One way to make your life easier is to turn to a business formation service. The right service can streamline the process, but choosing the wrong service can make your life even harder, so it’s crucial that you choose wisely. We'll be looking at two service providers - Rocket Lawyer and MyCorporation, breaking down what each service has to offer.
Rocket Lawyer vs. MyCorporation: The Verdict
Rocket Lawyer, incorporated in 2008, has already helped more than 20 million businesses form. They are accredited by the Better Business Bureau (BBB) and have an excellent reputation. Their unique offerings include a monthly subscription-based payment model that provides on-call attorney services.
While MyCorporation has built a good reputation since its inception in 1998, they aren't accredited by the Better Business Bureau. They have completed just 1 million formations compared to Rocket Lawyer's 20 million. MyCorporation's unique offerings include a simplified 3-step signup process. MyCorporation also offers additional compliance services and a suite of features called MaintainMyBiz, but this is only available with premium packages.
Choose Rocket Lawyer if:
- You need legal services but can't afford an attorney
- You want a BBB accredited service provider
- You want more accessible customer support
Choose MyCorporation if:
- You don't want to pay a monthly fee for online legal services
- You want access to premium packages
- You want an intuitive signup process
- You want a smoother website
Services Offered & Pricing
Rocket Lawyer and MyCorporation offer many incorporation services; you can also incorporate any business entity with both service providers. However, pricing is quite different. Rocket Lawyer provides two pricing options, including a monthly subscription. MyCorporation offers four pricing packages, three of which are more expensive than Rocket Lawyer at first glance. However, some of their packages include a year of registered agent service, something you'll need to pay separately if you choose Rocket Lawyer. In addition, the premium packages can offer you additional services such as annual reporting.
- You can incorporate any business entity
- A $99 pricing option is available
- MyCorporation's registered agent service is likely more cost-effective
- Rocket Lawyer has a monthly subscription
MyCorporation Packages & Pricing
MyCorporation offers a 4-tier pricing system, with 3 of the packages representing premium options.
Basic package - $99 + state fees
The Basic package starts at $99 + state fees. It includes everything you need to incorporate as an LLC, corporation, or non-profit.
The basic package at MyCorporation includes:
- Business name availability check
- Articles of incorporation and business documents
- MyCorp vault document storage
- Unlimited customer support
Standard package - $124 + state fees
The $124 package gives you access to an annual report, but you still don't receive a registered agent service. Still, the annual reporting is an excellent assistant since all corporations and LLCs must file annual reports; it's a big help during tax season if you have someone who can handle it for you.
Deluxe package - $224 + state fees
The Deluxe package costs $224 plus further state filing fees. In addition to the perks listed above, it delivers an essential registered agent service.
MyCorporation's registered agents can accept legal and official documents on behalf of your business and answer any questions they might have regarding taxes.
At the Deluxe tier, entrepreneurs are investing in a secure future. Using a registered agent is a sure way to guarantee that you comply with best legal practices and ensure that all your documents arrive in time for tax season.
Premium package - $324 + state fees
The Premium package is the most expensive coming in at $324 plus state fees. You'll get everything listed above, plus an additional suite of benefits called MaintainMyBiz.
At the Premium level, MaintainMyBiz helps business owners manage the business's future. It is a maintenance package that allows you to select up to 4 filings per year from an extensive list of 16 services. This means that you can easily customize your package to fit your specific business's needs.
The 16 services business owners can choose from are:
- Initial report
- Annual report
- Corporate seal
- S-Corp election
- Stock certificates
- Membership certificates
- Corporate minutes and bylaws
- LLC operating agreement
- Fictitious business name (DBA)
- Foreign qualification
- Certified copies of documents
- Certificate of Good Standing
Rocket Lawyer Packages & Pricing
Rocket Lawyer offers only two options rather than providing several different LLC formation packages to choose from. You can subscribe to a monthly program or buy a one-off package.
Monthly subscription - $39.99/month
With the monthly subscription, you'll get all-inclusive LLC formation services, and you can also try out a free trial and receive a 30-day moneyback guarantee.
Services included in the monthly subscription package include:
- Company formation
- Access to an attorney
- document creation
- 30-minute legal consultation whenever you begin a new project
- Attorney reviewal of all documents
One-time incorporation service - $99.99 + state fees
This one-time purchase is only for LLC formation. You will have to purchase any additional services separately.
- Business name availability check
- Cloud storage and hard copies of your documents where necessary
- Unlimited customer support
Registered Agent Service - $149.99
Rocket Lawyer's registered agent service costs $149.99, though this is discounted by 25% if you have a membership.
Document Management & Online Experience
Rocket Lawyer will provide you with everything you need to create legal documents online, such as an electronic signature service. You'll receive unlimited cloud storage and a secure online account regardless of the service provider you choose, and both rate well for ease of use. However, MyCorporation goes a step further and is particularly helpful for small business owners with a helpful FAQ guide that will help you to make the right choices for your business.
- Secure online cloud storage
- Easy to use websites
- MyCorporation caters to the less experienced entrepreneur with FAQs and other helpful tips
- Rocket Lawyer provides a comprehensive system for document creation
Turnaround time is hard to pin down with both of these providers, and it varies on a state-by-state basis. With that said, both do offer expedited filing. Rocket Lawyer's expedited filing starts at $60, and MyCorporation's starts at $100. However, it's unclear exactly how much this expedites the filing process.
- Lead times are unclear
- Processing can be expedited for a fee
- Rocket Lawyer has cheaper expedited filing
Compliance & Track Record
Overall, customer reviews are positive. Neither Rocket Lawyer nor MyCorporation has any compliance issues, and both can help you remain legally compliant. But their track records have differences. For example, Rocket Lawyer has been accredited with the BBB for several years. Still, MyCorporation has never been accredited, despite being around for more than a decade longer than Rocket Lawyer.
- Customer feedback is positive
- There are no compliance concerns
- The BBB doesn't accredit MyCorporation
Rocket Lawyer offers excellent customer support, with the phone lines open between 9am and 9pm and on-call attorney services for legal advice where required. MyCorporation's phone lines are open from 7am to 5pm and are responsive and friendly, with knowledgeable support staff.
- Excellent customer support is offered
- Rocket Lawyer's phone lines are open for longer
- Rocket Lawyer offers you access to an attorney
Your business filing experience will depend heavily on the structure that you're setting up. A large entity setting up a complex business structure like a corporation will have a different experience than a solo entrepreneur setting up a limited liability company. You should consider a detailed breakdown when you're making your decision.
Rocket Lawyer and MyCorporation offer similar benefits when you consider the one-off packages. Rocket Lawyer's legal help is only included with the monthly subscription, which can be costly over time; legal assistance is helpful but may not be necessary for most LLC owners. If you'd rather keep costs low and purchase a one-off service, Rocket Lawyer and MyCorporation offer comparable benefits.
Corporations are complex legal entities; whether you choose an S-corp or a C-corp, you'll appreciate the legal help on hand if you choose Rocket Lawyer. MyCorporation can also assist you, but their formation services are comparatively basic unless you're willing to pay substantially more.
MyCorporation doesn't appear to offer dedicated support for partnerships, instead preferring to work with DBA's (doing business as) and multi-member LLCs. Rocket Lawyer can help you outline a partnership agreement and manage your partnership.
Rocket Lawyer offers unique benefits to non-profits, with dedicated on-call attorneys to assist your new organization. The attorney document review is also helpful if you're applying for non-profit status, which can be complex. But the monthly subscription with these great benefits can be pricey; if you're looking for a more affordable arrangement, Rocket Lawyer's one-off package is equal to MyCorporation's $99 package.
The Last Word
Rocket Lawyer and MyCorporation are excellent service providers to help you start any business entity. If you're looking for legal help and don't mind paying a monthly membership fee, then Rocket Lawyer is best for you, without a doubt. However, if you're looking for a one-off package, they may not be the most affordable option. If you’re looking for a premium service-provider with higher-tier packages available and more to offer, you should look into MyCorporation.