I don’t write much on this blog about entrepreneurship, but since I know many of my readers are self-employed, I thought it would be worthwhile to share my thoughts (and experiences) on the topic of business formation.
If you’ve decided that you want to form an LLC or corporation for your business, it’s probably a good idea to get help. Aside from using a local attorney, the two biggest names in the industry are Legal Zoom and My Corporation.
My Experience with Legal Zoom
I used Legal Zoom to form my own LLC, and I was quite happy with the service. Everything went smoothly:
- 4/13/08: I place my order for an LLC filing.
- 4/16/08: I get an email to inform me that they checked the name, and it was available.
- 4/22/08: I get an email informing me that the paperwork has been filed with the IL Secretary of State.
- 4/29/08: I get an email informing me that the filing has been completed, and they’re shipping me the confirmation paperwork.
- 5/1/08: I receive my copy of all of the official paperwork.
Just under 3 weeks, start to finish. No hassle at all, and they kept me up to date the entire time. I couldn’t be more pleased.
My Experience with MyCorporation
I haven’t used My Corporation to form an LLC, but I did use them once for a D/B/A filing. The experience was truly terrible:
- 8/1/07: I place an order for a D/B/A filing.
- 8/18/07: I haven’t heard anything from them (since receiving the initial order confirmation). I go online to check my order status. It says “Not Available.” I email customer service to ask about it.
- 8/21/07: I haven’t heard anything from customer service, so I email again.
- 8/24/07: I get a reply phone call telling me the forms are on their way.
- 8/30/07: The forms finally arrive. I fill them out, sign them, and send them back the following day.
- 9/19/07: I receive the confirmation packet saying my LLC has been formed.
- 12/30/07: I receive a letter from Cook County stating that all of the paperwork was not, in fact filed, and that the entire filing has become null and void due to 90 days having passed since the process was started. I email MyCorporation to tell them they’d darned well better rectify the situation.
- 1/2/08: No reply as of yet, so I email again.
- 1/5/08: Still no reply. I file a complaint with the Better Business Bureau.
- 1/6/08: I finally hear from somebody at MyCorporation. They tell me they’re sorry, but they apparently don’t have systems in place to fulfill Cook County’s filing requirements in a timely manner. The best they can do is offer me a refund.
End result: I finally got my money back, but I’d wasted goodness knows how many hours with them, and I still didn’t even have my D/B/A filing completed.
My Recommendation
- Go through LegalZoom,
- Use a local attorney, or
- Do it yourself (preferably with the help of a how-to guide).
Click here to learn more about Legal Zoom’s business formation services.
Full disclosure: I am a member of both LegalZoom and MyCorporation’s affiliate programs. That means that if you place an order after clicking through one of my links, I receive a commission. For what it’s worth, the commission rate on MyCorporation orders is higher, so if you really want to go ahead and use them, be my guest. 
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{ 6 comments… read them below or add one }
Which LegalZoom package did you use? Economy, Standard, or Express Gold?
Economy. To me, the additional services included in the other two packages have no value. (Possible exception being the “rush” delivery, but I was in no hurry.)
Mike
I appreciate the fact that you openly tell about the affiliate links so that everyone knows.
Also, did you happen to use legalzoom for making a living will or a living trust or whatever.
I’ve only used LegalZoom for creating an LLC, never for creating a will or living trust. (I’d guess the process is similar though: fill out an online questionnaire, receive some forms in the mail with sticky notes indicating where to sign, send them back, receive confirmation that everything has been taken care of.)
Wow…thats simple…I will certainly consider this after Iam thru’ with my daughter’s name change later this year and yes I have no qualms going to LZ.comthrough this site. After all, i have to be nice to my fellow chicagoland resident.
I hope everything goes smoothly for you.
And, thanks!