Original Post Date: 10-15-2005
Most Recent: 10-29-2019
It's Kit again with another great week for online profits. I just went through the Legal Zoom process of getting my company “incorporated.” I had a few misconceptions about Legal Zoom that I thought were worth sharing.
If you're following my Start a Blog and you start receiving income, you'll want to incorporate to save money on taxes & to treat your blog as a business. Treating your blog or your hobby as a real business will motivate you to build it & if you want, sell it.
I originally thought that the fees you paid them took care of any registration fees. This is far from the truth. In fact, I felt cheated by Legal Zoom when I saw the process unfold.
I paid them $708 total.
They sent me my docs within 2 days. I was elated, and then, I opened up the corporate documents. There were 10 more steps, forms, and fees to pay and file!
They just printed out the docs from the gov's website and mailed them to me in a neat package. What?
I did a little diggin and realized that Legal Zoom is collecting your information usually for the forms that you can easily fill out online and press submit yourself. I suspect they just pass these fields on to the “online” form that the government provides and it's done in 2 minutes.
And if they answer any questions for you, just remember, that these questions are already answered with a simple GOOGLE!
One of the “extra” steps is filing for a tax ID number called an EIN.
Here are the top three ways to file for an EIN (without paying!)
How to Get Your EIN Online
The Internet EIN application is the preferred method for customers to apply for and obtain an EIN. Once your application is completed, your information is validated during the online session, and an EIN is issued immediately.
Congrats, you are officially in business.
Apply By EIN Toll-Free Telephone Service
You can also obtain an EIN immediately by calling the Business & Specialty Tax Line at (800) 829-4933 . The hours of operation are 7:00 a.m. – 10:00 p.m. local time, Monday through Friday. An assistor takes the information, assigns the EIN, and provides the number to an authorized individual over the telephone. Note: International applicants must call (215) 516-6999 (Not a toll-free number).
How to Get Your EIN Number By Mail
The processing timeframe for an EIN application received by mail is four weeks. Ensure that the Form SS-4 (PDF) contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type and mailed to the taxpayer.
UPDATE: Legal Zoom is in a class action lawsuit right now for misrepresenting their claims.