Active Filings Review 2022: Too Good To Be True?

Summary on Active Filings

Only a handful of formation companies offer LLC formations or incorporations for free. A few offer packages include registration, registered agent service, and drafting of Operating Agreements. Active Filings is a standout with its excellent value Starter formation package.

Active Filings offers premium packages at high prices, just like many competitors. Many add-on services are not recommended for filers.

The English-version Active Filings website is also confusing. It is more challenging to navigate than other websites and takes some time to determine what services they offer and their prices. The Spanish version of Active FIlings’ website is a little more clear.

A logoctive Filings

Active Filings Pricing

Basic Formations: Starter Package $0 + state fee

Price Comparison: Active Filings vs. Other Leading Formation Services

Service

Basic LLC Formation with One Year of
Registered Agent Service

Northwest Registered Agent
Editor’s Choice 2022!
$225  $39
Discounted price for our readers!
Incfile $149
ZenBusiness $299
BetterLegal $389
LegalZoom $328
Swyft Filings $299
Active Filings $0

 

Active Filings Strengths and Weaknesses

Strengths

  • Great business formation prices for basic formations only
  • Good Turnaround Times
  • Spanish speakers get good support
  • Complete Customer Satisfaction

Weaknesses

  • The premium packages are expensive and not needed by most people
  • Small businesses with limited resources
  • Website confusing with unclarified service and price information
  • Premium packages have a low value-added

Roberto Neuberger, an Argentinian immigrant, founded Active Filings. He found the business formation process confusing and cumbersome after moving to the USA in 2000. A partner in entrepreneurship helped him create a business that would help others.

Given their Spanish roots, it may not surprise that Active Filings offers many additional resources for Spanish-speaking people. They claim to be the only US incorporation service with dedicated Spanish-speaking staff. Their website is available in Spanish.

Active Filings offers many services that can be used to start and run a business. Its core services include:

  • A service for LLC formation and incorporation
  • Registered agent service is provided annually
  • Compliance services include the submission of annual reports
  • International filers can get benefits such as apostille certificates

Formation Pricing and Packages

Domestic Packages for Active Filings

Active Filings Review for 2022

The Active Filings Starter Package: $0 + state fees

Although it is Active Filings’ most basic package, the Starter contains what we consider the core services for LLC formation: Articles of Organization, Incorporation, Registered agent service, and an Operating Agreement.

We like the Active Filings Starter Package because of its excellent add-ons and unbeatable price.

Here’s what’s included:

Articles of Organization/Incorporation: These are the founding documents for your LLC/corporate. Articles of Organization typically only require basic information, such as the name of your business, its location, and words or members of the owners. These documents are required to be filed with the Secretary of State in your state to establish your business officially.

Operating Agreement: This document is essential and outlines the business’s structure, its owners, members, and distribution of profits. Although it is not required by law in most states, we recommend drafting an Operating Agreement and keeping it handy.

Registered Agent Service: Registered agents are points of contact for official correspondence. Registered agents are required for all LLCs and corporations. Although you can technically be your registered agent, there are good reasons to use a registered outside agent.

Compliance with annual reports: All states require that businesses file a yearly report. These reports are usually simple but often overlooked. If you wish, Active Filings can remind you of deadlines and file your annual accounts for you.

Access basic templates for legal documents: Get access to corporate document templates. Although many other sites offer free templates online, it is still an excellent add-on.

The Sprinter Package: $100 + state fees

Although it’s reasonably priced, Active Filings Sprinter package does not offer many valuable services.

We don’t recommend the Sprinter package unless you are very concerned about privacy-related add ons for couples.

The Sprinter comes with everything in the Starter package plus:

Active Filings will use your office address for their physical business address. This will help you protect your privacy and keep you from getting spam mail which is often sent to new companies.

Privacy protection: Active Filings use the address of their registered agent providers to replace members’, owners’, or officers’ addresses on operating agreements and formation documents.

EIN Filing: Employer Identification Numbers (EINs) are required for all businesses. EINs are needed to hire employees and open business bank accounts. However, an EIN can be applied online at no cost and within minutes on the IRS website.

Expedited filing: Your form will be sent to the state authorities within one business day of being filed. This means that once the state has approved your documents, you will receive them from Active Filings as soon as possible. You will also be eligible for expedited return services.

The Active Filings Finisher Package: $250 + state fees

Active Filings’ Finisher Package is $150 more expensive than its Sprinter Package, but it only includes a book or corporate seal. These items are not necessary, however. These are nice touches but not legally required by any LLC or corporation.

 

Active Filings offers a few boxes that are geared towards international filers. These services are for people not based in the United States but who want to establish an LLC or corporation. The Sprinter package comes with everything in the Finisher package plus:

Only three states can be chosen for Active Filings: Wyoming, Florida, and Delaware. Due to Delaware’s tax code and corporate laws, most non-U.S.-based entrepreneurs choose Delaware.

The International Silver Package: $999 + state fees

Active Filings’ Silver plan offers many core services in domestic packages, including LLC formation or incorporation and Registered Agent service. EIN filing is also available.

It also includes:

US Mail Forwarding: This will provide you with a physical US address. You’ll be able to access the online folder by scanning any mail sent there.

Active Filings’ Silver plan includes all of the necessary services. The price is a bit high at just over one thousand dollars (without any state fees). Other firms can also serve international customers at a lower cost.

The International Platinum Package: $1499 + state fees

Active Filings’ International Gold Package includes a few additional add-ons that international filers may find useful. These add-ons, as with the silver package, are not worth the high price.

The Gold package includes everything in the Silver package plus:

Apostille: This is a method to authenticate documents produced in one country and recognized by other governments. Certain documents must be apostille-certified by foreign governments to prove that your US business operation is legal.

Certificate of Incumbency: This document lists the owner(s), member(s), officers, and sometimes company shareholders. This document is required if you live in another country and want to open a bank account for your business.

Expedited Service – As with the Sprinter and Finisher Packages, your documents will be sent to the appropriate authorities the same day that you file them. They will be returned quicker by the state authorities.

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