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If you’re looking to start a business, then company formation is your first stop. You also probably know that there are online services that can help you form a business from the comfort of your home. Among these, Stripe Atlas and Doola are two of the most popular, and for good reasons that we’ll delve into below.
However, navigating the different LLC formation services can be a challenge. You may not know what to look for, and even if you do, weighing and comparing all the differences can get your head spinning.
Whether you’re a freelancer, entrepreneur, or digital nomad, this comparison will help you decide on the right service for you.
Types of Business (Sole Prop, LLC, C-Corp, etc)
One of the most important decisions you need to make before the incorporation process is deciding which type of business you need. Each type has unique characteristics that influence what you need from a business formation service.
Here’s a quick overview of the most likely business types you’ll need to choose from:
- Sole Proprietorship: This essentially means you’re running a one-man operation, but there’s no legal distinction between the business and you as the owner. You may still have employees. Examples include freelance writing services, independent consulting, or specialist contract work.
- Limited Liability Company (LLC): This gives you the flexibility to run your business as a separate legal entity with pass-through taxation. The biggest perk is that it shields you from the business’s debts, obligations, and legal liabilities. LLCs are popular for a wide range of small businesses like marketing agencies, online retail stores, and startups.
- C-Corporation: A separate legal entity owned by shareholders. This allows you to more easily separate the operators vs shareholders of a business. Often chosen for businesses with growth potential or seeking venture capital investment, such as technology startups or e-commerce platforms.
Both Doola and Stripe Atlas help entrepreneurs with LLC formations (as well as C-Corp formation). Doola is known for LLC incorporation, while Stripe Atlas is known for C-Corp incorporation. However, they offer other services that any startup might find helpful, such as financial management, bookkeeping, and tax filing.
Criteria
Several factors come into play when you select a platform to help form your LLC. We used these to weigh the overall benefits of going with either Stripe Atlas or Doola. However, you can also use them to do your own research:
- Features: These are the tools or services they offer, such as registered agent services, document filing, compliance assistance, and other perks. From banking to tax support, this determines how the service can actually help you to form your business.
- Price: For most startups, budgets are tight, and your margin is everything. Being affordable is an important part of keeping your operation lean in its vital beginning stages. There are typically one-time setup fees, subscription charges, tiered pricing, and add-on services to consider.
- User Experience: Launching a new business is hard enough as it is, and the main idea of an LLC service is to make the process simpler. The platform and services should be intuitive and transparent to avoid unnecessary delays or frustration.
- Customer Support: Sometimes, figuring it out yourself only gets you so far. Reliable, prompt customer support is vital to keep the gears turning. You should consider support hours, channels, pricing, and the feedback of past customers.
- Integrations: Official integrations provide you with seamless connectivity to your other business tools and services. For example, accounting software, banking portals, or productivity systems.
What is Stripe Atlas?
As an offshoot of one of the world’s most popular payment processing services, Stripe, Stripe Atlas launched in 2016. It offers a comprehensive suite of services to start and manage a business. From incorporation to banking to navigating legal complexities, it provides a wealth of tools and resources to help burgeoning entrepreneurs.
Who is it Best For?
Stripe Atlas is ideal for tech startups, online businesses, and freelancers looking to establish a C-Corp (but also an LLC). Specifically, it caters to entrepreneurs with an eye on international expansion. It caters to entrepreneurs seeking a streamlined solution for company formation and international expansion and who require advanced tax solutions.
Pros
- A huge community of experts and users to draw from
- Seamlessly transfer from Stripe and integrate with its payment solutions
- Extensive network of partners (with negotiated discounts) and resources
- Global reach and support for international businesses
Cons
- Higher base cost and fees than most competitors
- Stripe Atlas have strict requirements for having a business plan
- Features are geared primarily toward tech companies
What is Doola?
Established in 2020, Doola is a newer player but has gained massive traction with its promise to let you “form an LLC in less than 5 minutes.” Its focus is on simplifying and accelerating the incorporation process with some of the lowest prices around. It has grown into a full-service platform with its Compliance, Taxes, and Books packages.
My wife incorporated her US LLC using Doola for consulting clients, and it was a smooth process.
Who is it Best For?
Doola is best suited for freelancers, small businesses, and solopreneurs seeking a straightforward andcost-effective LLC formation service. It also provides exceptional tools for managing and tracking compliance.
Pros
- Simplified LLC formation process
- Cost-effective and transparent pricing with no hidden fees
- Dedicated customer support
- User-friendly platform with easy navigation
- Integration with essential business tools and services
Cons
- Limited international support compared to competitors
- Fewer partnership offerings compared to larger incorporation platforms
Comparison
The tables below will give you a quick breakdown of how Stripe Atlas and Doola compare across key factors:
Features
Price
User Experience
Customer Support
Integrations
User Reviews (Trustpilot)
Summary
Both Stripe and Doola are worthy LLC formation services, and each has carved out a niche for themselves in the market.
However, for most startups, entrepreneurs, and freelancers, Doula will be the best option. Its lower upfront costs and transparent pricing practices mean lower overhead and more financial certainty.
Combined with an intuitive and user-oriented platform, it’s the ideal choice for a hassle-free process.
On the other hand, Stripe Atlas also shines in some areas. It has a vast partner network and integrates with an exhaustive range of services and tools. And it has a larger support team for immediate assistance.
Unfortunately, it can be more challenging to use, and its hidden costs may be too risky if you don’t have a large financial buffer. Stripe Atlas is generally better known for helping startups with C-Corp formation, rather than LLCs.
The huge disparity in their user reviews also illustrates the success of Doola’s accessible approach and commitment to democratizing business.
How to get started incorporating Doola
Doola empowers users to get started in 4 simple steps:
- Submit Information: Provide your company name, personal address, and email. Doola begins forming your company immediately upon payment.
- Obtain EIN: Doola can apply for an Employer Identification Number (EIN) on your behalf. The timeline is roughly 1-2 business days with SSN or 8 weeks without, depending on the IRS.
- Apply for US Bank Account: With your EIN, Doola guides you through the process of obtaining a US business bank account, typically within 3-5 business days.
- Connect Bank Account: Link your US bank account with a payment processor to start transacting, usually within 3-5 business days.
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