Your Filing Service Got Your LLC Details Wrong: How to Fix It

Setting up a Limited Liability Company (LLC) is not a difficult process, compared to other business structures. However, there are entrepreneurs, especially the newbies, who seek professional help to form their LLCs. These LLC services are popular and get thousands of users every year. However, the behind-the-scenes is not always as rosy as it looks on the surface.

If you're thinking of using a formation service because it's cheap and helpful, read this page before you decide. Editors at LLCBuddy dug into the real stories behind all these fancy LLC services with over-the-top promises. The most common issue LLCs face while using these services is that your filing service got your LLC details wrong. Let’s see how it affects your filing and how to fix it.

How an LLC Formation Service Works

If you’re in business, you must know about LLC formation services. These are companies that help people form and run their LLCs. From naming your LLC to filing the articles of organisation, from filing your taxes to filing annual reports, a professional service does everything. Besides, they provide registered agent services as well.

All these services have websites, and they operate online. You go to their official portal, submit your details and requirements, purchase their plan (standard, pro, or premium) and sit back. They do everything on your behalf. From registering the name of the LLC, to filing the formation documents, to getting your EIN, and drafting your operating agreement. Almost all of them offer registered agent service; some offer standalone agent service where you can only purchase a registered agent service even without purchasing their LLC formation pack.

Your Filing Service Got Your LLC Details Wrong: How to Fix It

There might be several reasons why you should get a professional service. There is a long list of the best LLC services that operate across the United States. Even if they are good, they still have complaints from several people across states.

This is one of the most important issues many LLCs face while relying on the formation service. If an LLC gives wrong information to the Secretary of State while filing the Articles, it usually leads to cancellation of the filing or cancellation of the EIN. If the formation service enters wrong information on your behalf while registering the LLC, it is highly possible that neither it nor you will be informed on time.

When you are informed about the cancellation of filing, the next thing you do is contact the service as soon as possible. However, the biggest scam is that, instead of getting a solution, you get only templated and automated replies from them. This is the worst situation you are in. You put your money, you rely on them, your LLC ended up being cancelled by the SOS, and all you get is an automated email reply or a chatbot that says “Thank you for raising the ticket. An executive will get in touch with you soon”.

What to Do When Your LLC Filing Got Cancelled

As soon as you get a cancellation notice from the state, you must do two repairs to fix it. First, go to the service and ask for clarification. Unfortunately, your service is taking too much time to get back to you. Hence, you must do what should be done to fix it. You must file Articles of Correction or Amendment with the State directly to fix the issue. For the EIN cancellation or delays due to wrong information, you must directly contact the IRS. Check out different issues and solutions if your EIN does not come on time.

File Amendment or Articles of Correction

There are two ways to replace your wrong information with the correct one. One is to file an Amendment, and another is to file Articles of Correction. These two documents are used for different kinds of changes. Usually, you don’t have to file both (if available). In most states, either of the two is available to fix the issue.

Articles of Correction: Most states have Articles of Correction or Certificates of Correction to rectify wrong information provided in the previous filing. For example, you registered your LLC and got it confirmed. However, later on, while obtaining an EIN or filing taxes, it might happen that the details do not match the original document (say, address, house number, or agent’s address). In this case, you have to file Articles of Correction (online or offline).

Articles of Amendment: This is a document you file when you make a significant change in the LLC. It is not just rectifying wrong information. It is more about changing the identity or adding a completely different name of a member or removing someone from the LLC. It is different from Articles of Correction.

The next thing you have to do is to request a refund of the money you spent on the service and even the fees you need to pay, or probably paid, to file the correction document or amendment. Your service should cover the pay as it was their mistake in the first place.

What to Do if Your EIN Filing Gets Cancelled by the IRS

The next issue you can face is cancellation of your EIN. In this case, you must contact the IRS for further steps. Usually, there is no fee required if you file an EIN application with the IRS. However, unfortunately, some LLC services charge a fee to obtain an EIN.

Contact IRS Help Desk

Even after paying the amount to the service, you find out you suffered because they messed up. In this case, it is wise to contact the IRS directly to raise the issue. Instead of waiting for their reply or further steps, it is better to move forward by yourself. To contact the IRS, you can go to their Help Page.

There are direct IRS telephone lines where you can call and raise the concern. However, not all issues are solved or can be raised via phone call. IRS Help Page has all the phone numbers listed.

Who Pays for the Loss?

The formation service you’ve chosen is the one responsible for the mishap. Hence, they are liable to pay the compensation. If you’re filing the Amendment or Articles of Correction, you must pay the state fee. It is obvious that the amount should be compensated by the service.

Besides, many services charge a fee to obtain the EIN when it is absolutely free if obtained directly by applying to the IRS. However, you have already paid for the EIN to the service or bought their package that includes the EIN. Hence, the entire responsibility falls on the service you hired, not on you or the state.

But the issue is, every time you try to reach them, they come up with the automated reply. Hence, the problem remains the same. However, you must contact them directly over the phone instead of email or help desk toll-free numbers. Besides, if they have a physical address in your state, you must visit them with your concern.

In Conclusion

The number of formation services is growing exponentially as people are in dire need of business support. However, the real truth is that not everyone is as transparent as they look. On top of it, people across the world rely on the internet, and these services with fancy websites, deep content and social media marketing have managed to gather a handful of customers as well.

But their real stories get unfolded on several review platforms like Trustpilot, Glassdoor, etc. Make sure you check everything before jumping in the pool and spending your money on them.