Harbor Compliance Review: Is It Legit & Worth it? [2024]

Legit and Reliable but Not the Best Value for Your Money

Harbor Compliance offers a suite of formation services with an emphasis on helping accounting, construction, architecture, engineering, and law firms, as well as nonprofits, get started and stay compliant.

Harbor Compliance can act as your Registered Agent, file your annual report, obtain licenses on your behalf, and help you with other formation and compliance services. The company also helps non-US residents form and maintain a business within the US. It offers its services à la carte, charging mostly one-off fees and subscriptions for some services like Registered Agent and Annual Report.

What sets it apart is its compliance software. This software allows you to manage records, registrations, licenses, and other documents in one place. It also ensures you maintain good standing with the state with various tools and reminders.

However, unless you operate in a highly regulated industry and manage multiple licenses and locations, my extensive research shows it’s not worth paying Harbor Compliance’s pricey rates. Even if you run a complex business, Harbor Compliance might prove more expensive than the best Limited Liability Company (LLC) services.

What’s more, Harbor Compliance lacks a money-back guarantee and doesn’t offer a free trial for its software, making it virtually impossible to test its services risk-free. While it’s a Better Business Bureau (BBB) accredited business, its refund policy doesn’t exactly inspire confidence.

If you’re considering whether it’s suitable for your current or future business, keep reading to learn how Harbor Compliance compares against alternatives regarding features, ease of use, pricing, and more.

Narrowly Focused on Business Formation and Compliance

Harbor Compliance specializes in forming various entities and ensuring compliance, but it doesn’t offer digital and creative services like some alternatives. Its LLC formation service is quite basic considering the fee charged.

In addition to standard services, you can get personalized assistance in nonprofit formation and comprehensive compliance software, a unique offering among business formation services. It also distinguishes itself with specialized business licensing expertise in select industries. Even though it offers a decent range of features, its prices keep it far behind the best LLC formation services.

Standard Business Formation Services and In-Depth Expertise in Nonprofit Formation

Harbor Compliance provides a range of business formation services for US and non-US residents looking to start a business within the nation, including LLC formation, incorporation, and nonprofit formation.

Its LLC formation service is very basic, including only the LLC filing. Its specialists will also check if your desired name is available, but that’s something you can quickly complete online for free. The LLC filing fee is quite high, especially considering that top LLC services like ZenBusiness offer to start your company for free. You can also purchase an LLC Formation package that includes a few essential services, but it would cost you the same as ordering them separately.

Robust nonprofit formation support is what sets Harbor Compliance apart, offering two options. The first option, self-curated nonprofit incorporation, includes only the basic filing service for those comfortable with minimal assistance. While Harbor Compliance’s basic nonprofit package is competitively priced, it can’t compete with Swyft Filings’ free nonprofit incorporation service.

The second option is a fully managed nonprofit formation with a 501(c) Tax Exemption service. This comprehensive package provides access to personalized assistance from a nonprofit compliance specialist and includes filing every state and IRS application. However, the hefty fee may be a significant drawback for nonprofits with unstable donation flows.

Competitively Priced Registered Agent Service but Outsourced in Some States

Harbor Compliance offers Registered Agent as a standalone service. While competitively priced, Harbor Compliance doesn’t provide free or discounted Registered Agent service in the first year, unlike some competitors. For example, Northwest Registered Agent provides a year of Registered Agent service and an LLC filing for less than half of Harbor Compliance’s Registered Agent fee.

Furthermore, my research revealed that Harbor Compliance outsources its Registered Agent service in some states. Customers, unaware of this practice when appointing Harbor Compliance as their Registered Agent, felt their privacy invaded because the company shared their data without consent with a third-party service. With Northwest Registered Agent’s “Privacy by Default,” this would never happen.

Standard Turnaround Time

Harbor Compliance processes most LLC orders within 7–10 business days, which is a standard turnaround time in the industry for entry-level plans. Note that this only reflects Harbor Compliance’s internal processing time and doesn’t include how long the state will take to approve your LLC.

State processing times vary, with expedited options available (in some states) for an extra cost. When you place your order, Harbor Compliance will show you various processing times (where available) to choose from.

High-Cost EIN Application Service

You’ll need to obtain an Employee Identification Number (EIN) if you plan to open a business bank account, hire employees, or if your products and services are subject to excise taxes. Harbor Compliance can obtain an EIN for you, typically at a higher cost compared to most competitors.

Non-US residents and those without a Social Security Number (SSN) must pay additional fees for the extra labor involved in obtaining their EIN. You can order this service separately or as an add-on to your filing order.

A Decent Range of Optional Services but Nothing Extra

Harbor Compliance offers a range of optional filings and compliance services. These include drafting Operating Agreements, filing initial and annual reports, creating Payroll and Sales and Use Tax accounts, and more. Its add-ons, available as standalone services, are generally pricier than the competition.

Harbor Compliance specializes in general business licensing and industry-specific licenses for sectors like accounting, architecture, construction, engineering, law, and nonprofits. For an additional fee, you can access its proprietary nationwide licensing database LicenseIQ™, which is continually updated. This platform simplifies researching state and industry-specific licensing requirements, aiding compliance.

Harbor Compliance is narrowly focused on business formation and compliance and doesn’t offer other helpful services like branding, graphic design, and digital services. If you’re interested in more services, Tailor Brands offers a one-stop solution to creating a logo, website, business email and cards, and branded merchandise for your LLC.

A Bit Outdated but User-Friendly Website

Although Harbor Compliance’s website could benefit from a design update, it’s user-friendly and straightforward to navigate. It’s easy to select a service and access the purchase form, which details prices and additional information about the services.

Getting Started With Harbor Compliance

Getting started with Harbor Compliance is straightforward. First, select LLC Formation from the Services dropdown menu. When you click the Order Online button, it directs you to a purchase form with clear pricing and information. Next, provide your company’s basic information, including the desired name, state of formation, and number of employees (if any). Where available, choose your state processing time.

While there are quite a few upsells along the way, Harbor Compliance includes detailed explanations, clarifying the reasons for the additional costs of certain services. There are even links to its knowledge base attached to some of the more complex services to help you make an informed decision. For example, you can learn about the benefits of an Operating Agreement or get more information about the required business licensing in your state before opting for those services.

Finally, provide your contact information to complete the checkout process. Harbor Compliance will send you the LLC formation documents once the state approves your application.

Hand Delivers Your Documents for an Expedited Filing

Harbor Compliance’s drop-off filing feature, where staff physically delivers and retrieves your documents, can significantly expedite your document processing. This service is helpful for time-sensitive filings, especially in states where physical application is the only expedited option.

To use Harbor Compliance’s hand-delivery services, fill out the Drop-Off Service order form. This form is designed for speedy submission, unlike the more detailed regular forms. The hand-delivery service, available for an additional fee, covers not just LLC formations but various other filings as well.

All-in-One Industry-Specific Compliance Software to Manage Licenses, Taxes & More but No Smartphone App

Harbor Compliance’s software streamlines the compliance process, ensuring you remain in good standing with state regulations. Its tools and reminders significantly reduce the time and effort you spend on researching, tracking, and filing compliance documents. Automating these processes minimizes error and oversight risks, preventing legal complications or penalties.

The key features include the Entity Manager, linked to secretary of state databases and provides an interactive map for easy registration monitoring. The License Manager helps obtain and manage business licenses, and the Tax Manager simplifies tax filings. You can store documents in the Records Manager for organized, easy access during audits or legal reviews. There isn’t a dedicated smartphone app but the software is fully mobile-friendly.

Mostly A-La-Carte With Some Competitively Priced Services but Overall Not the Best Value

Harbor Compliance employs mostly an a-la-carte approach for its services, but it offers one LLC formation bundle. The company charges one-off fees and subscriptions, depending on the service. Business formations and filings are only one part of Harbor Compliance’s offerings. It also sells subscriptions for its compliance software.

Harbor Compliance’s LLC formation service starts at $99.00 plus state filing fees. It includes only a name availability search, making it expensive compared to zero-dollar filing options where you only pay your state fees. The $399.00 (plus state fees) LLC formation package includes Articles of Organization, EIN, Operating Agreement, and a year of Registered Agent Service. But you’ll pay the same price as if you ordered the services separately.

In general, no matter how you decide to purchase your services at Harbor Compliance, you’re likely to get less for your money compared to our top alternatives. For example, Harbor Compliance’s EIN fee is within industry standards. But one of ZenBusiness’ premium plans includes an EIN number, Operating Agreement, expedited filing, and a bunch of other extras and freebies for a total of $199.00. Getting these services separately at Harbor Compliance will cost you hundreds of dollars more.

That said, Harbor Compliance’s Registered Agent fee is competitive. There are multiyear discounts, especially if you agree to a ten-year commitment, which, in my opinion, is a bold move to make considering the long duration.

While I wasn’t able to test it because Harbor Compliance doesn’t offer a free trial, I find its compliance software overpriced for performing simple tasks like keeping track of your compliance deadlines. ZenBusiness, for example, has an excellent dashboard for finance, tax, and compliance tracking included even in its free package.

There are options to upgrade the dashboard with additional features, but it’s pretty good even in its most basic form. For example, you can get the ZenBusiness Money Pro feature, which manages accounting and taxes, free for a month. Even the premium versions of these features are a fraction of Harbor Compliance’s software subscription.

Mediocre Phone Support, Good Email Support, and No Live Chat

Harbor Compliance offers support via phone and email, but the lack of a live chat is a significant drawback, especially for those like me who prefer it over anything. According to its website, there are separate support teams, including sales, customer, technical, and client feedback support.

The phone support picked up quickly, but I had to leave my contact information to receive a callback with answers. I also sent an email via the website form but received no specific answer. The same day I submitted my inquiry through its website, I noticed a message from a sales agent in my inbox asking me whether I wanted information regarding solutions for my business.

It was unclear whether the sales agent’s email was related to my website inquiry, but I submitted the exact same message. The email support responded in less than thirty minutes, providing a straight-to-the-point answer. As you can see, Harbor Compliance definitely has some knowledgeable agents, but its support is a bit inconsistent.

Before contacting support, I attempted to find answers independently. So I visited the Help Center, but it offered only basic information. On the other hand, the Information Center is filled with well-written how-to articles and guides, including general, state, and industry-specific resources. You can access Harbor Compliance’s knowledge base and blog content via the Information Center search bar for immediate answers.