We rank the features of different LLC formation services to help you choose the best one For both seasoned entrepreneurs and brand new business owners, it’s important to know what to expect when you get help starting an LLC. Our Guides Legal Services team has done the research for you. We’ve rounded up the best LLC formation services and documented their pros and cons, best uses, and rankings of common features. Bookmark this guide for your business planning process, so we can help you choose the best formation service for your new business.
Through hours of research, our team found the following formation companies to be the top five in the market, with ZenBusiness as our pick for the overall best option:
(Honorable mentions go to reputable companies like RocketLawyer, Inc Authority and Tailor Brands. We found the top five LLC formation services to all be reliable, affordable options for starting your business. Each of these companies has different advantages based on your particular needs, and we’ve done our best to identify those unique attributes for you.)
The LLC formation process is largely the same across the board, with some key differences in each state. Most LLC formation companies offer similar services — some included in various package tiers, and some available as add-on services. We’ve compiled a chart to show you which of our top five service providers offer common features and whether those features are included in the most basic package price. Read more to learn about each feature.
No matter where you are starting your new LLC, you’ll need to choose a unique name that can’t be confused with another business or government agency. You also need a designation as part of your name indicating your business type — “limited liability company,” “LLC,” “LC” or another variation, depending on what your state allows. Many formation companies offer name availability searches as part of their business formation process.
The critical part of the process to form your new company is filing your formation documents. Every formation company will help you fill in these documents, which are typically called “articles of organization” but can also be called “articles of incorporation” or the “certificate of formation.” These documents are generally filed with the secretary of state or other appropriate state agency.
Every LLC is required to appoint a registered agent, which is a physical point of contact in the state where legal and tax documents can be delivered during business hours. You may find it efficient to use the same company for formation and as a registered agent to minimize the websites you must visit — and remember log-in information for!
An operating agreement is an important tool to create which establishes the practices and policies that will govern your business. It binds the LLC owners, called “members,” to the rules you set out in the agreement. It’s a good idea to have one whether you run a non-profit. Many online LLC formation services offer operating agreement templates for additional fees. They may assist you in customizing your agreement, as well.
Almost every business needs an employer identification number, or EIN, which is free to obtain from the IRS. It serves as a tax identification number that allows businesses to handle employment taxes and can serve as verification of your business’s identity for engaging in other activities like opening a business bank account. An EIN is required if you have employees or more than one LLC member, but it’s a good idea to have one even if you run a single-member LLC so you can keep your personal information separate from your business.
Most LLC service providers offer calendar alerts to remind you of upcoming filing deadlines such as annual reports, which almost every state requires, or annual tax obligations. Some may even take on the annual report filing responsibility for you, which lessens the hassle of keeping your business in good standing.
There are less common features that not every LLC service offers, but that may be available for additional fees or as part of higher tier service packages.
Depending on your state and locality, you may be required to apply for certain business licenses. Requirements may vary depending on whether you operate a brick-and-mortar location or only have an online business. Some services will perform a search and inform you which licenses you need, and some may help you apply for the licenses.
Especially for LLCs with big business plans or complex needs, getting connected with a small business expert can make a difference. Some services offer consultations with small business experts, online courses taught by experts or other resources which may be included or as an optional upsell.
You may have access to a tax consultation, advisory service or even help with preparation depending on what your LLC service offers. If your LLC service doesn’t offer this, it may be worth contacting your own tax professional since mistakes in this area can be costly.
Not every LLC formation service offers a money-back guarantee that your paperwork will be accepted by the state. We recommend going with a service that does offer this guarantee, since filing mistakes can be costly if you’re required to pay the filing fee again or file amendments to your formation documents later.
Think you will have ongoing legal needs because you’ll require trademarks and other intellectual property protections? We recommend LegalZoom as your best LLC filing service because its suite of legal services can be customized to your business needs. LegalZoom is a valuable option for existing businesses and startups alike.
Highlights
Though LegalZoom’s prices are higher than competitors’ in many areas, it offers the most extensive legal help by making lawyers of various specialties available in all 50 states. It offers a Business Advisory Plan, including legal advice, which gives comprehensive help on matters like contracts, trademarks and business trusts. LegalZoom also offers advising on related services like tax, banking, insurance and compliance.
If you already know that you’ll require a registered agent service to handle your LLC, we recommend Northwest Registered Agent Its basic LLC package includes registered agent service in the base price, and the company’s Corporate Guide service can help you with your needs.
Northwest has proven to be a user-friendly company with flexible payment options and guidance from industry veterans. Its Corporate Guide service pairs small business owners with a state-specific expert who can help with many issues related to the formation process. Northwest also offers annual compliance filing services for an additional fee that take care of filings rather than simply remind you to do it. It also offers installment payment plans so you can pay formation and state filing fees over time rather than all at once.
We found that if you are bootstrapping your business and have a very tight budget, Incfile is the most inexpensive of the best LLC services — you only pay state filing fees, plus you get a year of free registered agent service. While there are charges after the first year, Incfile is still our choice to help you set up your business without breaking the bank.
Without a doubt, Incfile’s low price points and free first year of registered agent services are its most valuable offerings. Though its range of services is more bare-bones than competitors, it’s a reliable formation company with solid customer reviews. It offers the most important features, such as LLC operating agreement templates, EIN filing, lifetime compliance alerts and an online dashboard where your documents are kept safely in one place. For budget-conscious entrepreneurs, Incfile has everything you need to start an LLC.