5 Best LLC Formation Services | A Comprehensive Review


Steve Bennett
Steve Bennett
Business Formation Expert
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Limited Liability Companies (LLCs) are becoming increasingly popular among entrepreneurs due to their simplicity, tax benefits, and legal protections compared to other business structures. To form an LLC, you’ll need to file the appropriate paperwork with your state, which can be daunting and confusing for those who have never started a business. Thankfully, Best LLC Formation Services are available to help guide you through the process and ensure all requirements are met.

In this article, Webinarcare Editorial Team will explore the best LLC formation services available, considering the price, customer satisfaction, and ease of use to help you kickstart your business journey.

Are you a non-reader person? Then we have a great solution for you to know about the best LLC services. Watch this video on the best LLC services to learn about the companies, their top features, the services they offer, and at what price.

Best LLC Formation Services

To assist you with the formation of an LLC, we have identified five independent service providers. We considered multiple options before settling on these five so that you can start a successful business and make a greater profit.

  1. LegalZoom: LegalZoom is a reputable and experienced LLC formation service, having helped millions of customers over the past 20 years. Offering three formation packages ranging from $0 to $279, LegalZoom provides a customized operating agreement, company alerts, and reminders for important deadlines. Registered agent services are available for an additional fee, and they offer a wide range of other legal services, making it a one-stop shop for your legal needs.
  2. BetterLegal: BetterLegal is an LLC formation service focused on simplicity and speed. Priding themselves on a user-friendly platform, they offer a flat fee of $299 for their comprehensive formation package, which includes an operating agreement, EIN registration, and registered agent services. With a focus on quick turnarounds, BetterLegal is an excellent option for entrepreneurs looking to start their businesses as soon as possible.
  3. TailorBrands: While primarily known for their logo design and branding services, TailorBrands offers an affordable and simple LLC formation service for $49 plus state fees. TailorBrands’ platform provides entrepreneurs with a seamless experience that combines branding and LLC formation, ensuring that start-ups can establish a strong brand identity as they set up their businesses.
  4. ZenBusiness: ZenBusiness stands out for its commitment to customer support and satisfaction, offering three separate LLC formation packages ranging from $0 to $299, plus state fees. Their services include EIN registration, an operating agreement template, and registered agent services. With excellent customer reviews and a worry-free compliance guarantee, ZenBusiness caters to small-business owners who value personalized service and support.
  5. Northwest Registered Agent: Northwest Registered Agent specializes in registered agent services, offering comprehensive and private solutions for your LLC formation needs. With a single formation package priced at $225, plus state fees, they provide same-day filing, annual report assistance, and online document storage. Northwest Registered Agent is an excellent choice for entrepreneurs seeking a more premium service focused on privacy and ongoing compliance support.

LLC Service

Rating & Pricing

Top Features

Learn More

#1 Recommendation

$0 + State fee

  • Free LLC Formation

  • Legal Support

  • Highly Reputed Company

$299 + State fee

  • Single LLC formation package

  • Flat price for all services

  • Legal consultation

Limited Liability Companies (LLCs) are popular business structures that provide flexibility, limited liability, and taxation benefits. The process of forming an LLC, however, can be complex and time-consuming. This is where online LLC formation services come to the rescue, making the process more straightforward and handling the paperwork on behalf of business owners. We will compare some of the best LLC formation providers: LegalZoom, BetterLegal, TailorBrands, ZenBusiness, and Northwest Registered Agent.

LegalZoom

legalzoom logo

LegalZoom is a well-known and reliable online legal service provider offering various services, including LLC formation, trademark registration, wills, and legal document preparations. With more than 20 years of experience in the industry, they have built a trusted reputation among entrepreneurs and business owners for their comprehensive legal services.

Advantages πŸ‘

  • Reputation: LegalZoom is a well-established brand with a strong reputation in the legal industry, making them a trustworthy option for LLC formation.
  • Customer Support: Legalzoom provides excellent customer support through phone, email, chat, and a wealth of online resources, FAQs, and guides.
  • Range of Services: Aside from LLC formation, LegalZoom offers various legal and business services, making them a one-stop shop for multiple needs.

Disadvantages πŸ‘Ž

  • Cost: Legalzoom’s LLC formation packages are comparatively more expensive than other providers in the market.
  • Upselling: LegalZoom tends to upsell additional services, which may overwhelm new business owners.
  • Registered Agent Service: Unlike some competitors, LegalZoom’s Registered Agent Service comes at an additional fee to most of their LLC formation packages.
Features and Packages:

LegalZoom offers three LLC formation packages:

1. Basic Plan: $0 + State Fees

  • Articles of Organization
  • Financial Account Authorization Letter
  • Operating Agreement
  • 30 days of free customer support

2. Pro Plan: $249 + State Fees

  • All features in the Basic Package
  • Personalized corporate kit and seal
  • Company binder
  • 20 customized member or manager certificates

3. Premium Plan: $279 + State Fees

  • All features in Pro Package
  • Expedited document filing (varying speeds, depending on the state)
  • Free express shipping
  • Priority order handling

Registered Agent Service is provided at an additional cost of $159 per year across all packages. Other add-on services include obtaining an Employer Identification Number, compliance services, and drafting operating agreements.

Overall Rating:

LegalZoom is a reputable and reliable choice for business owners looking to form an LLC. With excellent customer support and a range of legal services, it is well-suited for those prioritizing brand recognition and comprehensive support. However, their pricing is more expensive than other providers, making it less favorable for entrepreneurs on a budget. Overall, LegalZoom scores a 4 out of 5-star rating, taking into account its reputation, customer support, and diverse service offerings, but losing points for its higher pricing and upselling tactics.

One of the most well-liked free LLC formation providers is LegalZoom. LegalZoom is not significantly more affordable when compared to other available free services. However, individuals return to LegalZoom because of their legal help, attorney services, and other business-related legal papers. To learn more about the costs and services they provide, read the LegalZoom Review.

BetterLegal

BetterLegal is an online legal service provider focusing on simplicity, speed, and transparency. They offer LLC formation and related services such as registered agent, employer identification number (EIN), and operating agreement preparation. Their streamlined process and flat pricing model make them an attractive option for entrepreneurs looking to quickly and easily form their LLC without hidden fees.

Advantages πŸ‘

  • Simplicity: BetterLegal offers a streamlined, user-friendly process for LLC formation, making it easy for entrepreneurs to navigate.
  • Flat Pricing: With a simple flat pricing model, BetterLegal ensures clients know exactly what they are paying without any hidden fees or constant upsells.
  • Fast Turnaround Time: BetterLegal boasts a 48-hour completion guarantee once they receive all necessary information.

Disadvantages πŸ‘Ž

  • No In-House Registered Agent: BetterLegal does not provide in-house registered agent services, instead partnering with a third-party provider.
  • Limited Services: BetterLegal has fewer legal and business services than some competitors.
Features and Packages:

BetterLegal offers a single LLC formation package priced at $299 (excluding state fees), which includes the following:

  • Preparation and filing of Articles of Organization
  • Customized operating agreement
  • Electronic delivery of documents
  • Lifetime company alerts for annual report filings and other important deadlines
  • Tax consultation with a third-party provider

Registered Agent Service is available through a partnership with a third-party provider for an additional $90 per year.

Overall Rating:

BetterLegal is an excellent option for business owners seeking a straightforward, transparent, and efficient LLC formation service. With a user-friendly platform, flat pricing, and quick turnaround time, they cater to those who want a simple and effective solution. However, they need a wider range of legal services than competitors, and the absence of in-house registered agent services might be a limitation for some entrepreneurs. Considering their transparent pricing, speed, and ease of use, BetterLegal earns a 4 out of 5-star rating, losing points for the absence of in-house registered agent services and limited service offerings.

Another service provider offering LLC formation is BetterLegal. BetterLegal, like other premium providers, does not provide any free LLC formation. Like Northwest, it offers fixed pricing with no extra fees or catches. The customer support at BetterLegal is efficient. They have a direct chat feature on their main website. Check BetterLegal to learn more about their LLC formation service.

TailorBrands

TailorBrands is an innovative online platform that offers LLC formation services and unique branding and marketing solutions. Their focus on brand identity and design makes them stand out among other legal service providers. TailorBrands is ideal for entrepreneurs wishing to establish a strong brand presence while forming their LLCs.

Advantages πŸ‘

  • Branding Focus: TailorBrands offers various branding and marketing services, such as logo design, website builder, and social media management, in addition to LLC formation services.
  • Comprehensive Packages: Their tiered packages cater to different needs, offering a mix of legal and branding services.
  • User-friendly Platform: TailorBrands provides an easy-to-use interface, making the LLC formation and branding process more accessible.

Disadvantages πŸ‘Ž

  • No In-House Registered Agent: TailorBrands does not offer in-house registered agent services; they have partnered with a third-party provider.
  • Limited Legal Services: Their primary focus on branding means they offer fewer legal services than other providers.
Features and Packages:

TailorBrands offers three LLC formation packages:

1. Single Plan – $49 (plus state fees)

Registered Agent Service is available through a partnership with a third-party provider for an additional $129 annually.

Overall Rating:

TailorBrands offers an innovative approach to the LLC formation process, emphasizing branding and marketing alongside legal services. For entrepreneurs who value a strong brand presence, TailorBrands is an attractive option. However, they need more in-house registered agent services and offer fewer legal services compared to competitors. Considering their unique focus on branding, competitive pricing, and user-friendly platform, TailorBrands receives a 4 out of 5-star rating, losing points for the absence of in-house registered agent services and limited legal solutions.

One company that provides a complete package to launch your business is TailorBrands. You can obtain your LLC and additional crucial services like a company logo, a business domain, marketing materials, and branding components for your organization. For $49 (plus state fees), TailorBrands provides a single LLC formation package. However, their extras raise a little more than their rivals’ total cost. Read TailorBrands Review to find out more about their offerings and services.

ZenBusiness

ZenBusiness is an online legal service provider specializing in LLC formations and offering efficient, cost-effective solutions for entrepreneurs. With a user-focused approach, they aim to simplify starting a business and provide ongoing client support.

Advantages πŸ‘

  • Affordable Pricing: ZenBusiness offers competitive pricing for their LLC formation packages, making them an attractive option for budget-conscious entrepreneurs.
  • User-friendly Platform: Their platform is easy to navigate, making the LLC formation process more efficient and straightforward.
  • Excellent Customer Support: ZenBusiness provides responsive customer support through phone, email, and chat.

Disadvantages πŸ‘Ž

  • Additional Services: Some advanced business services like EIN are available only in higher-tier packages.
  • Turnaround Time: While their processing times are reasonable, they are slower than other providers who guarantee completion in 48 hours.
Features and Packages:

ZenBusiness offers three LLC formation packages:

1. Starter – $0 (plus state fees)

  • Preparation and filing of Articles of Organization
  • Customized operating agreement
  • Free registered agent service for the first year (then $119 annually)
  • Worry-Free CPA Assessment
  • Support from the customer service team
  • Online document access

2. Pro – $199 (plus state fees)

  • All features in the Starter Package
  • Employer Identification Number (EIN)
  • Worry-Free Compliance service (including annual report)
  • Banking resolution template

3. Premium – $299 (plus state fees)

  • All features in the Pro Package
  • Business website
  • Domain name
  • Business email address
Overall Rating:

ZenBusiness is an excellent choice for entrepreneurs seeking a cost-effective and straightforward LLC formation solution. Their user-friendly platform, competitive pricing, and strong customer support make for a seamless experience. However, their processing times may be slower than some other providers. Considering the affordable pricing, user-focused approach, and quality customer service, ZenBusiness receives a 4.5 out of 5-star rating but needs more points due to turnaround time and advanced services being limited to higher-tier packages.

Nearly all of the services necessary to create an LLC are provided by ZenBusiness. Due to the lack of a free solution for LLC formation, ZenBusiness is ranked second. Yet it charges nothing for either of these premium or free services. Read our ZenBusiness Review to learn more about the various products and services.

NorthWest Registered Agent

Northwest Registered Agent is a reputable online legal service provider specializing in LLC formation and registered agent services. With over two decades of experience, they bring expertise and personalized support, making their services ideal for small business owners and entrepreneurs who value attentive and reliable assistance.

Advantages πŸ‘

  • Personalized Customer Support: Northwest Registered Agent provides dedicated, experienced corporate guides assigned to each client, ensuring personalized support throughout the LLC formation process.
  • Comprehensive LLC Formation Service: Their LLC formation package includes document filing, an operating agreement, and one year of registered agent service.
  • Privacy Protection: Northwest Registered Agent is known for its focus on client privacy and security, an important factor for many business owners.

Disadvantages πŸ‘Ž

  • Pricing: Their LLC formation package is more expensive than the entry-level packages of some competitors.
  • Limited Additional Services: While they excel in LLC formation and registered agent services, Northwest Registered Agent does not offer many other legal or business services.
Features and Packages:

Northwest Registered Agent offers one LLC formation starter package priced at $39 (excluding state fees), which includes:

  • Preparation and filing of Articles of Organization
  • Customized operating agreement
  • Initial resolutions
  • One year of registered agent service (then $125 annually)
Overall Rating:

Northwest Registered Agent is a solid choice for entrepreneurs who value personalized and expert customer support during the LLC formation process. Their focus on privacy and comprehensive package make them an attractive option for small business owners. However, their pricing may disadvantage those on a tight budget, and their limited additional services might only cater to some entrepreneurs’ needs. Considering their personalized support, comprehensive package, and privacy-centric approach, Northwest Registered Agent receives a 4.5 out of 5-star rating, with points deducted for their higher pricing and limited range of additional services.

Northwest Registered Agent Service charges a single fee for LLC establishment and registered agent service. Despite charging more than similar businesses, they have outstanding customer reviews and price transparency. Northwest offers no free LLC service. There are no additional fees; it offers a basic LLC creation service charge that may seem more expensive than others. Read the Northwest Registered Agent Review for more details on costs and plans.

Embark on your entrepreneurial journey and start an LLC with ease. These reliable LLC formation services will guide you through the process, empowering you to turn your ideas into a thriving business.

WEBINARCARE EDITORIAL TEAM

Importance of Having an LLC Formation Services

Forming a Limited Liability Company (LLC) is essential for many entrepreneurs and small business owners who want to ensure the right legal structure for their business. However, the process of LLC formation can be complex, time-consuming, and prone to errors if not handled correctly. This is where LLC formation services come in, offering a range of benefits to help new business owners navigate the process efficiently and confidently. The following are some key reasons why LLC formation services are important for entrepreneurs.

Expert Guidance

LLC formation services provide specialized expertise in navigating the legal requirements, paperwork, and filings necessary to create an LLC. Equipped with knowledge of the process and relevant regulations, these services guide entrepreneurs through each step, ensuring compliance with state requirements and minimizing the risk of errors that could lead to delays or legal issues.

Time-Saving

Forming an LLC involves a lot of research, documentation, and communication with government agencies. This can be overwhelming and time-consuming for new business owners juggling numerous responsibilities. LLC formation services streamline the process and expedite filings, allowing entrepreneurs to focus on growing their businesses instead of getting lost in bureaucratic red tape.

Legal Compliance

Each state has unique requirements and regulations governing LLCs’ formation and ongoing compliance. Please meet these requirements to avoid penalties or even dissolution of the business. LLC formation services help entrepreneurs comply with state laws by handling filings, annual reports, and other necessary documentation to keep the business in good standing.

Registered Agent Services

In many states, LLCs are required to have a registered agent to receive legal and government documents on their behalf. LLC formation services often provide registered agent services, ensuring important communications are handled promptly and professionally. This satisfies a legal requirement and provides peace of mind that essential documents will be noticed.

Customized Operating Agreements

Operating agreements govern the internal affairs of an LLC, defining the rights and responsibilities of members, the decision-making process, and other essential details. LLC formation services can help business owners create customized operating agreements that meet their specific needs, ensuring a solid legal foundation for the business.

Ongoing Support

Once an LLC is formed, there may be ongoing requirements, such as annual report filings, amendments, or changes to the business structure. Many LLC formation services assist in setting up the business and offer ongoing support to ensure continued compliance, keeping entrepreneurs informed of any changes in the law and providing assistance when needed.

LLC formation services are crucial in helping entrepreneurs establish their businesses on a solid legal foundation. By providing expert guidance, time-saving solutions, legal compliance assistance, registered agent services, customized operating agreements, and ongoing support, these services give new business owners the peace of mind they need to focus on growing their ventures and fulfilling their entrepreneurial dreams.

Step-By-Step Process of Forming an LLC

Here is the step-by-step process for forming a limited liability company.

  1. Choose a Name: You must choose a unique name not already taken by an existing LLC. Check with your state’s business registration office to ensure your name is available.
  2. File Articles of Organization: This legal document establishes your LLC with the state.
  3. Designate a Registered Agent: A registered agent is an individual or company responsible for receiving legal and tax documents on behalf of your LLC.
  4. Create an Operating Agreement: This internal document outlines the ownership structure, management agreements, and other rules governing the LLC.
  5. Obtain any Necessary Permits or Licenses: Depending on your industry or location, you may need to obtain certain permits or licenses before operating your LLC.
  6. Obtain an EIN (Employer Identification Number): An EIN is used to identify your LLC for tax purposes.
  7. Open a Business Bank Account: Separate your personal and business finances by opening a dedicated business bank account.
  8. Maintain Compliance: Stay up-to-date with your state’s regulations and filing requirements to maintain compliance and avoid fines or penalties.

Remember, forming an LLC can be a complex process, and it’s always wise to consult with an attorney or other qualified professional to ensure that you’re following all the necessary steps and complying with all applicable laws and regulations.

What are LLC formation services?

LLC formation services help you correctly create and form your limited liability company (LLC) according to state-specific requirements.

Why should I use an LLC formation service?

LLC formation services will help ensure that your LLC is formed correctly, as it can simultaneously be time-consuming and confusing. Also, these services can help you save time and money getting your LLC up and running efficiently.

Do I need a lawyer to set up an LLC?

No, forming an LLC is relatively simple, and most entrepreneurs can handle the process with the assistance of an LLC formation service.

What services do LLC formation companies offer?

LLC formation companies offer a range of services, including filing formation documents with the state, registering agent services, obtaining an EIN, and more.

How much do LLC formation services cost?

The cost of LLC formation services can range from around $0-$500, depending on the provider and level of service you choose.

Can I form an LLC on my own?

You can form an LLC by filing the necessary formation documents with your state’s secretary. However, you’ll need to know your state’s formation requirements and filing procedures to do so correctly.

Does every state have the same LLC formation requirements?

No, every state has different LLC formation requirements. Learning about your state’s requirements before starting the formation process is crucial.

Can LLC formation services help me with ongoing maintenance requirements?

Yes, LLC formation services often offer ongoing maintenance services, such as annual report filings and registered agent services, to help you keep your LLC in good standing with the state.

How long does it take to form an LLC?

The LLC formation process varies by state, but most states can process your LLC formation documents in a few business days to a few weeks.

Can I form an LLC in a state where I don’t live?

Yes, you can form an LLC in a state where you don’t live, but you’ll need a registered agent.

Can I use a PO box as my LLC’s address?

Most states require an LLC to have a physical address, not a PO box.

Can I change my LLC’s name after formation?

Yes, most states allow LLCs to change their name by filing the appropriate documentation with the state.

Can LLC formation services help me obtain an EIN?

Yes, many LLC formation services can assist with obtaining an Employer Identification Number (EIN).

Can I form a single-member LLC?

Yes, most states allow the formation of single-member LLCs.

Can I start an LLC with a friend or family member?

Yes, LLCs can have multiple members or owners.

What is a registered agent, and why do I need one?

A registered agent is a person or business entity responsible for receiving legal and tax documents on behalf of your LLC. LLCS needed registered agents to have a physical address in the state it is registered as.

How long does an LLC last?

Most LLCs last as long as the owners wish to run the business. Some LLCs may be required to dissolve after a certain time period or based on specific events outlined in the LLC’s operating agreement.

Can I change my LLC’s structure after formation?

Yes, LLCs can change their structure by amending their operating agreement.

What is an operating agreement, and do I need one for my LLC?

An operating agreement is a legal document that outlines your LLC’s ownership structure and operating procedures. While many states don’t require an operating agreement, It is often recommended to prepare one for LLCs.

What is the Best Us State to Get an LLC

When it comes to determining the best US state to get an LLC, there are several factors to keep in mind. One key consideration is the state’s business climate, including the ease of doing business, tax rates, and regulations for businesses. Some states have more business-friendly environments than others, with lenient regulatory requirements and lower taxes, making it easier for entrepreneurs to start and operate a business.

Another important factor to consider is the legal protections offered to business owners in each state. LLCs are designed to protect the personal assets of their owners from business debts and liabilities, but each state has its own laws governing the formation and operation of LLCs. Some states offer stronger protections for LLC members, while others have more flexible regulations that may be favorable for certain types of businesses.

Tax considerations are also a significant factor in choosing the best state for your LLC. Some states have lower corporate tax rates, no state income tax, or other tax incentives that can benefit business owners. By carefully analyzing the tax implications of forming an LLC in different states, entrepreneurs can maximize their potential tax savings and ensure compliance with state tax laws.

Furthermore, the location of your business can also impact your ability to attract customers, hire employees, and grow your business. Some states have vibrant economies and thriving industries that may provide better opportunities for business growth and success. By considering the demographics, market demand, and economic outlook of different states, entrepreneurs can position their LLC for long-term success and sustainability.

Ultimately, the best state to get an LLC will depend on the unique needs and goals of your business. Whether you prioritize low taxes, strong legal protections, or a supportive business environment, it’s essential to carefully evaluate each state’s regulations and opportunities before making a decision. By conducting thorough research, seeking professional advice, and weighing the pros and cons of each state, entrepreneurs can make an informed decision that sets their LLC up for success in the long run.

Conclusion

Selecting the ideal LLC formation service depends on various factors, such as pricing, range of services, customer support, and turnaround time. ZenBusiness is well-suited for entrepreneurs seeking a cost-effective, user-friendly solution; LegalZoom is ideal for those who value brand recognition and comprehensive support; Northwest Registered Agent caters to business owners who desire personalized assistance; BetterLegal serves entrepreneurs who prioritize transparent pricing and quick turnaround times, and TailorBrands is for those wanting an emphasis on branding alongside LLC formation. You can select the best LLC formation service for your business venture by evaluating each provider based on your needs and requirements.

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