4 of the Best LLC Formation Services That You Can Use to Start Your Business
Jodie James, Freelancer
When starting a new enterprise, one of the first steps is establishing your business entity. If you're unfamiliar with this step, business entities include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. While each one has pros and cons, LLCs are often the easiest and most effective entities to start with.
Even better, you can form an LLC without filling out complicated paperwork or waiting for hours at a county clerk's office. These days, forming an LLC is as easy as submitting an application online. Once you pay the fee, you can receive your documentation in a few days. So, if you're ready to make your LLC a reality, we've compiled a list of the top four LLC formation services online.
Why Form an LLC?
There are some pretty significant benefits to choosing an LLC as your business type, including:
- Limited Liability - As you're running your business, you'll likely incur debts and obligations to clients and vendors. With an LLC, all your business operations are separate from your personal finances. So, if the company owes outstanding debts or goes bankrupt, it doesn't affect your credit score or bank accounts.
- Single or Multiple Partners - With a sole proprietorship, you can only have one business founder. With an LLC, you can have one or more partners involved in the LLC. Better yet, you can add partners later on. For example, let's say you start the business and then get an investor to buy into your idea. Instead of changing your entity type, you can just reformat your LLC documents to reflect the new partnership. This versatility works both ways, as it's relatively easy to remove partners as well.
- Cost-Effective - Overall, forming an LLC costs less than a corporation. So, if you're on a tight budget, you can get your company started and ready to do business for about $100 or so.
- Business Accounts - If you want to open a merchant banking account, you need an LLC, partnership, or corporation. Once your LLC is formed, you can apply for business credit, checking accounts, etc.
- Pass-Through Taxation - With a corporation, you have to pay taxes on your business and personal earnings separately. With an LLC, you can merge the two and pay one tax rate for both.
Best LLC Formation Services to Start Your Business
Since we're living in the technological age, gone are the days of going to your local county office to fill out business paperwork. Instead, you can submit your LLC application online, pay your fees, and get your business up and running in a few days. While there are many LLC formation services online, we've compiled the top four for your convenience. Let's break down each one and why it might be suitable for your needs.
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While filing for your LLC is crucial in creating your business, it's far from the only step. ZenBusiness bills itself as a one-stop-shop for everything you need to go from an idea to opening a storefront. As far as creating an LLC, you just have to enter some details, choose a registered agent (you can act as your own agent), and submit an application.
ZenBusiness also goes a step further by offering registered agent services and providing tons of information about LLCs and other entity types. So, if you have questions about whether forming an LLC is right for your business, you can find the answers on ZenBusiness. Regarding pricing, what matters is the state in which you're filing and whether you use ZenBusiness as a registered agent. Depending on your situation, you can start for as little as $49 and pay up to $500.
Other Features
ZenBusiness doesn't mess around with small business tools for startups. The platform offers many unique features, such as:
- Market Research and Competitor Analysis
- Business Plan Assistance
- Startup Cost Calculator
- Business Bank Account
- Domain Registrar
- Website Builder
- Business Email Address
Overall, you can get everything you need in one place.
For many other LLC formation services, creating a business entity is just one part of a larger network of tools. With Incfile, however, the entire site is dedicated to helping you find the right business entity and file the correct paperwork with your state. Although the site specializes in corporate filings (hence the name), it can assist you with LLCs and other entities.
In addition to handling your paperwork, Incfile can also help you get an employer ID number (EIN), which you'll need for tax purposes. Also, if you plan on hiring employees now or in the future, you'll need an EIN.
Incfile allows you to file your LLC for free. All you have to pay is your state's registration fees, which are often around $100.
Other Features
Incfile provides tons of information on starting a business, such as choosing a name, when to file your taxes, and how to stay compliant with your state's regulations. The site also offers a business startup guide to walk you through the other elements of starting a new company. Overall, if you're concerned about your business's licensing and permitting requirements, Incfile can help.
LLC
Running a business means ensuring that you're both compliant and legally protected. There are many instances when you'll need legal services, such as copyrighting your trademark, drafting contracts and agreements, non-disclosure agreements, and more. LegalZoom is a one-stop-shop for all of these services, along with LLC formation.
You can register your LLC in your state and retain LegalZoom as a registered agent. If you're unfamiliar with what a registered agent is, it's an entity that can receive legal notices on your behalf. While you can act as your own agent, it's sometimes better to use a third-party service. Since a registered agent is looking out for your business, LegalZoom can notify you of potential compliance issues or receive summons if you ever get sued. You can find out more about these services on their website.
LegalZoom's LLC registration services start at $79, which is higher than other platforms.
Other Features
The beauty of LegalZoom is that it can connect you with lawyers and legal document templates. So, if you're not sure what services you need, you can consult with an attorney and find out more information. Also, you can use LegalZoom for personal legal help if necessary.
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Once you get your business up and running, you need to figure out how to market it. In addition to helping you form an LLC, Tailor Brands also has other tools for you to create your next marketing campaign.
Forming an LLC is pretty straightforward, and you follow the same process as you do with other sites. Simply provide some details about your company, choose the state you live in, and pick a registered agent. Tailor Brands offers agent services if you don't want to handle them yourself or go with a third party. Pricing starts at $49, but the cost depends on various factors, such as where you live.
Other Features
One of the other primary tools on Tailor Brands is the AI logo maker. This program can generate logos in minutes based on your criteria. You'll pick a few fonts and graphics you like, and the software will handle the rest. Once you find a logo you want, you can edit it, put it on your social profiles, make business cards, and more.
As you can see, forming an LLC is an easy and straightforward process. No matter which site you use, you're sure to have your business up and running in no time.
