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14 Best LLC Services (Rankings & Reviews 2024)

With so many LLC services out there, deciding can be tricky; we’ve done the hard work to simplify your choice. On this page, you’ll find an expertly curated list of top LLC formation services, complete with detailed reviews and comparisons to help you make the smartest choice.

The Best LLC Services in 2024

Our top choices for the best LLC formation services in 2024:

We’ve dedicated countless hours to meticulously analyzing the vast array of LLC services available online. By personally testing each service, conducting thorough research, and aggregating insights from over 143 real users about their experiences, we’ve curated a highly discerning guide to the finest LLC services out there.

Our ongoing evaluations ensure this guide remains the pinnacle of relevancy and accuracy. We are committed to providing you with the most objective, comprehensive, and up-to-date advice for making your best choice in LLC formation services.


Top-rated LLC Formation Services 2024

We thoroughly evaluated the most popular LLC services for entrepreneurs. Here are the full list of the top ones that stood out:

Best overall ZenBusiness
4.8
  • Comprehensive LLC formation services
  • User-friendly platform
  • Excellent customer support
  • Offers mobile app
  • Upselling unwanted services
  • Not the most affordable RA service
  • See more
    Why we recommend it?
    ZenBusiness is my top recommendation and rated as the best overall LLC formation service. They offer a balance of affordable prices, high user satisfaction, a comprehensive offering, and a user-friendly platform. ZenBusiness provides a range of essential services, including registered agent services, compliance services, and the option to create an operating agreement. They stand out for their excellent customer support, highly valued by their users. However, some customers have reported upselling issues, though these were generally resolved promptly.
    Best for comprehensive services Northwest Registered Agent
    4.7
  • Privacy by default service.
  • Affordable LLC formation fee.
  • Free registered agent for 1 year.
  • Comprehensive RA services.
  • Exceptional customer support.
  • No mobile app available.
  • Pricey add-ons.
  • See more
    Why we recommend it?
    Northwest Registered Agent stands out as our second choice for LLC formation services due to their straightforward and transparent approach, with minimal upselling. They offer an affordable LLC formation fee, which includes a free registered agent service for the first year, and a competitive renewal price thereafter. Their exceptional customer support, coupled with their commitment to privacy and extensive service offerings, makes them a highly recommended provider for businesses looking to establish an LLC efficiently and securely.
    Cheapest Overall Bizee
    4.6
  • Free basic LLC formation
  • Affordable registered agent service
  • High-quality customer support
  • Transparent pricing structure
  • Misleading expedited service offerings
  • Upselling
  • Lack of mobile app
  • See more
    Why we recommend it?
    Bizee, formerly known as IncFile, offers a compelling service for entrepreneurs seeking cost-effective LLC formation. Notably, Bizee stands out with its free registered agent service for the first year and a complimentary package for LLC initiation. These features make Bizee an exceptionally budget-friendly solution, placing it at the top of our list for affordability. However, potential users should consider their full range of legal requirements, as Bizee's offering is focused on basic LLC formation needs.
    Best for extensive options LegalZoom
    4.5
  • Comprehensive legal services
  • Free LLC formation package
  • User-friendly platform
  • Knowledgeable customer support
  • Hidden fees
  • High registered agent cost
  • Mixed mobile app reviews
  • See more
    Why we recommend it?
    LegalZoom is a comprehensive legal services provider, offering a range of services from LLC formation to trademark registration and beyond. While it excels in providing a user-friendly platform and knowledgeable customer support, users should be aware of potential hidden fees and the high cost of its registered agent service. Despite mixed reviews of its mobile app, LegalZoom remains a popular choice for many businesses, thanks to its wide array of offerings designed to cater to diverse legal needs. Hence, it's a solid choice for those seeking a comprehensive, one-stop legal services platform, with the caveat of higher costs for some services.
    Best for Spanish Speaking Entrepreneur Active Filings
    4.3
  • Free basic LLC formation
  • Free Registered Agent Service
  • Spanish customer support
  • Comprehensive service offerings
  • Affordable registered agent renewal
  • No mobile app
  • Mixed customer support experiences
  • Service cancellation difficulties
  • Unclarity on refund policy
  • See more
    Why we recommend it?
    Active Filings is a comprehensive LLC formation service, offering free basic LLC formation, free registered agent service for the first year, and affordable renewal fees. The company stands out for its bilingual customer support and user-friendly platform, although some users report mixed customer support experiences and difficulties with service cancellation. While it lacks a mobile app, its range of services and competitive pricing make it a strong candidate for small business owners, entrepreneurs, and international clients. However, those seeking more personalized legal guidance or additional legal support may want to consider other options.
    Fastest Turnaround BetterLegal
    4.2
  • Fastest LLC formation
  • Straightforward package
  • Good customer support
  • No refund policy
  • No free Registered Agent
  • No mobile app
  • See more
    Why we recommend it?
    BetterLegal offers a comprehensive and streamlined service for LLC formation, making it a good choice for entrepreneurs who value simplicity and speed. Its package, priced at $299, includes essential services like Articles of Organization, EIN/Tax ID, and Operating Agreement. It stands out for its exceptionally fast processing time, often completing filings within two business days. However, it lacks a mobile app and the Registered Agent service comes with an additional cost. Despite these drawbacks, BetterLegal's straightforward package and quick turnaround make it a solid choice for LLC formation.
    Best for ongoing legal support Rocket Lawyer
    4.0
  • Comprehensive legal support
  • Subscription-based model
  • Variety of legal services
  • Higher cost for services
  • Not ideal for startups
  • Limited one-off discounts
  • See more
    Why we recommend it?
    Rocket Lawyer is a comprehensive legal services platform that specializes in LLC formation and offers a wide array of legal services under its RocketLegal+ subscription model. While it may not be the cheapest option for startups, it is particularly beneficial for established businesses or those in need of regular legal support. Rocket Lawyer is also praised for its customer service and the ease of use of its platform. However, it is advised that businesses should weigh the cost against their specific needs, as there are more affordable options available for basic LLC formation services.
    Best for non-US Residents and DOAs Doola
    3.5
  • Specializes in non-US LLCs
  • Comprehensive compliance packages
  • CPA consultations available
  • Integrated bookkeeping software
  • Mixed customer reviews
  • Reported communication delays
  • No mobile app available
  • Potential hidden costs
  • See more
    Why we recommend it?
    Doola is a comprehensive service for LLC formation, especially for non-US residents and Decentralized Autonomous Organizations (DAOs). They offer two main packages, the Starter and Total Compliance, which cover a range of services from formation filings to bookkeeping software and CPA Consultations. However, customer feedback is mixed, with some reports of unresponsiveness and delays in services. While Doola lacks a mobile app and there might be potential hidden costs, its specialization in non-US LLCs and comprehensive compliance packages make it a worthwhile consideration.
    Best for branding services Tailor Brands
    3.5
  • Comprehensive branding tools
  • Affordable starter package
  • User-friendly interface
  • Mixed customer feedback
  • No mobile app
  • Limited legal advice
  • See more
    Why we recommend it?
    Tailor Brands stands out for offering a unique blend of LLC formation services and comprehensive branding tools, making it an attractive choice for businesses prioritizing a strong brand image. While the platform's user-friendly interface and affordable packages are noteworthy, it has received mixed customer feedback particularly regarding service and billing issues. The absence of a mobile app and limited legal advice might be considered drawbacks by some users. However, for non-residential entrepreneurs seeking a seamless experience in U.S. LLC formation and robust digital branding, Tailor Brands is a viable option.
    Budget-Friendly Starter Package Swyft Filings
    3.5
  • Customizable Operating Agreements
  • Good customer support
  • Not overall cost-effective
  • Less transparent pricing
  • No mobile app
  • See more
    Why we recommend it?
    Swyft Filings emphasizes a quick LLC formation process and offers responsive customer support. Their three main packages – Basic, Standard, and Premium – provide different levels of service and additional features. However, their pricing structure could be clearer, as services like their Registered Agent come with additional fees. This suggests Swyft Filings might be a good choice for entrepreneurs who value speed and assistance but might not be the most budget-friendly option for those prioritizing low costs or straightforward pricing.
    Best for new business & fast setup FileNow
    3.5
  • Quick and efficient setup
  • User-friendly platform
  • Competitive pricing
  • High customer satisfaction
  • Limited additional services
  • Considerable upselling
  • No mobile application
  • Limited ongoing legal support
  • See more
    Why we recommend it?
    FileNow is an LLC formation service provider established in 2018, offering a streamlined and user-friendly platform for new entrepreneurs. With competitive pricing and a focus on speed, FileNow provides essential services such as filing Articles of Organization, unlimited name searches, and support for business tax consultations. Despite some upselling and a lack of a mobile application, customer feedback is largely positive, appreciating the quick document processing and straightforward approach. However, it may not suit those needing comprehensive ongoing legal services, such as annual reporting and tax assistance, which are not FileNow's strengths.
    Best for transparency Harbor Compliance
    3.3
  • Transparent and straightforward pricing
  • Efficient and personalized support
  • Comprehensive compliance services
  • Higher prices than competitors
  • No mobile app available
  • Limited refund or cancellation policy
  • See more
    Why we recommend it?
    Harbor Compliance stands out for its transparency, comprehensive compliance services, and personalized support. They offer a single-package approach for LLC formation at $99 excluding state fees, with additional services available separately. While their services are generally more expensive than competitors, they offer volume discounts for multiple years of service and large client orders. However, they do not have a mobile app and their cancellation policy is quite limited. A direct comparison with alternatives such as ZenBusiness, Bizee, and Northwest Registered Agent shows that the choice between these services should be based on specific business needs and budget constraints.
    Best for free LLC Formation Inc Authority
    3.3
  • Free LLC formation service
  • Includes registered agent service
  • Good customer support
  • 60-day money-back guarantee
  • High registered agent renewal fee
  • Upselling throughout the process
  • No mobile application
  • Limited transparency on costs
  • See more
    Why we recommend it?
    Inc Authority stands out with its free LLC formation service, which includes a year of registered agent service, making it an appealing choice for entrepreneurs looking to minimize upfront costs. However, beware of the constant upsell attempts and the lack of transparency on renewal costs for the registered agent service. Their customer support is rated as good, but the absence of a mobile app could be a limitation for some. While their services are generally well-received, potential clients should carefully consider the long-term costs associated with their services.
    Best for transparency MyCompanyWorks
    3.1
  • Responsive customer service
  • Comprehensive service features
  • International client accommodation
  • Basic package lacks features
  • Inconsistent customer reviews
  • Additional fees for expedite
  • See more
    Why we recommend it?
    MyCompanyWorks is a reliable choice for LLC formation, offering a range of service packages that cater to different business needs. It stands out for its responsive customer service and comprehensive features, including same-day business processing and an extensive library of business and tax forms. However, its base package lacks some services offered by competitors, and customer reviews are inconsistent across different platforms. Additionally, some may find its expedite fee unnecessary in states where filing can be instant online.

    Best LLC Formation Services Detailed Reviews

    Moving forward, you’ll find in-depth reviews of the best LLC formation services for 2024. We cover everything you need to know, including pros, cons, costs, and overall ratings, offering a comprehensive comparison to inform your selection.

    1. ZenBusiness

    💸
    Pricing
    Budget-friendly
    🎁
    Free Registered Agent
    No, $199/year
    📦
    Basic Package Price
    Free + State fee
    👥
    Support Quality
    Best in the market
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Standard
    📱
    Mobile App
    Yes
    Ease of Use
    Best in the market

    ZenBusiness Pros

    • Comprehensive LLC formation services: ZenBusiness provides a broad array of services that cater to the needs of individuals looking to establish an LLC. This includes everything from basic formation to compliance and registered agent services, simplifying the process for entrepreneurs.
    • User-friendly platform: The platform’s design prioritizes ease of use, featuring a conversational chatbot that guides users through the LLC formation process efficiently. This makes it accessible for users of all tech-savviness levels.
    • Excellent customer support: ZenBusiness is known for its responsive and helpful customer support team. A majority of user feedback highlights positive experiences with the support staff, which is crucial for addressing any issues or questions that may arise.
    • Offers mobile app: Unique among many LLC service providers, ZenBusiness offers a mobile app for both Android and Apple users, facilitating business management on the go. This adds a layer of convenience for users who prefer mobile access.

    ZenBusiness Cons

    • Upselling unwanted services: Some users have reported instances of being upsold services they didn’t initially opt for. While this is a common practice in the industry, it’s something to be aware of when using ZenBusiness services.
    • Not the most affordable RA service: The cost for ZenBusiness’s Registered Agent Service, at $199/year, is higher compared to some other providers. While the service is highly rated, the price point may be a consideration for those looking for more budget-friendly options.

    ZenBusiness Review Summary

    ZenBusiness is our overall top-rated service because it offers a comprehensive suite of services for LLC formation, blending user-friendly technology with a wide range of options to cater to entrepreneurs at various stages of their business journey. The platform’s strengths lie in its ease of use and the availability of a mobile app, which enhances its appeal to a tech-savvy audience seeking flexibility.

    However, potential customers should be mindful of the upselling of services and the higher price point for the Registered Agent Service, comparing these aspects with other providers to ensure the best fit for their specific needs.

    Objectively, ZenBusiness presents a viable option for those seeking a blend of convenience, comprehensive service offerings, and strong customer support, but like any service, it comes with considerations that should be weighed according to individual priorities and business requirements.

    2. Northwest Registered Agent

    💸
    Pricing
    Budget-friendly
    🎁
    Free Registered Agent
    Yes, for the first year
    📦
    Basic Package Price
    $39 + State fee
    👥
    Support Quality
    Very good
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Fast
    📱
    Mobile App
    No
    Ease of Use
    Very good

    Northwest Registered Agent Pros

    • Privacy by default service: Northwest Registered Agent prioritizes customer privacy from the start, ensuring personal information is protected without requiring additional actions or fees from the client.
    • Affordable LLC formation fee: The service provides an accessible price point for starting an LLC, inclusive of essential services, making the initial steps to business formation more attainable for many.
    • Free registered agent for 1 year: Clients receive a registered agent service at no cost for the first year, adding value to the LLC formation package.
    • Comprehensive RA services: The breadth of registered agent services offered supports compliance and peace of mind for business owners regarding legal and state document handling.
    • Exceptional customer support: Feedback highlights the quality of support provided, ensuring clients’ queries and concerns are addressed effectively and professionally.

    Northwest Registered Agent Cons

    • No mobile app available: The absence of a mobile application might limit the convenience for users preferring to manage their business tasks on mobile devices.
    • Pricey add-ons: While the basic offerings are competitively priced, additional services can increase the overall cost, potentially making the service less attractive for those on a tight budget.

    Northwest Registered Agent Review Summary

    Northwest Registered Agent offers a straightforward, privacy-focused service for LLC formation and registered agent services. With an affordable starting price and the inclusion of essential services such as a free registered agent for the first year, the company positions itself as an accessible option for those starting a business.

    The company’s commitment to protecting client privacy, coupled with their comprehensive range of services, addresses key business needs while ensuring a layer of security and confidentiality. This focus is complemented by exceptional customer support, assisting clients throughout the process.

    However, the lack of a mobile app and the potential high costs of additional services are areas where Northwest may not meet the needs of all customers. These factors, combined with the overall positive feedback from users, paint a picture of a company that balances affordability, service quality, and privacy, albeit with some limitations in terms of digital convenience and service customization.

    3. Bizee

    💸
    Pricing
    Best-Value
    🎁
    Free Registered Agent
    Yes, for the first year
    📦
    Basic Package Price
    Free + State fee
    👥
    Support Quality
    Very good
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Standard
    📱
    Mobile App
    No
    Ease of Use
    Very good

    Bizee Pros

    • Free basic LLC formation: Bizee offers a no-cost option for creating an LLC, requiring only that users pay the applicable state fees. This makes starting a business more accessible.
    • Affordable registered agent service: For the first year, Bizee provides a registered agent service for free, and then at a flat annual rate, making it easier for small businesses to comply with legal requirements.
    • High-quality customer support: Bizee is known for providing supportive customer assistance through various channels, ensuring that users can get help when they need it.
    • Transparent pricing structure: The company clearly outlines the costs associated with their services, helping customers make informed decisions without unexpected fees.

    Bizee Cons

    • Misleading expedited service offerings: Bizee advertises faster processing times in states where expedited options aren’t available, potentially misleading customers.
    • Upselling: Customers may find the upselling of additional services during the registration process to be intrusive and confusing.
    • Lack of mobile app: Bizee does not offer a mobile application, limiting the flexibility for users to manage their services on the go.

    Bizee Review Summary

    Bizee (formerly Incfile) positions itself as a budget-friendly choice for entrepreneurs starting a business, especially with its free LLC formation and first-year free registered agent service. However, potential users should weigh their needs for more comprehensive legal support against Bizee’s basic offerings.

    The lack of a mobile app and reports of misleading expedited service offerings are notable drawbacks. These may affect entrepreneurs who value flexibility and clarity in service processing times.

    Despite these concerns, Bizee’s high-quality customer support and transparent pricing structure stand out. Small businesses and startups looking to minimize upfront costs while ensuring legal compliance might find Bizee’s services suitable, provided they are aware of its limitations and upselling practices.

    4. LegalZoom

    💸
    Pricing
    Mid-range
    🎁
    Free Registered Agent
    No, $249.99/year
    📦
    Basic Package Price
    Free + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Standard
    📱
    Mobile App
    Yes, iOS only.
    Ease of Use
    Very good

    LegalZoom Pros

    • Comprehensive legal services: LegalZoom offers a wide range of services beyond LLC formation, including trademark registration and legal document preparation. This variety meets the diverse legal needs of businesses at different stages of their lifecycle.
    • Free LLC formation package: The basic package, exclusive of state fees, provides an accessible entry point for new businesses to formalize their operations. This package includes essentials like Articles of Organization and a name-check service.
    • User-friendly platform: LegalZoom has made significant efforts to simplify the LLC formation process with a modern, straightforward website. This enhances the user experience, making it easier for customers to navigate through their offerings.
    • Knowledgeable customer support: The support team is well-versed in various legal services, offering valuable assistance to customers. This ensures queries and concerns are addressed effectively, contributing to a smoother service experience.

    LegalZoom Cons

    • Hidden fees: Some customers have encountered unexpected charges during the signup process. This lack of transparency can affect budget planning for small businesses and individuals.
    • High registered agent cost: At $249 per year, the registered agent service is more expensive compared to some competitors. This could be a significant consideration for businesses looking to minimize overhead costs.
    • Mixed mobile app reviews: While the iOS app facilitates managing business services, technical issues and navigation problems have been reported. This inconsistency can impact the convenience of accessing LegalZoom services on the go.

    LegalZoom Review Summary

    LegalZoom offers a comprehensive suite of legal services, catering to a broad spectrum of legal needs for businesses at various stages. Its user-friendly platform and knowledgeable support staff enhance the customer experience, despite some reports of hidden fees and the high cost of additional services like registered agent support.

    However, the value of its free LLC formation package and the ease of use of its platform are notable positives. Customers considering LegalZoom should weigh these benefits against the potential for unexpected costs and the higher price of certain services.

    In making a decision, it’s also worth considering the mixed feedback on the mobile app and comparing the cost of essential services like registered agent support against those offered by competitors. This comprehensive approach ensures that businesses can make an informed choice based on their specific legal needs and budgetary constraints.

    5. Active Filings

    💸
    Pricing
    Best-Value
    🎁
    Free Registered Agent
    Yes, for the first year
    📦
    Basic Package Price
    Free + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    No
    ⏱️
    Turnaround Time
    Standard
    📱
    Mobile App
    No
    Ease of Use
    Very good

    Active Filings Pros

    • Free basic LLC formation: Active Filings offers a no-cost basic package for LLC formation, simply requiring the state fee. This approach allows new businesses to establish their legal structure affordably.
    • Free Registered Agent Service: The first year of registered agent service is provided for free, transitioning to a cost-effective annual renewal fee of $99. This service is essential for legal compliance, receiving official documents, and maintaining privacy.
    • Spanish customer support: Dedicated Spanish-speaking support enhances accessibility for a broader range of clients, making the process of LLC formation more inclusive.
    • Comprehensive service offerings: From legal to branding services, Active Filings provides a broad spectrum of options to support businesses in their initial phases, catering to various needs and budgets.
    • Affordable registered agent renewal: At $99 for annual renewal, the registered agent service remains affordable compared to many competitors, contributing to ongoing cost savings for businesses.

    Active Filings Cons

    • No mobile app: The absence of a mobile application means clients must use the website or direct communication methods for service management, which might inconvenience those who prefer mobile access.
    • Mixed customer support experiences: While many users have positive interactions, there are reports of inconsistent customer support, which could affect service satisfaction.
    • Service cancellation difficulties: Some customers have found the process of canceling services challenging, indicating a need for clearer and more streamlined procedures.
    • Unclarity on refund policy: The lack of clear information regarding refunds may lead to confusion or dissatisfaction among users seeking to understand their rights and options.

    Active Filings Review Summary

    Active Filings stands out for its affordability and inclusivity, offering a free basic LLC formation package and a free year of registered agent service. Its approach caters especially well to small businesses and entrepreneurs on a tight budget, as well as Spanish-speaking clients seeking accessible support.

    However, potential clients should be aware of the limitations, including the absence of a mobile app and mixed reviews regarding customer support. The difficulties some have encountered with service cancellation and the lack of clarity around the refund policy are notable concerns.

    Ultimately, Active Filings presents a competitive option for those prioritizing cost savings and basic service needs. While it may not suit everyone, particularly those seeking comprehensive legal support or advanced features, its overall value proposition remains strong within the competitive landscape of LLC formation services.

    6. BetterLegal

    💸
    Pricing
    Mid-Range
    🎁
    Free Registered Agent
    $90/year or $10/month
    📦
    Basic Package Price
    $299
    👥
    Support Quality
    Good
    💬
    Live Chat
    Yes, AI chatbot
    ⏱️
    Turnaround Time
    Fastest
    📱
    Mobile App
    No
    Ease of Use
    Good

    BetterLegal Pros

    • Fastest LLC formation: BetterLegal is recognized for its rapid service, completing LLC filings in as few as two business days. This speed is beneficial for entrepreneurs eager to start their businesses without delay.
    • Straightforward package: For $299, excluding state fees, BetterLegal offers a clear and concise package. This package includes key services like Articles of Organization, EIN/Tax ID, and Operating Agreement, which are essential for new business owners seeking simplicity.
    • Good customer support: Customers have access to assistance through an AI chatbot for basic inquiries and a live chat for more detailed questions. This support system is rated as good, indicating that users generally receive the help they need efficiently.

    BetterLegal Cons

    • No refund policy: Once a service is purchased from BetterLegal, customers cannot request a refund. This policy requires careful consideration from potential clients before they commit to buying any service.
    • No free Registered Agent: BetterLegal’s basic package does not include a Registered Agent service. This necessary service for LLC compliance is available for an additional charge of $10/month or $90/year.
    • No mobile app: There is no mobile application available for BetterLegal’s services. Customers wanting to manage their LLC formation or access services via a smartphone must rely on the company’s website, which might not offer the same convenience as a dedicated app.

    BetterLegal Review Summary

    BetterLegal excels in providing fast and straightforward LLC formation services, with a package that encompasses essential features for starting a business. The service is particularly suited for entrepreneurs who prioritize speed and ease over additional perks.

    However, the absence of a refund policy, the additional cost for a Registered Agent, and the lack of a mobile app may deter some customers. These factors are critical to consider when choosing an LLC formation service.

    In comparison to its competitors, BetterLegal stands out for its quick processing times but may not offer the best value for all. Prospective clients should weigh the fast turnaround and simple package against the absence of some services that are freely included by other providers.

    7. Rocket Lawyer

    💸
    Pricing
    High-end
    🎁
    Free Registered Agent
    No, $249.99/year
    📦
    Basic Package Price
    $100 + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Standard
    📱
    Mobile App
    Yes, iOS & Android
    Ease of Use
    OK

    Rocket Lawyer Pros

    • Comprehensive legal support: Rocket Lawyer offers a wide range of legal services, from LLC formation to legal document access and attorney consultations. This extensive support can be especially beneficial for businesses requiring regular legal guidance.
    • Subscription-based model: The RocketLegal+ subscription provides unlimited access to legal documents, discounted services, and consultations. This model can offer significant value for businesses with ongoing legal needs, potentially reducing overall legal expenses.
    • Variety of legal services: Beyond LLC formation, Rocket Lawyer extends its offerings to include legal document creation, registered agent services, and legal advice. This versatility makes it a one-stop-shop for various legal requirements.

    Rocket Lawyer Cons

    • Higher cost for services: Rocket Lawyer’s services, particularly its subscription and registered agent services, come at a higher price compared to some competitors. This may deter smaller businesses or those with limited legal needs from using their services.
    • Not ideal for startups: Given its pricing structure and focus on a comprehensive suite of services, Rocket Lawyer may not be the best fit for startups or businesses looking for basic LLC formation without the need for ongoing legal support.
    • Limited one-off discounts: The lack of promotional discounts or coupons for Rocket Lawyer’s services may make it less attractive for businesses looking to save on initial costs. This contrasts with some other services that offer introductory discounts.

    Rocket Lawyer Review Summary

    Rocket Lawyer stands out for its broad legal services and subscription-based model, tailored for businesses seeking extensive legal support. Its platform simplifies accessing legal documents, advice, and services, which is a plus for companies with regular legal needs. However, the higher cost of its services, particularly for startups or those requiring only basic LLC formation, can be a drawback. Competitors may offer more cost-effective solutions for these specific needs.

    While Rocket Lawyer provides a comprehensive suite of legal services and is praised for its customer service and ease of use, the potential value of its offerings should be weighed against the specific requirements and budget of the business. Businesses should consider whether the breadth of services and the subscription model align with their legal needs and financial constraints.

    In conclusion, Rocket Lawyer is potentially a strong choice for established businesses or those anticipating frequent legal assistance. However, startups or businesses with minimal legal needs might find better value elsewhere. The decision to choose Rocket Lawyer should be based on a careful consideration of its features against the business’s unique needs and financial capacity.

    8. Doola

    💸
    Pricing
    High-end
    🎁
    Free Registered Agent
    Included in the subscription
    📦
    Basic Package Price
    $297/year
    👥
    Support Quality
    Good
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Below Average
    📱
    Mobile App
    No
    Ease of Use
    Good

    Doola Pros

    • Specializes in non-US LLCs: Doola offers targeted services for non-US residents and DAOs, catering specifically to international entrepreneurs looking to establish a business in the U.S. This specialization helps streamline the formation process for this niche audience.
    • Comprehensive compliance packages: Their Total Compliance Package includes a range of services from formation filings to IRS tax filings and bookkeeping software. This package aims to cover all compliance needs, making it easier for businesses to maintain good standing.
    • CPA consultations available: Doola provides access to CPA consultations within its more expensive package, offering valuable financial advice. This is especially beneficial for those new to U.S. tax regulations or seeking specific financial guidance.
    • Integrated bookkeeping software: For businesses opting for the Total Compliance Package, Doola integrates bookkeeping software. This tool is designed to help manage finances more efficiently, which is crucial for maintaining accurate and compliant financial records.

    Doola Cons

    • Mixed customer reviews: Feedback from users highlights both satisfaction and frustration, pointing to a varied experience. Reports of unresponsiveness and delays in service delivery have been noted, impacting customer satisfaction.
    • Reported communication delays: Some customers have experienced delays in communication, particularly after payment, which can hinder the process of forming an LLC and accessing subsequent services.
    • No mobile app available: The absence of a mobile app means users cannot manage their LLC formation or compliance tasks on the go, potentially limiting accessibility for some users.
    • Potential hidden costs: While Doola offers comprehensive packages, there are concerns about additional fees for services that might not be initially clear, leading to a higher overall cost than anticipated.

    Doola Review Summary

    Doola positions itself as a specialized service for LLC formation, particularly focusing on non-US residents and DAOs. Its comprehensive compliance packages and specialized services such as CPA consultations and integrated bookkeeping software highlight its appeal to those looking for a thorough approach to business formation and maintenance in the U.S.

    However, mixed customer reviews and reported communication delays present a challenge, indicating that while Doola has strong offerings, the customer experience can vary. Potential hidden costs and the lack of a mobile app are also points for consideration by prospective clients.

    In summary, Doola presents a compelling option for its target audience with its tailored services and specialized focus. Yet, for those prioritizing immediate and consistent post-payment communication, exploring alternatives might prove beneficial. The choice between Doola and other providers should be informed by specific needs, budget, and the value placed on specialized services for non-US entrepreneurs.

    9. Tailor Brands

    💸
    Pricing
    Mid-range
    🎁
    Free Registered Agent
    No, $199/year
    📦
    Basic Package Price
    Free + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    Yes, chatbot
    ⏱️
    Turnaround Time
    Standard
    📱
    Mobile App
    No
    Ease of Use
    Good

    Tailor Brands Pros

    • Comprehensive branding tools: Tailor Brands provides a wide array of branding tools, including logo creation and website building, to support businesses in establishing a strong online presence.
    • Affordable starter package: The Lite Package offers a cost-effective option for LLC formation, requiring only the state filing fee and providing a basic level of service.
    • User-friendly interface: Tailor Brands offers a modern, intuitive platform that guides users through the LLC formation process with a multi-step form.

    Tailor Brands Cons

    • Mixed customer feedback: There’s a notable range of experiences from users, with some facing issues related to service and billing.
    • No mobile app: Unlike some competitors, Tailor Brands does not offer a mobile app for LLC formation or management services.
    • Limited legal advice: The service focuses on branding and provides generic legal documents, which may not meet the needs of those seeking comprehensive legal counsel.

    Tailor Brands Review Summary

    Tailor Brands offers a unique combination of LLC formation services and branding tools, making it an attractive option for entrepreneurs focused on building a strong brand image from the start. The service stands out for its user-friendly interface and a variety of package options, catering to different needs and budgets.

    However, potential users should be aware of mixed feedback regarding customer service and billing, as well as the lack of a mobile app and limited legal advice. These factors may influence the decision-making process for those considering Tailor Brands for their business needs.

    In comparing Tailor Brands with other services, it is clear that each has its strengths, with Tailor Brands being particularly suitable for those prioritizing branding alongside their LLC formation. However, alternatives might offer better value for those primarily interested in the legal aspects of business formation and ongoing compliance.

    10. Swyft Filings

    💸
    Pricing
    Mid-range
    🎁
    Free Registered Agent
    No, $199/year
    📦
    Basic Package Price
    Free + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Below Average
    📱
    Mobile App
    No
    Ease of Use
    OK

    Swyft Filings Pros

    • Customizable Operating Agreements: Swyft Filings offers custom Operating Agreements in their Standard and Premium packages. This is beneficial for establishing clear ownership roles and operational procedures within an LLC.
    • Good customer support: They are known for responsive customer support, with a live chat feature and availability Monday through Friday. This can be valuable for businesses needing quick answers during the LLC formation process.

    Swyft Filings Cons

    • Not overall cost-effective: While Swyft Filings provides various packages, their services can become expensive with added fees for essential services like the Registered Agent, which costs $199/year.
    • Less transparent pricing: The pricing structure on Swyft Filings’ website may confuse users due to additional costs not being immediately clear, such as the $199 Registered Agent fee and $149/year ComplianceGuard™ trial after 14 days.
    • No mobile app: Unlike some competitors, Swyft Filings does not offer a mobile app for managing the LLC formation process, which could detract from the convenience for some users.

    Swyft Filings Review Summary

    Swyft Filings caters to entrepreneurs seeking a quick and supportive route for LLC formation, emphasizing the ease of use and customer assistance. Their service includes customizable Operating Agreements and attentive customer support, enhancing the process for new business owners.

    However, the company might not suit everyone, especially those looking for the most economical option or a transparent pricing model. The lack of a mobile app and additional costs for services like the Registered Agent and ComplianceGuard™ can accumulate, potentially leading to higher overall expenses.

    Comparing Swyft Filings to competitors reveals varying strengths and weaknesses, with alternatives offering different benefits such as lower renewal costs for Registered Agent services or more comprehensive features. This underscores the importance of assessing specific needs and preferences when choosing an LLC formation service.

    11. FileNow

    💸
    Pricing
    Budget-friendly
    🎁
    Free Registered Agent
    No, $119/year
    📦
    Basic Package Price
    $49 + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    Yes, human
    ⏱️
    Turnaround Time
    Fast
    📱
    Mobile App
    No
    Ease of Use
    Good

    FileNow Pros

    • Quick and efficient setup: FileNow stands out for its fast and streamlined process, allowing new business owners to establish their LLCs swiftly. This is especially beneficial for entrepreneurs eager to launch their ventures without delay.
    • User-friendly platform: The interface is designed for ease of use, ensuring that even those new to business formation can navigate the service without confusion. This accessibility helps to demystify the process of starting a business.
    • Competitive pricing: FileNow offers services at prices that are competitive within the market, making it an attractive option for entrepreneurs mindful of budget. This affordability is a key consideration for many when choosing an LLC formation service.
    • High customer satisfaction: The company has received positive feedback from customers, particularly for its quick document processing and straightforward approach. High satisfaction rates indicate a reliable and effective service.

    FileNow Cons

    • Limited additional services: While FileNow excels in basic LLC formation tasks, it offers fewer additional services compared to some competitors. This limitation might be a drawback for business owners seeking comprehensive legal and operational support.
    • Considerable upselling: Users might encounter numerous attempts at upselling additional services throughout the process. This can be distracting or frustrating for customers who have a clear idea of what they need.
    • No mobile application: The absence of a mobile app may limit accessibility for users who prefer to manage their business formation tasks on the go. This is a notable disadvantage in today’s mobile-first world.
    • Limited ongoing legal support: FileNow’s offerings are less robust when it comes to ongoing legal services, such as annual reporting and tax assistance. Businesses in need of extensive legal support might find the service lacking.

    FileNow Review Summary

    FileNow provides a fast and user-friendly platform for new business owners to set up their LLCs, with competitive pricing and a process that has garnered high customer satisfaction. This efficiency and affordability make it an appealing choice for entrepreneurs looking to quickly launch their ventures without overwhelming costs.

    However, the service’s limited scope in additional and ongoing legal support, alongside notable upselling practices, may detract from its appeal to those seeking more comprehensive business services or a more straightforward purchasing experience. The lack of a mobile application further limits accessibility for users preferring mobile management of their business tasks.

    Considering these factors, FileNow suits entrepreneurs focused on speed and simplicity in their LLC formation process. For more extensive needs beyond the initial setup, exploring alternatives with broader service ranges and ongoing support might be more beneficial. This balanced view highlights FileNow’s strengths in efficiency and user experience while acknowledging areas where it may not fully meet the needs of every business owner.

    12. Harbor Compliance

    💸
    Pricing
    Mid-range
    🎁
    Free Registered Agent
    No, $99/year
    📦
    Basic Package Price
    $99 + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    No
    ⏱️
    Turnaround Time
    Fast
    📱
    Mobile App
    No
    Ease of Use
    Good

    Harbor Compliance Pros

    • Transparent and straightforward pricing: Harbor Compliance makes its pricing clear, charging a base rate of $99, not including state fees, for LLC formation. This approach helps users understand upfront costs.
    • Efficient and personalized support: The company is known for providing good customer support through email and phone, ensuring users have access to personalized assistance when needed.
    • Comprehensive compliance services: Offers a wide range of compliance services, including annual reports and EIN registration, catering to various needs for business legality and compliance.

    Harbor Compliance Cons

    • Higher prices than competitors: Harbor Compliance’s services are generally more expensive compared to other LLC formation services, which could be a deciding factor for budget-conscious users.
    • No mobile app available: Lacks a mobile application for managing LLC-related tasks, which may deter users who prefer mobile access for convenience.
    • Limited refund or cancellation policy: The refund policy is restrictive, offering limited or no refunds once a service has commenced, which might concern users looking for flexibility.

    Harbor Compliance Review Summary

    Harbor Compliance stands out in the market for its clarity in pricing, dedicated customer support, and comprehensive range of compliance services. Its approach to LLC formation emphasizes transparency and tailored support, though it comes at a higher cost compared to other services.

    The lack of a mobile app and a limited refund or cancellation policy are notable drawbacks. These factors may influence potential users’ decision-making, especially those prioritizing convenience and financial flexibility.

    When comparing Harbor Compliance with alternatives, the choice largely depends on individual business needs and budget constraints. While it offers distinct advantages in transparency and personalized support, considerations around cost and the importance of mobile accessibility could lead users to explore other services.

    13. Inc Authority

    💸
    Pricing
    Budget-friendly
    🎁
    Free Registered Agent
    Yes, for the first year
    📦
    Basic Package Price
    Free + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    No
    ⏱️
    Turnaround Time
    Standard
    📱
    Mobile App
    No
    Ease of Use
    OK

    Inc Authority Pros

    • Free LLC formation service: Inc Authority provides a basic LLC formation package at no cost, covering essentials like business name checks and document filings. This service, funded by the state fees alone, supports new entrepreneurs by reducing initial setup costs.
    • Includes registered agent service: The inclusion of a year’s registered agent service for free adds value, ensuring legal compliance and handling of important documents without extra charge during the first year.
    • Good customer support: Access to customer support via email and phone is highlighted as beneficial. The team’s availability and responsiveness offer reassurance and guidance through the formation process.
    • 60-day money-back guarantee: This guarantee offers clients peace of mind, allowing them to seek a full refund within 60 days if they’re not satisfied with the services, minus any state or third-party fees.

    Inc Authority Cons

    • High registered agent renewal fee: The annual renewal fee for the registered agent service is $199, which is higher than many competitors. This cost requires careful consideration for long-term budgeting.
    • Upselling throughout the process: The formation process includes numerous upsell attempts, which can make the experience longer and potentially overwhelming for customers, detracting from the simplicity of the service.
    • No mobile application: The absence of a mobile app limits access to services and documents to the website, which may inconvenience users who prefer managing their business affairs on the go.
    • Limited transparency on costs: The lack of upfront information on renewal costs and the pricing of additional services may cause uncertainty and hinder budget planning for potential clients.

    Inc Authority Review Summary

    Inc Authority offers a valuable free LLC formation service, including a year’s registered agent service at no cost, presenting a budget-friendly option for new entrepreneurs. However, the high renewal fee for the registered agent service and the aggressive upselling may affect the overall experience and require careful consideration of long-term expenses.

    The company’s customer support is rated as good, providing essential assistance during the LLC formation process. Despite this, the absence of a mobile application and the limited transparency regarding the costs of additional services and renewals might not meet the expectations of all users.

    While Inc Authority provides a strong starting point for entrepreneurs with its free basic package, the potential financial implications of continued use, particularly the registered agent service’s renewal fees, highlight the importance of evaluating long-term needs and budget constraints.

    14. MyCompanyWorks

    💸
    Pricing
    Best for transparency
    🎁
    Free Registered Agent
    No, $99/year
    📦
    Basic Package Price
    $59 + State fee
    👥
    Support Quality
    Good
    💬
    Live Chat
    No
    ⏱️
    Turnaround Time
    Fast
    📱
    Mobile App
    No
    Ease of Use
    Below Average

    MyCompanyWorks Pros

    • Responsive Customer Service: MyCompanyWorks is praised for its quick and helpful customer support. The team’s promptness in response, often within a few business hours, and the breadth of knowledge in assisting customers is notable.
    • Comprehensive Service Features: The company offers a wide array of services, including same-day business processing and access to a variety of business and tax forms, catering to diverse business needs.
    • International Client Accommodation: MyCompanyWorks extends its services globally, demonstrating an ability to support international entrepreneurs in setting up an LLC in the U.S., with features designed for accessibility and convenience.

    MyCompanyWorks Cons

    • Basic Package Lacks Features: The entry-level service package may not include some services that are standard with competitors, limiting its value for those seeking a comprehensive start-up option.
    • Inconsistent Customer Reviews: Feedback on the company’s services varies significantly across different review platforms, indicating a mixed customer experience.
    • Additional Fees for Expedite: Some customers may find the expedited fee unnecessary, especially in states where instant online filing is possible, raising questions about the service’s cost efficiency.

    MyCompanyWorks Review Summary

    MyCompanyWorks offers a range of services aimed at simplifying the LLC formation process, recognized for its strong customer support and the ability to meet the needs of international clients. Despite its strengths, the service’s entry-level package lacks certain features, and the company’s pricing structure, including expedite fees, may not offer the best value compared to alternatives.

    Customer reviews present a mixed picture, with praise for service features and support quality, yet criticisms over the lack of included services in the basic package and inconsistency in customer satisfaction. These aspects suggest areas where the company could improve to enhance user experience and satisfaction.

    In conclusion, MyCompanyWorks is seen as a reliable option for those prioritizing responsive support and comprehensive service offerings. However, it might not be the most cost-effective choice for all, especially considering the additional fees and the variability in customer feedback. Potential users should weigh the pros and cons, particularly regarding service features and overall value, before deciding.

    Factors to Consider When Choosing an LLC Service

    When choosing an LLC service, finding the right combination of cost, quality, and features that match your business needs is essential. Here’s a breakdown of what to consider:

    • Budget-Friendly Options: If saving money is your top goal, be aware that you may get fewer features and potentially less helpful customer support. Companies need to make money in some way, so they might try to sell you additional services later on, or the quality of their main service might not be the best.
    • Top-Tier Customer Support: If you want excellent assistance, you’ll likely pay more. However, this means you’ll get expert guidance whenever you need it. It can be hard to know what a company’s customer support is truly like, and online reviews can be misleading. We aim to help you figure this out through our guide.
    • International Needs: If you live outside the US, look for services that specialize in international business requirements. This will make the process much smoother. Some services might not let you use a non-US phone number or offer payment methods used in your country.
    • Quality vs. Cost: Companies often try to convince you that higher prices automatically mean better service and more features. We hope to help you see through this with our comparison page.
    • Customer Reviews: Be cautious with customer reviews. Companies can manipulate them to make their scores look better. It’s easy to write fake reviews, especially with the help of AI tools. Competitors might also try to bring down the scores of legitimate LLC services. A good rule of thumb is to pay attention to reviews with average ratings, around 3 out of 5 stars, as these tend to be more realistic.

    Choosing the right LLC service means finding the perfect fit for your business. Think about what matters most to you: saving money, getting excellent support, or a mix of both. Remember, a cheap option now might cause problems later if you don’t have the support and features you need to run your business smoothly.


    Comparing LLC Formation Service Costs

    Our pricing table breaks down the costs of popular LLC services. Compare base package prices, whether a free registered agent is included for the first year, and the ongoing annual cost of a registered agent. Remember, state filing fees are additional and vary depending on your location.

    ProviderBase Package PriceFree Registered Agent
    (1st year)
    Registered Agent
    Annual Price
    ZenBusinessFree + State feeNo$199/year
    Northwest Registered Agent$39 + State feeYes$125/year
    Bizee (formerly Incfile)Free + State feeYes$119/year
    LegalZoomFree + State feeNo$249/year
    Active FilingsFree + State feeYes$99/year
    Rocket Lawyer$100 + State feeNo$249.99/year
    BetterLegal$299 + State feeNo$90/year
    Doola$297/yearIncluded in the sub.Included sub.
    Swyft FilingsFree + State feeNo$199/year
    Tailor BrandsFree + State feeNo$199/year
    FileNow$49 + State feeNo$119/year
    Harbor Compliance$99 + State feeNo$99/year
    Inc AuthorityFree + State feeYes$199/year
    MyCompanyWorks$59 + State feeNo$99/year

    Our Review and Rating Methodology

    We understand that choosing the right LLC service is a crucial decision. That’s why we’ve dedicated significant time and effort to finding the best options available. Our process involves in-depth testing, extensive research, and gathering feedback from both real customers and legal experts. We want to provide the most comprehensive and up-to-date guide for selecting an LLC service online.

    Factors We Thoroughly Examine:

    • Cost Analysis: We meticulously analyze pricing for every company and package, uncovering any hidden fees along the way.
    • Cost-Value Comparison: We evaluate whether the price aligns with the value you receive in terms of features and support when forming your LLC.
    • Client Support & Service: We investigate customer feedback across multiple platforms like Google, Trustpilot, the BBB, and Reddit. We carefully filter out any suspicious or artificial reviews, focusing on genuine customer experiences. It’s a good rule of thumb to be wary of extreme 1-star or 5-star reviews and pay closer attention to those in the middle.
    • Ease of Use: Although we can’t personally form LLCs with every service, we simulate the process, noting positive aspects and potential roadblocks. We pay close attention to transparency and whether companies try to conceal fees or mislead customers.
    • Offerings & Features: We compare the range of services offered by each company. We assess if formation services are their core offering, what additional features are included, and the associated costs.
    • Mobile App Usability: For convenient access and management, we evaluate the availability of mobile apps. We examine their functionality, ease of use, and overall user ratings.
    • User Feedback Analysis We go beyond online reviews and actively seek feedback from real customers. We want to understand their experiences with the LLC formation process, registered agent services, and ongoing business maintenance.
    • Legal Expert Rating: We consult legal professionals to ensure the services offered are legitimate and to identify any misleading claims made by companies. For instance, many companies charge exorbitant fees for obtaining an EIN, which you can easily get for free directly through the IRS.
    • Turnaround Time: We take note of standard processing times and any potentially deceptive “expedited” offers, especially in states where formation might already be exceptionally fast.

    Our research is extensive and often uncovers more questions than answers. We strive to address these questions thoroughly, ensuring our guide offers complete clarity and empowers you to make informed decisions.


    What Do LLC Services Typically Offer?

    At their core, LLC services help you with the essential steps of forming and maintaining your Limited Liability Company. Here’s a breakdown of the most common offerings:

    Foundational Services

    • Filing the LLC (Articles of Organization): These companies handle the paperwork required to officially register your LLC with the state.
    • Registered Agent Service: An LLC must have a registered agent, a designated person or company that receives official documents and legal notices. Many entrepreneurs choose to hire an LLC service as their registered agent for convenience and privacy, especially if they live outside the US.

    Ongoing Compliance

    • Annual or Biennial Report Filing: LLCs in most states need to file regular reports to maintain good standing. Services can manage this process for you.
    • Beneficial Ownership Information (BOI) Reporting: LLCs are now required to report their beneficial owners (the real people behind the business) to FinCEN (Financial Crimes Enforcement Network). LLC services often include this as part of their compliance package.

    Additional Resources

    • Operating Agreement: While not always mandatory, an Operating Agreement outlines your LLC’s rules and structure. LLC services may provide templates or create one for you to help avoid future disputes.

    Optional (and Sometimes Overpriced) Extras

    • Domains, Websites, Logo Creation, Business Cards: These add-ons can be convenient, and you might even get discounts. However, you can often find better deals through specialized providers.
    • EIN (Employer Identification Number): The IRS provides EINs for free. LLC services often charge hefty fees for this simple service. While an EIN might be necessary for international businesses, US-based entrepreneurs can easily get theirs directly from the IRS.

    Be wary of companies that heavily push extras. Focus on the core services that help you establish and maintain your LLC, and seek out the best deals for any additional needs you may have.


    LLC Formation Service Feature Comparison

    The table below compares essential LLC service features like registered agent services, compliance assistance, operating agreement help, live chat, and mobile app availability. It’s straightforward and provides you a holistic view of which services offer what you need.

    ProviderRegistered
    Agent
    Annual
    Report
    ComplianceOperating
    Agreement
    Live
    Chat
    Mobile
    App
    ZenBusiness
    Northwest Registered Agent
    Bizee (formerly Incfile)
    LegalZoom
    Active Filings
    Rocket Lawyer
    BetterLegal
    Doola
    Swyft Filings
    Tailor Brands
    FileNow
    Harbor Compliance
    Inc Authority
    MyCompanyWorks
    ✅ Available ⬜ Not mentioned or Not available

    Why Use an LLC Service?

    Yes, you absolutely can form your LLC yourself! It’s a great way to save money and learn the process inside-out. If you’re up for the challenge, we’ve got your back with our state-specific guides:

    However, there are compelling reasons to consider an LLC service:

    • Time is Money: Forming an LLC involves paperwork and research. A service frees up your time so you can focus on building your business.
    • Peace of Mind: Staying compliant means deadlines and regulations. A good LLC service handles the reminders and keeps you on track.
    • Potential for Bundled Services: Some companies offer packages that include tax preparation, legal advice (less common, but available), and other business support. This can save you the hassle of sourcing those services separately.

    When to Consider Other Options:

    • Complex Situations: If your business operates in a highly regulated industry or involves complex legal structures, an attorney may be the best choice to ensure everything is set up correctly.
    • Lack of Confidence: If you don’t feel comfortable navigating the legal and administrative aspects of forming an LLC, either an attorney or a reliable LLC service can provide the support you need.

    Whether you DIY, use a service, or hire an attorney depends on your priorities, comfort level, and the complexity of your business.

    AspectDIY LLC FormationUsing an LLC Service
    Cost EfficiencyTypically lower cost, no service feesVariable costs; some services offer free packages plus state fees
    Time & EffortRequires significant personal time and effortSaves personal time, with the process handled for you
    Learning ExperienceHigh, as you navigate the process yourselfLower, as the service takes care of the process
    Compliance ConfidenceDepends on your ability to research and follow upHigh, as services ensure compliance and manage deadlines
    Access to Expert AdviceLimited unless you consult with a professionalOften included, with professional support available
    SuitabilityBest for straightforward, single-state operationsIdeal for those preferring convenience or with complex needs

    What is an LLC?

    A Limited Liability Company (LLC) is a popular business structure that combines the simplicity of a sole proprietorship with the liability protection of a corporation. This means your personal assets are typically shielded from business debts and lawsuits. To learn all the ins and outs of LLCs, check out our comprehensive LLC for Beginners guide.

    LLC vs. Sole Proprietorship

    Key differences between an LLC and a sole proprietorship include:

    • Liability Protection: An LLC protects your personal assets, while a sole proprietor is personally responsible for business debts and liabilities.
    • Formalities: LLCs require some paperwork and fees, whereas sole proprietorships begin the moment you start doing business.
    • Taxation: LLCs offer flexibility in how they’re taxed, while sole proprietorships report business income on their personal tax returns.

    LLC vs. S Corp

    Here is where an LLC and an S Corporation are different:

    • Taxation: LLCs offer flexible pass-through taxation by default, while S Corps can potentially save on self-employment taxes for owner-employees.
    • Ownership Restrictions: S Corps have stricter ownership limits (number of shareholders, types of shareholders). LLCs are more flexible in this regard.
    • Complexity: S Corps generally have more administrative requirements than LLCs.

    The best choice for your business depends on specific factors like size, industry, and tax strategy.


    Do You Even Need an LLC for Your Business?

    While incredibly popular, an LLC isn’t strictly required for all businesses. However, the benefits they offer make them a smart choice for many:

    Liability Protection: The main draw of an LLC is shielding your personal assets (house, car, savings) from business debts and lawsuits. This peace of mind is invaluable.

    Example: Imagine you own a small catering company. If a customer gets food poisoning and sues your business, an LLC can help protect your personal savings from being seized to pay damages.

    LLCs can also offer tax flexibility, enhanced credibility for your business, and easier ownership transfers compared to some other structures.

    Piercing the Corporate Veil

    An LLC is a powerful tool, but it’s not a magic shield. The term “Piercing the Corporate Veil” refers to a legal situation where the court disregards your LLC’s liability protection, potentially making you personally responsible for business debts or legal judgments. This is why it’s crucial to operate your LLC responsibly.

    Courts might pierce the veil if you mix personal and business finances, fail to follow formalities (like holding meetings and keeping records), or if your LLC is used for fraud.

    For example, if you run a food truck and knowingly use spoiled ingredients to save money, causing widespread food poisoning, an LLC might not fully shield you from personal liability in a lawsuit.


    Pros and Cons of LLCs

    Forming an LLC offers significant advantages, but it’s important to be aware of some potential drawbacks as well. Here’s a breakdown of what to consider:

    Pros

    • Limited Liability Protection: Perhaps the biggest advantage – your personal assets are usually shielded from business debts and lawsuits.
    • Tax Flexibility: LLCs can choose how they want to be taxed (as a sole proprietorship, partnership, or corporation), offering potential savings.
    • Credibility: An LLC adds a level of professionalism and legitimacy to your business.
    • Management Flexibility: LLCs can be managed directly by owners (members) or by appointed managers, allowing for customization.

    Cons

    • Cost: Forming and maintaining an LLC often involves fees and annual reports.
    • Complexity: Compared to a sole proprietorship, there’s slightly more paperwork and administrative work involved with an LLC.
    • Potential for “Piercing the Corporate Veil”: If you don’t operate your LLC responsibly (mixing personal/business funds, inadequate record-keeping), you risk losing liability protection.
    • State Variations: LLC laws and regulations can differ slightly between states.

    Best State to Start an LLC

    There’s a lot of hype around “magical” states like Delaware, Wyoming, Nevada, and New Mexico for forming an LLC. However, the truth is more nuanced:

    For US Residents

    For most businesses, forming an LLC in your home state is the simplest and most cost-effective option. Trying to register in another state often leads to:

    • Double Fees: You’ll likely need to register as a “foreign LLC” in your home state anyway, leading to more paperwork and costs.
    • Tax and Compliance Headaches: Dealing with multiple state regulations can create extra administrative burdens.

    There are specific exceptions where a different state might make sense:

    • Owning Real Estate in Another State: If your primary business involves owning property outside your home state, forming an LLC where the property is located can be advantageous.

    For Non-US Residents

    If you’re not physically operating your business within a specific US state, the choice is yours. However, if you plan to have employees, an office, or any significant physical presence, you’ll need to register your LLC in the state where you do business – just like US residents.


    Frequently Asked Questions

    Why do I need an LLC Service?

    There are several reasons why you might need an LLC service. First, they can help you with the filing of your Articles of Organization. This is the document that officially creates your LLC. Second, they can provide ongoing support and advice as you operate your business. Third, they can help you protect your intellectual property, such as trademarks and patents. Finally, they can help you with the annual filing of your LLC’s taxes.

    How much does it cost to use an LLC Service?

    The cost of LLC services can vary depending on the provider and the package you choose. However, most providers offer a range of packages at different price points. The cheapest package is often around $0, while the most expensive can be over $500.

    What is the best LLC Service?

    The best LLC service is the one that best meets your needs. Consider what level of customer support you need, what features are important to you, and what price you are willing to pay. You should also look for a provider that offers a user-friendly website and positive user reviews.

    The information on this page was last verified on March 29, 2024
    Ed Reid is an entrepreneurship coach and writer with over a decade of experience, specializing in empowering individuals and businesses through his work. His areas of expertise include entrepreneurship, business development, and the strategic use of online business platforms.

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