Setting up a new limited liability company (LLC) by yourself can be difficult. Fortunately, several LLC formation service providers can make this process much easier.
LLC services have a full understanding of your state’s LLC formation procedures and can help you access the required legal documents and fill out the paperwork. And the best LLC filing services will ensure everything is complete and accurate before you file.
In this article, we’ll highlight some of the best LLC service providers on the market. You’ll find information about their key features, pricing, and much more.
Best Online LLC Services
- NorthWest Registered Agent – Best registered agent services
- Bizee – Best free LLC service provider
- Inc Authority – Best for real estate businesses
- ZenBusiness – Best LLC service for quality customer support
- BetterLegal – Best turnaround time
- CorpNet – Best legal services
NorthWest Registered Agent is committed to delivering secure and reliable online LLC formation services. It is the perfect option for small business owners working from home or looking to protect their personal privacy.
Key Features and Pricing
Northwest Registered Agent offers three different ways to form an LLC with them. You can sign up for a free account and they’ll walk you through the steps for starting your LLC on your own. The second option is to pay them monthly for 12 months to file for you and offer legal assistance afterward. The last option is to pay the full $225 upfront to file through their LLC formation website.
The LLC formation services from Northwest registered agent include:
- A free full year of registered agent service
- Free limited mail forwarding
- Operating Agreement
- Lifetime customer support from experts
- Loads of free tools
Pros
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Industry-leading customer support
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They'll guide you through the steps for starting your LLC if you sign up for a free account
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Options to pay for the service monthly or pay the fee upfront
Cons
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You'll have to pay extra for other services separately
Star Rating
/ 5.0
Bizee
Bizee was incorporated in 2004. Since then, this LLC filing service provider has assisted in the formation of over 800,000 enterprises. Furthermore, the company has a solid reputation for offering LLC services at a very low cost.
Key Features and Pricing
Bizee offers three core packages. These include the Silver, Gold, and Platinum plans. Each provides a year of free registered agent services. After the free year, they then collect an annual fee of $119.
The Silver package is free with the exception of state fees. Features for this package include:
- LLC formation
- One year of free registered agent service
- Lifetime company compliance alerts
- Next day order processing
- Business tax consultation
The Gold package costs $149, plus state fees. This package includes:
- An operating agreement
- Banking resolution
- Employer identification number registration
- Preparation and filing of IRS Form 2553
The Platinum package costs $249, plus state fees. It includes:
- Free domain name and custom business website
- Contract templates
- Expedited filing
Pros
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Affordable business formation service
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A full year of registered agent services for free
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User-friendly dashboard to track important deadlines and compliance reminders
Cons
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Lots of upsells on the platform
Star Rating
/ 5.0
Inc Authority offers a free LLC service along with paid packages. This provider has been offering LLC filing services since 1989. This makes it one of the longest existing company formation services on the market.
Inc Authority is a great option if you’re working within a budget and looking for basic LLC formation services.
Key Features and Pricing
Inc Authority offers a free standard package, minus state fees. Features include:
- Registered agent service for one year
- Name availability search
- Filing of articles of organization
- S corporation tax election forms (if you categorize your LLC as an S corporation for tax purposes)
- Tax planning consultation
- Business funding analysis
The services in the free standard package should keep most businesses going for a while. However, some businesses may require more legal services. That is why Inc Authority also offers additional services. However, these services come with a fee attached.
The add-on features include:
- LLC operating agreement
- Ownership certificates
- EIN registration
- Domain and website
- Minutes and resolutions
Pros
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Free LLC filing services
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Many years of experience
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Excellent customer support
Cons
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Additional services can be pricey
Star Rating
/ 5.0
ZenBusiness offers LLC services online, helping you launch your small business easily and efficiently.
This LLC company was founded in 2015 by a team of entrepreneurs. It was created after the team experienced several hurdles when starting their own business.
ZenBusiness makes it easy to start, run, or grow your business. The team can help guide you through company formation and other services often needed by a business owner.
Key Features and Pricing
ZenBusiness offers 3 packages: Starter, Pro, and Premium. Each package comes at a different price with different features. The Starter is $49, Pro is $199 and Premium is $299.
All packages include basic LLC formation services, such as:
- Business Formation
- Unlimited name availability searches
- Free accounting consultation
- Free automatic expense tracking
- Free tax deduction tagging
- Worry-free compliance (includes report alerts, 2 free filing changes per year, and insurance on document filings)
As you move from the Starter to the Pro package, you’ll find other LLC creation features. These include:
- Custom operating agreement options
- Expedited filing
Meanwhile, the Premium package includes a few add-on features like:
- A business email, customizable website, and domain privacy: These features make it easy to gain visibility and protect your private information.
- Rush filing: This option is great for entrepreneurs who are looking for fast and comprehensive business formation services.
Pros
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Awesome customer support
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Worry-free annual compliance included in all plans
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Digital dashboard for quick access to important business documents
Cons
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You need to pay extra for essential features like an operating agreement tool
Star Rating
/ 5.0
BetterLegal is the go-to for LLC services, corporate creation, and online filing. They provide services to both small businesses and multi-member organizations.
The platform automates the entire process and features a live dashboard and real-time customer support. This reduces mistakes and minimizes the risks of rejection for LLC creation.
Key Features and Pricing
BetterLegal LLC formation services start at $299, plus state filing fees. For this price, you’ll get:
- Employer identification number
- Operating agreement
- Banking resolution and other documents
- Free website
- Free business checking
- Free tax analysis
- Free insurance evaluation
BetterLegal also offers subscription services. These include:
- Registered agent services for $10/month or $90/year
- State compliance services for 10/month or $90/year
- Permit and license search for a $125 flat fee
Pros
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Quick turnaround time
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Live dashboard and real-time customer support
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User-friendly interface
Cons
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Expensive pricing
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Lots of upselling
Star Rating
/ 5.0
CorpNet
CorpNet is a family-owned LLC service provider. The company was founded in 1997 and has helped more than half a million people get their businesses started. They specialize in LLC formations and registered agent services.
Key Features and Pricing
Like most business formation services, CorpNet offers three LLC formation packages. These include the Basic, Deluxe, and Complete plans.
The basic package starts at $79, plus state fees. This package includes:
- Company name availability check
- Preparation of Articles of Incorporation (Corporations) or Articles of Organization (LLCs)
- Free corporate compliance tool with company alerts
- Free Registered Agent Service (60-days)
The Deluxe package costs $199 plus state fees. It includes:
- Company name availability check
- Preparation of Articles of Incorporation (Corporations) or Articles of Organization (LLCs)
- Free corporate compliance tool with company alerts
- Federal Tax ID Number (EIN)
- Free Registered Agent Service (1st Year)
The Complete package costs $249 plus state fees. Services include:
- Company name availability check
- Preparation of Articles of Incorporation (Corps) or Articles of Organization (LLCs)
- Free corporate compliance tool with company alerts
- Federal Tax ID Number (EIN)
- Certified filed copy of formation documents
- Incorporator Resolution Statement
- 1-year free registered agent service
- Custom Bylaws and Minutes (Corporations)
- Custom Operating Agreement (LLCs)
- Custom Corporate Banking Resolution
- Electronic delivery of state documents
- Custom Kit and Seal (Corporations and LLCs)
- Online access to your incorporation documents
- Lifetime customer support via phone and Email
Pros
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Has helped over half a million people
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100% satisfaction guarantee
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Deluxe and Complete packages offer a full year of registered agent services for free
Cons
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Only offers the registered agent service for 60 days in their Basic package
Star Rating
/ 5.0
What Is an LLC?
LLC stands for limited liability company. It is a type of business entity that can have one or more owners. These owners are referred to as members. LLC members participate equally in the management of the business. However, this may not be the case if the members elect an alternative management structure called manager management.
The biggest advantage of an LLC is that the owner or owners are protected from personal liability for any business debts or claims. This means that if the business cannot pay a creditor, the creditor cannot legally take your personal possessions. This is because only business assets can be used to pay off business debts. In this instance, an LLC owner or owners will only lose money that they have invested in the LLC.
An LLC is not considered to be separate from its owners when it comes to taxes. The IRS calls it a pass-through entity similar to a partnership or sole proprietorship. This means the business income passes through the business to the LLC owner or members. They then have to report their share of profit or losses on their individual tax returns.
Pros and Cons of LLC Formation
LLC is a popular business structure in the US. They are easy to create and protect owners from personal liability. They also offer flexible tax options.
Here is a summary of the advantages and disadvantages of getting an LLC:
Pros
- There is no tax return for the business itself. This is because the profits and losses are reflected on each member’s tax return
- The double taxation rules do not apply in an LLC
- Legal registration helps the LLC increase the business’s credibility
- Requires less administration and paperwork than when filing for a corporation
- No restrictions on the number of members or owners
- Easy to setup and manage
Cons
- Licensing and company filing fees can be expensive
- Required to pay self-employment and excise tax
How to Choose the Best LLC Service
Choosing the best LLC service provider isn’t an easy task. There are several factors that you need to consider. These include costs, value, and a few others.
Below is a list of a few things you should consider when looking for an LLC service.
Expertise
The most critical factor when choosing an LLC service is expertise. Choose LLC filing companies that have a proven track record of successfully registering new businesses. Check past customer reviews online from popular review sites, like TrustPilot and Yelp. This will help you to get a fair idea of the company you’re thinking of working with.
Overall Value
Low prices attract everyone. However, you want to be sure that the LLC service provider offers the services you are looking for. Some LLC companies may offer the service you want at an additional cost. Your best bet is to go with a company that includes the services you want in its total cost. This will give you the best bang for your buck.
Customer Experience
This is another important factor to consider. You need to choose an LLC service provider that puts customer experience above all else. Try to choose a company with an easy-to-use website and one that focuses on making things easy for you.
Customer Support
Customer experience and customer support go hand in hand. Some companies try to make things as easy as possible. However, there will be moments when you have questions. Try to go with a company that offers superior customer support. These companies will be available to resolve your queries 24/7. This could be either by email, live chat, or even over the phone.
Refund Policy
Some LLC formation companies offer a full refund if you’re unhappy with their services. You should check to see what the refund policy is for the company you’re thinking of using. This can give you peace of mind knowing you’ll get back your money if you’re unsatisfied with their services.
Turnaround Time
Last but not least, you want to pay attention to turnaround times. This is especially important if you want to start your business immediately. However, the processing time can be affected by various state-specific regulations. In some cases, the LLC service company may not be responsible for slow turnaround times. However, it is still good practice to check out the turnaround times on your LLC provider’s website. This will give you a fair idea of the turnaround times. This way you can know whether to file with a specific company or not if you’re in a hurry.
How to Register an LLC
- Choose an LLC formation service provider from our list. They offer a variety of different services to make creating your LLC easier.
- Decide who the members of your LLC will be, as well as the ownership percentage. If you’re filing for a single-member LLC, you can skip this step.
- Choose the state where you want to register your LLC. Be sure to seek legal advice to understand tax implications if you’re registering out of your state.
- Check to see if the name you want for your LLC is available.
- Submit the required information to your LLC service provider.
- Apply for EIN after the formation of your LLC is complete. Sometimes, you may need to call the IRS to authenticate the application. Some LLC service providers may do this on your behalf.
- After acquiring your EIN, you can open a bank account in the LLC name. You can apply for a credit card at this point if required.
- You can also opt for a virtual mailbox for your LLC. This is important if you register your LLC out of state.
- Register a domain and get a professional email for your LLC. This makes it easy for clients to contact and connect with you.
How to Sign Up for an LLC Service Online
Signing up for an LLC service is fairly easy. In most cases, all you have to do is fill in the required business information.
You’ll most likely start by creating an account and entering basic information about you and your new business. After doing this, you may see upgrade options and suggestions. However, some of these may not apply to you. For example, you can get an EIN yourself from the IRS website. You don’t have to pay a professional. However, some people may not have the time and need someone to create their EIN for them. This is the same for many other add-on services.
After completing all the forms and submitting your payment, you’ll have to wait for a set period of time for your paperwork to process. Most reliable services can complete an LLC filing in 10 days or less. Once your files are ready, you should be able to log into the LLC service website to download copies of your forms. The LLC service may even send you physical copies of your articles of organization and other forms by mail.
Once your business is created, you will see additional options in your online account. These options may include meeting with a legal or tax consultant, adding new services, creating a bank account, and others.
If you decide to use recurring services, you can manage your account using your online customer portal. You should be able to update payment methods, cancel services, and perform other tasks.
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LLC Filing Service FAQs
How much does it cost to set up an LLC?
The price to set up an LLC varies. The cheapest way to file your LLC paperwork is to do it yourself. This way you’ll only have to pay the state filing fees. However, if you have no idea where to start, you can work with an LLC filing company.
These companies can save you tons of time and ensure the thoroughness and accuracy of your filing. The sole purpose of these companies is to assist business owners to create LLCs. The best LLC service providers will have in-house experts who know every state’s laws and process the paperwork quickly.
Fees will vary from company to company but be prepared to pay anywhere from $50 to $300. This is a lot cheaper than working with a traditional attorney who offers legal services.
How do online LLC services work?
Online LLC services get rid of all the hassle from the business formation process. All you have to do is provide basic company information like the name, location, and industry and the LLC services do the rest.
You may also need to provide information about yourself and your registered agent. Some LLC service providers even provide registered agent services. The service then gathers all relevant documents. fill out the paperwork and file them with your state.
Are LLC formation websites legit?
LLC formation websites are legit. However, be sure to choose a reputable company. A reputable company will have tons of positive customer reviews and a proven track record of successfully creating businesses.
What is a registered agent for LLC?
A registered agent is required when forming your LLC. It is an individual or business entity that is responsible for receiving important documents from the government. Let’s say for example your business files a suit. The state will send the services of the process to your registered agent. The registered agent then notifies you of the delivery and gets the document to you.
You can choose to be your own registered agent. However, it is better to go for a registered agent from an LLC service. This is because they will ensure you never miss an important delivery.
What is an LLC Operating Agreement?
An LLC Operating Agreement contains the structure of the working and financial relationship between the members/owners of an LLC. The document will have each owner’s percentage share of ownership. It will also include details like the share of profits, duties, rights, and how they’ll handle an owner leaving.
What are annual compliances for an LLC?
Some annual compliances for an LLC include annual reports, franchise tax, and other taxes.
Most states require LLCs to file annual reports(annual statements). This helps the various states to track formed or qualified LLCs. Some states may require a statement every other year. In both cases, you are required to pay a fee to the state when statements are filed.
Some states also have a franchise tax. This is a fee you pay to the state for the privilege of operating as an LLC in that state. All the states have different formulas when calculating this tax. Some do it based on business revenue or a number of authorized shares and par values.
Other taxes for LLCs may include payroll, sales, or property taxes. Seller’s permit or business license renewals, etc may also be included.
Do you need an EIN for an LLC?
An Employee Identification Number(EIN) is a federal tax ID number issued to businesses by the IRS. If you are the sole owner of the LLC, then you don’t need an EIN. This is because the IRS does not recognize LLCs as business entities. They consider a single-member LLC owner as a sole proprietor. In this case, you can use your Social Security number to file your taxes.
However, this changes if you hire employees. If you do this then you have to report your single-member LLC taxes as an S corporation or C corporation. This means you’ll need an EIN. Some owners choose to get an EIN regardless. This is because it provides more security than using their Social Security Number. Some banks may require an EIN if you want to open a business checking account or obtain credit.
What type of LLC pays the least taxes?
An LLC that elects to be taxed as an S corporation typically pays the least taxes. This structure allows the business to avoid the double taxation of a traditional corporation while also reducing self-employment taxes on the owners’ share of the profits.
By receiving a reasonable salary, which is subject to payroll taxes, and the remaining profit as distributions, which are not subject to self-employment taxes, owners can potentially lower their overall tax burden. However, the best tax strategy can vary based on individual circumstances, so consulting with a tax professional is recommended.
What are the tax benefits of switching from LLC to S corp?
Switching from an LLC to an S corporation offers significant tax benefits, primarily through savings on self-employment taxes. In an S corp, owners can pay themselves a reasonable salary, which is subject to payroll taxes, while the remaining profits are distributed as dividends, which are not subject to self-employment taxes. This structure can reduce the overall tax burden compared to an LLC, where all profits are typically subject to self-employment taxes.
Additionally, S corp owners may benefit from potential tax deductions on health insurance premiums and other business expenses, further enhancing tax savings. However, it’s crucial to consult with a tax professional to ensure this switch aligns with your specific financial situation and business goals.
LLC formation Services: Key Takeaways
Using LLC formation services is the easiest way to form an LLC. They handle all the hard work and can minimize the risk of rejection. The companies mentioned in our list offer various packages to suit different budgets and needs. With a plethora of services available, you can choose the one that suits you best and get started.
These services often include assistance with paperwork, registered agent services, compliance monitoring, and ongoing support. By leveraging their expertise, you can save time, ensure accuracy, and focus on growing your business. Additionally, many services provide online dashboards to track your LLC’s status and access important documents. Choose a reputable LLC formation service to streamline the process and gain peace of mind!
Published : June 28,2024
Published : June 28,2024