When first starting a business, you have many decisions to make. A key decision is what type of business structure will you operate under. This step of your business setup is critical because it will impact things like your personal liability for your business as well as how you file and pay your taxes.

One business structure to consider is the limited liability company (LLC). There are many perks when you operate as an LLC or corporation, and the main ones are liability protection and tax benefits. Creating a single member LLC or corporation may also help your business when it’s time to get a small business loan, as some lenders will not lend to sole proprietors. It can also make it easier to build business credit.

If you don’t have the time or expertise required to file the paperwork required to form an LLC, you also have the option to use a business formation service, or hire a small business attorney.

11 Top LLC Formation Services

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In this article, we’ll look at how and why you might want to form an LLC, and we will share information about popular LLC formation services, including:

• Tailor Brands
• Inc Authority
• ZenBusiness
• Swift Filings
• doola
• Northwest Registered Agent
• LegalZoom
• LegalNature
• Incorporate.com
• Bizee (formerly IncFile)
• Rocket Lawyer

What Does an LLC Formation Service Do? 

These services provide information and assistance to complete the steps needed to set up your LLC or corporation. They are familiar with the steps required and can guide you through the paperwork. They may also offer a variety of additional related services business owners need, such as business name searches, requesting a business tax ID number from the IRS, or  trademark registration. 

If you are going to to set up a new company, here are some of the tasks you’ll either need to undertake yourself, or hire a service to do for you: 

1. Research business name availability.
2. Register fictitious name (“Doing Business As” or DBA) if needed.
3. Appoint a registered agent to accept legal notices for the LLC.
4. Create an LLC operating agreement (not required in all states, but generally recommended).
5. File articles of organization (or similar formation documents) in the state in which you register the LLC.
6. File as a foreign LLC in other states (if applicable).
7. Publish a notice of formation (only in states where required).
8. Get business licenses and/or professional licenses as required by the state.
9. Get an Employer Identification Number (EIN).
10. Register with your state taxing authority as needed for sales tax or other required taxes.
11. Create an LLC Banking Resolution.
12. Open a business bank account for the LLC.
13. Get an office address or PO Box to keep your personal information (like your home address) out of public record.
14. Register a trademark for your business (optional).

There’s a lot to get done! And it’s why new businesses often turn to services that can guide them through the formation process.

Additional Company Formation Options

Before we look at these company formation services, let’s talk about your other options when it comes to business structures.

If you take no action to form a different structure, your company will be, by default, a sole proprietorship. That means it’s an individually-owned entity, and there’s nothing legally separating it from you as the owner. If you have a business partner, you’d default to a partnership.

(Learn more about the LLC vs. sole proprietor business structure.)

You could also elect to operate as a corporation. This provides separation from you personally and the business, meaning if your business had debts it couldn’t pay or was sued, your personal assets couldn’t be taken to cover the business debts. There are two types of corporations: the S-corporation and the C-corporation.

An S-corp is the most popular type of corporation, especially for small businesses. Like a sole proprietorship or LLC, an S-corp offers what is called passthrough taxes, which means that your business pays no taxes, and you pay taxes on profits on your personal income tax return.

Your business may be a nonprofit if it is a qualifying charitable organization. In that case, you’ll be eligible for tax exemptions.

But this article is about filing as an LLC. With flexible tax options (an LLC can be taxed as a disregarded entity if you’re the only member, a limited liability partnership, or an S- or C-corp) and asset protection, the LLC is a wise choice for many businesses. Also, foreign companies and foreign investors prefer the LLC because it is open to owners living in another country.

11 Best LLC Formation Services for 2024

You can complete registration for your LLC or corporation on your own through your secretary of state, enlist the help of an attorney, or hire a registered agent service to simplify the process. 

If you decide to hire a service to help you set up your LLC, here are popular LLC formation and incorporation services that can help.

1. Tailor Brands

Tailor Brands can help you start an LLC for free. (State filing fees will be charged and vary by state.) 

Plans offered

A free plan is offered, and paid plans include legal compliance, expedited processing, and more. State filing fees will apply to all plans. 

Worth noting

Tailor Brands offers a guided building business platform with a business coaching program included in all plans.

2. Inc Authority

IncAuthority offers free LLC or corporation setup. (State filing fees are charged and vary by state.)

Entities supported: LLC, S-Corp, C-Corp, Nonprofit

Plans offered: Get a free LLC registration, registered agent service, EIN (Tax ID#), 24-hour processing, business website, domain name and email. You will pay for filing fees and postage.

Worth noting: Inc Academy features information about the business formation process.

3. ZenBusiness

ZenBusiness leverages technology and automation to simplify the process of LLC and corporation filing. 

Entities supported: LLC, S-Corp, C-Corp, Nonprofit

Plans offered: The ZenBusiness Starter service starts at $0 a year plus state filing fees then go up to $299 for the Premium plan.

Features and benefits of ZenBusiness: ZenBusiness offers filing services in all 50 states plus Washington D.C. Its website includes helpful information even if you don’t use its services. It also offers a monthly $5,000 grant; customers who have used its formation services are eligible to enter. 

Worth noting: Even at the free plan level, customers get one year of “worry-free compliance services.” The website includes helpful information even if you don’t use its services. It also offers a monthly $5,000 grant; customers who have used its formation services are eligible to enter.

4. Swyft Filings

Entities supported: LLC, S-Corp, C-Corp, Nonprofit + DBA

Plans offered: Free plan available to start an LLC. Three levels of pricing 

Worth noting: Swyft Filings features attorney-drafted business documents and fast turnaround time. (Same-day filing available with premium package.)

5. doola

Entities supported: LLC, DAO LLC, S-Corp, C-Corp

Plans offered: While free business formation (plus state filing fees is offered), doola primarily offers annual packages with comprehensive services. 

Worth noting: Doola offers its services worldwide to companies that want to form an entity. All but the least expensive plan includes bookkeeping services, a tax consultation, and state and federal business tax filings. 

6. Northwest Registered Agent

Northwest Registered Agent got its start as a registered agent service that grew to all 50 states. It now offers a variety of services, including LLC formation, certificates of incorporation,  legal forms, and registered agent services. It prides itself on customer support that answers its phones directly, and on understanding business owner’s needs. 

Entities supported: LLC, S-Corp, C-Corp, nonprofit

Plans offered: A free account gives you tools to start your LLC on your own. If you want to use their services, the fee to form an LLC starts at $39, plus state fees. It includes a free year of registered agent services, and other benefits.

Worth noting: Northwest Registered Agents offers Privacy By Default® so you can keep your home address off business documents and Corporate Guides®. It also offers numerous free legal forms and guides, even if you don’t use their service.

6. LegalZoom

LegalZoom offers business company formation, along with a variety of services such as trademarks and copyrights.

Entities supported: LLC, S-Corp, C-Corp, nonprofit

Plans offered: Starting at $0 plus state filing fees for LLCs, and $149 plus state filing fees for corporations, LegalZoom offers a variety of services, including trademark searches and registration. 

Worth noting: LegalZoom offers a network of independent business attorneys to provide personalized advice. 

8. LegalNature

LegalNature offers an extensive library of online legal documents and guides, as well as business formation services. 

Entities supported: LLC, S-Corp, C-Corp, nonprofit

Plans offered: LLC formation starts at $49 plus state filing fees. Premium plans include the LegalNature+ subscription that provides access to legal documents, and is available as a monthly or annual subscription. 

Worth noting: LegalNature offers customizable personal, business and estate planning documents. 

9. Incorporate.com

Incorporate.com simplifies company formation services and offers ongoing assistance to keep your business in good standing.

Entities supported: LLC, S-Corp, C-Corp, nonprofit

Plans offered: Pricing is based on the state you’re forming a business in and may be as low as $99 plus state filing fees. You can also upgrade to The Essentials or The Works plan, which each offer additional services like annual report preparation and filing and an EIN. It is difficult to find pricing information on the Incorporate.com website

Worth noting: Incorporate.com offers a lot of helpful information on corporate formation topics. 

10. Bizee (formerly Incfile)

Bizee offers free LLC filing (plus state filing fees), as well as a full suite of startup services like banking and bookkeeping. With a technology focus, its dashboard provides business essentials and reminders in one place. 

Entities supported: LLC, S-Corp, C-Corp, nonprofit

Plans offered: LLC formation starts at $0 plus state filing fees. State-specific pricing allows business owners to view costs for different packages. 

Worth noting: Bizbee offers a robust learning center with information on starting a business, choosing the right business structure, and growing your business. 

11. Rocket Lawyer

Rocket Lawyer goes beyond helping you set up a business entity; the company offers a variety of services, including creating a contract or filing a trademark application.

Entities supported: LLC, S-Corp, C-Corp, nonprofit

Plans offered: Rocket Legal+ membership currently starts at $19.99/mo, billed annually. Membership includes a variety of discounted services, as well as first LLC, corporation or nonprofit registration for free (plus state filing fees). 

Worth noting: Rocket Lawyer also offers tax filing services, discounted access to a network of attorneys, and customizable legal templates. 

How to Choose an LLC Formation Service

As you see from the list above, these service providers offer LLC formation packages at reasonable costs, with additional costs for add-ons or memberships. 

Services generally offer affordable pricing to get your business set up, so in addition to cost you want to look for positive reviews including Trustpilot customer reviews and other customer feedback online to help understand whether they offer quality service. Ask questions about processing times if you are on a tight deadline.

Pros and Cons To Using Business Company Formation Services

Let’s look at both the benefits and drawbacks of hiring a business company formation service.

Pros of business company formation services

Cons of business company formation services

So what drawbacks are there?

A lack of tax or legal advice may not be an issue, but for others it could be wise to get legal advice. Someone who wants to form a startup to raise venture capital and go public will have different needs than someone who plans to operate a local business, for example. You may want to talk with an attorney and/or a tax professional to help you with important questions such as: 

• Where to form the LLC — your home state? Delaware? Wyoming? 
• What structure is best given the activities of your business? 

In addition, you may want to get advice from a tax professional on the best business structure to help you minimize tax liabilities.

How Does a Registered Agent Service Fit Into This Picture

A registered agent service is a crucial component of your LLC formation and ongoing compliance requirements. Every LLC must have a registered agent – this is a person or company designated to receive legal documents, government correspondence, and service of process (legal papers like lawsuits) on behalf of your business. While you can serve as your own registered agent, many business owners choose to use a professional registered agent service, often offered by the same companies that handle LLC formation.

Many LLC formation services include registered agent service for free during the first year, after which you’ll typically pay an annual fee that may range from about $100 to a few hundred dollars. This arrangement can be convenient since your formation service already has your business information and can seamlessly transition into serving as your registered agent. 

However, you’re not obligated to use your formation service for this role – you can choose any registered agent service that’s authorized to operate in your state. In many cases you can also serve as your own registered agent. 

Using a professional registered agent service offers several advantages: they maintain regular business hours, keep your personal address private, and ensure you never miss important legal notices or state compliance deadlines. 

They can also serve as your registered agent in multiple states if you expand your business, eliminating the need to maintain a physical presence in each state where you operate. This is why many of the LLC formation services we’ve covered here emphasize their registered agent services as a key part of their offerings.

What Is the Simplest Way to Set Up My Business?

The simplest way to start a business is to operate as a sole proprietorship – you simply start doing business. There’s no formal paperwork to file with the state (though you may need business licenses), no separate tax returns to file, and no legal services needed to get started. 

You can usually use your Social Security number for tax purposes, and all business profits or losses flow directly to your personal tax return. If you want to use a business name different from your legal name, you’ll just need to file a “Doing Business As” (DBA) registration with your local government.

However, this simplicity comes with significant risks. As a sole proprietor, there is no legal separation between you and your business – meaning your personal assets (like your home, savings, and investments) are completely exposed to business liabilities. If your business is sued, can’t pay its debts, or faces other legal issues, creditors can come after your personal assets.

Additionally, some clients and vendors may be hesitant to work with sole proprietorships, viewing them as less established or professional than formal business entities.

And while you can establish business credit as a sole proprietorship, you’ll never fully get away from personal credit or personal guarantees, since you and the business are not legally separate. 

This is why many small business owners opt for an LLC structure despite the additional setup requirements and costs. 

While forming an LLC requires more initial effort and expense, it provides crucial liability protection by creating a legal barrier between your personal and business assets. It also offers tax flexibility, can make it easier to obtain business loans, and generally presents a more professional image to customers and partners. 

The protection and benefits of an LLC often outweigh the initial formation complexity and costs, making it a worthwhile investment for most business owners.

Nav’s Final Word: Company Formation Services

When running a business, it makes a lot of sense to delegate tasks that you’re not an expert in. A company formation service can make the LLC formation process easier and help ensure your business complies with the requirements in your state.

FAQs

• Is there an annual fee for LLCs?

  Each state has its own filing fee requirements, and most states require you to file annually and pay a filing fee whether or not your business is profitable. It’s a cost of doing business. However, a few states don’t have annual filing fee costs or requirements for LLCs. Texas LLC’s, for example, generally don’t have to pay an annual filing fee, while California’s annual fees are quite expensive.

• Is it worth it to form an LLC?

  It can be well worth it to form an LLC or incorporate your new business as soon as possible. The tax benefits alone may make it worthwhile. If your business is sued or runs into other legal problems, you can’t form an LLC retroactively. In other words you don’t want to wait until it’s too late.
  
  You may also find that without an LLC or formal business structure, you may miss out on opportunities for growth because potential clients or customers may not take your business seriously.
  
  Building business credit can be easier as an LLC or corporation.
  Finally it can be harder to get financing in the name of your business if you haven’t formed an entity; after all, without a formal business structure there’s really no distinction between you and your business. While most small business credit cards don’t require your business to be an LLC or corporation, there are some small business lenders that won’t lend to sole props.

• How much money should you start an LLC with?

  The amount of money an entrepreneur needs to start an LLC depends completely on the business you plan to start. A business providing an online service will have much smaller startup costs than a manufacturing company, for example. Look at other businesses in your industry to get an estimate of how much it costs to start that type of business.

• Can one LLC do multiple things?

  Yes. One LLC can operate multiple businesses underneath it by using a separate Doing Business As (DBA) name for each. This name is also called an “assumed name.” Each DBA must be different than the name of the LLC. You’ll want to complete a name search before deciding on a DBA to make sure that the name is available and then complete the name reservation. Filing requirements for DBAs vary depending on state and local laws, so be sure to check them before you register your names.

• What is the highest position in an LLC?

  President is the highest position you can hold in an LLC. The operating agreement outlines management responsibilities and typically gives the president power to manage the company. A president can open a bank account and take out a loan for an LLC, for example.

• Does having an LLC affect debt?

  It can. An LLC is a separate legal entity from the business owner. Therefore, if you take out debt under the LLC, loan payments do not affect your personal credit. Being late on a business loan payment will not be reported to personal credit bureaus — as long as you maintain the separation of business and personal finances, also called the corporate veil.

• Do I need a DBA for my LLC?

  Most LLCs don’t require you to have a Doing Business As (DBA) name, but it may be a good idea. If you came up with your LLC name without thinking about branding, you might want to register a DBA so you can operate under a different, more marketing-friendly name. However, it’s a good idea to check your local and state laws (and consider using a professional service) before deciding that you don’t need a DBA for your LLC.