At the EDC we’ve tested dozens of LLC services on the basis of price, formation speed, quality of customer service, and ease of sign up.
We’ve reviewed the top 5 for you, below.
$39 + State Fees
$0-$299/yr + State Fees
$0-$299 + State Fees
$0–$299 + State Fees
LLC Formation $0 + State Fees
We know who provides the best LLC services because we’ve formed a lot of LLCs with a lot of different companies, and we’ve taken notes.
A prime directive of the EDC is to remove barriers to entry in the small business world. We aim to dispel the myth that a limited liability compnay (LLC) is expensive to start or require a lot of extra maintenance or oversight or are only for very sophisticated businesses. The truth is that LLCs are inexpensive to form and are simple to maintain, and the companies that we review on this page can all help with both.
Part of achieving this goal has been to help narrow the field of services you might want to use. We’ve tested and formed LLCs with dozens of services. We’ve put their customer services to the test. We’ve tried their other business products. The following are the companies that have provided the most reliable and informative services at the best prices.
LLCs are a a great choice for most small businesses because they provide the same liability protection provided by a corporation, but they have minimal maintenance requirements. They also allow you the flexibility of paying taxes as a corporation or a sole proprietor.
LLCs are the best of both worlds.
LLCs offer liability protection, which means that if someone sues your business, or if your business defaults on a loan, then your personal assets will be considered separate from your business assets.
If your business is sued (it happens), then your personal assets like your 401(k) or your house will be shielded from any settlements (under normal circumstances).
Limited Liability Companies (LLCs) offer flexible taxation, allowing them to be taxed as pass-through entities or corporations, depending on the choices made by the LLC members. Here’s a brief overview of how LLCs are taxed:
Default Taxation (Pass-through): By default, the IRS does not tax LLCs directly. Instead, profits and losses “pass through” the business to the LLC members, who then report this income on their personal tax returns. This means that the business itself does not pay income tax, but the members do, on their share of the profits.
This is the same way that sole proprietors are taxed. So, in this way you are not adding any additional complications by forming an LLC. But, LLCs can also choose to be taxed as a corporation.
Corporate Taxation: An LLC can elect to be taxed as a corporation. If this election is made, the LLC pays corporate income tax on its profits at the corporate tax rate. Any dividends distributed to members from the LLC’s after-tax profits are then taxed again on the members’ personal tax returns.
LLCs are a simple way to help protect your personal assets from potential legal claims against your business. LLCs are also flexible tax structures. They add credibility to a business and offer privacy protection. They’re a smart choice for structuring a small business.
LLCs are formed on the state level, so depending on which state you live in, this answer will differ. Most states require an annual report to be filed for LLCs. This might sound intimidating, but for most states, this requirement is really just an annual fee with minimal information requirements. Most fees range from $100-$300. Read our state annual report guide for specific information on your state.
A registered agent is an official go-between for the state and an LLC owner. Most states require that LLCs maintain a registered agent. An LLC owner can either serve as their own registered agent or hire a professional. The requirements to serve as your own registered agent are minimal. Typically you must simply have a physical address in the state in question and be willing to staff that physical location during all business hours.
Hiring a professional registered agent is beneficial for most small businesses because they offer privacy and they free business owners up to not have to staff an office at all times. Read our registered agent guide for more details in your state.
You don’t need a service to start an LLC, but online formation services have made it so affordable and fool-proof that unless you’ve formed a few LLCs already, we usually recommend using one. It’s worth the support alone to be able to talk to an expert if you get hung up.
LLC formation has become a competitive environment. To remain relevant, the best services have evolved over the years to cater to become full service small business management tools. Most companies now offer additional valuable services, including:
Read summaries of our conclusions here. For more details, read the full reviews. Choose the company that’s best for you and follow the link to get your LLC started today!
Form an LLC With Northwest Registered Agent
Northwest Registered Agent charges $39 for an LLC, but they include things that the free LLC services charge extra for, like an operating agreement and expedited filing. It’s nice to know if you get stuck you can call and speak to a knowledgeable human in the Pacific Northwest. Their customer service is actually what they’re most popular for. They also feature 1 year of free registered agent service, and they do not sell customer data. Privacy advocacy is baked into their business model. Read the full Northwest Registered Agent Review for more!
Zen makes forming an LLC as easy as texting a friend. If you don’t want to know how the sausage gets made, hire Zen. They’ll ask you a series of questions about your business and give you back an LLC that’s perfect for you. Zen is especially good for very busy and very new business owners, who might let an annual report slide unnoticed. read the full ZenBusiness Review for more!
Best $0 LLC Formation
Bizee was recently rebranded from Incfile. They offer multiple formation packages so you can get exactly what you need. There are no added services with Bizee’s free LLC package, but if you don’t want registered agent services don’t need an operating agreement or expedited filing, then it’s hard to go wrong with Bizee. Lifetime compliance alerts! Read the full Bizee Review for more!
Form an LLC With Legalzoom today!
Legalzoom is the 800 pound gorilla in the room of online business services. They are the best recognized brand and have a long track record of reliability. You can rely on them to get your business set up. They offer a ton of additional services too. They are more expensive than the other sites we review, but sometimes it’s worth it to pay a little extra for familiarity. Read the full Legalzoom Review for more!
Form an LLC with Tailor Brands today!
Tailor Brands has invested heavily in their website and their concepts are good. The signup process is intuitive and quick. What makes Tailor Brands stand out is their branding and logo tools. With one checkout, you can get an LLC, a company logo, domain, website design, and more. Read the full Tailor Brands Review for more!
Year 1 Cost
$39 w/ Registered Agt Svc
Year 2 Cost
$125 Registered Agt Svc
Standard
1 day
Expedited
Included
Operating Agreement
Included
Mail Scanning
Included
Annual Report Reminders
Included
Address Privacy
Included
Data Privacy
Included
Year 1 Cost
$199 w/ Registered Agt Svc
Year 2 Cost
$199 w/ registered Agt Svc
Standard
5-14 days
Expedited
1-3 days ($99)
Operating Agreement
$125
Mail Scanning
–
Annual Report Reminders
$199
Address Privacy
–
Data Privacy
–
Good online LLC formation services add a lot of value and alleviate a lot of the pain involved in the LLC formation process.
They make Starting an LLC safe and easy
They have relationships and back channels with state offices, eliminating your need to deal with clunky bureaucracies
They include extensively trained customer service professionals to deal with any obstacles or peculiarities you might run into when forming your LLC
They offer online accounts with digital access to all your documents as well as state compliance notifications
They offer other valuable products like registered agent services, which can be managed in those same accounts
If you have an unusual situation or sophisticated strategy in mind, you may want to consult an attorney. Most online services are willing to facilitate a double LLC or series LLC, but won’t be able to ensure its legal adherence like an attorney will.
Absolutely! Filing Articles (or Certificates) of Organization with your Secretary of State is, in most cases, not a wildly complicated endeavor. Online services are just very affordable time savers that can save you from common pitfalls and a lot of time researching things like the difference between a principal address and a business address. Good LLC formation services also help ensure your privacy by allowing you to use their address instead of yours wherever possible. They also offer fun free asides like annual report reminders.
You can operate as a sole proprietor without forming an LLC, but your personal assets will be exposed until your formation paperwork is submitted. For this reason, we recommend forming your LLC before you conduct business.
There are two costs to forming an LLC: • state fees • formation service or legal fees State fees are unavoidable and vary by state between $40(KY) and $500 (MA). Formation services charge to create the paperwork for your LLC and file that paperwork with the state. You can do this yourself, but the cost for their experienced help is relatively low (we know of two that are free), between $0-$300.
No, you don’t need to be in the United States to form an LLC. You don’t need to be an American Citizen, either. Just about anyone can form an LLC.
Value
Upsells and Spam
Customer Service
Ease of Signup
Formation Speed