For both seasoned entrepreneurs and brand-new business owners, it’s important to know what to expect when you get help starting an LLC online. Utilizing a new business formation service can help you get up and running quickly. You may be asking yourself, what is the bestLLC company? We at the MarketWatch Guides team have done the research for you. We’ve rounded up the best LLC formation services and documented their pros and cons, best uses, and rankings of common features. Bookmark this guide for your business planning process, so we can help you choose the best LLC service for your new business.
The Best LLC Services of 2024
Here are our top picks for the best and most reputable online LLC services in 2024:
- Most Comprehensive: ZenBusiness
- Best for Business Building:Tailor Brands
- Best Legal Support: LegalZoom
- Best for Registered Agent Services: Northwest Registered Agent
- Most Cost Effective: Bizee (Powered by Incfile)
- Business Specialist Offered:Swyft Filings
Read our full LLC methodology and see how we test and review products.
ZenBusiness Most Comprehensive
4.9
BBB RatingA+Founded2015
ZenBusiness Overview
Are you a new business owner? Do you anticipate having lots of questions about how to form your LLC? Then, we suggest ZenBusiness, as it has extended customer service hours, including on the weekends. If you need help with running your business after forming it, ZenBusiness can also help with services for registered agents, taxes, brand elements and more. Read our ZenBusiness review for more information.
Who it’s best for: ZenBusiness is best for new business owners who need comprehensive packages to start, grow and run their companies. You may also benefit from this provider if you prefer attentive, regularly available customer support.
Alternatives: Companies looking for an LLC service provider with a more robust free plan might consider Bizee, which includes a free year of registered agent services.
ZenBusiness Highlights
- $0 to $299, plus state fees
- 700,000 businesses formed
- Offers registered agent services
- Worry-free compliance included
ZenBusiness Pros and Cons
Pros Customizable packages so you’re not stuck paying for what you don’t use Intuitive, user-friendly interface and interactive formation process with help at every step of the way Excellent customer service – you can get quick answers to your questions and move forward with planning your business Public benefit corporation so you can feel good about paying for their services Cons Registered agent service and EIN request aren’t included in base price Can’t give legal or tax advice or provide legal representation Some hidden fees: $0 plan renews at one year at same price as Pro plan
Cost of ZenBusiness
The most basic ZenBusiness LLC package comes with a special price of $0 for first-time users, plus state filing fees (cost varies by state). The Starter package will automatically renew annually for $199 starting the second year unless you cancel your membership before that date.
The ZenBusiness LLC Starter package is a great option if you need to create an LLC or corporation and don’t mind waiting for the five- to seven-day processing time to get operations up and running. If you need to file more quickly, you can pay a fee for expedited filing.
ZenBusiness’s mid-tier Pro package costs $199 per year, plus state fees. It includes everything in the Starter package plus expedited shipping and operating agreement template. This makes Pro an attractive choice, as it offers a package that an entrepreneur needs to get their business filed quickly and running smoothly.
Lastly, there’s the Premium option, the most elite ZenBusiness LLC package, which comes with a $299 annual price tag, plus state filing fee. Premium includes rush business processing, business website and email creation, plus domain name privacy and a business email address.
Tailor Brands Best for Business Building
3.8
BBB RatingNot AccreditedFounded2015
Tailor Brands Overview
Tailor Brands is an all-in-one, business-building platform that specializes in branding, making it a unique provider for LLC formation services. If you’re starting your LLC completely from scratch and need a logo, website, social media presence and other marketing and branding elements, Tailor Brands has you covered. Read our Tailor Brands review for more information.
Who it’s best for: Tailor Brands is meant for new business owners who need assistance beyond preparing and filing LLC formation paperwork. It has services for other operational verticals of a business, including marketing, branding, sales and finance.
Alternatives: Business owners who want more legal guidance and compliance support may want to consider LegalZoom.
Tailor Brands Highlights
- $0 to $249, plus state fees
- Option to add on logo creation and website design
- Trademark, permits, taxes and bookkeeping services offered
- Option for expedited processing
Tailor Brands Pros and Cons
Pros $0 start plan option plus state filing fees Option to add on the additional services you need Offers branding, marketing and website services Cons Registered agent and EIN services are not included in any plans Low- and middle-tier packages have a wide jump in cost (from $0 to $199) No access to a business attorney
Cost of Tailor Brands
Tailor Brands provides three pricing tiers: Lite, Essential and Elite. Its most basic package, Lite, is free plus state filing fees and covers the bare minimum of their services, which is the formation of your LLC. Registered agent service, EIN and annual compliance services can also be added to this package at a cost.
Next up is their Essential plan which, for $199, plus state filing fees, includes LLC formation, expedited processing, annual compliance and operating agreement services. Customers can also add on EIN or registered agent service to this plan at an additional cost.
Tailor Brands’ highest level package, Elite, is $249 plus state filing fees and includes everything in the Essential plan plus a one-year free domain, eight free logos, a digital business card, website builder, social media post maker and business card tools. Registered agent service and EIN can also be added to the Elite plan at an additional cost.
LegalZoom Best Legal Support
4.8
BBB RatingA+Founded2001
LegalZoom Overview
Do you think you will have ongoing legal needs? Then, we recommend LegalZoom because you can customize its suite of legal services. In addition, LegalZoom offers unlimited 30-minute calls with professional business attorneys who can help you navigate complex legal matters. Take a look at our full LegalZoom review for more information.
Who it’s best for: LegalZoom is useful for companies that need ongoing legal support in addition to help with the formation process. Additionally, brands with bigger budgets are better positioned to benefit from LegalZoom, as its services can be expensive.
Alternatives: If you want a more streamlined provider that offers just the basics, you might want to consider Northwest Registered Agent or Bizee.
LegalZoom Highlights
- Over 2 million businesses formed
- $0, plus state fees
- Offers legal services
- In business since 2001
LegalZoom Pros and Cons
Pros Well-known, well-established company that has helped more than 2 million entrepreneurs start businesses Lawyers of various specialties available across all 50 states 60-day money-back satisfaction guarantee Cons LLC formation packages are more expensive than competitors Registered agent services are more expensive than competitors Customer support could be improved (based on our team’s experience and other user reviews)
Cost of LegalZoom
Compared to other competitors in the legal space, we found LegalZoom’s LLC formation cost to be more expensive, which is not very surprising considering their reputation and the attorney review process they guarantee.
Depending on your needs, you may pay a flat fee, monthly membership or annual membership price. Plans start at $16.59 per month but can get as high as $279. What we like about LegalZoom’s offerings is that there is plenty of variety, with 11 plans advertised and plenty of opportunities for add-ons. This ensures you can get exactly what you need for your business and avoid paying for services you don’t want.
Northwest Registered Agent Best for Registered Agent Services
3.8
BBB RatingA+Founded1998
If you want to outsource your business’ registered agent duties to a third party, we recommend Northwest Registered Agent. Its basic LLC package includes registered agent services built into the base price. Take a look at our Northwest Registered Agent review for more details.
Who it’s best for: Northwest Registered Agent is designed for companies operating in multiple states or planning to expand. Northwest offers a national registered agent service at a discounted price for companies that operate in five or more states.
Alternatives: Business owners who want more tools and services to run and grow their new companies might consider a more comprehensive provider like ZenBusiness or Tailor Brands.
Northwest Registered Agent Highlights
- $39, plus state fees
- DIY option
- Services 3 million businesses
- Registered agent service included
Northwest Registered Agent Pros and Cons
Pros Free DIY option Option to skip initial state fee by paying monthly Same business day filing Prompt and personal customer support Cons Doesn’t offer legal services Few customer reviews Less well-known than competitors
Cost of Northwest Registered Agent
Northwest offers a variety of LLC formation pricing options for customers. Your options for using Northwest’s formation services include DIY, free account or pay in full.
With Northwest’s DIY option, you’ll simply download the forms you need and take care of filing yourself with the help of Northwest’s state-specific informational pages. This doesn’t require payment or creating an account — you’ll only be responsible for paying your state’s filing fees.
Northwest also offers to walk you through the formation process for free. When you make a free account with Northwest, you’ll be given online tools for LLC formation, maintenance walkthrough and company document creation. All you’ll have to pay is your state’s filing fee.
Bizee Most Cost Effective
3.9
BBB RatingNot AccreditedFounded2004
Bizee Overview
If you have a tight budget to get your new business off the ground, Bizee is the most inexpensive of the LLC service providers on our list. With the base plan, you only pay the state filing fees. Plus, you get a free year of registered agent services. Read our full Bizee review for more details.
Who it’s best for: Bizee is useful for entrepreneurs who need budget-friendly LLC formation services to jumpstart their companies.
Alternatives: Those looking for more support with growing and running a business might consider a more comprehensive provider like ZenBusiness or Tailor Brands.
Bizee Highlights
- $0 to $299, plus state fees
- 800,000 businesses serviced
- Free registered agent for one year
- Banking and bookkeeping services offered
- Not BBB accredited, but did receive 4.83/5 stars via customer reviews
Bizee Pros and Cons
Pros Free first year for formation service and registered agent service Fast turnaround times, including same-day filing, available at higher package tiers Lower prices across the board than competitors Unlimited LLC name searches Cons EIN application not included in package Less guidance during formation process than competitors Limited customer support availability Lower website usability than competitors
Cost of Bizee
The most basic Bizee LLC package is Silver, which includes all of the company’s services for free for the first year — you just have to pay your state’s filing fee (which varies by state). The Silver package will automatically renew for $119 starting the second year unless you cancel your membership before that date.
Next up is the Bizee LLC Gold membership package, which is priced at $199 per year plus the state filing fee. Though that’s a big jump from free, after reviewing what Gold has to offer, we feel it offers good value — especially for first-time business owners.
Lastly, Bizee’s most elite Platinum package comes with a $299 annual price tag, plus the state filing fee. Platinum and Gold are pretty identical when it comes to features offered, except that Platinum includes a web domain, contract templates and expedited filing with the state, which can range between two to five business days, depending on the state.
Swyft Filings Business Specialist Offered
4.2
If you need to set up your business in a hurry, Swyft Filings can help. True to its name, Swyft Filings has some of the fastest turnaround times in the industry with an average of seven to 10 business days. Swyft Filings also assigns every customer a business specialist to answer questions and review paperwork. Take a look at our full Swyft Filings review for more information.
Who it’s best for: Swyft Filings can help business owners who need quick results. You could also benefit from Swyft Filings if you want a personalized approach to customer support with a dedicated business specialist.
Alternatives: Consider ZenBusiness or Tailor Brands if you want more services and tools to help you with ongoing business management.
Swyft Filings Highlights
- Over 250,000 businesses formed
- $0, plus state fees
- Fast processing times
- Business Specialists
- Not BBB accredited, but did receive 4.25/5 stars via customer reviews
Swyft Filings Pros and Cons
Pros Among lowest base prices on the market Option to pay in installments Fast turnaround times for filing Cons Registered agent service and EIN application not included in base price Fees for additional services add up quickly Basic package doesn’t cover all formation paperwork
Cost of Swyft Filings
Swyft Filing’s Basic Package is $49 (+ state fees) and will cover some of the essential components to register your business. This includes things like ensuring your business name is available, preparing and filing documents for formation, and enabling online access to documents.
The Standard Package costs $149 (+ state fees). In addition to the elements listed in the Basic package, it also includes EIN, operating agreement, custom banking resolution and organizational minutes.
Lastly, the premium package comes in at $299 (+ state fees). You’ll receive all the components in the two previous packages, as well as state documents delivered electronically and a customized digital LLC kit.
Doola.com Best for Compliance
3.7
Doola.com offers LLC and Corporation formation services along with business management software. While you can purchase services individually, you’ll get the best value if you purchase a bundled package that includes the basics for your LLC, like registered agent services and EIN application. The Total Compliance package by Doola.com can help busy owners focus more on day-to-day tasks and less on taxes and filing.
Who it’s best for: Doola.com is best for owners who want to focus their energy on daily business tasks and would prefer to leave accounting, book management and regulatory tasks up to someone else.
Alternatives: LegalZoom may be better for those who want legal assistance with their business formation, and ZenBusiness might be more affordable if you want to customize your own package.
Doola.com Highlights
- Cost ranges from $297 to $3,600, plus state fees
- Offers free one-on-one business consultation with a compliance specialist
- Registered agent service and EIN application included in Starter package
- Account manager included with Total Compliance package
Doola.com Pros and Cons
Pros Starter Package includes registered agent service Upfront payment helps reduce cost of highest tier package by 45% CPA and tax filing offered with Total Compliance package Cons No $0 starter package Individual services are above-average prices
Cost of Doola.com
Doola.com offers a Starter package and a Total Compliance package.
The most basic LLC formation package from Doola.com is the Starter package, which costs $297 + state fees and can be split into monthly payments. This package includes filing, EIN application, operating agreement, registered agent service, a business address and access to the Doola online community.
The Total Compliance package is $300 per month, or $167 per month if billed annually at $1,999 + state fees. This package includes the Starter Package plus expedited processing, IRS filing, bookkeeping software, certified public accountant (CPA) consultation, annual state filings, an account manager and several bonuses like a custom business website.
The Total Compliance package is pricey at nearly $2,000, but it does include several helpful features that a new business owner would benefit from, like a consultation with a CPA and tax filing by a professional. This could be a good choice if you want to focus exclusively on running your business and less on accounting.
How Do the Best LLC Formation Companies Compare?
Our Top Pick
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| Cost | $0+ | $0+ | $0+ | $49+ | $0+ |
| Rating | 4.9 | 4.8 | 3.9 | 4.2 | 3.8 |
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| Operating Agreement | * | * | * | * | * |
| Registered Agent Service | * | * | + | * | * |
| EIN | * | * | * | * | * |
| License Reports | * | * | * | * | |
| Compliance | * | * | * | ||
| Expert Help | * | * | |||
| Tax Advisory | * | * | |||
| Tax Preparation | * | * | * | ||
| Guarantee of Acceptance | * | ||||
| Start Now | Start Now | Start Now | Start Now | Start Now |
Our Top Pick
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| Cost | $0+ | $0+ | $0+ | $49+ | $0+ |
| Rating | 4.9 | 4.8 | 3.9 | 4.2 | 3.8 |
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| Operating Agreement | * | * | * | * | * |
| Registered Agent Service | * | * | + | * | * |
| EIN | * | * | * | * | * |
| License Reports | * | * | * | * | |
| Compliance | * | * | * | ||
| Expert Help | * | * | |||
| Tax Advisory | * | * | |||
| Tax Preparation | * | * | * | ||
| Guarantee of Acceptance | * | ||||
| Start Now | Start Now | Start Now | Start Now | Start Now |
How Much Do Online LLC Services Cost?
Starting an LLC online comes with varying costs, depending on the service provider you choose. While some services offer basic packages at affordable rates, others might have premium prices for comprehensive features. Add-ons like EIN application assistance, operating agreement templates and compliance alerts can also influence the overall cost.
To give you a clearer picture, here’s a price comparison table that breaks down the annual costs of different LLC services and their respective offerings:
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| Our Rating | 3.8 | 3.8 | 3.9 | 4.9 | 4.8 |
| Total Upfront Cost | $89 | $298 | $70 | $298 | $557 |
| Total Cost Over 5 Years | $989 | $1,294 | $1,302 | $2,286 | $2,149 |
| Filing + Compliance Cost / Year | $100 | $0 | $119 | $199 | $199 |
| Registered Agent Cost / Year | $125 | $249 | $119 | $199 | $199 |
| EIN Cost / Year | $50 in year 1 only | $99 in year 1 only | $70 | $99 | $159 in year 1 only |
| Start Now | Start Now | Start Now | Start Now | Start Now |
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| Our Rating | 3.8 | 3.8 | 3.9 | 4.9 | 4.8 |
| Total Upfront Cost | $89 | $298 | $70 | $298 | $557 |
| Total Cost Over 5 Years | $989 | $1,294 | $1,302 | $2,286 | $2,149 |
| Filing + Compliance Cost / Year | $100 | $0 | $119 | $199 | $199 |
| Registered Agent Cost / Year | $125 | $249 | $119 | $199 | $199 |
| EIN Cost / Year | $50 in year 1 only | $99 in year 1 only | $70 | $99 | $159 in year 1 only |
| Start Now | Start Now | Start Now | Start Now | Start Now |
What’s the Average Cost of Online LLC Services?
Our data shows that our users pay an average of $195 when using an online LLC service. We broke down the numbers to show what they invested in and where they found the most value when choosing a service.
While nearly 20% of our business owners chose a $0 + state fees package to start their LLC, more than half preferred a middle-tier package. This means that readers want more than just LLC formation and generally find more value in the services included in a middle-tier package than any other option. Middle-tier packages usually include things like an operating agreement, expedited processing, and, oftentimes, registered agent services. High-tier packages are the least preferred option but still capture the attention of over 8% of our users. These packages range in price from $249 to $3,600, but they include almost everything you would need to start and run your business.
| What Our Data Tells Us | |
| Average Price Paid to LLC Formation Company | $195 |
| Users That Pay $0 | 19.7% |
| Users with a Low-Tier Package | 37.8% |
| Users with a Mid-Tier Package | 53.7% |
| Users with a High-Tier Package | 8.4% |
When Is the Right Time To Start an LLC?
Over the last four years, between 310,000 and 617,000 businesses have been formed every month. So when is the best time to start an LLC? This depends on a couple of factors like what your goals are, where you’re located and what kind of business you have.
If you’re hoping to grow your informal business, like a sole proprietorship or partnership, into a statewide or multi-state operation, the best time to start an LLC is as soon as possible. As your business expands, your liabilities expand with it. This opens your business up to significant risk without any protection. An LLC will protect your personal assets from the liabilities of the business and can make it easier to grow your operations.
Similarly, if your business is thriving and making a significant profit, any personal liability you take on can impact your business. For example, if you get in a car accident and are sued for damages – without an LLC, your business assets could be up for grabs if you lose the lawsuit and owe compensation.
Businesses that inherently carry more risk also benefit most from early LLC formation. For example, a business with a storefront that welcomes patrons on a daily basis is generally more at risk of being sued than a business that operates from a member’s home and sells products over the Internet. At any moment, an accident could happen that could make your business vulnerable to a lawsuit, like a customer slipping and falling in your store.
Timing also might make more of a difference in some states than others. Some states have compliance rules that make some years better to form an LLC than others. For example, in Nebraska, annual reports are due on April 1 of odd years. So, an LLC formed in the year 2024 will file its first annual report by April 1, 2025, while an LLC formed in 2025 won’t file its first report until April 1, 2027.
Should You Use an Online LLC Formation Service?
Starting an LLC can be a complex process, and while the DIY approach might seem appealing due to its low price tag, it comes with its own set of challenges. Using an online LLC service offers the advantage of expertise and experience. These services have streamlined the formation process, ensuring that all necessary documents are filed correctly and on time. They also often provide additional resources, such as:
- Operating agreement templates
- EIN application assistance
- Compliance alerts
- License and permit applications
- Registered agent service
- And more
On the other hand, attempting a DIY LLC formation can be time-consuming and fraught with potential errors. While there might be an initial cost-saving in avoiding service fees, the potential for mistakes and the time investment required can make the DIY route more costly in the long run. Using an online LLC formation service provides peace of mind, ensuring that the formation process is handled professionally from start to finish.
Forming an LLC on your own might make more sense for some entrepreneurs than others, but with low-cost starter packages, using a formation service to start your business can be helpful for anyone looking to start an LLC. This is especially true if you plan to hire a third party to handle any other services needed to run your business, like a registered agent or CPA.
To learn more about whether you should DIY or hire an LLC service, ask yourself the following questions:
What Features Are Offered By the Best LLC Services?
The LLC formation process is largely the same across the board, with some key differences in each state. Most online LLC formation companies offer similar services — some included in various package tiers, and some available as add-on services. Read more to learn about each feature.
Business Name Search
No matter where you are starting your new LLC, you’ll need to choose a unique name that can’t be confused with another business or government agency. You also need a designation as part of your name indicating your business type — “limited liability company,” “LLC,” “LC” or another variation, depending on what your state allows. Many formation companies offer name availability searches as part of their business formation process.
Formation Document Preparation and Filing
The critical part of the process to form your new company is filing your formation documents. Every formation company will help you fill in these documents, which are typically called “articles of organization” but can also be called “articles of incorporation” or the “certificate of formation.” These documents are generally filed with the secretary of state or other appropriate state agency.
Our Experience:
Among the LLC services reviewed, ZenBusiness stands out as offering the most comprehensive document preparation and filing services, ensuring that all necessary “articles of organization” are accurately completed and promptly filed with the appropriate state agency. Their attention to detail and efficiency make them a top choice for entrepreneurs seeking thorough assistance in this critical step of company formation.
Registered Agent Service
Every LLC is required to appoint a registered agent, which is a physical point of contact in the state where legal and tax documents can be delivered during business hours. You may find it efficient to use the same company for formation and as a registered agent service to minimize the websites you must visit — and remember login information for!
Our Experience:
Bizee stands out in the realm of registered agent services, offering a year of free registered agent service, making it a cost-effective choice for new businesses. Additionally, Northwest Registered Agent includes the registered agent service in their base price, providing both value and convenience for entrepreneurs looking to streamline their business formation and maintenance processes.
Operating Agreement Template
An operating agreement is an important tool to create which establishes the practices and policies that will govern your business. It binds the LLC owners, called “members,” to the rules you set out in the agreement. It’s a good idea to have one whether you run a non-profit. Many online LLC formation services offer operating agreement templates for additional fees. They may assist you in customizing your agreement, as well.
Our Experience:
ZenBusiness and LegalZoom are notable LLC services that offer operating agreement templates, ensuring that businesses have a foundational document to govern their practices and policies. ZenBusiness, in particular, provides this service as part of their comprehensive packages, making it convenient for members to establish clear rules and guidelines for their LLC.
EIN Application
Almost every business needs an employer identification number, or EIN, which is free to obtain from the IRS. It serves as a tax identification number that allows businesses to handle employment taxes and can serve as verification of your business’s identity for engaging in other activities like opening a business bank account. An EIN is required if you have employees or more than one LLC member, but it’s a good idea to have one even if you run a single-member LLC so you can keep your personal information separate from your business.
Our Experience:
ZenBusiness and LegalZoom both offer assistance with the EIN application process as part of their premium service packages. Other providers, such as Tailor Brands, Northwest Registered Agent and Swyft Filings, offer this as an add-on that you can tack onto any package for an additional fee. This service ensures that businesses can obtain their tax identification number without navigating the IRS process independently.
Compliance Alerts
Most LLC service providers offer calendar alerts to remind you of upcoming filing deadlines such as annual reports, such as annual reports or other annual tax obligations. Some may even take on the annual report filing responsibility for you, which lessens the hassle of keeping your business in good standing.
Our Experience:
Bizee and Tailor Brands stand out for providing lifetime compliance alerts at no extra charge, ensuring businesses stay informed of crucial filing deadlines and tax obligations. Other providers, such as ZenBusiness, offer this service but at an extra cost in addition to your base package.
Other Features
There are less common features that not every LLC service offers, but that may be available for additional fees or as part of higher tier service packages.
License Reports. Depending on your state and locality, you may be required to apply for certain business licenses. Requirements may vary depending on whether you operate a brick-and-mortar location or only have an online business. Some services will perform a search and inform you which licenses you need, and some may help you apply for the licenses.
Expert Help. Especially for LLCs with big business plans or complex needs, getting connected with a small business expert can make a difference. Some services offer consultations with small business experts, online courses taught by experts or other resources which may be included or as an optional upsell.
Tax Advising and Preparation. You may have access to a tax consultation, advisory service or even help with preparation depending on what your LLC service offers. If your LLC service doesn’t offer this, it may be worth contacting your own tax professional since mistakes in this area can be costly.
Guarantee of Acceptance. Not every LLC formation service offers a money-back guarantee that your paperwork will be accepted by the state. We recommend going with a service that does offer this guarantee, since filing mistakes can be costly if you’re required to pay the filing fee again or file amendments to your formation documents later.
Follow the Latest in the 2024 BOIR Litigation
The federal BOI reporting (BOIR) mandate in the Corporate Transparency Act (CTA) is currently being litigated across the country, with at least one federal court ruling that its enforcement against plaintiffs in the case was unconstitutional. As of now, all entities, except plaintiffs in that case, are still required to comply with BOIR. However, it’s possible that BOIR may be revoked in future months if a case against it wins in the Supreme Court or if the mandate is repealed. We’ll update this page with more information on legal proceedings as soon as it becomes available.
What Are the Pros and Cons of an LLC?
Choosing an LLC as a business entity comes with its own set of advantages and disadvantages. While it offers flexibility and protection to its members, there are also certain complexities and potential costs to consider.
Pros
Asset protection: One of the primary benefits of an LLC is the limited liability it offers. Members are typically not personally liable for the company’s debts or liabilities, protecting personal assets from potential business creditors.
Tax flexibility: LLCs have the option to be taxed as a sole proprietorship, partnership or corporation, allowing members to choose the most beneficial tax structure for their specific situation.
Operational flexibility: Unlike corporations, LLCs are not required to have a board of directors or hold annual meetings, making management and decision-making processes more straightforward.
Cons
Self-employment taxes: Members of an LLC may be subject to self-employment taxes on their share of the company’s profits, which can be higher than corporate tax rates.
Varying state regulations: Each state has its own rules and regulations for forming and operating an LLC, which can make interstate business operations more complex.
Limited growth potential: Unlike corporations, LLCs cannot issue stock, which might limit their ability to raise capital and expand.
How Do You Start an LLC?
Starting an LLC is a straightforward process that provides entrepreneurs with a flexible business structure, offering both legal protection and operational ease. While the specific steps can vary by state, there are general guidelines that apply universally.
Here’s a brief overview on how to start an LLC:
- Name your LLC: Choose a unique name for your LLC that is distinguishable from other businesses in the state, meets the state’s naming requirements and doesn’t imply government affiliation.
- Choose a registered agent: Every LLC must designate a registered agent with a physical address in the state of formation.
- File formation paperwork: Submit the necessary formation documents, often referred to as “articles of organization,” to the state’s Secretary of State office to officially register your LLC.
- Draft an LLC Operating Agreement: While not mandatory in every state, it’s advisable to have an operating agreement that outlines the rules, regulations and provisions of your business.
- Apply for tax identification numbers: Obtain a Federal Employer Identification Number (EIN) from the IRS, which is essential for tax purposes and other business activities.
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| Provider | MarketWatch Rating | Full Review |
|---|---|---|
| ZenBusiness | 4.9 / 5 | ZenBusiness Review |
| Bizee | 3.9 /5 | Bizee Review |
| Rocket Lawyer | 4.1 /5 | Rocket Lawyer Review |
| Northwest Registered Agent | 3.8 /5 | Northwest Registered Agent Review |
| LegalZoom | 4.8 /5 | LegalZoom Review |
| LegalShield | 3.9 /5 | LegalShield Review |
| Tailor Brands | 3.8 /5 | Tailor Brands Review |
| Swyft Filings | 4.2 /5 | Swyft Filings Review |
The Bottom Line
Through hours of research, our team found ZenBusiness to be the best provider for comprehensive LLC services. Honorable mentions go out to LegalZoom, Swyft Filings, Northwest Registered Agent, Tailor Brands and Bizee. We found these six LLC formation providers to be reliable and helpful, though they each have their own advantages based on your particular needs.
Frequently Asked Questions About LLC Services
An LLC is a type of business entity. The acronym stands for limited liability company, and there’s a lot to that name, in fact. Unlike asole proprietorship, an LLC is set up to protect its members from being personally liable should the business be sued or have financial difficulties (such as not being able to pay off debt). This keeps your personal assets safe. You would be afforded these same protections even if you were the only member of the LLC.
One other reason the LLC business structure is popular is because of the tax benefits. As the member of an LLC, you can decide whether to be taxed as a business or as an individual. If you choose the latter, you report the money you make from your LLC as self-employed income. If you instead elect to be taxed as an entity, your LLC will be taxed as an S-corporation. This allows you to save on Medicare and Social Security taxes. It all depends on which option makes the most sense for your business.
Every state has different rules, paperwork and fees for forming an LLC. When you use a professional service to set up your LLC, all requirements will be accounted for so nothing gets left behind. That means you don’t have to track down any state-specific paperwork or worry about missing a deadline for filing. The best LLC services supply you with the correct forms for your state and manage the incorporation process from start to finish, helping you avoid any costly mistakes. Have a question? There’s a customer support staff ready and waiting – you’re not wading into the business formation abyss by yourself.
To help you decide which is the best online LLC service to consider for your needs, we at the Guides Legal Services team compared five top contenders.
The LLC service providers we reviewed each have a unique selling point. ZenBusiness offers comprehensive services for LLC formation and operation. LegalZoom uses its team of business attorneys to offer legal advice. And, Tailor Brands offers business branding services alongside LLC formation services. Other honorable mentions include Bizee, Swyft Filings and Northwest Registered Agent.
Unfortunately, every state has filing fees that can’t be avoided when starting an LLC. Don’t be misled by companies offering a “free LLC service” — you’ll still be responsible for state filing fees even if the service provider doesn’t charge its own fee.
As mentioned, each state sets its own laws and regulations governing LLCs. The best LLC services can help make sure that you provide the correct paperwork for your location. To learn more about what might be required to start an LLC in your state, take a look at these helpful articles:
Methodology
To provide consumers with objective and accurate information, our credentialed legal experts created a comprehensive rating system for Limited Liability Company (LLC) services. We researched five online LLC, registered agent and trademark registration services, including ZenBusiness, LegalZoom, Swyft Filings, Northwest Registered Agent and Bizee (formerly Incfile).
We conducted a survey in 2024 of 200 professionals who were currently using LLC services or had used LLC services within the past year. We analyzed the results of this survey to determine the following rating criteria:
- Features (20%)
- Value for Money (25%)
- Customer Service (20%)
- Usability (25%)
- Reputation and Credibility (10%)
Visit the full LLC methodology page for more details on our rating system.
Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
