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Best LLC Services In 2025

Updated: Mar 13, 2025, 8:48am
Written By
Senior Staff Writer
Reviewed
Deputy Editor, SMB
& 1 other
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Whether your business is in the planning stages or is firmly established, it may benefit by being formed or reformed as a limited liability company (LLC), which is also referred to as a limited liability corporation. LLCs offer a higher level of financial and legal protection for their owners than a sole proprietorship or partnership, while providing tax and management benefits over forming as a corporation. While LLCs are usually easier to form than corporations, businesses can reap considerable benefits by tapping the expertise and speed of LLC services.

Our review of the best LLC services identifies the optimal option for many types of SMBs. A company that wants to combine LLC formation with other legal and business services will find an all-encompassing service such as Rocket Lawyer or LegalZoom fits the bill, while startups or smaller businesses can save money by opting for the state-fee-only formation services available from Inc Authority and Bizee. The sweet spot between these two categories are the low-cost packages from Northwest Registered Agent and Filenow, both of which throw in a year of free registered agent service.

Read more

Compare the Best LLC Services of 2025


Best for Comprehensive Legal Services

Rocket Lawyer

Rocket Lawyer
4.8
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

$99

Employer Identification Numbers

Yes

E-Signature Support

Yes

Rocket Lawyer
Learn More Arrow

On Rocket Lawyer's Website

$99

Yes

Yes

Expert Take

Forming an LLC is just one of the legal matters SMBs must deal with. Combining their LLC formation with a full slate of legal services geared to the needs of small and midsize businesses can save companies time and money. When you purchase a Rocket Legal+ membership from Rocket Lawyer, you get one LLC or nonprofit formation as part of your $19.99 monthly charge (annual subscription required), and you pay only your state’s processing fees.

Rocket Lawyer’s other subscription option is its standard Rocket Legal package, which costs $39.99 a month but charges $99.99 for an LLC or nonprofit formation. Both Rocket Legal and Rocket Legal+ subscriptions come with many of the legal services SMBs need such as access to the company’s library of legal and business documents, e-signatures for contracts and other documents, and an online portal for getting answers to your legal questions.

Other legal services available with a Rocket Legal+ membership are registered agent for $124.99 a year ($249.99 a year with Rocket Legal), trademark registration for $349.99 plus U.S. Patent and Trademark Office fees ($699.99 plus fees for Rocket Legal) and the Legal Pro service that has paralegals and attorneys review your business and legal documents. Note that Legal Pro consultations don’t fall under attorney-client privilege.

Learn more: Read our full Rocket Lawyer review.

Pros & Cons
  • Combines LLC formation with other common legal services for SMBs
  • Annual subscription payments can be split into six interest-free installments
  • Offers a seven-day free trial
  • Doesn’t sell LLC formation services separately (subscription required)
  • Charges extra for registered agent and other legal services
  • Legal Pro service applies to a limited number of documents
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Yes
Doing Business As Formation
Added fee
Nonprofit Formation
Yes

Best for LLC Formation With Registered Agent Service

Northwest Registered Agent

Northwest Registered Agent
4.2
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

$39

Employer Identification Numbers

Added fee

E-Signature Support

Yes

Northwest Registered Agent
Learn More Arrow

On Northwest's Website

$39

Added fee

Yes

Expert Take

In contrast to Rocket Lawyer’s kitchen-sink approach that mixes LLC formation with other legal services on a monthly subscription basis, Northwest Registered Agent represents a genuine bargain. For $39 plus state fees, the company provides a complete LLC formation service with one year of registered agent service, along with free limited mail forwarding, an LLC operating agreement and access to a library of business forms and tools. After the first year, the registered agent service costs $125 per year.

If you would prefer to prepare and file your business’s LLC formation documents yourself, Northwest Registered Agent offers a free account that has all the formation documents required by your state, including articles of organization, an LLC member resolution template, LLC operating agreement and initial meeting and capitalization documents. Upgrading from the company’s free account to its paid services preserves all your current LLC records.

Learn more: Read our full Northwest Registered Agent review.

Pros & Cons
  • Low LLC formation price includes free registered agent service for a year
  • Free account includes access to LLC formation documents
  • Comes with one year of free mail forwarding and 90 days of free web hosting
  • Charges extra for employer identification numbers (EINs)
  • Beneficial ownership information (BOI) reporting costs $25
  • Expedited one-day processing costs $440
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Yes
Doing Business As Formation
Yes
Nonprofit Formation
Yes

Best Free LLC Service

Inc Authority

Inc Authority
4.1
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

Free

Employer Identification Numbers

Yes

E-Signature Support

No

Inc Authority
Learn More Arrow

On Inc Authority's Website

Free

Yes

No

Expert Take

It’s natural to respond to any “free” offer by looking for the catch. That was my reaction to Inc Authority’s claims of free LLC formation. As you would expect, getting to the LLC finish line will require paying your state’s filing and processing fees, along with other ancillary expenses. Yet the free LLC services from Inc Authority outshine those available from competing vendors. They include preparation and filing of your LLC documents, business name check, one year of registered agent service ($125 a year thereafter), an S-election form for the IRS, document storage and delivery, a tax planning consultation and analysis of your business’s finances.

There is some upsell, however. As you step through Inc Authority’s checkout wizard, you’re ultimately presented with a choice of three free options in addition to the company’s free LLC service: a free EIN or tax ID number, free website and five business email addresses or free 24-hour express processing in place of the standard seven to 10 business days. If you choose the second or third option, you’ll be prompted to add an EIN for $49. You’re also offered an S-corp amendment for $79, an operating agreement for $89 and a legal documents package for $99.

Other add-ons are minutes and resolutions for $99 and 24-hour processing for $49. Just before you find out what the “free” service is going to cost (only your state’s processing fee), you’re presented with an offer for a $77 bundle of EIN, operating agreement and one year of domain name registration.

Learn more: Read our full Inc Authority review.

Pros & Cons
  • Free LLC service includes tax and financial analysis of your business
  • One year of free registered agent service
  • Option for either free EIN, website or 24-hour express processing
  • Considerable upsell during the checkout process
  • Free service excludes an operating agreement and other legal documents
  • Limited selection of legal and business documents
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Yes
Doing Business As Formation
No
Nonprofit Formation
Yes

Best for Lifetime Compliance Alerts

Bizee

Bizee
4.1
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

Free

Employer Identification Numbers

Yes

E-Signature Support

No

Bizee
Learn More Arrow

Read Forbes' Review

Free

Yes

No

Expert Take

Topping the list of avoidable business expenses are fines levied by state and federal agencies for missing a deadline or otherwise falling out of compliance. Bizee’s two paid LLC service plans come with lifetime alerts delivered to your dashboard and sent by email or text for your business’s annual reports, BOI report, registered agent changes, business insurance and amendment filings. The service also lets you know when your business licenses and permits are about to expire for an added fee of $99.

The Bizee dashboard gives you ready access to all important documents and ensures that they’re secured. It also shows your banking and other financial and tax information. The company’s free LLC service is limited to preparing and filing your company’s articles of organization and a free year of registered agent service, but it includes the client dashboard (minus compliance alerts).

Bizee’s Standard and Premium plans cost $199 and $299, respectively, plus state fees. They include an EIN and operating agreement. Premium adds expedited filing (three days rather than four weeks) and business contract templates, which cost $50 and $150, respectively, with the free and Standard packages. Premium also gives you a domain name, business email and a business phone number for one year.

Learn more: Read our full Bizee review.

Pros & Cons
  • Standard and Premium packages offer lifetime compliance alerts
  • Client dashboard centralizes secure storage of legal and financial documents
  • Premium includes a domain name and one year of business phone service
  • Free offering excludes compliance alerts and operating agreements
  • Contract templates included only in the Premium plan ($150 as an add-on)
  • Four-week processing time without $50 three-day expedited service (included with Premium)
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Yes
Doing Business As Formation
Yes
Nonprofit Formation
Yes

Best for Fast Turnaround Times

BetterLegal

BetterLegal
4.1
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

$299

Employer Identification Numbers

Yes

E-Signature Support

Yes

BetterLegal
Learn More Arrow

On BetterLegal's Website

$299

Yes

Yes

Expert Take

One of the great business truisms is “time is money.” No new LLC wants to watch opportunities pass by as it waits for its filing paperwork to be processed. BetterLegal’s LLC formation service promises to turn around your LLC filings in as little as one business day, depending on your state. For example, filings with the states of Alabama and New York take a single business day, while those for California require three days. Most can be completed in one to two days, with the exception of Maine, which requires more than a month (25 business days).

BetterLegal’s business formation services for LLCs cost $299 plus state fees and include most of the features that “free” LLC services charge separately for: an EIN, operating agreement and banking resolution that allows you to open a business bank account. The plan serves as a one-stop shop for businesses looking to have all of their infrastructure needs taken care of at a single price such as a basic website or online store, business checking account with physical and virtual debit cards, and tax analysis and virtual tax service designed for entrepreneurs.

The price goes up quickly when you choose one or more of BetterLegal’s add-ons. They include registered agent service for $12.50 a month or $120 a year, state compliance services for $12.50 a month or $120 a year, and permit and license searches for $125 a year. Other filing services are priced separately at various rates depending on your state. These include changing the LLC name, adding or removing a member and changing your address or registered agent.

Learn more: Read our full BetterLegal review.

Pros & Cons
  • Processes your LLC filing in one or two days for most states
  • Single price covers most of the LLC services a small business needs
  • Includes a basic website or online store and business checking account
  • More expensive than many LLC services for small businesses
  • Filing services are priced separately at rates that vary by state
  • Compliance service is priced separately
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Yes
Doing Business As Formation
No
Nonprofit Formation
No

Best for Legal Forms

LegalZoom

LegalZoom
3.9
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

Free

Employer Identification Numbers

Added fee

E-Signature Support

Fee-based plans only

LegalZoom
Learn More Arrow

On LegalZoom's Website

Free

Added fee

Fee-based plans only

Expert Take

A big part of forming and managing an LLC is handling all the necessary paperwork. The free and fee-based LLC formation plans sold by LegalZoom include the standard articles of organization, and the company’s Pro and Premium packages priced at $249 and $299 plus state fees, respectively, add an operating agreement, bookkeeping tools and access to more than 150 customizable legal and business documents each year.

LegalZoom’s extensive library of downloadable legal and business form templates ensures that whatever document your business needs will be available. In addition to employment contracts and employee handbooks, they cover business policies, copyright license agreements and trademark license agreements. LegalZoom’s fee-based LLC plans help you manage other parts of your business by including an EIN, customizable Wix website for one year and unlimited e-signatures for one year.

However, several of LegalZoom’s legal and business services are included with the plans for a limited time. For example, the Pro and Premium packages give you three months’ use of the company’s bookkeeping app that renews at $9.99 a month after the trial period. Similarly, the Premium plan comes with the company’s Business Attorney plan for 30 days, after which you’re charged $49 a month automatically. The plan includes 10 pages of document reviews by attorneys, and unlimited 30-minute consultations with attorneys.

Learn more: Read our full LegalZoom review.

Pros & Cons
  • Fee-based Pro and Premium products include access to customizable legal documents
  • Small business and insurance guidance featured in free and fee-based packages
  • All plans come with a consultation with a small business specialist
  • Customizable legal documents are free only for the first year ($99 a year thereafter)
  • Bookkeeping software is free for 90 days with fee-based plans, $9.99 a month thereafter
  • Doesn’t offer expedited processing of LLC filings
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Yes
Doing Business As Formation
Added fee
Nonprofit Formation
Yes

Best for 24/7 Customer Support

Filenow

Filenow
3.8
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

$49

Employer Identification Numbers

Premium plan only

E-Signature Support

No

Filenow
Learn More Arrow

Read Forbes' Review

$49

Premium plan only

No

Expert Take

Few SMBs have access to experts who can guide them through the LLC formation process. When questions arise or problems crop up, getting fast responses from knowledgeable pros can save a business a great deal of time and frustration. Filenow is distinguished from other low-cost LLC services by offering unlimited 24/7 live support by phone, chat and email. The company also promises to process your order within 24 hours and deliver your important LLC documents by express shipping and electronically.

Filenow’s Starter plan is a big step up from the free LLC services of competing vendors and costs only $49 plus state fees. In addition to articles of organization and 24/7 support, the plan includes alerts that ensure your business complies with all state deadlines and requirements. The company’s Premium package is priced at $199 plus state fees and adds an EIN, registered agent service for one year ($119 a year thereafter), operating agreement and banking resolution for opening a business bank account.

It’s easy to see why Filenow labels the Premium plan its most popular. In addition to 24-hour order processing, it offers more than a dozen business contract templates (a $100 add-on with the Starter package). However, same-day expedited filing of your LLC documents with the state costs an extra $75 to $150 with both the Starter and Premium plans.

Learn more: Read our full Filenow review.

Pros & Cons
  • 24/7 support by phone, chat and email with both Starter and Premium plans
  • Compliance alerts included with low-cost Starter and higher-end Premium
  • Premium comes with useful business contract templates
  • Same-day expedited service costs from $75 to $150
  • Business license reports cost an extra $99
  • Doesn’t offer ancillary business services such as bank accounts or websites
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
No
Doing Business As Formation
Added fee
Nonprofit Formation
No

Most Secure LLC Service

Active Filings

Active Filings
3.7
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

Free

Employer Identification Numbers

Fee-based plans only

E-Signature Support

Yes

Active Filings
Learn More Arrow

Read Forbes' Review

Free

Fee-based plans only

Yes

Expert Take

It’s unusual, if not unique, to find a free LLC service that includes alerts of upcoming state filing deadlines. Active Filings’ Starter plan provides compliance warnings as well as a free year of registered agent service ($99 a year thereafter) along with filing of your articles of incorporation with your state office. You pay only the state’s filing fees.

But what really sets Active Filings apart from its competitors is the peace of mind it delivers to its business customers. The company has only four employees and maintains its own servers in-house, where it can exercise complete control over them. Active Filings applies strong SSL encryption, and your credit card information is deleted as soon as your order is processed.

Active Filings’ entry-level Starter package excludes many features many SMBs will require when forming as an LLC. Stepping up to the company’s Sprinter plan priced at $100 plus state fees adds a physical address you can use for your business, enhanced privacy protection and an EIN. The high-end Finisher product includes a corporate seal and corporate book, as well as expedited processing and filing of your order. However, the expedited service increases the overall price of the Sprinter and Finisher plans by $100 to several hundred dollars, depending on your state.

Learn more: Read our full Active Filings review.

Pros & Cons
  • All data resides on the four-person company’s premises
  • SSL data encryption
  • All plans, including free, include state compliance alerts
  • Expedited processing increases state fees by $100 to several hundred dollars
  • Annual report compliance costs $100 extra with all plans
  • Enhanced privacy and security available only with paid packages
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Fee-based plans only
Doing Business As Formation
Added fee
Nonprofit Formation
Yes

Best Money-Back Guarantee

ZenBusiness

ZenBusiness
3.7
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

Free

Employer Identification Numbers

Pro and Premium only

E-Signature Support

No

ZenBusiness
Learn More Arrow

On ZenBusiness' Website

Free

Pro and Premium only

No

Expert Take

ZenBusiness isn’t the only LLC service to offer a guarantee of 100% accuracy on your company’s filing, but its reassurance goes a long step further by adding a 60-day money-back guarantee. The refund excludes state filing fees and applies only to annual subscriptions (monthly purchases are refundable within seven days), but it covers all taxes and any postage for items returned to the company.

Another way ZenBusiness’ Pro and Premium packages deliver peace of mind is by including one year of its worry-free compliance service that covers state and federal regulations, health and safety rules, HR compliance and data security requirements. After the first year, the price for the service is $199 a year. Both Pro ($199 per year plus state fees) and Premium ($299 per year plus state fees) come with one-day processing and rush filing service.

ZenBusiness’ free LCC service (you pay only state fees) is covered by the company’s accuracy guarantee and a year of worry-free compliance, but it processes your paperwork in seven to 10 business days rather than in a single day. By contrast, the company’s Premium plan delivers business services beyond LLC formation, including a domain name with privacy protection, AI website builder and business email address.

Learn more: Read our full ZenBusiness review.

Pros & Cons
  • 60-day money-back guarantee with annual subscriptions
  • One year of worry-free compliance service with all plans ($199 a year thereafter)
  • One-day processing with paid packages
  • Business document templates included only with high-end Premium plan
  • Banking services and tax advice require an added fee
  • Personalized support available to Premium subscribers only
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Premium plan only
Doing Business As Formation
Added fee
Nonprofit Formation
No

Best Business Name Generator

Swyft Filings

Swyft Filings
3.6
Our ratings take into account each service's pricing and features along with each platforms overall usability. All ratings are determined solely by our editorial team

Starting Price (excluding state fees)

Free

Employer Identification Numbers

Added fee

E-Signature Support

No

Swyft Filings
Learn More Arrow

On Swyft Filings' Website

Free

Added fee

No

Expert Take

A feature common to all the LLC formation services we reviewed is a tool for ensuring that your preferred business name is available in your state. Swyft Filings goes beyond simple name searches by helping you choose a business name that will resonate with your customers and promote your brand.

The company’s business name generator lets you enter a short description of your business or choose one of 20 industry categories such as beauty, food or fitness. It then shows a list of more than a dozen possible names. You can view a history of your past business name searches and choose some as favorites that you can revisit as your search progresses. Once you’ve whittled your list down to a single business name, click “Make it official” to confirm that your choice is available, and if it is, hit the “Launch my business” link at the bottom of the page to begin the registration process.

The name-check service is available to businesses that choose Swyft Filings’ state fees only plan as well as its two fee-based products: Standard is priced at $199 plus state fees, and Premium costs $299 plus state fees. The fee-only service includes 10-day filing and shipping, Standard completes filing and shipping in five days and Premium in a single day. Standard comes with custom corporate bylaws, banking resolution and organizational minutes, while Premium adds access to more than 250 business and legal documents, Statement of the Incorporator for opening a business bank account and an annual report, amendment and meeting minutes.

Learn more: Read our full Swyft Filings review.

Pros & Cons
  • Name-search feature suggests business names based on description or category
  • View a history of past name searches and designate favorites prior to choosing one
  • Same-day processing and expedited shipping included with the Premium plan
  • Standard plan excludes many useful compliance services
  • Document library available only with the high-end Premium plan
  • Doesn’t offer banking or other business services
Specs
Specification Details
Name Availability Search
Yes
Online Document Access
Yes
Doing Business As Formation
Sold separately
Nonprofit Formation
Yes

Methodology

We evaluated 32 LLC formation plans sold by 12 different vendors to identify the best 10 for SMBs. Our initial analysis of the services applied 19 separate metrics for value, features and support, along with an expert score for each service based on their standout attributes, overall value and ease of use. I then took a deeper dive into the capabilities of the 10 highest-scoring LLC services to identify the types of businesses each one was best suited to.

Decision Factor Scoring Weight Description
Features
40%
Of the nine features we rated, those given the greatest weight were name availability search, document access, registered agent add-on, employer identification number and e-signature support.
Expert Score
20%
Each LLC service’s overall feature set (8%), value (8%) and ease of use (4%) were applied to its final score.
Consumer Sentiment
15%
This category aggregated each service’s ranking on three popular customer review sites.
Service and Support
15%
We awarded points for offering live chat, phone support, 24/7 availability and a knowledge base, as well as on the number of states it serves.
Value
10%
The LLC service’s setup fee and whether it publishes its prices account for its score in this category.

Why You Can Trust Forbes Advisor Small Business

The Forbes Advisor Small Business team is committed to providing unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey.

Learn More:How We Evaluate LLC Services

  • 32 Plans From 12 Companies Evaluated
  • 19 Decision Factors Considered
  • Four Levels of Fact-Checking
  • Hands-On Testing


How To Choose the Best LLC Service

The best LLC services for SMBs provide a range of registration options to meet the specific needs of different types of businesses. Startups, single-person LLCs and very small companies are best served by a fee-only LLC service that helps them with the basic state paperwork such as articles of organization and a banking resolution that allows them to open a business bank account.

Slightly larger companies are best served by a midrange plan that adds an EIN for tax filing and an operating agreement for the LLC, which is required in only a handful of states but recommended by most others. Larger SMBs will likely need the features offered in the service’s high-end plans such as access to legal and business document templates, a domain name and website, and tax and legal consultations.

Essential LLC Service Features

The first step in registering an LLC with the state is confirming that your preferred business name is available. All the LLC services we reviewed offer free name availability searches, although some, such as Swyft Filings, go further by suggesting names based on your industry or a description of your company. Other essential LLC formation features are the articles of organization, an EIN and an operating agreement:

  • Articles of organization. Every state requires that an LLC file this document that lists the business name and address, along with the name and address of the person who will receive official state and legal documents sent to the company. Most businesses designate a registered agent to serve as their official contact. Some states also require the names of the LLC’s managers or members (owners) and the purpose of the LLC. Note that some states refer to this document as a certificate of formation or similar name.
  • EIN. This nine-digit number serves the same purpose as a consumer’s Social Security number for business tax purposes. Single-member LLCs can use the member’s SSN, but many choose to use an EIN to distinguish their personal tax filings from their business tax payments. The EIN is required to open a business checking account and to file your employees’ federal income tax payments.
  • Operating agreement. This document serves as a legal contract between LLC members. It identifies the LLC and its ownership, defines the duties of members and explains the LLC’s structure. In addition to providing basic information about the members, the operating agreement states the company’s elected tax treatment and key procedures as a way to reduce the likelihood of disputes in the future.

The most comprehensive LLC services are offered by our top choice, Rocket Lawyer, which combines business formation with tax advice and other legal and business services for a single subscription price. A single LLC or other business formation is included with the company’s Rocket Legal+ plan and costs $99.99 with its Rocket Legal subscription.

Businesses that want only LLC formation assistance are well served by vendors such as Northwest Registered Agent, which includes a year of registered agent service with its LLC service priced at $39 plus state fees, and Bizee, whose $99 Business License Package (plus state fees) comes with the company’s lifetime compliance alerts.

Value

Apart from Rocket Lawyer’s subscription model, the prices of the LLC services we reviewed are similar, which means pricing is less of a determining factor for LLC formation than other business services. For example, most of the LLC services in our best list offer basic formation assistance for only the applicable state fees.

While Northwest Registered Agent and Filenow stand out for their low-cost LLC services ($39 and $49 plus state fees, respectively), several of the vendors we evaluated sell a midrange package priced between $99 and $199 plus state fees, and a high-end plan costing between $199 and $299 plus state fees. These include Active Filings, Swyft Filings and ZenBusiness.

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Which LLC Service Is Best for Your Business?

The best LLC service for organizations at the startup stage will likely be a free (state filing fees only) or low-cost option that provides bare-bones service such as business name search, articles of organization and assistance with preparing and filing the necessary paperwork with your state.

For already-established businesses that want to convert to an LLC, the best option may be an LLC service that combines formation assistance with other business services such as registered agent service, business banking and a domain name/website combination (even if they already have a site for their business). Having most or all of their business services bundled often is the simplest and most economical option, although this isn’t always the case.

The downside of going with an all-encompassing service such as Rocket Lawyer’s subscription model or BetterLegal’s $299 package (plus state filing fees) is the potential of buying more service than your business needs. So it may be cheaper and more effective for a new business to purchase only the LLC services it requires and deal with ancillary features only when they need them.

The high-end offerings from BetterLegal and Rocket Lawyer charge extra for registered agent service, while Northwest Registered Agent and Filenow provide one year of free registered agent service with their low-cost plans. Similarly, Inc Authority’s fees-only LLC service comes with your first year of registered agent service for free, as well as digital storage and delivery of your legal documents and assistance with tax and financial planning. These low-cost options provide great value to startups and small businesses operating on tight budgets.


Frequently Asked Questions (FAQs)

What is an LLC service?

An LLC service helps a business organize as a limited liability company, which may also be referred to as a limited liability corporation. The services assist the business in preparing and filing the documents and other paperwork required by their state to apply for LLC status.

 

Other services offered by the vendors include access to and help with their operating agreement or bylaws, EIN for tax and banking purposes and compliance with applicable state and federal regulations. Ancillary services available from some LLC vendors include business bank accounts, tax and legal advice, websites and access to a library of business and legal documents.

What are the pros of forming an LLC?

The primary benefit of forming your business as an LLC rather than a sole proprietorship or partnership is the protection an LLC offers its members (owners) against being personally liable for the business’s financial and legal obligations, with some limits (thus the name).

 

LLCs are taxed without the double taxation of other corporation types. The business’s profits and losses “pass through” directly to the members rather than going first to the corporation itself and then distributed to shareholders. LLCs are also easier and less expensive to form than corporations, and they are subject to fewer management and financial regulations than corporations.

What are the cons of forming an LLC?

One disadvantage of an LLC is that it can be more difficult for the company to attract investors than when they form as a corporation because they can’t issue stock the way a corporation does. Instead, they are funded by investments from members, so growing may require additional investment from existing members or adding new members. Also, LLC profits are taxed annually whether or not the members take a distribution from the corporation, so they may be liable for the LLC’s taxes without receiving funds from the company.

 

Since LLC members are categorized as self-employed, they must pay directly for federal services such as Social Security and Medicare. This can take a substantial bite out of the LLC’s available capital and impact its operation or slow its growth. Some states apply an additional tax on LLCs that’s called a capital values or franchise tax and isn’t levied on corporations in the state. This tax may be a flat fee or a percentage of profits and revenue.


Next Up In Company Formation


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