Interested in hiring a formation service to set up your LLC? Read how hiring an agency can be beneficial for your business and which ones are worth investigating (we explore the top 5).
What are LLCs and formation services?
An LLC is a Limited Liability Company which is considered to be a legal entity. There are typically five steps you need to fulfill to legally form your LLC. This is subject to your individual state. Therefore, hiring an LLC formation service will assist you with completing the necessary steps to officially form your LLC (leaving you with more free time to run your business).
- Read more on LLCs and their formation process.
Do I need a formation service?
Making use of a formation service certainly frees up your time to enable you to focus on other matters concerning your business. Moreover, opting for a formation service can help keep costs down. Additionally, choosing the best LLC formation service for your business may come with affordable features such as hiring a registered agent for your LLC and obtaining your Employer Identification Number.
Which formation service should I choose?
There are numerous services out there that will get the job done for you. However, some are definitely better than others. We have ranked the top 5 LLC services to help make your decision-making process a little easier:
- ZenBusiness (ideal for small businesses)
- Rocket Lawyer (best for ongoing legal services)
- Northwest Registered Agent
- Some of these services can assist with forming structures other than LLCs such as NPOs, Sole Proprietorships, Corporations etc.
ZenBusiness is well-suited for smaller businesses. It costs $39 per year (plus state fees). In all packages offered, ZenBusiness includes essential products to form your LLC:
- Registered agent service
- Complimentary operating agreement
- CPA assessment
- A CPA assessment evaluates your company’s finances as well as recommends a qualified CPA tailored to your business’s specific needs (and at no additional charge).
If you would like to upgrade your package to ZenBusiness Pro you can enjoy features such as :
- An Employer ID Number (EIN)
- Compliance Guarantee
- Domain name registration
To help you grow your business, gain visibility and protect the privacy of your company you can upgrade to ZenBusiness’s Premium package ($249 + state fee). This will grant you add-ons like business email, website, and domain privacy.
If you would like your formation service to go beyond only forming your LLC for you, Rocket Lawyer is an excellent choice. A unique feature with this service is their subscription-based model for ongoing legal assistance with premium members gaining access to legal documents, advice, and more.
TRUiC has teamed up with Rocket Lawyer to offer a New Business Bundle, where you can expect benefits such as:
- An exclusive discount of over 45% off. Cost: ($349.99 + State fees)
- Free Incorporation Service
- 1 Year of Registered Agent Services
- 1-Year Legal Services:
- Expert legal advice
- Easy-to-use legal documents and contracts such as Operating Agreements
- Exclusive discounts on future services
- Excellent customer support
- And more
This is an attractive choice for those needing ongoing legal advice as well as guidance drafting contacts.
If you have a restricted budget (but still want lots of features), Incfile is a great option. Cost: ($0 + State fees) unless you would like add-on features (such as operating agreements, business website). With this, expect a fee of $249 + state fee.
Northwest Registered Agent
All essential services needed to ensure the legal formation of an LLC can be found with Northwest. Their registered agent services are included/free in their basic packages for $49 plus state fee ($125 every following year). There is the added benefit of excellent customer support.
This is a widely recognised formation service. Their services go beyond LLC formation, extending to providing tax advice, attorney help, and access to legal forms. However, this will come at a pricey fee.