Find the Right LLC Formation Sites For You

When starting an LLC, it is crucial to find the best online LLC formation service that can expedite the process and ensure that your legal documents are accurately prepared and promptly submitted to the Secretary of State.

Choosing the wrong online LLC formation service can result in significant delays, spanning from weeks to months, hindering your daily business operations and potentially affecting your licensing status.

To assist in the decision-making process, we conducted a comprehensive evaluation of the top online LLC formation services. Below, you will find the results of our findings.

1. ZenBusiness: Top All-Inclusive LLC Formation Service

Pros

Cons

ZenBusiness delivers customized solutions to help everyday people embark on their entrepreneurial journey, catering to startups, gig workers, online sellers, freelancers, artists, real estate investors, and anyone looking to establish a business. The intricate nature of the process can deter people from chasing their dreams, but ZenBusiness offers legal support to mitigate the stress and uncertainty tied to such a crucial venture.

Notably, ZenBusiness focuses on forming LLCs and corporations. However, during your consultation, they might recommend setting up a partnership or sole proprietorship, which could necessitate obtaining help from another source for business registration.

2. TailorBrands: Best One-Stop Shop

Pros

Cons

TailorBrands provides a wide range of services for small businesses to facilitate their commencement. Although they are renowned for their logo, branding, and comprehensive business solutions, they also offer LLC formation services.

The LLC filing package is designed to assist in the swift and hassle-free establishment and management of an LLC. TailorBrands aims to provide everyone with the necessary resources to build their businesses. Their services are extensive, encompassing a comprehensive range of offerings. And, TailorBrands' LLC service offers clients an annual plan that encompasses the entire LLC filing process. Moreover, they also provide supplementary services that can be added on, which will be discussed in detail later.

TailorBrands' services and add-ons cater specifically to small business entrepreneurs, particularly those with limited time, knowledge, or resources to complete the requirements independently. This review will concentrate on their LLC filing services, while further details can be found in our 2023 best LLC services guide.

3. IncFile: Exceptional User-Friendly Service

Pros

Cons

Incfile, headquartered in Houston, Texas, is a company specializing in business formation and registered agent services. They provide a wide range of services, including formation, compliance, and filing.

Established in 2004, Incfile has consistently prioritized efficient processes. According to their website, they have leveraged technology to simplify the business formation process since their founding.

Incfile offers an array of services to assist with establishing an LLC and managing a business effectively.

4. Northwest: Top-Notch Premium Service

Pros

Cons

Northwest Registered Agent LLC is a Spokane, Washington-based company specializing in LLC formation and registered agent services.

As stated on their website, they are a family-owned and operated mid-sized enterprise with approximately 200 employees. Northwest Registered Agent provides a wide range of services targeted at entrepreneurs and business proprietors.

Adopting the motto "We're Just Not Annoying," the company seeks to differentiate itself from competitors by emphasizing exceptional customer support, transparent communication, and robust privacy protection and data security measures.

With a history dating back to 1998, they have over two decades of expertise in establishing LLCs.

Northwest Registered Agent delivers numerous services pertaining to the launch and management of a business.

Additional LLC Formation Companies That We Reviewed

5. LegalZoom

Pros

Cons

LegalZoom is an online service provider that specializes in helping entrepreneurs start their businesses efficiently, with the aim of simplifying the business formation process. If you require assistance in starting a Limited Liability Company (LLC), LegalZoom will manage the paperwork and file it on your behalf. Moreover, LegalZoom also offers supplementary tools, essential information, legal forms, and legal guidance (for an additional cost).

LegalZoom is committed to providing comprehensive legal protection to all businesses and maintains a network of expert attorneys who can offer legal counsel if you select a package that includes this feature. Besides its usefulness in setting up an LLC, LegalZoom is also a one-stop destination for all your legal needs, including personal, family, or intellectual property matters.

6. Swyft Filings

Pros

Cons

Swyft Filings, with its adaptable pricing structure and prompt processing times, can be a suitable choice for specific basic LLC formations or incorporations. Although established only in 2015, they have garnered thousands of positive reviews from contented customers.

However, Swyft Filings' offerings are not as extensive as some competitors. They heavily depend on partner companies to cover certain areas, like their registered agent service. Additionally, their registered agent service is significantly overpriced at $596 per year, costing substantially more than other similar services.

We believe that a high-quality registered agent service is crucial for a comprehensive LLC formation package. For this reason, we cannot recommend Swyft Filings for most business owners. Swyft Filings may only be a viable option for specific basic LLC formations that don't require a registered agent service.

For more information, visit SwyftFilings.com or continue reading our review to understand how we reached our conclusions.

More Information

What Is An LLC?

An LLC (limited liability company) is a favored business formation. Among the most prevalent business structures are LLCs, S corporations, and C corporations. LLCs offer the advantage of limited liability protection for business owners, akin to a corporation. This implies that, when properly managed, the LLC owner should not be held personally responsible for the company's debts and obligations.

Limited liability companies are authorized by state statutes, with regulations varying across states. Owners of LLCs are typically referred to as members.

Most states do not impose ownership restrictions, allowing anyone to become a member, including individuals, corporations, foreign nationals, foreign entities, and even other LLCs. However, certain entities, like banks and insurance companies, are not allowed to form LLCs.

Establishing an LLC involves a formal process that necessitates filing articles of organization with the state. Compared to corporations, LLCs are simpler to create and offer more flexibility and protection for investors.

LLCs can opt not to pay federal taxes directly. Instead, their profits and losses are reported on the personal tax returns of the owners. Alternatively, the LLC can choose to be classified as a corporation.

If any fraudulent activity is uncovered or a company fails to fulfill its legal and reporting obligations, creditors may have the ability to pursue the members.

How Much Does It Cost To Start An LLC?

Creating and filing legal documents to establish your LLC involves several fees, as well as some related costs for registering your LLC with state and local authorities. You'll need to obtain all necessary permits, licenses, and certificates mandated by local, state, and federal governments. The total amount you spend largely depends on your ability or willingness to handle the process yourself.

Filing Fees Usual costs: $50 (legal services) + $50 to $800 (filing fee), varying by state

For most entrepreneurs, filing fees constitute the bulk of their LLC startup expenses. Although a lawyer isn't necessary for filing articles of organization, using an LLC filing service can be beneficial, given their relatively low costs. Numerous providers can register your LLC for under $50 plus the state fee.

Utilizing a legal services provider is well worth the expense, as it minimizes the risk of incorrectly filing paperwork, which could lead to extra fees for correcting the application or reapplying, not to mention the time wasted.

Operating Agreement Usual costs: $0 to $200

An operating agreement is an internal document outlining your LLC's operations, member roles and contributions, and decision-making processes.

While anyone can create an operating agreement for free, it's wise to involve professionals when allocating profits and losses among owners. Legal service providers can manage this task for $50 to $200, or you can consult a local attorney. This modest investment ensures everyone is on the same page and helps prevent future disputes.

Publication Usual costs: Varies based on state and local newspaper rates

Entrepreneurs in New York, Nebraska, or Arizona may face additional LLC expenses in the form of publication requirements. In brief, LLCs in these states must publish notices for a specified duration in one or more newspapers across one or more cities or counties.

What Is A Registered Agent for LLC?

An LLC registered agent refers to a person or organization appointed by an active business entity, such as an LLC, C Corp, or other entity types, to accept service of process notices, government correspondence, and compliance-related documents on the company's behalf.

Although the term "agent" typically implies someone authorized to represent an individual or entity in transactions, registered agents do not possess the same authority.

The primary responsibility of a registered agent for an LLC is to serve as an agent for receiving service of process and other crucial correspondence on behalf of the company. Furthermore, a registered agent must promptly forward such materials to the active business entity, be it an LLC, C Corp, or any other type.