Who offers the best LLC services? Find the answer in our review of LLC service companies (ad)
18 min read
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In 1980, the Internal Revenue Service (IRS) recognized the legalization of Limited Liability Companies (LLCs) in the United States.
LLC is an acronym for Limited Liability Company. It is a business entity where the business owner is not directly and personally responsible for the business’s liabilities or debts. The only exception is if you have made something that leads to the practice of “piercing the veil.”
If you choose to build this type of business structure, you might consider signing up for an online LLC service to make your transaction easier. In this article, we examine certain LLC service companies and list their details, pros, and cons. Find the best LLC services online, business formation service, and registered agent service for you!
Top 10 LLC Formation Services 2021
1. ZenBusiness
2. Better Legal
3. IncFile
4. MyCompanyWorks
5. Harbor Compliance
6. Inc Authority
7. Northwest Registered Agent
8. LegalZoom
9. Rocket Lawyer
10. InCorp
Note: Check bestllcservice.org for better deals and coupons
Editor’s Choice
ZenBusiness
● Excellent customer feedback
● Simple and easy to use
● Affordable formation services
1. ZenBusiness – High Quality LLC Service
Pros
● Customization/personalization available
● User-friendly
● Good customer support
Cons
● No fixed turnaround time
● No legal and financial consultation
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ZenBusiness, featured by Discover Magazine and LAweekly, offers the best LLC formation services online. They make LLC transactions easy and convenient, especially legal matters.
The company consistently receives positive feedback from its customers. Their Google rating is 4.8 out of 5 stars, and 4.7 out of 5 stars on Trustpilot.
According to customer reviews, their platform is easy to navigate. Customers feel at ease in setting up their LLCs, saying that they did not need to put extra effort in to gain the results they were looking for. In addition, customers praised ZenBusiness for their excellent customer support, highlighting that they were able to guide business startups through the entire process.
ZenBusiness offers three LLC packages plans: Starter ($49), Pro ($179), and Premium ($299).
The Starter package includes name availability search, preparation and filing of articles of organization, free registered agent service, LLC operating agreement, and CPA assessment.
The Pro package includes federal tax ID number (EIN), worry-free guarantee, and banking resolution.
The Premium package includes domain name registration and privacy, business email address and website, and rush filing service.
ZenBusiness’s Worry-Free CPA service provides free accounting and tax assessment from CPA professionals. The Worry-Free Guarantee service provides preparation and filing of annual reports as well as two amendments per year.
ZenBusiness also allows you to customize your order with their à-la-carte offer. This is also known as a build-your-own package, where you choose only the services you need.
2. Better Legal – Best Customer Care Service
Pros
● Fixed price range
● Banking resolution service available
Cons
● Registered agent is not available
● Contact details are hard to find
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Better Legal is considered one of the better LLC service companies by Sfweekly and Benzinga. Some users may have a hard time finding customer support contact details; however, this is a small downside because their live chat support service performs very well. Moreover, the company is well known for their upfront pricing, fast turnaround time, and good user experience.
Better Legal offers their services at a flat rate. Their membership/subscription costs $299. It includes services like preparing and filing, certificate of formation, LLC operating agreement, federal tax ID (EIN), and banking resolution.
They do not have a registered agent, but the company can find one for you. Other services include state compliance services, permits, and a license search service.
3. IncFile
Pros
● Possible discount
● Fixed pricing
Cons
● Lacks customization features
● Many upsells
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Incfile enables small business owners to form several business entities for a flat rate, one-time fee — or even for free. They offer three packages: Silver ($110 + state fee), Gold ($259 + state fee), and Platinum ($409 + state fee).
The Silver plan includes preparation and filing of LLC, preparation and filing of other company type, formation documents and paperwork (depending on state requirements), name availability search, one year of free registered agent services, business bank account set-up, business tax consultation, online access to incorporation documents, a business website, and procurement of federal tax ID (EIN).
The Gold includes preparation and filling with a custom/personalized operating agreement and express shipping. The Platinum plan adds two more services: access to many attorney-approved contract templates and free web domain name and business email.
According to customer reviews, they are one of the best LLC formation and incorporation services providers on the net. They grant access to many Incfile documents and business information updates, such as how to change your business name and/or registered agent. You can also file another LLC using the same account.
Incfile received an A+ score from BBB (Better Business Bureau), equivalent to 4.8 out of 5.0 stars, and they have maintained that rating ever since.
4. MyCompanyWorks
Pros
● Free unlimited name availability searches
● Free business startup funding and tax consultation
Cons
● High payment for registered agent services
● Less affordable
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MyCompanyWorks is another company with positive customer feedback and rating. Most of the reviews highlighted three primary reasons for the good reviews: customer service efficiency, quality of advice received, and speed and simplicity of processes.
MyCompanyWorks offers three packages: Basic ($79), Entrepreneur ($199), and Complete ($279).
Their Basic package features includes free unlimited name availability searches, preparation and filing of articles of organization, personalized organizational minutes, LLC operating agreement, startup wizard, free business startup funding and tax consultation, and a small business banking offer through the Bank of America.
The Entrepreneur package includes federal tax ID, LLC kit and seal, LLC member certificates, and lifetime business forms and tax guide, as well as registered agent services and business license compliance package.
For the ratings, MyCompanyWorks got 4.8 out of 5 star from Google, a 4.8 satisfaction rating from ShopperApproved, and an A+ rating from BBB.
5. Harbor Compliance
Pros
● Comprehensive package
● Quick turnaround time
Cons
● More expensive
● Fewer online reviews
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Harbor Compliance offers a different packaging deal. In contrast to many of their competitors, they offer only two packages: Formation ($399), and Compliance ($799). The Formation package is best if you are just starting out, whereas, predictably, the Compliance package focuses more on compliance services.
The Formation package includes preparation and filing of articles of organization, business name availability search, federal tax ID number (EIN), sample operating agreement, and a registered agent.
The Compliance package includes initial and annual report, a publishing/publication service, LLC kit and seal, as well as S and C Corp Tax election.
Many customer reviews notice that their packages are very comprehensive, and that the formation package is enough for most small business owners. Moreover, customers are quite impressed with their surprisingly quick processing time. Harbor Compliance got an A+ rating from BBB, 4.6 out of 5 stars from Google, and the same from Facebook.
6. Inc Authority
Pros
● Free plan available
● Mobile-friendly site
Cons
● Numerous upsells throughout the registration process
● Tycoon package is quite expensive
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Inc Authority is one of the best LLC formation services companies and is easy to use. Their web interface is excellent. A statement from one of the customer reviews says, “Overall, I find Inc Authority to be incredibly easy to use. You can expect an easy time navigating the entire system on both mobile and PC.” Moreover, they have earned 4.7 out of 5 stars from Google, 4.8 out of 5 stars from Trustpilot, and 5.0 out of 5 stars from BBB.
Inc Authority has four packages: Free plan ($0 + state fees), Starter ($399 + state fee), Executive ($499 + state fee), and Tycoon ($799 + state fee).
With Inc Authority’s free standard LLC formation package, you will get name availability search, preparation and filing of articles of organization, one year of registered agent services, and S Corporation tax election form. They also offer third-party services, including a business checking account through Bank of America, tax planning consultation, and business funding analysis.
With the Starter package, you will get the LLC operating agreement, record book and company seal, ownership certificates, federal tax ID Number (EIN), and one year from an Inc Authority protection advisor.
If you upgrade to Inc Authority’s Executive package, you will also get a business license report and a web domain.
Next is the Tycoon package, where you will receive express processing and BizCredit
Express, a collection of software, tools, and apps that might be helpful to the development of your business credit.
7. Northwest Registered Agent
Pros
● Fast LLC filing
● Caters to other business entities
● Good track record
Cons
● Fewer third-party reviews
● Starting price point is high
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Northwest Registered Agent is another LLC service company considered one of the better providers. Reviews praise them for their excellent customer support. A team of well-trained professionals is available to guide business owners through any problems they experience. In addition, Northwest offers formation for other business entities (S-Corp, C-Corp, partnership, sole proprietary, and non-profit).
Northwest Registered Agent has only one filing option available. It costs $225 + state fee. It includes a name availability search, preparation and filing of articles of organization, one year of registered agent services, an operating agreement, and fast LLC filing.
Optional add-ons can be purchased, but only if you purchase Northwest’s LLC formation services first. These options include federal tax ID number (EIN), Northwest’s compliance filing each year, S Corporation election with the IRS, a second telephone number, and corporate supplies.
Although Northwest has received fewer reviews than its competitors, most of the feedback is positive. They get 4.5 out of 5 stars from BBB, 4.5 out of 5 stars from Yelp, and 4.7 out of 5 stars from Google.
8. LegalZoom
Pros
● Legal consultation available
● Online Q&A with lawyers
● Good legal services provider
Cons
● More focused on legal services than formation
● Inconsistent customer service
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LegalZoom is a pioneer in the business formation and incorporation industry. Surprisingly, customer reviews reveal that they have experienced issues handling customer service needs. Nevertheless, LegalZoom still got high ratings; specifically, an A+ rating on BBB, 3.2/5 stars from Consumer Affairs, 3.2/5 from Sitejabber, and 4.1/10 from Trustpilot.
LegalZoom has three LLC formation packages: Economy ($99 + state fees), Standard ($329 + state fees), and Express Gold ($349 + state fees).
At the Economy level, you will get a business name availability check, preparation and filing of articles of organization, lifetime customer support, and banking resolution.
At the Standard level, you will get a deluxe organizer, membership certificates and seal, and VIP processing.
At the Express Gold level, you will experience expedited processing with the Secretary of State and express shipping.
The best thing about LegalZoom is its legal service plan. It includes business formation services, a registered agent service, legal forms, and a business advisory plan. The advisory plan includes phone consultations with a lawyer and tax professionals, unlimited access to legal forms, annual business evaluation, and intellectual property services (trademark registration, copyright application, and initial patent application).
9. Rocket Lawyer
Pros
● Services available even without membership
● Intuitive form builder
Cons
● 30-minute legal consultation is brief
● Trial defense not available
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“What I love about Rocket Lawyer is I can still ask for legal help.” This customer review highlights the availability of their services even you do not sign up for a membership or subscription — something that many users like.
Many reviews showed that Rocket Lawyers’ service representatives are generally sincere in helping them with their concerns. As a result, they have positive scores on major websites. They have received 3.9 out of 5 stars form BBB, 4.8 out of 5 from ConsumerAffairs, a 9.7 out of 10 rating from Trustpilot, and 4 out of 5 stars from Sitejabber.
Furthermore, they have a 30-day money back guarantee and a seven-day free trial — certainly enough to try their service and spend nothing if you find it unsatisfying.
Rocket Lawyers provide an online Q&A and a 30-minute phone session, document defense (not available for trial), LLC formation, C-corp, S-corp or nonprofit incorporation, and a registered agent service. They also have a form builder to help you customize your documents.
10. InCorp
Pros
● License research service
● High BBB rating from 1989 up to present
Cons
● Can be costlier than other companies
● Pricing is a bit complex
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InCorp is another reputable company offering an online incorporation service. They have received many positive customer reviews and have attracted impressive ratings: from BBB and Google, they got 4.1 out of 5 stars, and 3.9 out of 5 stars from Facebook. Customers like their professional customer care.
The company is just one of the few that offer a single package, but many add-ons are available for purchase. However, this is the downside for some entrepreneurs, who find packages from alternative companies may save them money.
Incorp’s services include preparation and filing of articles of organization, name availability search, and domestic two-day shipping. This LLC formation service costs $117 ($99 + shipping fee).
Their available add-ons include a registered agent who can cost from $67 to 99 per year, depending on how many years you want to use one. The more years you purchase in a one-time payment, the greater the discount you will receive. Other add-ons include LLC kit and seal, federal tax ID (EIN), preparation of IRS Form SS-4, domestic mail forwarding, annual report service, and license research service.
How to Choose an LLC Service
Many companies offer online LLC services. They all have pros and cons, as well as essential services that any LLC member needs. However, this does not mean that you can just choose any LLC service company right away.
Keep in mind that although companies are often quite similar, they still have something unique to offer. Examine the company and its services carefully before purchasing any of their products or packages.
Below are things to consider when selecting LLC services.
Price and Value
Don’t merely ask if the price is high or low. Instead, ask if the feature is worth buying for the value it offers.
Understand your priorities. What services do you primarily need? Is it legal services, consultation, business tools for design and organization, or purely formation service? Define what you need before looking for a price.
To help you decide what LLC companies to work with, read reviews of the ten LLCs and incorporation service companies we have listed above.
Main Features
Before purchasing a package, familiarize yourself with its features. Will it meet your needs? Does it include everything necessary?
If your answer to both questions is yes, it is a good LLC service package for you.
Additional Services
You may also consider the additional services that the company offers, but don’t buy services that are not essential to your business. The common additional features that LLC service companies offer include dissolution filing, virtual office or domain and website, office supplies, seller’s permits, and an LLC kit.
Turnaround Time
Turnaround time is usually a top priority for business owners. While everyone aims for the fastest processing, check for a service that makes a realistic promise of service.
You will not want to pay a high price if the turnaround time is not quick enough. On the other hand, you would not want to pay a high price even if it promises you faster processing but turned out to be no better — or worse — than the others.
Company Reputation
Longevity is usually a sign that a company is legitimate. However, a long-standing presence in the industry is not the only basis on which to decide if a company has a trustworthy track record.
Examine customer feedback and reviews. Were there any unresolved complaints? Is there more negative feedback than positive? If the answer to these questions is both no, it is doubtful that the LLC services are high quality.
Customer Support
Customer support is the best basis on which to determine if the services are worth purchasing. Check reviews, and also visit the company’s website and look for their contact information.
Do they offer multiple options for contacting them? Did most customers feel satisfied after they send a message to a support team? A yes answer to both indicates an excellent customer support service.
Reasons to Use LLC Services
Running a company, whether big or small, is a great responsibility. You also have to deal with your personal “stuff.” Thus, it is sometimes hard to manage both business and personal matters simultaneously. That is the reason why entrepreneurs hire employees.
Now, the question is, “Why should we use online LLC services?” Below are the answers.
Reduced work
The formation, filing, and maintenance of an LLC can be time-consuming and a hassle if you do it alone. You’re better to spend your time on business planning.
After your LLC has been approved and is ready to operate, you still have requirements to fulfill in order to avoid suspension. As you give your attention to those retention requirements, you also have to think of your marketing plan, customer retention, and attraction of new clients.
Avoid the risk of non-compliance
Many LLC service companies will send you alerts when your deadlines are approaching. Some even prepare your annual reports. LLC service plans or packages will certainly help you avoid non-compliance problems.
Stable communication
With LLC services, you do not have to worry about possible conflicting schedules. In case you are not available to meet with lawyers and other officials, a registered agent will always be there as a proxy. For peace of mind, choose a company with a good registered agent service.
Track record/Record tracking
Many LLC service companies keep track of records, from filing and formation up to the present. That includes your annual reports, tax documents, and legal notices. These documents are stored in encrypted servers, secured from attacks, and you can view them anytime you need to.
How LLC Services Work
LLC services make LLC formation and compliance easier and more convenient. These services include but are not limited to preparing and filing documents, registering an agent, creating an LLC agreement, publication, business name search, and annual reports. It may extend to sample documents or templates, consultation with professionals, intellectual property services, notification alerts, LLC kit and seal, and web hosting.
LLC service companies exist to deliver these services to business owners. A few examples of these companies include ZenBusiness, LegalZoom, Harbor Compliance, and InCorp. Other companies are available online. You can refer to this list as a guide to such services.
If you are planning to form your LLC, purchase a package that best suits your needs. After that, the company will process your order and they will start serving you right away.
How To Create An LLC?
You can create an LLC on your own, but you can also sign up for a formation package from an LLC service company. Regardless of what method you use, these are the steps you need to take to form an LLC.
Note that each state has its own Limited Liability law. Therefore, you might encounter additional requirements and processes before you finally reach the finish line.
LLC Formation
Here is how to start an LLC, step by step.
1. Choose a state in which to form your LLC
It is important to know where you want to form your LLC, so that you will know what additional requirements you have to fulfill. Every state has its own LLC Law, so there might be additional requirements for you to comply with. For example, in New York, you must have a publication in two local newspapers for six consecutive weeks. Moreover, the cost for LLC filing, state fees, and taxation also varies, as it is part of the written law.
2. Choose a name for your LLC
Before you can form and operate your LLC, it must have a name. The name must be unique; that is, the name should not already be in the Secretary of State’s records. In addition, most states also require your LLC name to have an LLC designator at the end. This is an indication that your company is a Limited Liability Company.
Conduct a trademark search to avoid intellectual property infringement. You can reserve a name by paying a small fee if you want to prevent other business owners taking your name before you file. This is especially suggested for those who want to file their LLC at a later time.
3. Choose a registered agent
Every LLC is required to have a registered agent. In some states, you can also stand as a registered agent for your LLC. However, it often requires more work and hassle on your part. Thus, we highly suggest looking for a registered agent who can handle documents on your behalf.
A registered agent is an individual or a company that agrees to receive or accept the company’s important documents and handles them accordingly. These documents include but are not limited to legal notices, tax documents, and annual reports or statements from the Secretary of State and the state’s department of taxation.
4. Decide on member vs. manager management
In general, there are two types of LLC management: member manager and manager management.
Often, small business owners choose to manage their LLC themselves, and big businesses usually choose to have a group of people manage their company. In any case, you are free to decide whether you would want to appoint outsiders or manage the LLC yourself.
5. Create and/or prepare an LLC operating agreement
A few states do not require an operating agreement. In addition, almost all states accept oral agreements. However, having an operating agreement is a great advantage for an LLC.
An LLC operating agreement is a written statement of agreement between an LLC and its members as to how the company will operate. It includes the things that should happen or be done when certain circumstances occur, such as if you can no longer manage the business or you want to pass the business to someone else. It also allows you to opt out from certain LLC statutes’ default provisions. This document also shows your respect to LLC’s separate existence and it helps you avoid what we call “piercing the veil”.
6. File your LLC with your state
For your LLC to operate legally, you must file or submit formation documents to the Secretary of State’s office or to whichever department is responsible for handling business filings. This formation document is also known as a Certificate of Organization, Certificate of Formation, or Articles of Organization.
An article of organization or formation documents generally includes your business name and location, principal and purpose, registered agent’s name and physical address, and LLC management system (member-managed or manager-managed). Note that your formation state might require you to attach additional documents.
7. Obtain an EIN ( Employer Identification Number)
An Employer Identification Number (EIN) can be obtained from the Internal Revenue Service (IRS) or through an LLC service company. An EIN is required for several business transactions, especially if such transaction involves finance. As such, most banks in the US need to see an EIN before you can create an account.
8. Obtain the necessary business licenses
You might have to obtain more business licenses if the nature of your business requires you to do so. Your business license can be local, state, or federal. For example, if your business sells alcohol or firearms, you must apply for a federal, state, and/or business license.
Conclusion
The Internal Revenue Service (IRS) first recognized LLC or Limited Liability Companies in the year 1980. From that time, LLC began to grow and are now the most common business entity.
The primary reason for the popularity of this business structure is its liability protection. However, if used without proper care, you might end up fully liable for any losses your LLC produces.
If you want to form an LLC, do the following in sequence:
1. Choose a state where you want to form your LLC.
2. Choose a name for your company.
3. Choose a registered agent.
4. Decide whether your LLC will be member-managed or manager-managed.
5. Draft, prepare, or create your LLC operating agreement.
6. File all your documents with your state.
After those six steps, you can now obtain an EIN (Employer Identification Number). Then, if your business has additional requirements, all you have to do is comply with them.
If you think you cannot do the entire task on your own, there are companies that offer an LLC service—sometimes called an incorporation service—to help you with LLC-related tasks such as filing and compliance.
Currently, the companies that offer the best LLC and incorporation services are ZenBusiness, IncFile, Northwest Registered Agent, Inc Authority, and LegalZoom. More companies include Rocket Lawyer, MyCompanyWorks, Harbor Compliance, Better Legal, and InCorp.
Note that some of these companies help keep track your records — from filing up to your latest status.
Lastly, when choosing the right LLC service company, keep in mind price and value, main features, additional services, turnaround time, company reputation, and customer support. Your needs will depend on the nature of your business and on the state where your LLC was formed.
Frequently Asked Questions
Q: What is an LLC?
A: An LLC is a type of business structure or business entity wherein the owner will not be personally responsible for the company’s liabilities. It has become the most common entity used by entrepreneurs because of the liability protection, management flexibility, and tax advantages.
Q: Can I name my LLC anything I want?
A: You cannot use any name you want. Your LLC name must be unique. Moreover, you are required to put the LLC designation at the end of your company name.
Q: Why is it necessary to have an LLC operating agreement?
A: Having an LLC operating agreement will let you show your acknowledgement of the LLC’s separate existence from you. It also frees you from the state’s default provisions, letting you operate your business smoothly. Moreover, it will support efficient management.
Q: Why do I need a registered agent for my LLC?
A: Every state requires all LLCs to have a registered agent. A registered agent will serve as the representative of your company, receiving and handling all your documents related to business, especially legal and tax documents. A registered agent will also be there when you are unavailable.
Q: Do I really have to avail myself of an LLC service?
A: No, you can process things independently. However, the process may be lengthy and may interfere with your other duties. The help of an LLC formation or incorporation service will lighten your workload.
