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LLC formation is a common way for small business owners to limit their personal liability while operating their company. A Limited Liability Company (LLC) is a hybrid business entity that combines the pass-through taxation of a partnership or sole proprietorship with the liability protection of a corporation. LLCs are a popular structure for many small businesses because they offer many of the benefits of a corporation without the same level of complexity and formality.
Forming an LLC typically involves filing articles of organization with the state in which the business will operate. Your specific process and requirements for forming an LLC may vary depending on the state where you're doing business, but it generally requires selecting a unique business name, designating a registered agent, and paying a fee. Some states may have additional requirements such as issuing an operating agreement or publishing a notice of formation in a local newspaper.
Tuesday, April 22nd
Over a million entrepreneurs across all 50 states have used the business formation services offered by Bizee (formerly Incfile). The company's founders know what it takes to start a successful company, having bootstrapped their way to the top without any help from big-money investors. You can trust that when Bizee says "Zero dollars, zero hassle, zero catch,” they mean it.
3 packages starting at $0
Bizee has three LLC formation packages to choose from, and we're happy to report that this company has joined the ranks of providers offering a no-fee service (other than what you'll pay for state filing). Here's what you will get with Bizee's three tiers of service:
So many free perks
All LLC formation services at Bizee include free registered agent service for the first year, and then $119/year afterwards. You'll also get a complimentary tax consultation, next-day business filing, and filing date reminders for life. Bizee does an incredible job of offering no-cost perks to all clients, not just the ones who pay big bucks for high-tier packages. You only pay for the services you need, either as a package or by choosing from Bizee's a la carte extras.
Good reputation
At the time of this evaluation, Bizee's listing with the Better Business Bureau was "Not Rated”; the BBB was in the process of updating their information (we're not sure if that's a good thing or a bad thing). Fortunately, despite having about three dozen complaints filed over the three year period leading up to this review, Bizee still had a customer rating average of 4.77/5 across 2,100+ entries with the BBB - so we're pretty sure that you don't have to worry about this company's reputation while the BBB is updating the listing.
Almost 40K five-star reviews
Add to that the 38,000+ five-star reviews we discovered elsewhere and it's logical to conclude that Bizee can be trusted for your LLC formation. Clients say that using Bizee was the best decision they could have made, describing the process as seamless and easy, hassle-free and uncomplicated. It doesn't get much better than that.
Still the #1 choice for LLC formation
There are a lot of top-notch options for LLC formation, but Bizee remains at the top of our list for offering the most comprehensive services at the lowest price - and for having the largest client base of any provider in our evaluation. We love Bizee's total transparency in pricing, the freebies (like a year of registered agent service) that many providers make you pay extra for, and above all their commitment to customer service resulting in tens of thousands of five-star reviews from happy clients. Bizee should be the first place you turn when looking to create an LLC.
Free LLC formation? Absolutely. Lots of features, still at no cost? Yes, when you work with Inc Authority to create your LLC. This service has been used to help more than 130,000 businesses take care of their formation, many of which have taken advantage of the $0 fee service to get it done affordably AND legally (you still have to pay the state filing fees, though).
All clients get lots of benefits at no cost
Just because you get it for free doesn't mean you won't get much - at least not when it comes to what Inc Authority provides to all LLC formation clients:
At the time of this review, Inc Authority also had a limited-time offer of free 24-hour processing on all services.
Call for package pricing
As you go through the signup process, you'll be asked if you want to add a la carte services. This includes checking a box to designate Inc Authority as your registered agent (but remember you'll get it free for a year, $179 after that), deciding if you want Inc Authority to get your EIN ($49), provide an operating agreement ($89) or legal documents package with ownership certificates ($99), minutes and resolutions ($99), and so on. You may want to consider Inc Authority's Starter or Fast Track Business Bundles which include many of those features in a package. Unfortunately, you'll have to go to the site, see which features are included, and then call to speak to one of their Business Startup Experts: there's no pricing offered online, and no way to sign up for a package without that phone call.
Five-star reviews from over 20,000 clients
Inc Authority is one of the first providers to offer no-fee LLC creation, so we're not surprised that it's so popular: over 20,000 clients have given this service a flawless five-star rating, describing it as straightforward, trustworthy, and, of course, affordable. One person even said that using Inc Authority "took the pain out of starting a new business”. We can get behind that! We're also impressed with the number of clients who say that they've used this company for years for various business needs, and that the service and pricing have always been the best.
Fantastic choice for LLC formation
To sum it up, Inc Authority is a reliable LLC formation service - and did we mention that it's free? Although you may discover better pricing with competitor services if you require additional features to create your LLC, Inc Authority remains the most budget-friendly and comprehensive option for the basic steps needed to establish your business. We highly recommend Inc Authority as one of our top picks among LLC formation service providers.
My Company Works, formerly known as My New Company, has been providing LLC formation and incorporation services since 2001, and has assisted over 50,000 businesses in growing their ventures. While they may not have as extensive a client base as some of our top-ranked services, they have earned a reputation as a trustworthy and knowledgeable partner for small business owners looking to establish an LLC.
Give the Startup Wizard a try
The proprietary Startup Wizard offered by My Company Works is an exceptional resource that we highly recommend. This online tool is designed to guide you through the essential steps you need to take to keep your business operational and compliant with the legal requirements in your state. What's more, you will receive weekly email reminders to keep you on track, and these reminders can be downloaded as a PDF for easy reference. The Startup Wizard also tracks your progress as you complete your tasks, ensuring that you fulfill all the necessary obligations without creating any issues for yourself. Most of the LLC formation services we assessed do not provide this level of support, making this an excellent value-added service that sets My Company Works apart.
Improved pricing
Getting a business up and running can be expensive, but My Company Works has actually dropped its prices since our last review. The Basic package now goes for $59, Entrepreneur for $179, and Complete for $259. What will you get with each tier of LLC formation service? All packages include:
So, yes, My Company Works' lowest-tier package is $10 more than some competitors' Basic package, but when you compare the included services, you'll get much more here.
Entrepreneur gives you all of those features we listed, plus:
And, upgrading to Complete gives you access to:
Very satisfied clients
You've got nothing to worry about when it comes to My Company Works' reputation. The Better Business Bureau gives this service an "A+” rating and accreditation. But that's not all. Over 3500 people have given it a perfect five-star review, with lots of praise for how easy and straightforward it was to create an LLC here. Clients often leave glowing compliments for specific customer support reps, describing them as incredibly patient and knowledgeable. That's perfect for anyone who might be feeling nervous about the process of forming an LLC.
90-day satisfaction guarantee
Still not sure? You're also protected by My Company Works' excellent satisfaction guarantee. Within 90 days of signing up for their LLC formation services, you can request a full refund (unless you'd rather give them the chance to fix whatever the problem may be). Of course, they can't refund anything already paid to the government or a third-party vendor, but as they put it, they are "very flexible and willing to work with you to ensure your satisfaction”. Sounds great!
Service is worth considering
We give big thumbs up to My Company Works. Who doesn't like to see a price drop, right? And with no corresponding decline in service. Sign us up! Even if you just drop by to use the Startup Wizard, you're bound to be impressed with everything on offer here. This is an excellent choice for LLC formation services.
FileNow strives to make LLC formation as straightforward and stress-free as it can possibly be. Your whole process will be expert-reviewed and guaranteed to be error-free, or you'll get your money back. Everything about this service is transparent, from fees to features - so even though it's one of the newer companies in our evaluation, don't let that scare you off.
Pop-up discount
As we landed on the FileNow site recently, we got a pop-up offering a 10% discount if we entered our name and email address. We'll admit that we weren't big fans of the "offer expires in 15 minutes” countdown timer, but we'd endure it to save some cash (especially on the more costly business formation services).
Affordable yet fully-featured
But, you might not need much of a discount to access these affordable LLC formation services. FileNow is one of the best-priced services we've found, giving you a ton of features with your package that many rivals charge a la carte for - or make you sign up for a $300+ plan to access. There are two plans to choose from here, Starter ($49 + state fees) and Premium ($199 + state fees). Both come with the following features:
If you upgrade to Premium, you'll also get one year of free registered agent service ($119/year thereafter), an EIN/tax ID, operating agreement, banking resolution, business contract templates, and 24-hour processing.
Strong history of customer satisfaction
FileNow's reputation is pretty blemish-free, starting with an "A+” rating and accreditation from the Better Business Bureau and finishing with over 95% of clients rating this service with 4 or 5 stars. Clients say that FileNow's support was extremely easy to reach when help was needed, regardless of whether they used the live chat, email, or phone option. "Easy” and "inexpensive” are two ways we frequently see people describing this company's LLC formation service, and it's hard to find anyone with any major complaints here.
Terrific option for low-cost LLC formation
FileNow is exactly what it appears to be: an inexpensive, no-hassle way to create your LLC. Why spend almost double with another provider when you can get the same features (or more) at a more reasonable price, from a company that has a great reputation? FileNow should definitely be on your list of options when forming your LLC.
If you are a small business owner seeking an LLC formation provider with a first-hand understanding of starting a business from scratch, CorpNet is a good choice. Founded in 1997 by an entrepreneurial couple, CorpNet maintains a family-owned approach to customer service, and you can even schedule a free initial consultation right through the CorpNet website if you'd like to ask questions before you get started.
Choose from 3 packages
There are three packages to choose from when creating your LLC at CorpNet. Here's what you can expect:
Watch for extra/higher fees
Keep in mind that you'll pay $149/year for your registered agent service here, after your free trial period ends. We also noticed that CorpNet charged higher filing fees for our state than what we were quoted elsewhere, and there's a $29 shipping and handling fee tacked on to every business formation package here.
Add extra services if desired
CorpNet also offers a panorama of a la carte services that you can add at checkout. You may want to pay $89 for having your annual report filed with the state, $349 for a business license research package, or for expedited processing.
Great reputation + satisfaction guarantee
CorpNet is "A+” rated and accredited by the Better Business Bureau, In addition, their client feedback on Trustpilot is impressive: at the time of this review, across 750+ ratings, 98% were either 4- or 5-stars. Customer praise is effusive, naming specific reps to compliment their helpful, patient, knowledgeable service and even describing the entire company as "a lifesaver” (and not the kind that leaves your breath minty-fresh). Plus, the company backs its services with a 100% satisfaction guarantee: if you're not completely happy with your LLC formation, you can request a refund within 60 days of your purchase, bearing in mind that you won't get back anything that has been paid to a third party on your behalf (like state filing fees).
Worth paying extra
CorpNet is well-loved by clients who use the service to create an LLC. We're not the biggest fans of some of its pricing - honestly, you'll probably spend more money here than what you'd pay for a competitor's service - but sometimes it's worth it to spend a little extra to get terrific support. In that aspect, CorpNet definitely delivers, and that keeps this company among our higher-rated options for LLC formation.
Since 2015, Swyft Filings has helped more than 300,000 businesses to do what they love while this service handles the paperwork - for non-profits, S- and C-Corporations, and yes, LLC formation.
No final pricing until the end
As you walk through the question-and-answer to create your LLC, Swyft Filings will ask if you want to include several a la carte features. They do a good job of explaining each one, but we don't really love the approach of not telling you pricing until the very end. Rival services show you the package pricing upfront instead of making you pick and choose "extras” as you go. Such extras include registered agent services and a Business Licenses and Compliance Package ($99).
$49 for basic LLC formation
But, at the end, you will get to see Swyft Filings' three packages. Every service comes with name availability verification, preparation of articles or organization, filing of your documents with the Secretary of State for your business, Statement of the Organizer, lifetime customer support via phone and email, and a free domain name. With Swyft Filings' Basic package, you'd only spend $49 plus state filing fees to get all of those services: an extremely competitive price compared with rival providers.
$149 for Standard, $299 for Premium
Jump up to the Standard plan ($149) and your LLC formation service will include obtaining an EIN, a customized banking resolution, organizational minutes, and LLC operating agreement. At $299, Swyft Filings' Premium plan gives you all the bells and whistles: everything in Basic and Standard, plus a customized digital LLC kit, expedited filing time, and FedEx delivery.
Clients are glad they chose this company
Swyft Filings has a pretty impressive reputation, for the most part. On Trustpilot alone, almost 6000 clients had left ratings at the time of our evaluation, averaging 4.8 out of 5 stars. When we sorted out just the reviews that mentioned LLCs, even the most recent comments were almost uniformly positive. Customers praised the quick and helpful service they received, the reps' ability to answer questions and resolve problems, and the overall streamlined nature of the LLC creation process.
An "F” from the BBB?!
Notice we said "for the most part”? When we looked at the Better Business Bureau's listing for Swyft Filings, expecting it to line up with the thousands of happy client reviews found elsewhere, we were surprised (and not in a good way) to see an "F” rating. The BBB cited 165 complaints filed, 4 of which had gone unresolved and 7 that had received no response at all. If you're seriously thinking of using Swyft Filings for your LLC creation, we'd suggest reading through the complaints at the BBB and deciding if they're cause for concern in your specific circumstances. We found detailed responses to just about all of them, and many issues were obvious failures on the part of the client in understanding how the service worked, what they signed up for, and what their subsequent emails and updates meant for their billing.
Watch out for automatic billing and higher costs
Then again, Swyft Filings isn't doing clients any favors with their $99 quarterly subscription for registered agent service. You'll find LLC formation options in our review that charge that much for an annual plan. You may want to click on "appoint someone else to handle all of this” if you decide to use Swyft and don't want to overspend on that aspect of your business. You'll also find yourself subscribed to their ComplianceGuard service: you get a 14-day free trial with any LLC formation service you choose here, but it will automatically renew at $149/year unless you opt out during the checkout process.
High in satisfaction but pay attention to billing details
At the end of the day, we feel compelled enough by the thousands of five-star ratings from satisfied Swyft Filings clients to give this LLC formation service our own four-star review. You get a lot for your money here, and most people come away completely satisfied with their experience. But, balance that positivity out by remembering that you could easily wind up with auto-renewing charges and make sure to deselect those during your sign-up process if needed.
Business Rocket specializes in helping entrepreneurs and businesses incorporate their companies. They provide a range of services including legal assistance, business registration, and tax compliance. Their aim is to simplify the process of setting up a company and help businesses get off the ground quickly and efficiently. Business Rocket also provides ongoing support to their clients to help them stay compliant with legal and regulatory requirements as their business grows.
Choose from plans ranging from $49-$254
All LLC formation packages offered by Business Rocket come with the first year of registered agent services (and $149/year thereafter), preparation of organizational documents, filing and activation with your state, and lifetime compliance guard to inform you of any state/federal renewal requirements. Here are your options for creating your LLC with Business Rocket:
No BBB rating but lots of five-star reviews elsewhere
At the time of this review, the Better Business Bureau didn't have enough information about Business Rocket to issue a rating. That's surprising, given that Trustpilot's 900+ ratings dated back at least 3 years, averaging an impressive 4.8 out of 5 stars. More than 95% of clients would recommend this service, praising the efficiency of the process and the attentiveness of the customer service team. Like any LLC formation service, some people had less-than-satisfactory experiences, but the small number of complaints seemed to come primarily from overseas clients who weren't able to connect during their business hours.
More info, please
So, besides a rating from the BBB, what's missing here? For one thing, we couldn't find anything even approaching a refund policy or a satisfaction guarantee. With such high client ratings, maybe that would never be necessary with Business Rocket, but it would still be reassuring to see something like that in writing. It would also add some peace of mind if this LLC creation service offered more details about who their clients can expect to work with. Who's the CEO? Who else is on the team? Those are the kinds of questions nervous business owners might need before trusting Business Rocket to help them file their LLC paperwork. We'd like those details too, because we can only find feedback dating back to 2019, but the Business Rocket website features testimonials from clients who supposedly go back to the early 2010s.
Could be a good choice to create your LLC
We give Business Rocket a somewhat cautious 3.5 stars out of 5, which would easily jump to a 4 or higher with more background on the company. We're encouraged by the lengthy track record on Trustpilot, though, so if you don't find what you're looking for with one of Business Rocket's higher-ranked (and better-documented) rivals, it's worth circling back and giving this LLC formation company your attention.
MyCorporation has been assisting small businesses in launching their operations for more than 20 years. The California-based LLC formation service concentrates on catering to the requirements of brand-new and expanding companies, as evident from its tagline, "Entrepreneurs welcome."
4 packages to consider
MyCorporation has four options for LLC formation, and like most things today, prices have increased over the last few years. Here's what to expect from fees currently:
Services can come with recurring fees
You can also add optional services at checkout, like rush filing ($100), EIN ($79), a customized Operating Agreement ($59), and so on. We didn't love that several features come with annual fees that auto-renew, but nowhere on the pricing page or during checkout does MyCorporation spell out what that will cost. We tried to use the company's live chat feature during regular business hours, to ask what those recurring fees would be, but we were told that it was closed. And it was only in the FAQs for Payment and Billing that we spotted the requirement that clients cancel in writing at least 30 days before the next renewal term.
Client feedback is mostly positive
It was interesting to see how MyCorporation's feedback - even the self-proclaimed stars and ratings on their own site - varied depending on where we looked. On the LLC formation package pricing page, it was 5/5 stars out of 61 reviews, but on the home page it linked to a 4.9 out of 5 average spanning 150 reviews (though clicking there took us to only 135 ratings). Still, looking at third-party site Trustpilot, MyCorporation still fared well with a 4-star average out of five across 245 client ratings. We specifically looked at comments left regarding LLCs, and most of them were from customers who were very satisfied with the service they received. That lines up with the BBB's "A+” rating for MyCorporation as well.
Still recommended
Overall, MyCorporation is a "good enough” option for LLC formation. We caution you to be aware of those auto-renew features, especially if you're choosing a package that includes them, and make sure you keep track of not just how much you'll pay at renewal but also that 30-day-before-renewal deadline if you decide to cancel. This service gets consistent praise from the majority of its clients, and that's enough to keep MyCorporation as a recommended LLC creation company in the middle of our rankings.
Nolo provides a wide range of legal resources and do-it-yourself legal solutions for individuals and small businesses. Their products and services include books, online articles, software, and legal forms covering various legal topics such as estate planning, small business, personal finance, and more. They aim to make legal information and services accessible and affordable to everyone.
Hooray for improvements and upgrades
It seems like every time we revisit Nolo to evaluate their LLC formation services, we see vast improvements over the previous review. The company started out only offering books and forms, then later upgraded to serve as an online platform for creating an LLC - but their prices were much higher than many rival services. This time around, we were happy to see that Nolo compares quite favorably with a starting price of just $49.
Three options for pricing and services
You'll follow a three-step process to use Nolo. First, enter your preferred LLC name and choose the state in which you want to form it. Then answer a few more questions about the desired structure of your LLC and choose which of Nolo's three packages is best suited to your business needs.
Take a few minutes to fill out the questions
Next, you'll complete the step-by-step guide that walks you through the process of filling out your LLC formation documents online. For a Basic filing, Nolo estimates that you could be done and dusted within just a few minutes - but take your time, because your progress will be saved as you go and you can file whenever you're ready.
Time to submit and file
Finally, when you've submitted all of the required answers to Nolo's questions, they'll take over from there and get your LLC formation documents filed in your state. Remember that the package fees don't include any applicable state filing costs, but Nolo tells you upfront what you'll pay in the state you indicated.
Discounts may be offered
When we visited the Nolo site most recently, we got a pop-up offering a 10% discount on any small business formation services (LLC, Corporation, Non-Profit). The only requirement was entering our email address to subscribe to periodic emails from Nolo. Then as we browsed a little longer, we got a separate pop-up giving us a $15 discount; clicking on the "Redeem Now” button put the savings in our checkout automatically, and we didn't even have to sign up for emails.
Not enough feedback specific to LLC formation
We were excited to see that, according to Nolo, their LLC formation service had over 1000 reviews on Google averaging 4.4 out of 5 stars. But when we clicked Nolo's link to see those reviews, all we got was an error - leaving us to rely on the six scrolling ratings on the Nolo site. It would have been helpful to see client feedback specific to LLC formation because it's hard to suss out how this particular service rates against the backdrop of Nolo's many other services. Points to Nolo for having an "A+” rating and accreditation from the Better Business Bureau, and for vastly improving its LLC formation offerings over the years, but they could still do more to show us what people are saying about this particular service.
Good but not quite great yet
We give Nolo a bump in our rating since our last review - yay for improved pricing and expansion to three service tiers instead of just two - but we'd still need to see more feedback specific to LLC formation in order to give it a higher spot in our rankings. We can comfortably recommend Nolo as an option, but not above our top picks yet.
BizFilings calls itself "the pioneers of the online incorporation space”, founded in 1996 and later becoming a part of Wolters Kluwer's CT Corporation. This service has been used in more than 500,000 filings, helping entrepreneurs and business owners with companies of all sizes.
Helpful tools
There are several tools on the BizFilings homepage that could help you before and after you form your LLC. We recommend trying out the Incorporation Wizard if you're still not sure whether your best next step is an LLC or a corporation. You can also compare business types, or use the License Wizard to see if your particular business will need licenses and/or permits.
Straightforward and useful
We appreciate that BizFilings has no hidden fees: you won't get to the checkout and find anything unexpected here. You'll also be protected against any filing defects for the lifetime of your LLC, so in the event of an error on BizFilings' part, they will cover any fees or costs required to fix the mistake promptly. Additionally, you can utilize the BizComply web-based interface to monitor all essential due dates for filing documents and ensuring compliance, as well as access a repository of materials on LLC establishment for more comprehensive insights.
More expensive than rivals
But, BizFilings' LLC formation services are much more expensive than its rivals. For example:
Other services are available as a la carte options as desired, like Payroll Tax Registration or rush filing in your state (also keep in mind that BizFilings' fees in your state may vary; the ones we listed are accurate for most locations, but we found slight differences that brought the Basic package as high as $174 and the Complete up to $434).
Registered agent service fees can catch you off guard
Despite the promise of "no hidden fees”, we found several clients who complained that one of the included services felt a little sneaky. Which one? Every LLC formation package comes with three months of free Registered Agent Service - that sounds nice, right? Three months for free! But, you're not able to opt out if you'd rather get that service somewhere else, and the annual fee after the complimentary period is $220. That's definitely NOT free, and while it's not exactly hidden information, you won't see it unless you click on the plus sign to expand the details of that particular component of your LLC formation package.
Where's the client feedback?
Reputation-wise, BizFilings leaves us scratching our heads a bit. With over 500,000 filings, we expected several thousand client reviews. We were hard-pressed to find more than a handful. Even at the Better Business Bureau, where the company has an "A+” rating and accreditation, there were no ratings and just two complaints filed over the last three years. Trustpilot, Google, all the places we typically find clients leaving feedback for LLC formation services? i>Nope.
Doesn't quite compete
There's no issue with BizFilings being a trustworthy option for forming your LLC. But with higher fees and that pesky required commitment to their registered agent services, this company doesn't compete with rival options whose client feedback is much more abundant. BizFilings isn't a bad LLC formation service, but it's got room to improve if it wants to move higher in our rankings next time.
Rocket Lawyer provides affordable legal services online to individuals and small businesses. Some of the most popular services offered by the platform include creating legal documents such as wills, contracts, and business formation documents. Rocket Lawyer also offers a variety of legal plans, which give users access to discounted legal services and attorney consultations. The company was founded in 2008 and is headquartered in San Francisco, California.
No pricing disclosed upfront
We wish that Rocket Lawyer would put its pricing out there, instead of making business owners walk all the way through the "Start an LLC” process to find out. As you answer all of those questions, you'll have to indicate if you want any add-ons, like obtaining a federal tax ID ($59.99), a personalized corporate kit and seal ($104.99), designating Rocket Lawyer as your registered agent ($149/year, or $111.99 if you're a Rocket Lawyer subscriber).
No rush filing?
It was also confusing to be offered rush filing or standard - but both were priced at $125 (state fees) and estimated to be processed in 15-20 business days. That made it look like there was no option for rush filing in our state of LLC formation, but rival services offered expedited processing. Not sure what's going on with Rocket Lawyer there.
Some services are membership-based
At the end of the sign-up, you'll have to decide if you want to become a member of Rocket Lawyer's services. You'll get 7 days for free, and after that it will renew at $39.99/month. That could be worth it if you want to use Rocket Lawyer for other documents (business or personal), if you would like to have access to a nationwide network of lawyers for asking any questions, or if you want that $30 discount on your registered agent services. Or you can just go ahead with your LLC formation and skip that altogether.
Hard to say what you get for what you pay
Finally, Rocket Lawyer reveals what they charge for their LLC creation service: $99.99. What, exactly, will that include? They never come out and say: there's no detailed list of what's included and what's not. There aren't any tiers of service to choose from, either. Compare that with rival services who tell you right upfront what packages are on offer and what they cost, and it's easy to see why Rocket Lawyer doesn't rank very high here anymore.
Not much feedback specific to LLC formation
Sure, reputation-wise, Rocket Lawyer is solid. The company has an "A+” and accreditation from the Better Business Bureau, and plenty of clients give the overall service a five-star rating. But, it's hard to find specific feedback from clients who used Rocket Lawyer to create an LLC: they don't even provide that on their own website, let alone any of the third-party sites we surveyed.
Only recommended if you need comprehensive legal advice/forms
At the end of the day, Rocket Lawyer's offerings in the LLC formation space just aren't as clear or comprehensive as many of its competitors. You may want to use this company if you need an all-in-one source of legal documents and advice for your business and your personal life, but otherwise you'll get more for your money with one of the higher-ranked LLC creation services we evaluated.
As a prominent provider of compliance solutions for companies of various sizes and types, Harbor Compliance was established in 2012 by a group of government licensing experts and pioneering technologists. Through its services, the company has aided more than 35,000 clients in obtaining, safeguarding, and managing licenses in diverse industries.
Prices start at $99
Harbor Compliance starts out by telling you to expect their fees to start at $99, but you'll have to go through the question-and-answer process to find out what your options will be. As we worked through it for our business location, we were given that $99 fee to have the name availability checked and our LLC articles of organization prepared and filed. We could also choose to pay filing fees of $125 for 3-5 business days or $280 for 1 business day. Next, we were asked if we wanted to use Harbor Compliance as our registered agent - and we were pleased to see that their annual fees of $99 were much more affordable than some rival services. Additional services offered included obtaining an EIN ($99), operating agreement ($99), and so on.
Better pricing than before
So yes, it's reasonable to expect that you could get your LLC formation taken care of for under $100 here - but when you compare what other companies charge, especially for those add-ons that are often included as part of a package elsewhere, you may find that Harbor Compliance is on the spendy side. Still, HC used to offer just two packages priced at $399 and $799, so they're a little more in line with what their competitors are doing now.
Offers after-the-filing support too
After you have formed your LLC, Harbor will check for compliance gaps and suggest any regulatory filings that might be needed in your state, typically required of companies similar to yours. They offer comprehensive support after the fact, but they don't go into detail on the LLC formation page about what those might be. Those services used to be included in those comprehensive packages we described, but we also appreciate that prospective clients don't have to commit to an expensive plan anymore but can just pay for what they need, when they need it.
Client satisfaction is dropping
We were disappointed to see that Harbor Compliance's client feedback has declined since our last review. You'll still find people who rave about the attention to detail and customer service here - but there are also almost an equal number of clients who say that their Harbor reps dropped the ball, and that processes that were supposed to take a week or two had gone months without completion. We encourage you to click on the link to the Google ratings that's right on the LLC formation homepage for Harbor Compliance; read for yourself and pay particular attention to the most recent reviews at the time you're considering which company to work with. When we checked, Harbor Compliance still had an "A+” and accreditation from the BBB, so apparently the issues aren't widespread enough to generate a drop in reputation there.
Not a top pick for LLC formation now
Still, we expected to see that most clients using Harbor Compliance for LLC formation were satisfied with their experience - but the picture painted by customer comments is too mixed to inspire confidence. As one person put it, "they [seem to] focus their efforts on a few clients that they overly please while ignoring everyone else”. We've had to drop Harbor Compliance in our rankings because despite their changes in pricing to become more affordable, their reliability has taken a nosedive.
LegalZoom has been assisting individuals since 1999 by offering cost-effective self-guided services for legal documents. With over four million customers served, this company gives you access to forms covering an extensive range of topics, including business requirements like LLC formation and incorporation, as well as personal matters such as living trusts and estate plans.
Pay attention to registered agent options
Form your LLC for no cost other than state filing fees? That's what LegalZoom hopes will get you through the door, so to speak. To find out if you're eligible, start by entering your business name and industry type. During the process, you'll be given the opportunity to use LegalZoom's registered agent service for $249/year, which will renew automatically every year - but you can also select "Appoint a different registered agent” when you realize that there are other ways to get that service for less (and, in fact, some of the LLC formation services in our review give you the first few months to a year for free as part of your package).
Possible to create your LLC for nothing but state fees
Still trying to get your LegalZoom services at no cost? You'll have to navigate through several more screens of offerings, like essential documents (operating agreement, EIN + licenses) priced from $99-$199, $280/year for compliance monitoring, tax returns and advisory services ($49-$119 per month), legal protection services ($49/month), and then a whole page of special offers of related services like banking. Exhausted yet? Oh, and don't forget the options for expedited processing and a founder's kit. But, yes, as long as you keep clicking "no thanks” or "I'll do this myself”, you'll eventually get to the checkout page where your LegalZoom fees are $0 and all you're paying is the filing fee for your state. You'll get the articles of organization, name check service, a digital welcome packet to follow after your LLC is registered officially, and even a Wix-powered website you can use to make an online presence right away.
Choose a bundle to save money
But, you're going to get a better deal if you just start out with one of LegalZoom's other bundles instead of adding here-and-there during the checkout process. Their Pro package is priced at $249 and it comes with most of those items we mentioned previously: all of the features of Basic, plus an operating agreement, an EIN, a comprehensive guide regarding business licenses in your industry and area, and initial phone consultations with experts in the areas of business taxes and insurance.
Legal advice available from attorney network
However, if you want a lot of hands-on help with creating your LLC, you'll want LegalZoom's Premium package. It costs $299 and gives you all the benefits of Basic and Pro, but also the ability to choose which business attorney you'd like to get guidance from and unlimited 30-minute consultations. Just be aware that that last service is a subscription and your LLC formation package only gives you the first 90 days for free.
60-day satisfaction guarantee
LegalZoom wants you to have no qualms about signing up for any of their services. To that end, they have a 60-day satisfaction guarantee within the first 60 days of signing up. Of course, that won't apply to any third-party fees they've paid on your behalf (like the state filing fees required to create an LLC) or after they've already submitted your paperwork.
Solid reputation, but dig deeper
LegalZoom's reputation overall is solid, with an "A+” and accreditation from the Better Business Bureau and an average of 4.6 out of 5 stars across thousands of reviews on Trustpilot. We could even overlook the 400+ complaints filed against LegalZoom with the Better Business Bureau: after all, this company helps millions of people, so they're bound to get a few complaints, right? However, when we started looking through client complaints about LegalZoom on the BBB and Trustpilot, an alarming percentage of them specifically mentioned issues with the LLC formation service.
LLC clients have lots of complaints
Excessive delays, trouble getting help over the phone when clients notice problems, and even representatives hanging up on customers are just a few of the issues described - and those were just from the month leading up to this evaluation. So much for that 60-day satisfaction guarantee. Business owners using LegalZoom to form an LLC seem to either love it or hate it, and even the positive reviews left us wondering if maybe those clients just hadn't experienced a problem - yet.
Use a different service to create your LLC
All of that combined to earn LegalZoom a big drop in our rankings. It seems like they reel people in with the promise of free LLC creation services, but clients wind up paying for it in the end - literally and figuratively. We strongly recommend that you use a rival service that gets consistently positive feedback from clients, specifically regarding LLC formation, and stay away from LegalZoom.
In 2001, two attorneys from California identified a lack of affordable and accessible legal forms for the average consumer, such as wills and powers of attorney. To address this issue, they founded FindLegalForms, which allows customers to quickly find and print the necessary forms at home for a fraction of the cost of using a lawyer. The website offers hundreds of legal forms, which are constantly reviewed and updated by lawyers who specialize in state-specific laws. Over 3,500,000 people have used this site to access legal forms that are guaranteed to be valid according to those state requirements.
Affordable access to LLC paperwork
If you're looking for rock-bottom pricing on LLC formation, FindLegalForms definitely qualifies. You can buy one-off forms for anywhere from $7.99 to $19.99, depending on the document you select. These include forms for LLC Formation & Termination, Amendments for LLC Documents, LLC Subscription & Voting, and Member Meetings.
Best value is a combo package
Otherwise, your best value is FindLegalForms' Combo Package. For $39.95, you'll get these eight forms:
Preview all forms
All LLC formation documents have a preview sample and a thorough explanation. When you purchase any document through Find LegalForms, you'll have the ability to download it as many times as needed in several formats (PDF, .doc). And, eSignature is included at no extra cost.
No issues with reputation
FindLegalForms is a reputable company, demonstrated by the Better Business Bureau's "A+" rating and zero complaints filed against them there. You also have the extra peace of mind that comes with FindLegalForms' 60-day money-back guarantee.
No personalized support here
However, for those seeking personalized guidance or with complex legal needs, FindLegalForms may not be the best option, since these forms don't provide answers to questions that may arise during the LLC formation process. In such cases, it may be more beneficial to select a provider that offers different service packages and personalized support. After all, most people looking for an LLC formation service want something that goes beyond a DIY package of paperwork to fill out, and that's all you'll really get here.
Other LLC formation providers are better
We have no problem with FindLegalForms overall, but it just doesn't measure up to more robust LLC formation services that let you work with an actual person - an expert in the field - to ensure that mistakes are avoided and your LLC gets created as smoothly as possible. You may want to keep this company in mind for simpler tasks, like creating a will or a bill of sale, while choosing a more well-rounded platform for your LLC formation.
There are many services that can help with LLC formation for small businesses. Many of these services offer a range of options for businesses at various price points, from basic do-it-yourself kits to more comprehensive packages that may include assistance with obtaining tax identification numbers, preparing and filing annual reports, and ongoing compliance support.
Which of these services should you choose? You want to get it right the first time, and forming an LLC can be complicated. Here are some of the most important criteria you should keep in mind as you choose how to take that next step for your business:
Because forming an LLC can be an important step to protect your personal assets and limit your liability as a business owner, Top Consumer Reviews has evaluated and ranked today's most popular services. We're confident that our comprehensive reviews will help you choose the right provider to help you navigate the process.
Are you thinking about setting up a limited liability company for your new business? This is one of several common types of business structures available to you, and it comes with an extensive range of benefits that may be appealing to you. At the same time, it has several drawbacks that must be considered. By learning more about LLCs in general, you can make an intelligent decision about your business's structure. You can also have all of the facts in place to walk through the formation process without a hassle.
Membership in the LLC
An LLC is structured with a membership base. Each member holds a percentage of the ownership of the entity. There is no limit to the number of members that an LLC can have. In addition to the standard membership, there will be at least one managing member. The managing member or members are responsible for the business's primary operations on a daily basis.
It is important to know that an LLC is formed through your state. Usually, this is through the Secretary of State department. Some states require you to specifically state who the managing members will be at the time of formation. Others may assume that all members are managing members if this is not assigned at the time of formation.
With a corporation and other select entities, the owners or participants in the entity can change by amending documents. With an LLC, however, the entity must dissolve when a member leaves the organization for any reason. If you intend for your business to continue operating after a dissolution occurs, you will need to go through the process of forming a new LLC. With this in mind, it is important to finalize the ownership structure of your new business before you start the LLC formation process.
LLC Personal Liability Protection
Many business owners choose to set up an LLC because of the personal liability protection that it provides. If you choose to run a business as a sole proprietor, you are personally liable for all debts, losses and other credit impacts that occur from your business's operations. This means that your house, vehicles, cash and other assets are at risk. In an LLC, all members enjoy a high level of personal liability protection. This means that your personal assets are not at risk from the business's activities.
However, before you form your LLC, you should be aware that this is not ironclad protection. A legal ruling known as "piercing the corporate veil” may be issued by a judge if you are convicted of fraudulent activities. This may also occur if you did not take reasonable steps to keep your personal and business transactions separate. In the case of this ruling, creditors and others may pursue your personal assets for business debt collections.
The Impact on Taxation
The Internal Revenue Service views a limited liability company as a pass-through entity. Some business structures are taxed directly. For example, a corporation is taxed directly. With a pass-through entity like an LLC, however, the entity's profits or losses directly fall on the shoulders of its members. Each member is directly responsible for paying taxes on profits based on his or her specific ownership percentage. Likewise, an LLC's losses are allocated as a financial loss to the members, and this can directly offset each member's personal tax liability. In addition to this potential benefit to members, you may find that filing taxes is generally easier to do with an LLC than with a corporation.
You should be aware, however, that LLC members may have an additional taxation requirement. An LLC's members are direct owners, and they are viewed as being self-employed by the IRS. Because of this, they are subject to self-employment taxes. This means that they must pay Social Security taxes and Medicare taxes each year based on their allocation of the LLC's profits. This is taxation that is directly based on the LLC's net earnings.
Your LLC Formation Options
You may think that forming a business entity would be a stressful experience, and this may prove to be true when you form some types of entities. Forming an LLC, however, is a straightforward experience with a few easy steps. You can even prepare the few required documents online as soon as you are ready to do so. The first step in forming an LLC is selecting a business name. You can always change the name of your LLC by filing amended paperwork with your state's Secretary of State department. However, it makes sense to focus on building your brand and conducting operations from day one with a name that you will stick with.
After you have a name in mind, you need to decide who the members are and what their ownership percentages are. You also need to determine who your entity's registered agent will be. This is a designated individual or agent who receives service of process for your entity. While it can be a business owner, you may avoid unnecessary compliance concerns down the road by choosing a third-party registered agent.
You will then prepare and file your operating agreement with your state's designated filing agency. Typically, you will be required to pay a formation and filing fee at this time. A few final steps will follow this one. For example, you will need to request an EIN from the IRS. This enables you to file your LLC's tax returns, to apply for a loan and to take other important steps. You will also need to establish a business bank account. This bank account is crucial to keep business and personal financial transactions separate from each other. By maintaining distance in this way, you can protect the personal liability benefits that the LLC provides.
After your LLC has been filed and your business is up and running, you cannot neglect your entity. Different types of LLC maintenance may be required over the years. Through maintenance efforts, you can maintain compliance and ensure that you have personal liability protection going forward. Keep in mind that the LLC maintenance requirements vary by state. Some states, for example, may require the filing of an annual report. This may also be called a statement of information in some states. If this is the case, you must file the annual documentation by a specific date each year to remain compliant. Ensure that you add this important date to your professional calendar so that you do not overlook it.
Some specific LLC activities or events may trigger a maintenance need as well. For example, if you decide to change your entity's name, you will be required to submit an amendment to your state's business filings office. The specific need for a formal, filed amendment may vary by state. Before you firmly decide to form an LLC for your business and complete the easy process online, it is important to research your specific state's LLC requirements. Likewise, you should familiarize yourself with the IRS's LLC taxation rules while you are conducting crucial due diligence.
Set Up Your LLC Today
Have you firmly decided that you want to structure your new business entity as an LLC? The process of establishing a limited liability company is so straightforward that you can do so completely online. An alternative is to hire a business lawyer to facilitate the process. However, many people find that this alternative is unnecessarily time-consuming and costly. You can get started forming your LLC today by researching your state's filing requirements. Then, you can conveniently walk through the final steps online to complete the process. Depending on your state's processing timeline, you may expect to receive a confirmation that your entity is established within roughly a few weeks.
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