Thursday, June 1st
2023 LLC Formation Service Reviews
Rocket Lawyer
- $99.99 to form an LLC without membership
- Extra services available a la carte (federal tax ID, registered agent services)
- 7-day free trial on Rocket Lawyer membership (not required for LLC formation)
- "A+" rated by the BBB
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.
More LLC Formation Service Reviews
The 14 Best LLC Formation Services
Which LLC Formation Service is the Best?
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.
LLC Formation Service FAQ
Continued from above...
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:
- Included services. What will you get when you sign up as a client? Does it include concierge-level assistance or will you be doing a lot of the legwork yourself? How personalized are the LLC formation services? Can you get one-on-one help if you need it?
- Cost. What will you pay to access the LLC formation services? Is it a comprehensive one-time fee, or will you discover extra charges as you move through the process? Does the service offer a solid value for what you're spending to form your LLC?
- Client feedback. What do other small business owners say about their experiences using the LLC formation service? Is there a lot of feedback to consider, or just a handful of comments (or even complaints)? Has the Better Business Bureau weighed in on the company? If so, is the service highly-rated and accredited?
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.
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