Using the services of a formation service could possibly save costs when done online. Filing without a service provider could lead to mistakes and costly delays. LLC formation services know the required documentation for each state which means a streamlined filing process.
With so many different formation services out in the market today, it can be difficult to know which of them perform the best. The top formation services should provide services such as EIN (Employer Identification Number) and registered agent services. Below are the details of the top 5 LLC formation services to use when forming an LLC. Look here for additional information.
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1. ZenBusiness
For small businesses wanting to form an LLC, Zen is a great option. Their formation packages start from $49 (plus state fees). They provide 3 different packages varying in price, but all of them include:
- Registered agent services
- Operating Agreement (Detailing how the business will function and be managed)
- CPA assessment
The mid-level and premium package ($245 plus state fees) include additional features such as:
- Employer Identification Number
- Compliance agreement
- Domain name registration (add on feature for premium package)
The company also provides a rush filing option for premium package holders. They have excellent customer service ratings with many positive testimonials online.
2. Northwest
The Northwest starter package costs$49 (plus state fees). The company provides all the essential services necessary to form an LLC. Included in the starter package is:
- Free registered agent service for a year (then $125 per year)
- EIN Registration
- Annual compliance
The Operating Agreement is available from the mid-level package, but the company does provide its customers with a Corporate Guide as an advisory service. These guides are business professionals assigned to specific accounts to assist with any questions and queries. The company also has an excellent customer service rating.
3. Incfile
For start-ups that have a tight budget, Incfile’s starter package is free (plus state fees). The package includes LLC formation and free registered agent services for a year ($119 per year thereafter). The company also provides lifetime compliance alerts to their customers.
The mid-level plan ($149 plus state fees), includes:
- Operating Agreement
- Banking resolution
- EIN registration
The premium package ($245 plus state fees) also offers web domain and web hosting services which are helpful for any new business.
4. Rocket Lawyer
Rocket Lawyer is a good choice for businesses that will require ongoing legal services or start-ups that do not have a great deal of experience with contract drafting. The standard filing fee for LLC formation is $99 (plus state fees), however the company does offer a premium membership for $39.99 per month. As a premium member you will receive:
- Free LLC formation
- Unlimited legal documents
- Discounted attorney services
- Free legal consults
The company has operations in the United States and the United Kingdom and is one of the most widely used legal services in the world.
5. LegalZoom
LegalZoom is one of the most recognised and well-known business formation companies. The company’s focus is on full legal services rather than just business formation. They provide services such as the Business Advisory Plan which provides advice on taxes, access to legal documents and attorney assistance.
The starter package from LegalZoom costs $79 (plus state fees). Included in the plan is:
- LLC formation
- Free annual compliance for 1 month ($320 per year thereafter)
The Operator Agreement ($99), registered agent services ($159 per year) and EIN ($159, to be bundled with the Operating Agreement) are at an additional cost. LegalZoom is a well-established name with plenty of brand power, but that comes with a higher cost. The Wall Street Journal has rated their best feature as their fast customer service response.
Overall, all 5 of these companies are good options to use depending on the needs of the business starter. They all offer multiple products at various price points and all follow a three-tiered structure. ZenBusiness, Northwest and Incline provides good value for small business startups. However, businesses that require or want long term legal services might want to consider approaching LegalZoom or Rocket Lawyer.
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