Top 10 Best LLC Formation & Incorporation Services 2021

Starting a group like a C-corp is a good idea if you have a business model and plan that can grow exponentially. However, a C-corp might not be a good idea when starting out as it doesn’t give you tax benefits similar to how an LLC does it. Starting an LLC and hiring the best LLC service out there might be a better idea as it’s more appealing to startups and it brings you tons of benefits as well.

Keeping this in mind, we started looking for the top LLC formation services on the market, and luckily for you, we’ve already put together a list of 10 of them. These services listed below are considered the best in the market with their reasonable rates, amazing packages, and reliable registered agent services.

Top-Rated LLC Formation Services

Here are our top 10 best LLC services worth checking out:

1. ZenBusiness – Best overall

2. Better Legal – Best user experience

3. IncFile – Best affordable

4. MyCompanyWorks – Best refund policy

5. Harbor Compliance – Best customer service

6. Inc Authority – Best Track Record

7. Northwest Registered Agent – Best customizable plans

8. LegalZoom – Best customer support hours

9. Rocket Lawyer – Best legal advice

10. InCorp – Best comprehensive and flexible service

Editor’s Choice

ZenBusiness

ZenBusiness is our top choice on this list. It’s a household name with a ton of happy clients. The Texas-based firm has been assisting entrepreneurs to incorporate companies for the past four years.

ZenBusiness offers affordable LLC formation services and doesn’t sacrifice the quality. This provider receives strong customer feedback.

●      Outstanding customer feedback

●      Industry-best pricing

●      Socially conscious

●      Offers the registered agent service

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1. ZenBusiness

10 Best LLC 1

Pros

·         Outstanding customer reviews

·         Impressive features and package pricing

Cons

·         It’s fairly new in the industry

·         The registered agent service is only free during the first year. Afterward, it attracts a recurring fee.

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If you’re looking for a social- LLC formation provider with the best overall value and massive customer reviews, then give ZenBusiness a shot.

Zenbusiness is currently ranked 1st in the top 10 best LLC services at SFweekly and Benzinga.

ZenBusiness has an attractive starting package with all the necessities for forming a limited liability company. The starter package includes 12 months of free registered agent service, LLC formation, custom operating agreement, and a Worry-free CPA evaluation from an in-house professional.

Positive customer feedback is a great strength for ZenBusiness. They have at least 3,700 online reviews.

The other feature that makes ZenBusiness the best LLC service is its social-consciousness. They collaborate with Kiva.org to fund minority- and women-owned businesses.

As part of their Worry-Free Guarantee (which comes with the Pro package), ZenBusiness handles your annual report filing and other aspects of LLC maintenance

2. BetterLegal

betterlegal

Pros

·         Quick turnaround time (your document will be ready in 3 days)

·         Fastest user experience – it takes five to 10 minutes to complete

Cons

·         No visible contact details on the website, but there’s a chat feature

·         There’s no legal or attorney support

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Looking for an LLC formation company with fantastic positive ratings, fast turnaround time, and reasonable pricing? BetterLegal is the way to go. According to SFGate and LAweekly, Betterlegal is one of the best LLC services that can meet all your online LLC formation.

Based in Austin, TX, BetterLegal began business in 2016 and promises its clients a quick turnaround time.

The flat fee consists of an operating statement, certificate of formation (preparing and filing), a banking resolution, a federal tax EIN and other useful documents.

BetterLegal is known for various features, including a free website, resourceful info center, free account, free tax analysis, registered agent service, and customer support.

At the time of writing this best LLC services review, BetterLegal had many reviews on Trust Pilot with 91% of these being 5 stars rated. Besides, BetterLegal has an A+ rating on the Better Business Bureau with 8 customer reviews and no latest complaints.

One of the reasons most business owners like BetterLegal is that you only get what you want. There are no annoying upsells or ads for what you don’t want.

3. IncFil

incfile

Pros

·         Excellent customer support

·         Exceptionally easy to use

Cons

·         Tons of upsells that may skyrocket the price

·         They don’t have a legal form builder for creating legal documents, such as contracts

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Are you looking to start a company on a tight budget? Choose IncFile, as it’s among the best LLC services.

IncFile is ideal for those looking for the best affordable business formation service.

IncFile has facilitated the formation of over 250,000 businesses since its inception in 2004. Even at their impressive rate, IncFile has various valuable features, including lifetime notifications for filing deadlines, a full 12-month registered agent service, and more.

4. MyCompanyWorks

mycompanyworks

Pros

·         Same day filing service

·         The overall pricing is reasonable

Cons

·         They don’t have a registered agent service except for the most expensive package

·         There are cheaper providers out there

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If you value prompt customer support and track record, check out MyCompanyWorks.

This business formation company offers a great balance between features and affordability, making it easy for many entrepreneurs to access services, which enable them to start and build businesses.

They have stronger customers than most companies; at least 2,600 reviews and more than 97% of these reviews are rated 4 stars or 5 stars. MyCompanyWorks gets praise from customers for efficiency and ease of use.

MyCompanyWorks offers one of the best refund policies in the industry. They provide you a whopping 90 days to check your purchase and if you aren’t satisfied for any reason, you can ask for a refund.

While MyCompanyWorks doesn’t have advanced features like LegalZoom, they do have some robust services to help entrepreneurs operate their compliant organizations. Examples include the low-priced annual report feature and opening virtual offices for clients running businesses in Wyoming and Nevada.

5. Harbor Compliance

harborcompliance

Pros

·         Excellent customer support

·         Information center full of helpful learning materials

Cons

·         Package pricing is higher than that of most competitors

·         Lacks experience compared to some LLC service providers

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We highly recommend Harbor Compliance for their exemplary customer service and registered agent service. However, they’ve got a high LLC formation pricing unsuitable for entrepreneurs on a tight budget.

Harbor Compliance began operations in 2012 and has served at least 25,000 clients since then. What makes Harbor Compliance unique is that each client can access a highly trained compliance specialist.

This LLC formation service has two packages; formation and compliance packages. Other services include a 12-month registered agent service, customizable agreement template, and a federal tax ID number.

The compliance package includes everything that comes with the formation package in addition to an annual report service (one year), a year of help from a compliance specialist, and C corp or S corp tax election, if you’re interested in it.

6. Inc Authority

incauthority

Pros

·         High client satisfaction

·         Free business formation package

Cons

·         No refunds

·         Their premium packages are too expensive for startups

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If you don’t have a big budget to spend on business formation, we recommend you consider Inc Authority, which is the best business formation company that provides LLC formation at no cost (provided you pay the state fee).

This company has been operating since 1989. Like IncFile, they offer a free LLC service as well as paid packages. Inc Authority has formed over 130,000 companies over the years.

While Inc Authority’s platform isn’t very user-friendly or intuitive, the LLC service is suitable for entrepreneurs on a budget.

Even though their LLC formation is free, when you sign up for their services, you still receive a free registered agent service for 12 months.

Customer feedback is one of their major benefits. They have at least 4,000 online reviews and most of these positive. This shows that Inc Authority’s customer satisfaction is high.

However, before purchasing any package from Inc Authority, be sure of it because they don’t give refunds.

7. Northwest Registered Agent

10 Best LLC 3

Pros

·         Industry-best customer service

·         Free one-year registered agent service

Cons

·         Pricey packages

·         Fewer customer reviews

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If you prefer dealing with companies that treat their customers exceptionally well and you like to use a straightforward package, you may find Northwest Registered Agent a good fit.

Northwest Registered Agent found a spot on our list because of their superior customer service. They make it super easy for any entrepreneur to form an LLC. But they have higher prices than other providers in this guide.

Northwest doesn’t bombard you with up-sells, which makes their process easy to follow. Of the 10 best LLC services we reviewed, Northwest’s customer support is exceptional. If you’ve got an issue, call their number and a knowledgeable and friendly associate will quickly get back to you.

Their LLC formation package includes a free full year of the registered agent service. Northwest is the only business formation service that scans every document you send to them.

8. LegalZoom

10 Best LLC 5

Pros

·         Extended customer support hours

·         LegalZoom has a high volume of clients

Cons

·         The incorporation doesn’t include a registered service agent

·         Mediocre customer feedback

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If a track record and working with a renowned company mean something to you, then you may want to consider LegalZoom.

This is one of the best LLC services that has helped millions of clients to start and run businesses. LegalZoom engages in aggressive marketing, which gives them massive brand power.

The company has helped form more than one million companies since 1999, which is not common for most of the competitors. LegalZoom has extended hours for its customer service, which is attractive to busy entrepreneurs.

The ordering process for LegalZoom involves a never-ending string of up-sells for their federal tax ID acquisition, compliance assistance, business license research package, subscription to legal services, and more.

LegalZoom’s key strength is the 100% satisfaction guarantee. When you make a purchase from LegalZoom, you’ve got 60 days to choose whether to continue with the service or drop it.

9. Rocket Lawyer

10 Best LLC 6

Pros

·         Strong customer feedback

·         High-quality customer support

Cons

·         Overpriced online incorporation service

·         Limited live interaction

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If your business involves situations that require you to consult with an attorney over sensitive matters, then Rocket Lawyer may be a good fit. However, if you won’t be interested in Rocket Lawyer’s legal service, then you should explore other best LLC services on this list.

At times, incorporating a business entity can come with a share of legal challenges. Rocket Lawyer knows this well, which is why they offer limited liability company formation along with legal services.

Their LLC formation customers enjoy a wide range of features, such as access to a decent document library, attorney advice, and much more.

Since 2008, Rocket Lawyer has served more than seven million business clients and 20 million clients in total. This number is impressive given that they have been around for approximately one decade.

Rocket Lawyer provides a 100% guarantee, which means if for any reason, you are unhappy with their service within 30 days, they might fix the problem for you or refund your money.

What makes Rocket Lawyer an endearment to many clients is their ease of use and superior customer support. That’s why the company has thousands of positive reviews online.

10.

Pros

·         Attractive rates for the registered agent service

·         Satisfied client base due to positive reviews

Cons

·         Some competitors bundle services together and save you money than InCorp does

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InCorp may not be one of the cheapest business formation services or one with many features. However, they have tons of essential factors you can benefit from, making them the.

With over 20 years of experience in the LLC formation industry, InCorp has served at least 125,000 clients worldwide.

This package includes services such as name availability search, preparing and filing of the Articles of Organization, and domestic 2-day shipping.

Additionally, the LLC formation service has tons of add-on features that you may access on a la carte basis. These include the registered agent service, LLC kit and seal, certificate of good standing, domestic mail forwarding, annual report, and more.

One of InCorp’s outstanding features is the affordable registered agent service.

Most of this company’s online reviews are positive. In general, customers are happy with the speed at which InCorp delivers its services and the quality of the customer service that InCorp offers.

How to Choose an LLC Service

To choose an LLC service that will help with your business formation and related services, keep the following things in mind:

Price and Value

Business formation services have bundled their services in various packages. Since your company is still a startup, you want to ensure the prices are reasonable so you minimize on expenses.

That said, the services offered must be valuable too. Most importantly, consider whether the organization offers a registered service agent, as this agent will run important errands for your limited liability company, saving your time.

The best business formation services don’t charge extra per service, but they price a collection of important services together.

Main Features

The primary services to look for are LLC formation and registered agent services. Additionally, ensure the provider can help with creating an Operating Agreement and Articles of Organization.

Additional Services

Other than handling your LLC set up and processing vital legal documents, the LLC filing service can offer other useful services to your organization. Some of the additional services offered include LLC publication, annual report filing service, trademark registration, EIN, virtual office, dissolution filing, seller’s permits, foreign qualification, office supplies, legal help, business licenses, and more!

Therefore, take the time to read through the company’s bonus offers. If a service provider offers an extra service that you may not want to pay for, consider ordering something that excludes the add-on.

This is because these extras typically come at an additional fee. So, if you don’t need it, there’s no need to pay for it. Watch out for companies with lots of up-sells.

Turnaround Time

For people looking to set up and their limited liability company quickly, turnaround time is crucial. While the delivery time doesn’t depend fully on the LLC service company, a number of state-specific regulations may slow the process down. That’s why you should confirm that the company has registered agents to expedite things or has experts assigned to individual clients like in the case of Harbor Compliance.

Company Reputation

The competition in the LLC service market keeps rising as more players join the industry. That’s why you should research well before choosing a provider.

Start by looking at their online customer reviews. Google, Facebook, and Better Business Bureau are good places to start. You can also check out other reputable review platforms, such as Trust Pilot and G2.

Don’t just look at the quantity of reviews, but the quality as well. Specifically, consider the number of positive reviews; if it’s high, then that must be a good company.

Some business formation services may not have many reviews because they started operating recently. Those are different from those that have been in the game for decades and are expected to have thousands of glowing reviews.

Customer Support

While reading the company’s reviews, find out what customers have to say about the company’s customer service. How responsive, friendly, and knowledgeable are they?

Check out the provider’s website for contact information. Do they have different ways to communicate with their customers, such as live chat, phone number, and email address?

Reasons to Use LLC Services

1. It’s Generally Affordable      

As an entrepreneur, you may find the entire process of business registration a bit intimidating and time-consuming. Besides, hiring a lawyer to handle the work for you can be costly. However, you can find affordable LLC service providers with agents and even lawyers to handle the entire process fast and at the fraction of the lawyer’s cost.

2. Expertise and Experience

Company formation specialists work every day to help different types of businesses. Their experience and knowledge eliminate the possibility of errors and delays that could arise if you had to handle the paperwork on your own.

3. Legal Help

The process of incorporation can involve sensitive procedures that require an attorney. Some providers of business formation offer legal assistance, allowing you to seek legal help whenever there’s a need.

4. Saves Time and Efforts

The company handles all the filing according to the state requirements, manages legal and tax-related matters, and sends you alerts on important government deadlines. As they handle these matters, you’ll have peace of mind to attend to the most crucial aspects of your business so it grows.

How LLC Services Work

Forming an LLC with a specialist’s help is easy. You simply need to provide the firm with your business name, the state of business registration, your company’s industry, personal details, and the registered agent’s info. The LLC then picks it from here and handles the relevant paperwork with your state to create the new organization.

So, how does the best LLC service help you?

Handles Legal Matters on Your Behalf

Anyone can use an incorporation service, whether you understand the laws surrounding company formation or not. An LLC formation service knows the state-specific regulations and laws, and will file the correct documents for you.

Mediates between the State and Your Company

If you choose to register and maintain a limited liability company on your own, you’ll need to contact the state single-handedly for any concerns or questions. However, involving an LLC formation service will get your issues resolved fast.

Updates You on Important Deadlines and Filings

Business formation services will provide you with a portal to receive notifications on documents you should file and upcoming government deadlines.

How to Create an LLC

The process of forming an LLC entails six steps, including:

1. Select the State for Registering the LLC

When deciding on the location to create your company, keep in mind factors, such as taxes, workforce availability, and regulatory burden. Most people prefer to form an LLC in their state of residence. The other option is to form the company in one of the states with better regulations for conducting a business. Examples of such states are Nevada, Delaware, and Wyoming.

2. Choose a Company Name

The next step is to pick the name of your company and ensure it meets the legal requirements. States have different rules for this, which is why we suggest you check out the local Secretary of State’s website.

But most states require that you choose a unique business name, which should have LLC at the end. Also, your company name may not include terms like bank, corporation, or insurance.

3. Choose Your Registered Agent Service

All 50 states require an LLC to work with a registered agent. This can be a person or agency. The duty of this agent is to accept state and federal documents on your behalf, sign them, and send them to you.

4. File the Articles of Organization for Your Business Entity

Before your business entity starts operating, it has to be legally recognized. In other words, you need to file a formation document required by the state. This document is commonly known as “articles of organization”. However, it’s also known as certificate of organization or certificate of formation.

5. Create an Operating Document

Although the articles of organization is a mandatory legal document, the Operating Agreement isn’t. But this doesn’t mean it’s less important. The document stipulates the operation and ownership rules of a limited liability company.

An operating document details each member’s rights and responsibilities, voting powers, ownership percentage, how the company allocates losses and profits, buy-sell provisions, and means of management.

6. Get Your EIN

If you plan to hire employees in your organization, the IRS requires that you apply for the Employer Identification Number (EIN). It’s basically your company’s Social Security Number. To apply for it, go to the IRS website and fill out the form.

Conclusion

Regardless of the number of companies offering business formation services, we keep coming back to ZenBusiness as our best overall company registration provider. Their customer feedback is mostly positive, their prices are reasonable, and their business formation packages include valuable features.

Frequently Asked Questions on Creating an LLC

 1. Can I create an LLC for free?

Yes, you can. This option requires you to handle the entire process alone without seeking help from a business formation service. If you choose to go in this direction, be sure to research the relevant legal requirements and file the required documents.

The state-specific requirements can vary, but you need to come up with a unique business name, select a registered agent, create an operating agreement, file the articles of organization, pay state filing fees, and apply for the EIN.

2. Which state is the best for creating an LLC?

For the most part, you should incorporate the LLC in the state of your residence. Alternatively, you may register the company in states with low taxes and business-friendly regulations, such as Nevada, Wyoming, and Delaware.

3. Does an LLC have tax advantages?

An LLC enjoys pass-through tax treatment. This means that LLC owners are not obligated to file tax returns. Instead, LLC owners should report their loss or profit share when filing individual tax returns.

4. Does an LLC need a registered agent service?

In the U.S., every LLC is required to appoint a registered agent, but there’s no legal requirement to use this service. You also have the option of serving as the registered agent for your own company, appointing a family member or friend, or hiring an accountant or attorney for the same role.

5. Is an LLC any better than a corporation?

Each of these entities has its own advantages and disadvantages, so it’s difficult to conclude that one entity is better than the other. But generally, an LLC is easier and cheaper to run and its tax burden is lower too.

But a corporation is advantageous when it comes to attracting investors, as an LLC doesn’t offer stock that may attract investments.

6. How much does an attorney charge for starting an LLC?

At a bare minimum, expect to shell out approximately $1,000 to hire an attorney to create an LLC. But depending on the state you intend to operate in, the nature of the business, and a host of other factors, the cost can easily jump to $3,000 or even more.

Source : Discovermagazine