Best LLC services of November 2023
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BLUEPRINT
Updated 3:31 p.m. UTC Nov. 21, 2023
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Do you need to set up an LLC but aren’t sure how to go about it? With so many LLC service providers on the market, it can be confusing to know which one is best for your situation. They vary in pricing, plan options, included services, customer support, customer ratings and more.
We performed an in-depth analysis of over a dozen providers to find the best LLC services of 2023. Here are the ten companies that came out on top.
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ZenBusiness
: Best for money-back guarantee
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LegalZoom
: Best for business attorney guidance
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Incfile
: Best for customer satisfaction
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Inc Authority
: Best for a free LLC service with tax advice
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Northwest Registered Agent
: Best for help with DIY filing
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Rocket Lawyer
: Best LLC service
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Swyft Filings
: Best for service add-ons
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Active Filings
: Best if you’re on a budget
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Filenow
: Best for fast LLC filing and business documents
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MyCorporation
: Best for ongoing compliance
Why trust our small business experts
Our team of experts evaluates hundreds of business products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 12 companies reviewed.
- 21 hours of product testing.
- 408 data points analyzed.
Featured LLC service offers
ZenBusiness
Free version available
Yes
Lowest published package price
$199
Live chat
Yes: Human
LegalZoom
Free version available
Yes
Lowest published package price
$249
Live chat
Yes
Incfile
Free version available
Yes
Lowest published package price
$199
Live chat
Yes: Human
Our verdict
When you need to start an LLC, the best service provider to hire will depend on your needs. Rocket Lawyer is our top choice for new business owners because its membership provides ongoing legal advice and access to other business services that can be helpful in growing your business.
If you’re on a budget and just want to form an LLC, five companies on this list will help you do so at no cost (beyond the state fee). Active Filings even offers additional perks like a free year of registered agent services and LegalZoom includes a website for your business.
However, if you want a more comprehensive lineup of services, review the mid- and high-tier plans. For instance, Incfile’s prepackaged plans offer business owners great value by including support with tasks like drafting operating agreements, registering EINs, securing domain names and opening business bank accounts.
Further, high-tier plans often offer expedited processing and/or ongoing legal support. If mid- and high-tier plans don’t meet your business needs, Swyft Filings and MyCorporation offer a variety of add-ons to help cover additional business needs or create a custom plan with Inc Authority.
By taking time to figure out what your LLC will need assistance with throughout its first year and beyond, you can find the LLC provider that’s the best fit. Often, you’ll save by opting for a package rather than buying each service one at a time.
The best LLC services of 2023
ZenBusiness
LegalZoom
Incfile
Inc Authority
Northwest Registered Agent
Rocket Lawyer
Swyft Filings
Active Filings
Filenow
MyCorporation
Best LLC setup services cost and ratings
Featured LLC Service Offers
ZenBusiness
Free version available
Yes
Lowest published package price
$199
Live chat
Yes: Human
LegalZoom
Free version available
Yes
Lowest published package price
$249
Live chat
Yes
Incfile
Free version available
Yes
Lowest published package price
$199
Live chat
Yes: Human
Methodology
We extensively research the key competitors within an industry to determine the best products and services for your business. Our experts identify the factors that matter most to business owners, including pricing, features and customer support, to ensure that our recommendations offer well-rounded products that will meet the needs of various small businesses.
We collect extensive data to narrow our best list to reputable, easy-to-use products with stand-out features at a reasonable price point. And we look at user reviews to ensure that business owners like you are satisfied with our top picks’ services. We use the same rubric to assess companies within a particular space so you can confidently follow our blueprint to the Best LLC Services of 2023.
The best LLC service providers have positive user reviews on customer review sites, such as Trustpilot, G2 and the Better Business Bureau. LLC service providers should provide customers with fast and reliable support. Using a combination of phone support, live chat and knowledge bases, customers should be able to quickly resolve issues 24/7.
LLC filing services should be available in all states, affordably priced when compared to competitors and backed by reasonable refund policies and money-back guarantees. All LLC service providers should expand on a basic feature set that includes name availability search, online document access, filing of articles of organization, registered agent services add-ons and additional legal and business services.
What is an LLC service?
An LLC service provider helps business owners form limited liability companies. To do so, they collect the information required to file the articles of organization with the Secretary of State. They also fill out the forms, send them to the proper address, track the status and inform customers when the LLC is formed.
Many LLC providers offer ancillary services that can help LLCs get up and running such as access to registered agents, help with legal documents and contracts, and establishing EINs.
How does an LLC service work?
An LLC service primarily helps individuals to establish new LLCs. Typically, one of these services will:
- Collect the information about the LLC and its owners which is required by the state.
- Collect filing service fees.
- File the forms with the Secretary of State.
- Receive a response that the company has been successfully formed (or not).
- Inform the business owner of the successful formation and deliver their articles of organization, or the other official document provided by a state to LLCs.
- If the LLC wasn’t formed, they can help to try and resolve the issue.
In addition to helping LLCs get established, service providers often offer a variety of packages with multiple other services.
How much does an LLC formation service cost?
*The registered agent is an annual recurring fee. In some cases, companies waive it for the first year or other specified period of time. It’s also included in some companies’ plans.
While pricing varies across the providers, the base plans typically range from $0 to $99, the mid-tier plans from $100 to $249, and the high-tier plans from $224 up to $324. Active Filings comes in competitive across the board and is likely the best LLC service if you’re on a budget. However, most companies aren’t too far apart from each other.
To find the best deal, it’s important to look at what you get for the price. All of these plans include LLC filing but vary beyond that. The most common add-ons are registered agent services, EINs, operating agreements, bank resolutions, business bank accounts and tax consulting. The incentive on premium plans is often expedited filing to speed up the turnaround time. A few also offer customizable business contract templates, notably Rocket Lawyer, which specializes in that service.
If you opt for an LLC filing plan that doesn’t come with a lineup of services, chances are, the company is going to try to sell them to you as you check out. If you don’t need them, just click no and nothing should be added to your bill.
Lastly, no matter which service provider you choose, you’ll have to pay the filing fee in your state, which should be shown to you during the quoting and checkout processes.
Tips to save money
Many LLC formation costs are unavoidable, such as fees to file your articles or organization and obtain a business license. However, there are several ways you can reduce your initial costs. Here are a few:
- Don’t pay for free services. Some service providers will offer to complete business formation tasks for a fee that can be completed elsewhere for free. For example, you can obtain an employer identification number (EIN) for free by filling out a simple form on the IRS website. As such, avoid paying a service to complete this task for you.
- Start your LLC in your own state. Forming an LLC in a state that is not your own (a foreign LLC) often comes with extra fees. For example, fees to file your formation paperwork fees can double if forming a foreign LLC as opposed to a domestic LLC. In addition, you may not be able to take advantage of other cost saving opportunities, such as serving as your own registered agent since you are not physically present in the state (a registered agent requirement).
- Don’t expedite services. Opting for expedited services can double or triple some of the fees you must pay to start your LLC. For example, in Nevada, it costs $75 to file LLC articles of organization. To expedite such filings, it costs an additional $125.
- Take advantage of bundled packages. Many LLC formation services not only will file your formation paperwork for free but will also provide registered agent services for free when you file your LLC through them. Some examples are Incfile and Inc Authority.
Warning: Be sure to check each line item carefully at checkout as some companies sneak in paid subscription services under the guise of free trials.
Ongoing LLC service costs and fees
Here are some ongoing costs many LLCs have to pay to keep the business active and in good standing:
- Registered agent fees: An LLC must have a registered agent to receive legal correspondence on the LLC’s behalf. Because the role requires rigid responsibilities, many companies outsource this role to a registered agent service provider. To do so costs $0 to $300 per year.
- Annual report filing fees: Most states require LLCs to file an annual or periodic report to update the state on key business information, such as the LLC’s contact information. Fees for filing these reports range from $0 to $4,500, depending on the state.
- Business license filing and maintenance fees: While many states do not require a business to obtain a business license at the state level, many businesses must still obtain licenses related to their industries, location or business activities. Costs to obtain and maintain a business license vary widely from state to state and even county to county.
- Taxes: LLCs are pass-through entities, meaning taxes on profits pass through the business and to its members, who are then taxed based on their income levels. However, LLCs may have to pay taxes based on their activities or locations. For example, some businesses must pay for the privilege of doing business in their states (called a franchise tax) and some must pay sales taxes on items or services sold. Other taxes LLCs may have to pay include payroll taxes.
Failing to pay any of these fees as required by your state could result in the dissolution of your LLC.
How to choose the best LLC service
The right LLC service provider for your small business is going to be the one that best meets your needs for the best price.
For example, would you like a registered agent service? Providers charge anywhere from $99 up to $396 for the service, so you’ll want to find a provider that offers a good deal. Further, you may need a variety of documents after getting set up. If you don’t have a lawyer at your disposal, it could be convenient and cost-effective to find a provider that offers help with documents as well.
If you’re not sure where to start, here are a few recommendations based on common questions small business owners should consider while shopping around:
- Swyft Filings: Will you need help with documents like the operating agreement, banking resolution and EIN?
- Active Filings: Are you on a tight budget and need the best bang for your buck?
- ZenBusiness: Do you want a business checking account, business email or website to be included?
- Inc Authority: Do you want access to a business and/or tax consultant?
- LegalZoom: Do you want guidance from an experienced business attorney?
- Northwest Registered Agent: Do you need a registered agent service?
- Filenow: Do you need the LLC filed as soon as possible?
- Incfile: Do you want an LLC provider with a strong rating after thousands of customer reviews?
- MyCorporation: Will you need help with annual reports and ongoing compliance?
With these answers, you’ll be better able to narrow down LLC service providers by ruling out those that aren’t a match. While the above LLC formation companies are recommended in these instances, our top pick for business formation services is Rocket Lawyer.
Rocket Lawyer is a great fit for many new businesses looking to file their LLC formation paperwork. New Rocket Lawyer members get free LLC formation services with their membership and have ongoing access to a directory of lawyers for business advice. The LLC setup service is well-known in the industry and has great customer reviews to back up its reputation.
Steps to start an LLC
Here are the common steps business owners follow to start an LLC:
- Step 1: Pick a business name that’s not currently taken in your state. Reserve the name if you aren’t filing right away.
- Step 2: Choose a registered agent, the person who will be available at a physical address within the state during normal business hours for official communications.
- Step 3: File the LLC organization forms with the Secretary of State and pay the required fees.
- Step 4: Set up your LLC operating agreement, an internal document that overrides state law and establishes how your LLC will be managed.
- Step 5: Document organizational minutes; a permanent record of actions and decisions from an organizational meeting held by LLC managers and members.
- Step 6: Get an EIN.
- Step 7: Set up a business bank account.
- Step 8: Register in any other states where you plan to do business, when necessary.
While you may need to take extra or fewer steps depending on your situation, these are common for LLC owners.
“While the main action needed is to file a document with the state of formation, an LLC, even if owned by one individual, should also have an operating agreement and organizational minutes. Once formed, the business should get an EIN from the IRS and open a new bank account for the business,” says Keren de Zwart, owner of Not Your Father’s Lawyer.
Forming an LLC in multiple states
To form an LLC in multiple states, you must first ensure that your business name is available in the state in which you want to do business. You can usually find a name search database on the state’s secretary of state website. If your name does not appear in this database, it is available for use. So, reserve it. If not, you must file for a fictitious name to do business in the state.
Next, prepare to submit a certificate of authority in the foreign state (the state in which you hope to expand). To do so, first obtain a certificate of good standing from your LLC’s domestic state (state of initial formation). In addition, choose a registered agent in the state in which you plan to operate your LLC.
Finally, apply for a certificate of authority in the foreign state. When you do, you must provide your certificate of good standing from your domestic LLC state and information about your designated registered agent, such as their name and office address. This certificate of authority usually comes with a filing fee that must also accompany the application. The application and information about its fees can usually be found on the state’s secretary of state website.
Best states to open an LLC
The best state to open your LLC is in your own state. When you form your LLC outside of your state, you add complexity to your business that can become burdensome and expensive.
For example, you must elect a registered agent in every state in which you do business. That registered agent must have a physical office in the state where your LLC operates. It must also be available during all business hours at that office to receive legal correspondence on your LLC’s behalf. When you form an LLC in another state, you’re unlikely to be physically present to fulfill this role on a continual basis, so you most likely will have to hire an agent. A registered agent service provider usually costs between $0 and $300 per year.
In addition, to form an LLC in a state other than its original state of formation, you must file as a foreign LLC, which generally costs more than filing for a domestic LLC. In Oregon, for example, to form a domestic LLC costs $100. In contrast, to file a foreign LLC, the fee is $275.
Aside from your home state, Delaware is a top contender for the best state to open an LLC. The litigation environment of a state impacts a business’s ability to operate in the state without undue liabilities or risk. In a survey conducted by the U.S. Chamber Institute for Legal Reform, respondents named Delaware as the most fair and reasonable liability system as seen by U.S. businesses.
In addition, the fee to start an LLC in Delaware is below average at $90 to file a certificate of formation (whereas, overall, this price ranges from $40 to $500 across all 50 states). However, Delaware LLCs must pay a $300 flat rate annual tax and acquire a business license for $75 to do business in the state.
Learn more in our guide on how to start an LLC in Delaware.
What we don’t recommend
In most cases, the highest-tier LLC service plans aren’t necessary to get all the services you need to start your LLC. By shopping around, you can find providers that include perks like legal document templates and expedited filing within the $100 to $200 range. Watch out for bare minimum plans that offer lots of add-ons as your bill can add up quickly when buying services separately. Instead, look for plans that bundle services together at a great value.
An LLC service can protect your business by helping you properly file the required paperwork to get your LLC established.
Once established, an LLC provides its owners with protection against business debts and liabilities. “A limited liability company, when properly formed and operated, allows any liability related to the business to remain with the entity itself rather than extending to the personal assets of the owner(s),” says Zwart.
LLC services may also help to protect your business through services that work to ensure it stays compliant with all local, state and federal requirements.
You can set up an LLC on your own by filing the required paperwork in your state and paying the required fee. Some companies, like Northwest Registered Agent, will provide you with the forms and instructions you need to do it yourself. However, that puts the responsibility on you to figure out what you need to do and ensure you do it correctly. An LLC service knows the process well and can ensure it’s done right and as quickly as possible.
Each state charges a fee to set up an LLC, so you will be required to pay that amount at the very least. Beyond that, you can get an LLC formed without any additional fees if you file the paperwork yourself or opt for an LLC service provider that offers a free basic plan.
If you need help covering the costs to start an LLC, there are a few places you could turn. You could borrow using a loan or credit card, look to peer-to-peer lending, ask a friend or family member or bring on an LLC partner that can help on the funding front.
LLCs can provide tax flexibility to their owners because you can choose whether you’ll be taxed as a sole proprietor, partnership, C-corporation or S-corporation. While an LLC is a business structure, its sole purpose is to limit the liability of its owners. It doesn’t come with its own tax rules.
The best place to start your LLC is typically in your home state where you’ll be conducting business. If you file in another state, you’ll have to also register in your home state as a foreign LLC which can mean double the paperwork and fees.
However, there are a few states businesses tend to flock to thanks to their business-friendly laws. Delaware is popular because it doesn’t impose income tax on corporations that are registered in the state but not doing business in the state. Shareholders who don’t reside in the state also don’t need to pay tax on shares in the state. Further, Delaware has a Court of Chancery in which judges who are experts in corporate law handle corporation cases.
Wyoming is another popular LLC-filing state because it’s affordable and has business-friendly tax laws. The initial filing fee is $100 and the annual report cost is $60. Further, no corporate or personal income taxes are charged, and the state has strong asset protection laws.
An LLC is a type of business structure that separates owners from their businesses to shield them from business liabilities. It can be established to protect sole proprietorships, partnerships and corporations.
A corporation is a type of business structure that establishes a business as a legal entity that is separate and distinct from its owners. Corporations can elect to be C-corps or S-corps which are treated differently under tax law.
While both can offer business owners protection against business liabilities, LLCs can be established to protect several business types while a corporation is a business type that offers protection in and of itself.
Generally yes. The IRS requires single-member LLCs to have EINs when they have employees or are required to file certain excise tax forms. On the other hand, multimember LLCs must have EINs and use them to file taxes.
Even when an EIN is not required, it can be helpful. Many banks will ask for one if you want a bank account, credit card or loan for your business. It can also provide a layer of privacy, enabling sole proprietors to use it instead of their social security numbers.
LLC filing companies often offer registered agent services. In some cases, the service is included in a company’s LLC filing plan, while in others it comes with an additional cost. Further, some providers include it for the first year and then charge an annual fee in the years following.
Editor’s Note: This article contains updated information from previously published stories:
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
