Looking to start an LLC (Limited Liability Company) in 2020? It might be easier to use an LLC formation company that can assist you in all you need to know. It can save on start-up costs when applying online and many filing services are also able to provide affordable features such as an EIN (Employer Identification Number). With so many formation companies out in the market, it is difficult to know which ones are worth approaching. Below is a comparison of 5 of the most popular LLC formation companies currently operating in the market.
ZenBusiness’s formation packages start for as low as $49 per year plus state fees. They offer 3 packages which all include products essential to forming an LLC namely:
- Registered agent service
- Free Operating Agreement
- CPA assessment
The starter package will take approximately 2-3 weeks to form the LLC depending on state processing times. The Pro (5-8 business days) and Premium (2-4 business days) packages offer additional features such as:
- EIN (Employer Identification Number)
- Worry free compliance.
- Business domain name, website and email address (Pro package only)
The Pro package costs $299 plus state fees, but with the benefit of the domain name, website and email address, clients will be able to reach the newly formed LLC immediately. ZenBusiness also has an excellent customer service review based on over 3000 customers.
The starter Silver Package from Incfile is free plus state fees. The LLC formation includes:
- Free registered agent for a year
- Lifetime compliance alerts
The Operating Agreement however is not included and will cost an additional $40. The Gold ($149 plus state fees) and Platinum ($249 plus state fees) packages include:
- Operating Agreement
- EIN registration
- Business domain name, website and email address (Platinum package only)
Incfile is a great option for businesses starting out with a limited budget ($0 plus state fees).
As with ZenBusiness and Incfile, Northwest provides all the services essential in forming an LLC. Their entry level package costs $49 and also includes free registered agent services for a year. The next level packages, mid-range and top tier both include an EIN and Operating Agreement.
As an added bonus, all of their clients receive Corporate Guides. They are knowledgeable business experts available to answer any business questions from their clients. Corporate guides are assigned to specific accounts meaning a business owner can talk to the same person regarding concerns or queries. This added service has given Northwest an excellent customer service rating from reviewers.
Rocket Lawyer is the perfect choice for an LLC formation if the business will require ongoing legal services. The fee for LLC formation is $99 plus state fees and includes an Operating Agreement, but instead of paying the filing fee, one can become a premium member for $39 per month. The premium membership includes:
- Free business formation
- Access to unlimited legal documents
- Free legal consults
- Discounted attorney services
Rocket Lawyer is a good choice for a first time start-up that might not have experience in drafting contracts.
As one of the most well-known and recognisable LLC formation services, the company is more focussed on providing full legal services than just the formation of start-ups. Their packages start at $79 plus state fees, significantly higher than some of the other companies. An Operating Agreement is an additional $99 and registered agent fees will be another $159 per year.
They are a well established brand though and do have a lot of brand power. They offer features such as the Business Advisory Plan which provides businesses with tax advice. They also offer assistance from attorneys as well as access to legal documentation. LegalZoom is a good option for the business willing to pay more for an established brand.
In conclusion, all of the formation services mentioned in this article will be able to assist in forming an LLC. Although some are very similar in their offerings, there are still slight differences in the features that are offered. Selecting an LLC formation service should depend on the business needs and start-up funds available.