Best LLC Formation Services (2023)

If you’re starting a new business or looking to restructure your existing one, forming a Limited Liability Company is a popular and effective way to protect your personal assets while enjoying the tax benefits of a sole proprietorship or partnership.

However, the process of forming an LLC can be complicated and time-consuming, which is why many entrepreneurs choose to use LLC formation services. With so many options available, it can be challenging to determine which service is right for your needs. In this article, we will compare some of the top LLC formation services to help you make an informed decision and find the best fit for your business.

Comparison Chart

Product Name	ZenBusiness	Northwest Registered Agent	LegalZoom
Price	Check Plans	Check Plans	Check Plans
Basic Package	$0 + State fee	$39 + State fee	$0 + State fee
Standout Features	Worry-free compliance Excellent customer support	Corporate Guide Privacy be Default	Wide range of services available, including legal advice Money back guarantee

Benefits Of Forming an LLC

Forming a Limited Liability Company (LLC) is one of the best decisions that small business owners, entrepreneurs, and freelancers can make. Compared to a sole proprietorship or partnership, forming an LLC offers several benefits. One of the most significant benefits is personal asset protection. As a sole proprietor or partner, your personal assets are not separate from your business assets.

This means that if your business is sued or goes bankrupt, your personal assets may be at risk. In contrast, an LLC provides a level of separation between personal and business assets, which can protect the personal assets of the owners in the event of legal or financial trouble.

Compared to a corporation, an LLC also offers several advantages. One of the primary advantages is flexibility in management and taxation. LLCs have more flexible management structures and do not require the formal governance and compliance requirements of a corporation. Additionally, LLCs have more options when it comes to taxation. By default, LLCs are taxed as pass-through entities, meaning that the profits and losses of the business are reported on the owners’ personal tax returns.

However, LLCs can also elect to be taxed as an S-Corporation or a C-Corporation, providing even more flexibility in tax planning. Overall, forming an LLC offers a balance of personal asset protection and management/taxation flexibility that may not be available with other business structures.

If forming an LLC is something that you want to do to take advantage of its benefits, here are the best LLC formation service providers that you can go with.

ZenBusiness

ZenBusiness is an LLC formation service that stands out for its affordability and excellent customer support. Their basic plan starts at $0 plus state fee, making it an excellent choice for those on a tight budget. While you do need to pay extra for a registered agent if you need it, the overall cost of forming an LLC with ZenBusiness remains competitive. Additionally, their customer service is excellent, starting at the formation process where you can interact with their chat service to get answers to any questions you have during its entirety.

ZenBusiness offers a simple and affordable way to form an LLC, with the added benefit of excellent customer support. Their combination of affordability and quality support makes them a great choice for anyone looking to form an LLC without breaking the bank. Our ZenBusiness LLC review has more information about the company if you’re interested.

Pros:

• Affordable pricing, with a basic plan starting at $0 plus state fee
• Excellent customer support, including a chat service for answering questions during the formation process
• Good reputation and positive reviews from customers
• Streamlined formation process
• Worry-free compliance guarantee

Cons:

• The basic plan does not include a registered agent, which can add to the overall cost of forming an LLC
• Limited package customization options compared to the competition

Northwest Registered Agent

Northwest Registered Agent’s LLC formation package starts at $39 + state fees, which includes a year of registered agent service, along with their Corporate Guide and Privacy by Default features. The Corporate Guide feature allows you to get in touch with state-specific business experts to help you with any questions regarding the LLC formation process, while the Privacy by Default feature ensures that your personal data is not compromised. Furthermore, their LLC formation process is transparent, and they aren’t aggressive when it comes to add-on services and upsells.

Northwest Registered Agent offers a solid option for those looking to form an LLC. Their package is reasonably priced, and the inclusion of a year of registered agent service, along with their Corporate Guide and Privacy by Default features, makes it an attractive option. You can read our Northwest Registered Agent review here for a more in-depth look at the company and their services.

Pros:

• Corporate Guide feature for state-specific business expertise
• Privacy by Default feature for added protection of personal data
• Easy to use website with a transparent LLC formation process
• No aggressive upsells or add-on services

Cons:

• Some may find their package a bit more expensive compared to other budget-friendly LLC formation providers
• LLC formation plan is a bit limited in features

LegalZoom

LegalZoom is a top choice for those who think they’ll need ongoing legal services for their LLC. They have a team of lawyers available in all 50 states that can provide assistance with any legal matter, including legal advice when it comes to trademarks, trusts, contracts, and business plans. The company also offers tax services, banking, and compliance, making them a one-stop-shop for all your LLC needs. Their most basic plan is $0 + state fee, but their mid and high-tier plans can be quite expensive at $249 and $299 + state fee, respectively.

Overall, LegalZoom is a reliable and comprehensive option for LLC formation, particularly for those who may need ongoing legal services. Their team of lawyers and specialists can provide assistance with various legal matters, ensuring that your LLC remains compliant and protected. While their higher-tier plans can be expensive, the added value of legal advice and support may be worth the investment for some businesses.

Pros:

• A team of lawyers available in all 50 states for ongoing legal services
• One-stop-shop for all LLC needs, including tax services, banking, and compliance
• Wide range of additional services available
• They offer a money-back guarantee

Cons:

• Mid and high-tier plans can be quite expensive
• Add-on services are also more expensive than the competition

Verdict

After careful research and consideration, we have determined that ZenBusiness, Northwest Registered Agent, and LegalZoom are some of the best LLC formation service providers available. Each service has its unique advantages, making them ideal for different types of customers.

ZenBusiness is an excellent affordable option that offers exceptional customer support, with their chat service available throughout the formation process. They also offer a range of additional services, including registered agent and compliance services.

Northwest Registered Agent provides a transparent and reasonably priced package that includes a year of registered agent service, Corporate Guide, and Privacy by Default features. They have a reputation for not being pushy with upsells and add-on services.

LegalZoom is an excellent option for those who anticipate needing ongoing legal services, with their team of lawyers available in all 50 states. They also offer a comprehensive range of additional services, including tax services, banking, and compliance, making them a one-stop-shop for all LLC needs.