Updated: July 2024 
How to Choose The Best LLC Service Providers
Key Considerations When Choosing the Best Business Formation Service
There are three options for setting up a new LLC, S-corp or C-corp. You can handle everything yourself, hire an attorney, or get in touch with a business formation service. Each option has its pros and cons. But there are reasons most first-time and veteran business owners hire the best LLC business formation companies.
You can’t afford to make mistakes when forming a business. After formation, you still need to stay up to date regarding crucial state requirements, including filing deadlines. Hiring an LLC service means that your business entity is formed with almost zero errors and a reduced risk of rejection. And you don’t necessarily need to understand the legalities of starting a business yourself. Top LLC services also offer compliance support, so you never miss a deadline.
The best business formation companies also offer a variety of add-ons that you may require to run your business smoothly. These include registered agent services, obtaining business licenses, tax services, filing annual reports, and foreign qualifications.
Here are crucial considerations when comparing different business formation companies to get down to the best LLC filing service provider.
Recommended Best LLC Formation Services
Best Overall: ZenBusiness
Pros
- Comprehensive LLC services provider with name search.
- Customizable plans for individual service selection.
- Wide range of add-on products available.
- Free LLC formation option with state fees.
Cons
- High registered agent fees, $199.
ZenBusiness is a solid option if you’re starting a new business and could appreciate some help navigating the formation and documentation process. There are cheaper LLC formation services out there. But from naming your LLC to filing your business’s annual reports, ZenBusiness provides almost all the services and help you need when forming your business. It’s also among a few others that offer a free entry plan. And while its annual subscription loses its value after a year, the good news is that you can unsubscribe from the current plan and still buy the individual services you need. Our ZenBusiness review also found this service worth its weight in gold, considering its quality customer support and the 60-day money-back guarantee.
Visit ZenBusiness SiteBest Package: Tailor Brands LLC
Pros
- All-in-one business solution
- Fast paperwork processing
- Customizable business branding tools
Cons
- Pricing can be confusing
- Certain features pricey
Tailor Brands is a worthwhile investment for entrepreneurs seeking a comprehensive platform for both LLC formation and business branding. Although slightly pricier than competitors, the services offered justify the cost.
Visit Tailor Brands LLC SiteWhat to Look For in the Best LLC Services
Experience and Reputation in the LLC Formation Space
You may want to turn to an LLC service provider to ensure that your business is formed with 100% accuracy. That’s why experience in forming business entities is the most important consideration in your search for an LLC filing website. Consider how long the company has been in operation and their reputation in filing businesses, particularly with your state’s government.
It’s tough to say how long the LLC filing company needs to have been in the business to qualify as a recommendable service. But it makes sense that companies with a long history of offering professional services have a reputation to protect. This is crucial, especially if you rely on the service provider for other ongoing services like registered agent, business compliance, annual reports filing, and tax and legal services.
Availability- Where are they Found?
A company that operates within the state you want to do business is preferable. They are more likely to understand the ins and outs of forming a business in that state, which minimizes the risk of errors. But if you plan to expand your business to other states, a multi-state LLC formation company will prove more worthwhile in terms of foreign qualification.
Foreign qualification refers to filing and completing the necessary paperwork that allows your business to operate in another state other than its formation state. Each state’s statutes and courts have different criteria for foreign qualifying. And the consequences for not qualifying before conducting business there can be dire.
It’s possible to complete and file foreign qualification documents yourself. But if you lack the time or capacity, a multi-state LLC service can help ensure the thoroughness and accuracy of these state filings.
Formation Packages and Cost
Another crucial consideration when choosing the best LLC service is the cost. You can form an LLC on your own in less than 10 steps and save on the cost of hiring a business formation company.
But if you prefer going the LLC service route, it’s crucial to consider how much the company charges vs competition.
Most business formation companies, including ZenBusiness, LegalZoom, and IncFile, offer multiple packages at different prices, depending on the features and services included. Consider what’s included in the package, so you don’t pay more for things you won’t need or can get done yourself. For instance, EINs are typically free. But some LLC service companies charge $25-$99 to obtain one for you.
Turn Around Time (TAT)
How fast you want your business up and running is another important factor when comparing the best LLC filing companies.
Usually, how long it takes to form an LLC varies from state to state, depending on the Secretary of State’s timelines. But most LLC filing formation websites will also have varying turnaround times for various packages with the option for expedited processing at an extra cost. Depending on your budget and timeline, you may choose to pay extra for the expedited process or save some bucks by waiting longer.
Registered Agent Services
You are legally required to list a registered agent when forming most business entities in the United States. A registered agent is responsible for receiving legal correspondence sent to your business.
Top LLC filing services offer registered agent services as part of the package or at an extra cost. Consider whether you can save money by getting registered agent services from another provider other than the company forming your LLC. But keep in mind that there may be a cost to incur if you ever want to change your registered agent.
Add-ons (Legal and Tax Consultancy)
In addition to forming your business and helping you stay compliant, some LLC filing companies offer tax and legal services. In most cases, these services are cheaper than hiring a professional separately. There’s also the added convenience of getting all your services under one roof. Depending on the nature of your business, an LLC formation that offers these services may be ideal.
Customer Reviews and Feedback
Customer reviews speak volumes about the reliability and dependability of an LLC filing website. TrustPilot and Better Business Bureau (BBB) are great places to learn how any top LLC company scores in terms of quality of services and value for money. Pay particular attention to recent reports, as they reflect what you are about to get yourself into.
Summary
It’s possible to form an LLC on your own. But going with the top LLC formation service may help expedite the process and ensure all the paperwork has been completed and filed correctly. As you can see, choosing the best LLC formation services online raises lots of considerations. What’s their experience in the business formation space? In which states are they available? How long will it take to create your LLC? And what do their current and previous customers say about their services?
