If you are looking for the best LLC services for your small business, then you’re in the place because this article is all you need. This article will explain how to start an LLC, list the 5 best LLC services in 2022, and more. These are all well-evaluated LLC services — the best of the best.
Creating a limited liability company yourself is difficult and stressful, coupled with the numerous legal conditions that must be satisfied at the county, state, and federal levels. This is where the existence and aid of the best LLC services is beneficial. So, what are the best LLC services around? Keep reading to find out more.
The Definition and Meaning of LLC
A limited liability company (LLC) is a hybrid business entity that can be formed to be run and controlled as a different entity from its members (individual owners of LLCs are known as members). Specifically, a limited liability company can be described as a business structure that combines characteristics of both a corporation and a partnership of sole proprietorship. They can amass assets, file for loans, bid for contracts, and be sued in court to ensure the owners are not personally liable for the business.
LLCs also provide small business owners with certain tax advantages. Finally, forming an LLC is also a fantastic way to give your business some added credibility — since it will appear more professional than conducting business with a sole proprietorship.
How to Start an LLC?
Forming an LLC is a simple process. However, each state has different processes, rules, documents, and fees for creating an LLC. Broadly speaking; although, listed below are common steps followed by most states:
- Pick your state of choice. Business owners are usually advised to pick their home state, since they muct pay state filing fees and paperwork filing twice; however, if you don’t want that, check below for our tip on the best state to form an LLC.
- Select a suitable business name
- Hire a registered agent
- Form an LLC operating agreement
- File the articles of organization with the secretary of state’s office
- Obtain an EIN from IRS
How to Pick a Suitable LLC Service?
Considering the standard of service that will impact your business’s development, you must conduct a proper investigation to ensure that you pick a company you can depend on for reliable services. To augment this guide, you can consult with your friends or relatives and talk to them to see if they can guide you to the best decision. Some of the factors to consider are as follows:
Customer satisfaction is the best way to gauge how satisfied previous users are with the company of your choice. Before selecting them for your LLC services, you must research the internet and understand what other people think about the company. A suitable LLC service provider should rank high on multiple review websites. In addition, looking at an LLC’s track record might help you discover more about its status.
Wide Range of Services
For most small business owners, choosing an LLC service provider able to offer a wide range of services — is the best decision. Just think about a situation where you need different services(e.g., registered agent services), and your LLC business formation service can’t offer it. They can be frustrating, especially for new business owners with more on their plates. This guide lists extra services offered by the best LLC services. However, you can find out by yourself easily by visiting their websites and gauging their additional services.
Good Customer Support and Help
A suitable LLC filling service must be able to provide reliable customer services. There are situations in which you will need quick feedback from their customer service representative. A suitable LLC service should be able to provide reliable and expert customer support to their various customers.
Fast Turnaround Times
The Initial business formation process of forming a company should be quick and straightforward. So, ensure you choose an LLC formation company with quick processing times.
5 Best LLC Servicess In 2022
- ZenBusiness: Best Overall
- IncFile: Best For Affordability
- Northwest Registered: Great Customer Support
- Harbor Compliance: Best For Compliance Services
- LegalZoom: Most Popular LLC Services
Features Of The Best LLC Service – Zenbusiness
Zenbusiness is an LLC business formation company working out of Austin, Tx. The company was formed in 2015 and is renowned for providing excellent and reliable LLC services. Zenbusiness offers business services and products that help small business owners start, operate, and develop their businesses.
Zenbusiness also offers a wide range of services to its satisfied customers. They provide LLC formation and other company formation services such as opening a bank account, registered agent service, helping to draft an operating agreement, creating a free business domain name, a good website, and so on. These combined make them the best LLC service provider in the country.
Top 5 Best LLC Services That Suit Your Demand November 2022
- Starts at $49 plus state fees
- Worry-free compliance included
- Offers registered agent service
- Positive customer reviews
- Same-day processing times
- They employ the best legal and business formation minds in the business services industry
- Lifetime customer service
- Unclear packages and subscription renewal policy
ZenBusiness may be a new company, but it’s worth the hype. We chose Zenbusiness as the best overall LLC service of 2022 because of its wide range of valuable features and simplicity. In addition, when you comb through the reviews online, ZenBusiness commonly receives glowing recommendations.
The company was founded in 2015 and is based in Austin, Tx. They provide cheap business formation services and specialized customer service to ensure forming an LLC is stress-free.
ZenBusiness stands out because it is a socially aware business with a mission to do good while expanding. To assist more people in getting out of poverty, ZenBusiness has teamed up with Kiva.org to provide microloans to women and minorities so they may start their own companies.
So, if you intend to start an LLC with a socially aware company and still enjoy optimum value, select Zenbusiness.
- Dependable business license & permit research.
- Free basic LLC formation package, including the free llc service
- Varying packages are available to cater to various consumer requirements.
- Over 800,000 businesses helped
- Phone and email support
- One-day processing times
- Easy to navigate online portal for submitting all necessary documents
- Free registered agent service
- Customer support is limited compared to others on the list
- Lots of upsells
Inc file is the only free LLC business formation provider on our list. Starting at $0 plus state filing fees, they are incredibly economical and available for small businesses with a tight budget.
Incfile is one of the most accomplished LLC formation services in the industry. The company has provided LLC formation services and registered agent services to a variety of businesses consistently for decades. IncFile is also renowned for its cheap pricing, fast processing times, and easy-to-use online portal for submitting business formation documents.
If you’re forming an LLC on an incredibly tight budget and desire a low-cost LLL service, opt for IncFile.
- Starts at $39 plus state fees
- Top notch customer service
- Guaranteed privacy protection
- Free registered agent service for one year
- Easy-to-use service
- Good customer feedback
- DIY options
- Slow customer response sometimes
- They offer only one LLC package
Northwest Registered Agent is our best choice for customer service due to its excellent customer support system and guaranteed data privacy protection. They also include a do-it-yourself feature that lets you live through the entire process of forming an LLC.
Northwest Registered Agent is one of the best LLC services in the industry. Northwest provides a user-friendly online llc services for company formation and helpful, well-informed support staff. A group of Corporate Guides is also made available to assist clients at any process stage.
The company was created in 1998 and is headquartered in Spokane, Washington. While Northwest is smaller than other basic llc filing services, it focuses on providing excellent services that other firms do not supply. Finally, if you desire excellent and knowledgeable Customer support service, pick Northwest.
- $399 + state fee,
- Personalized customer support
- They offer Compliance services
- Single-day processing time
- The website is complicated to navigate
- Expensive compliance package
- No refunds
Harbor Compliance offers LLC formation and legal compliance services to businesses without being charged a high premium. However, the company’s key selling point is its personalized customer support; while other companies on our list use an online interface, Harbor Compliance offers each customer an opportunity to do business with a compliance expert.
Headquartered in Lancaster, PA, Harbor Compliance has helped more than 40,000 small businesses across all niches with LLC formation services, compliance, and licensing services. They’re famous for their expertise in compliance. However, they’re also very good with LLC company formations.
As above-mentioned, they also provide their clients with a personalized customer support staff to solve any customer issue during regular business hours. In addition, they provide a cloud-based compliance and entity management system with specialized modules for handling issues like entity administration, license management, document management, and tax management.
- Starts at $79 plus state fees
- Solid company reputation with over two decades of business
- Excellent legal service expertise
- When compared to other LLC services, consulting services are pretty inexpensive
- Easy-to-use website interface
- 100% customer satisfaction assurance
- Pricey registered agent service
- Costly included Add-ons
LegalZoom is the most popular LLC formation service on our list. They’re also renowned for providing quality online legal advice for new businesses. In addition, they provide free, comprehensive legal articles on many business-related topics.
If hiring the service of a company with a proven track record is very important to you, then you need to consider forming an LLC with LegalZoom. As a matter of fact, since its founding in 2001, the company has assisted almost two million small businesses with its LLC formation service.
Even though most of their included add-on features are expensive compared to the other firms on our list, they provide a wide range of services, including reliable legal support services, for a reasonable price.
Best State To Form An LLC?
Before you start a business, you must first decide on a business structure for the company. The limited liability corporation (LLC) is one such business entity.
Most new business owners think they can only form an LLC in their home state. But that’s not the case; you can create an LLC in any state. In addition, an LLC created in another state different from the physical address of the business is known as a foreign LLC.
As expected, each state has its different laws, regulations, and laws for LLCs. Some states are stringent, while others are more relaxed. Furthermore, states may provide financial incentives and other benefits for LLC creation.
Where, then, is the ideal state in which to form a limited liability company?
The answer is Delaware. Delaware tops the ranking of the most LLCs formed. According to the Delaware corporation divisions, about 93% of all U.S. initial public offerings in the calendar year 2021 and nearly 67% 63% of Fortune 500 companies are registered in Delaware.
Delaware, also known as the first state, is renowned for being business-friendly with a simple and stress-free LLC formation process. Delaware offers new LLCs low creation fees and taxes; they also don’t tax out-of-state profits.
Besides, Delaware also has a special business court — the Chancery Court, which hears only business cases. The chancery court enables lawsuits involving businesses to be settled more quickly. In addition, the judges have prior expertise with business-related disputes.
It’s also important to note that the law does not require shareholders, directors, and company executives to live in the state.
Benefits of Using LLC Service
Most new businesses are formed as limited liability companies (LLCs), which provide crucial benefits over other business entities. An LLC combines the special favorable benefits of a sole proprietorship, general partnership, and corporation, bereft of some of the downsides of these business structures.
Every new business owner must go through their state before forming an LLC, so the laws and fees required to be fulfilled might vary differently, but the benefits don’t differ much:
Personal liability protection
Assuming your company is a sole proprietorship or a general partnership, then under the law, you and your business are legally the same “entity.” Your business liabilities and assets become your issue. And if your business is sued or your employee commits fraud, your assets will also be affected.
However, forming an LLC solves these problems. While you can still lose your investment in the company, creditors can’t seize personal assets like your cars, real estate, and bank account to pay for business debts. You also can’t be directly sued for the actions of the company.
Flow through taxation
According to the U.S. Chamber of Commerce, a flow-through entity is a business in which income is passed straight to its shareholders, owners, or investors. As a result, only the individuals, not the business, are taxed on the revenue — thereby avoiding double taxation.
This means that instead of taxing the business profits directly, they’re “passed through” to the members and charged on their tax returns. In addition to LLCs, S Corporations and partnerships are pass-through companies. Furthermore, a C corporation is not included in this category.
Unlike corporations with a fixed management structure taxed with supervising and running the day-to-day business, Members of LLCs have a more flexible structure — they have more options to decide how the company is run.
That said, unlike most other business structures, an LLC can have multiple owners ranging from individuals, corporations, general partnerships, and foreigners.
LLC business formation consumes time and energy. However, if you hire an excellent LLC service provider, you can be done with the whole process in no time. Although they’re currently countless LLC business formation services, the five we have discussed here are the most advisable to pick from.
Zenbusiness is our best choice, but the rest are good LLC formation companies. Keep in mind that what matters is selecting a company that works for you and your business.
Can LLC filing companies also act as registered agents?
Indeed, most LLC filing service providers also provide additional corporation services, such as registered agent services.
Should I start my own LLC or hire someone?
You can start your LLC, mainly if it is a single-member LLC. Do your study and visit your state’s business creation website to get the necessary documents. However, before establishing any business, get professional advice to ensure you choose the best solution.
What Exactly Is an article of organization?
An article of organization also referred to as a certificate of formation or certificate of organization in different jurisdictions, is a document specific to LLCs that contains the first statements necessary for establishing an LLC in most U.S. states.
Is an EIN required for an LLC?
Yes, it would be best if you got an EIN for your LLC. Although it is theoretically possible to establish a Single-Member LLC using your Social Security Number, we do not suggest it.
To create an LLC bank account, most institutions need an EIN. Furthermore, having an EIN for an LLC allows you to keep your company and personal assets distinct. This ensures personal asset protection, the primary advantage of forming an LLC.
When Is the Best Time to Form a Limited Liability Company?
It would be best if you formed an LLC before starting a company. While it is perfectly legal to conduct your company as a sole proprietorship or general partnership before creating an LLC, doing so exposes you to various hazards that LLCs are not susceptible to.