The Definitive Guide to Choosing the Right Formation Service
Deciding to hire an online LLC formation service gives you the ability to concentrate on expanding your business, and can lower startup costs. Most formation services offer economical features including an Employer Identification Number (EIN) and registered agent services.
There are numerous online formation services that will help you start your business at varying prices. However, when choosing the right one for you, you should consider exactly what you will require and how much money you will be able to spend.
Do some of these formation services offer help with other business structures?
Many formation services can offer you aid in starting not only an LLC, but also the following:
1. Nonprofit: an organization based on charitable works and which is eligible for tax exemptions.
2. Sole proprietorship: an individually owned business formation where there is no legal separation between the business and the owner.
3. DBA (Doing Business As): the name that a business operates under which isn’t its legal name.
4. Corporation: either a C-Corp (a legal entity different from shareholders which is subject to double taxation) or a S-Corp (a tax classification where the owner and/or member is seen as a salaried employee).
Which formation service should you use?
Depending on your unique needs, these may vary but there are five who are especially noteworthy:
ZenBusiness is the favourable formation service for small businesses because of the amalgamation of awesome customer service, good pricing, and uncomplicated plans. Although they have different packages ranging in price, all three offer necessary features including registered agent services, a free operating agreement, and a non-obligation free CPA assessment.
2. Rocket Lawyer
Should you be more in need of continuous legal services, then Rocket Lawyer is the formation service best-suited to you. The service distinguishes itself from others by providing a subscription-based model for continuous legal services, with premium clients acquiring access to legal documents, advice, and more.
Incfile is also of exceptional monetary value in their basic pricing plan for the formation of LLCs. They have a Silver package which is free except for the state fees and an Operating Agreement with a cost of $40. However, it includes LLC formation, a free year of registered agent services, and a lifetime of company compliance notifications.
4. Northwest Registered Agent
Northwest Registered Agent is especially known for having essential features for online business formation. Their middle-of-the-range and top-tier packages all contain an EIN and Operating Agreement. Their basic packages also consist of a free registered agent, but exclude state fees. They have great customer service and they offer their clients Corporate Guides who are all well-trained U.S.-based support agents. These guides are specific to every account so you can speak to the same person if you have any queries.
LegalZoom is one of the most well-known formation services and is primarily concerned with full legal services which extend beyond the mere creation of the LLC. As an example, LegalZoom provides features including Business Advisory Plans which offer tax advice, the help of attorneys, and access to legal documentation.
There are many options available to you so it’s important to decide what you’ll be focussing on in the creation of your LLC. However, TRUiC (The Really Useful Information Company) has arranged a bundle with Rocket Lawyer’s premium membership services for their users at a reduced price of $349.99 (plus state fees) where the client saves approximately $300 (or over 45%). This includes the following free Incorporation Service, 1 Year of Registered Agent Services, and 1 year of Legal Services.
If you some more help deciding and what access to details specific to 2020: Best Services, then TRUiC is a brilliant site to start (and end). They detail the features of five top formation services and offer side-by-side comparisons of these features depending on their package (basic, middle, top).