The LLC formation process is largely the same across the board, with some key differences in each state. Most online LLC formation companies offer similar services — some included in various package tiers, and some available as add-on services. We’ve compiled a chart to show you which of our top five service providers offer common features and whether those features are included in the most basic package price. Read more to learn about each feature.
Business Name Search
No matter where you are starting your new LLC, you’ll need to choose a unique name that can’t be confused with another business or government agency. You also need a designation as part of your name indicating your business type — “limited liability company,” “LLC,” “LC” or another variation, depending on what your state allows. Many formation companies offer name availability searches as part of their business formation process.
Formation Document Preparation and Filing
The critical part of the process to form your new company is filing your formation documents. Every formation company will help you fill in these documents, which are typically called “articles of organization” but can also be called “articles of incorporation” or the “certificate of formation.” These documents are generally filed with the secretary of state or other appropriate state agency.
Our Experience:
Among the LLC services reviewed, ZenBusiness stands out as offering the most comprehensive document preparation and filing services, ensuring that all necessary “articles of organization” are accurately completed and promptly filed with the appropriate state agency. Their attention to detail and efficiency make them a top choice for entrepreneurs seeking thorough assistance in this critical step of company formation.
Registered Agent Service
Every LLC is required to appoint a registered agent, which is a physical point of contact in the state where legal and tax documents can be delivered during business hours. You may find it efficient to use the same company for formation and as a registered agent service to minimize the websites you must visit — and remember login information for!
Our Experience:
Bizee stands out in the realm of registered agent services, offering a year of free registered agent service, making it a cost-effective choice for new businesses. Additionally, Northwest Registered Agent includes the registered agent service in their base price, providing both value and convenience for entrepreneurs looking to streamline their business formation and maintenance processes.
Operating Agreement Template
An operating agreement is an important tool to create which establishes the practices and policies that will govern your business. It binds the LLC owners, called “members,” to the rules you set out in the agreement. It’s a good idea to have one whether you run a non-profit. Many online LLC formation services offer operating agreement templates for additional fees. They may assist you in customizing your agreement, as well.
Our Experience:
ZenBusiness and LegalZoom are notable LLC services that offer operating agreement templates, ensuring that businesses have a foundational document to govern their practices and policies. ZenBusiness, in particular, provides this service as part of their comprehensive packages, making it convenient for members to establish clear rules and guidelines for their LLC.
EIN Application
Almost every business needs an employer identification number, or EIN, which is free to obtain from the IRS. It serves as a tax identification number that allows businesses to handle employment taxes and can serve as verification of your business’s identity for engaging in other activities like opening a business bank account. An EIN is required if you have employees or more than one LLC member, but it’s a good idea to have one even if you run a single-member LLC so you can keep your personal information separate from your business.
Our Experience:
ZenBusiness and LegalZoom both offer assistance with the EIN application process as part of their premium service packages. Other providers, such as Tailor Brands, Northwest Registered Agent and Swyft Filings, offer this as an add-on that you can tack onto any package for an additional fee. This service ensures that businesses can obtain their tax identification number without navigating the IRS process independently.
Compliance Alerts
Most LLC service providers offer calendar alerts to remind you of upcoming filing deadlines such as annual reports, such as annual reports or other annual tax obligations. Some may even take on the annual report filing responsibility for you, which lessens the hassle of keeping your business in good standing.
Our Experience:
Bizee and Tailor Brands stand out for providing lifetime compliance alerts at no extra charge, ensuring businesses stay informed of crucial filing deadlines and tax obligations. Other providers, such as ZenBusiness, offer this service but at an extra cost in addition to your base package.
Other Features
There are less common features that not every LLC service offers, but that may be available for additional fees or as part of higher tier service packages.
License Reports. Depending on your state and locality, you may be required to apply for certain business licenses. Requirements may vary depending on whether you operate a brick-and-mortar location or only have an online business. Some services will perform a search and inform you which licenses you need, and some may help you apply for the licenses.
Expert Help. Especially for LLCs with big business plans or complex needs, getting connected with a small business expert can make a difference. Some services offer consultations with small business experts, online courses taught by experts or other resources which may be included or as an optional upsell.
Tax Advising and Preparation. You may have access to a tax consultation, advisory service or even help with preparation depending on what your LLC service offers. If your LLC service doesn’t offer this, it may be worth contacting your own tax professional since mistakes in this area can be costly.
Guarantee of Acceptance. Not every LLC formation service offers a money-back guarantee that your paperwork will be accepted by the state. We recommend going with a service that does offer this guarantee, since filing mistakes can be costly if you’re required to pay the filing fee again or file amendments to your formation documents later.
