Best LLC Services for September 2024

The Bottom Line

Bizee is our top overall pick for the best LLC filing service because it offers the best combination of pricing, service offerings, and customer satisfaction. However, the best service for you depends on your priorities. 

For example, if you want access to experienced attorneys, LegalZoom and Rocket Lawyer may be good options. Or, if you want the most comprehensive service offerings, you might instead turn to Tailor Brands. Our list can help you narrow down the best options for you based on what you’re looking for to help your business.

Compare the Best LLC Filing Services

What Is an LLC?

A limited liability company (LLC) is a business entity structure that protects business owners from responsibility for the business's liabilities and debt. This means that the owners are not personally liable, and their assets are protected. They are chartered in individual U.S. states, which regulate them. Different states require different fees and documents. 

An LLC is a hybrid structure that combines some elements of a corporation (liability protection) with those of a sole proprietorship or partnership (pass-through income and taxation). Filing for an LLC can be part of the business licensing process at startup (although it is not itself a business license or permit).

Pros & Cons of an LLC

Pros

• Limited liability: An LLC shields your personal assets should your business be sued. This means only your business assets are at risk, not your home or other personal assets.
• Membership flexibility: An LLC can be a single-member entity or a multi-member one. Members can be individuals, other LLCs, and even corporations.
• Pass-through taxation: An LLC's income isn't taxed. Instead, income is passed through to members, who are responsible for filing and paying taxes on their individual income tax returns. This avoids double taxation, and it makes business record-keeping a little simpler. Members are considered self-employed and are responsible for paying self-employment tax.

Cons

• Fees: It costs money to organize an LLC and maintain it year after year. Sole proprietors considering an LLC need to decide if the cost is worth it.
• Paperwork: Managing an LLC involves some administrative overhead.
• Unattractive to investors: It's not easy to invest in an LLC. They can't issue shares like a corporation can, so the only way to invite investors is to make them members and grant them a percentage of the entity.

LLC vs. S Corp

Both LLCs and S corps shield owners from liability, and allow for pass-through taxation, but there are some important differences between the two entities.

LLC vs. C Corp

Another business entity that protects its owners (and shareholders) from liability is a "C Corp." This is the familiar corporation with shareholders, a board of directors, annual meetings, and so on. Income is taxed first at the corporate level, at corporate rates, and again at the individual level, if any income is dispersed to owners and shareholders.

Tax Implications of an LLC

An LLC is usually structured as a "pass-through" entity, which means all of its income passes through to its owner (or owners), and that income is taxed on the owner's individual tax return. The LLC files informational tax documents with the IRS, but it does not pay any taxes.

For LLCs with more than one member, income is passed through according to each member's stake in the enterprise. For example, a two-member LLC might be split 60/40. In that case, 60% of the income would be passed to one member and 40% to another.

Your LLC also may be structured more like a corporation—a C corp. In that case, the entity files a return and pays taxes as a corporation. Income passed to members can be wages or dividends. As you explore your options, consider using a filing service that includes tax professionals on its staff to help guide you through the tax implications.

How to Start an LLC

Starting an LLC is a relatively easy process. Depending on the state, the common basic steps are:

1. Choose a business name. When you register your LLC, you’ll have to choose a name for your business. This name must usually be different from any other LLC that already exists in your state. Some states allow you to reserve your name in advance.
2. Name a registered agent. Each LLC must have a registered agent who is responsible for representing the company. The registered agent receives legal documents on behalf of the business. In many cases, the registered agent is also the business owner, but it doesn’t have to be.
3. Create your operating agreement. An operating agreement is a document that governs your business, outlining the details of the company, ownership interest, and more. Some states require an operating agreement, but you aren’t required to file it with your state. Even if you aren’t required to have one, it may still be a good idea.
4. File articles of organization. The articles of organization is the document that officially forms your business. (It sometimes goes by other names, like "certificate of formation.") You’ll file this document with the governing state agency, providing your business name and information.

Once you’ve completed those four steps, you officially have an LLC. There are also some optional steps that may benefit your business. For example, many businesses choose to get an employer identification number (EIN), which is like a Social Security number for your business. Other necessary steps may include opening business bank accounts, obtaining business licenses, and meeting any ongoing requirements to maintain your LLC status.

How to Choose an LLC Filing Service

If you’re choosing the best LLC service to help you through the business formation process, focus on how well the company can meet your unique business needs.

• Expertise: The most important factor when choosing an LLC filing company is expertise. You should only work with reputable companies with a track record of successfully registering new businesses for clients and have a record of attentive customer support.
• Turnaround time: Each LLC filing company's turnaround time varies. Turnaround may take anywhere from a day to more than a month, depending on the service you choose and the state you file in. Your timeline may send you to a service with a faster turnaround, though you may be able to save money if you can wait longer.
• Cost: An LLC filing can cost anywhere from $0 to hundreds or thousands of dollars. Choose an LLC company that suits your budget.
• Registered agent services: Many LLC filing companies include or offer registered agent services for an additional cost. Depending on your location and where you file, this may be necessary and worth paying an extra fee.
• Tax consulting: If you don’t already have basic business tax knowledge or a trusted accountant, you may want an LLC registration service that can also give you tax advice as you’re starting up your new company.

Basic Filing Services

Most LLC filing services offer several basic services that may be included in the company’s standard packages or offered as standalone services. Those services include:

• Business name search: Most LLC filing services offer a search tool that allows you to see if your desired business name is available or find one that is available.
• Articles of organization: A standard service from LLC filing services is helping you prepare your articles of organization and then filing them on your behalf.
• Operating agreement: Many LLC filing services either help you complete an operating agreement or provide a template for you to create your own.
• Registered agent: If you’d rather not serve as your own registered agent, an LLC filing service can fill the registered agent role on behalf of your business.
• Annual report preparation: An LLC requires ongoing compliance, including the filing of an annual report, which many LLC services can do on your behalf.

Additional Features Offered by LLC Filing Services

In addition to the basic LLC filing services listed above, many companies offer additional services to businesses, making it easier for them to start or maintain their LLCs. Here are some common additional features and services:

• Expedited filing: If you want your LLC up and running more quickly, you can pay an expedited filing fee to speed up the process.
• EIN application: Many LLC filing services will apply for your EIN on your behalf, either as a part of a package or at an additional cost.
• Document storage: If you have an ongoing plan with an LLC filing service, you may have access to storage for all your business documents.
• Business licensing research: As an add-on service, many LLC filing services offer to research your state’s business licensing requirements.
• Trademark filing: Most major LLC filing services offer trademark filing services to help you register your business trademark.
• Tax advice or preparation: A handful of LLC companies offer tax advice or tax preparation services (or both).
• Legal services: If you need legal advice or services, your LLC filing service may be able to provide that at an additional cost to your business.

LLC Filing and Annual Report Fees for Every U.S. State

At $35, Montana has the cheapest LLC filing fee. Meanwhile, Massachusetts' $500 filing fee is the nation's most expensive. How does your state rate?

How to Sign Up for an LLC Service

Signing up for an LLC service is an easy process. In many cases, you can fill in all the required information about your business and get your account opened and your LLC filed online.

Here's an overview of the process with most LLC services:

• Create an account: You’ll start by creating an account and entering basic information about yourself, including the type of business, your business address, the state agency you'll be filing with, and other details.
• Choose a service level: After that, you may see upgrade options and suggestions, but not all are necessary. For example, you can get an EIN yourself from the IRS website for free without paying a professional to do it. But some business owners may find having someone else create their EIN to be worth an extra fee. The same may be true with other add-on services.
• Complete forms and pay: When you complete your forms and submit a payment, plan to wait from a week to a month, depending on the service you choose. Most services can complete an LLC filing in 10 days or less.
• Receive copies of your filing: Once your files are ready, you should be able to log in to the LLC filing company’s website to download a digital copy of your forms. You may also get a physical copy of your articles of organization and any other forms by mail.
• Consider additional services: After your business is created, you may be invited by the filing company to meet with a legal or tax consultant, add new services such as a registered agent service, create a bank account, and other services. If you choose any recurring services, you'll incur an additional fee or fees.

Alternatives to LLC Filing Services

An LLC filing service is not your only option for your business. You may also:

• Remain a sole proprietor: You can choose to run your business as a sole proprietor and skip the LLC formation process altogether.
• DIY: You can complete the process yourself. The chief cost of setting up an LLC for free is your time.
• Hire an attorney: You can work with an attorney who will complete the process for you.

How We Chose the Best LLC Filing Services

Investopedia is dedicated to providing readers with unbiased, comprehensive reviews of financial products and services. To rate LLC filing services, we collected hundreds of data points across 13 popular services. We evaluated each service on 43 different factors, including price, services offered, ease of use, customer satisfaction, and more. We weighted two dozen of those factors to generate rankings, grouped into five broad categories:

Learn More About LLCs

• What Is a Business? Understanding Different Types and Company Sizes
• What Is an LLC? Limited Liability Company Structure and Benefits Defined
• How to Start a Business: A Comprehensive Guide and Essential Steps
• Articles of Organization: Definition, What's Included, and Filing
• How to Get an LLC
• How to Start an LLC: A Step-by-Step Guide
• Sole Proprietorship vs. LLC: Which Is Right for You?
• Limited Liability Partnership (LLP): Meaning and Features
• Pros and Cons of a Limited Liability Company (LLC)
• How Much Does It Cost to Start an LLC?