How to choose the top LLC service provider
Looking for the best LLC formation service to form your business? Formation companies can lower start-up costs for your business when creating an LLC online. The best filing service can also provide you with affordable features such as an Employer Identification Number (EIN), registered agent services, and more.
What you should look for
Before start choosing company formation services, let’s talk about what you should look for when it comes to business structures.
If you take little to no action to form a different structure, your company will be a sole proprietorship. That means it’s an individually-owned business, and there’s nothing legally separating it from you as the owner. If you have a business partner, you will default to a partnership.
You can also choose to operate as a corporation. This provides separation from you personally and the business. Meaning that if your business had debts it couldn’t pay or was sued, your personal assets cannot be taken to cover the business debts. There are 2 kinds of corporations: the S-corporation and the C-corporation. The S-corp is the most widespread type of corporation, especially for small businesses. It offers what is called pass-through taxes. Which means that your business pays no taxes, and you pay taxes on profits on your personal income tax return.
Your business may be a non-profit entity if it is a qualifying charitable organization. In that case, you’ll be qualified for tax exemptions. However, this article is about filing as an LLC. With flexible tax options (an LLC can be taxed as an overlooked entity if you’re the only member, a limited liability partnership, or an S- or C-corp) and asset protection, the LLC is a wise option for many businesses. Also, foreign companies and foreign investors prefer the LLC because it is open to business owners living in another country.
Value of LLC formation packages offered
The best LLC formation service packages provide everything you will need for business incorporation at the most affordable prices. Each LLC business formation package should come with basic LLC formation and registered agent service. The Operating Agreement and Articles of Organization are usually involved with the essential features.
While you may want low-priced packages like ZenBusiness, you must make sure that you’re getting all the necessary features and perks you want for a worry-free experience. An LLC service may give free registered agent service while in another, you may need to buy it separately. You may also want the choice to avoid paying for any feature you possibly don’t need, like the LLC kit and seal.
But when creating new LLCs or businesses, you’re dealing with legal forms, tax filings, and document registration for your business.
Additional services aside from LLC registration
Depending on your chosen LLC service provider, an LLC business formation package may come with a diversity services and options. These include dissolution filing, business advisory plans, legal services, virtual office (domain and website), office supplies, seller’s permits, and many others.
If there is an incorporation service that you do not wish to pay for, order something that does not include that extra service as they typically incur an additional fee. Alternatively, a subscription service like Rocket Lawyer may decrease your overall cost if you frequently make use of additional services and options for LLCs.
Customer experience in starting LLC online
Great customer experience can translate into a smooth experience where you’re not always spending time on the phone trying to get a support agent to elucidate your problem while creating an LLC incorporation. If you want, you can read the online customer feedback and reviews about the LLC service provider.
Online reviews can provide understandings on how the customer experience is like and any drawbacks to their service.
At the end of the day, it’s up to you to opt for which LLC service is right for your business. In general though, we much prefer ZenBusiness. Their combination of low prices, experience, and great customer reviews make them a great choice for any business owners looking to start off strong. In addition to all that, you will end up saving up to quite a substantial amount as opposed to using other services on this list.
Story by Carenne Johnson