The 5 Best LLC Services of 2024

We’re LLC Experts

We know who provides the best LLC services because we’ve formed a lot of LLCs with a lot of different companies, and we’ve taken notes.

A prime directive of the EDC is to remove barriers to entry in the small business world. We aim to dispel the myth that a limited liability compnay (LLC) is expensive to start or require a lot of extra maintenance or oversight or are only for very sophisticated businesses. The truth is that LLCs are inexpensive to form and are simple to maintain, and the companies that we review on this page can all help with both.

Part of achieving this goal has been to help narrow the field of services you might want to use. We’ve tested and formed LLCs with dozens of services. We’ve put their customer services to the test. We’ve tried their other business products. The following are the companies that have provided the most reliable and informative services at the best prices.

Why Start an LLC

LLCs are a a great choice for most small businesses because they provide the same liability protection provided by a corporation, but they have minimal maintenance requirements. They also allow you the flexibility of paying taxes as a corporation or a sole proprietor.

LLCs are the best of both worlds.

What Is Liability Protection?

LLCs offer liability protection, which means that if someone sues your business, or if your business defaults on a loan, then your personal assets will be considered separate from your business assets.

If your business is sued (it happens), then your personal assets like your 401(k) or your house will be shielded from any settlements (under normal circumstances).

How Are LLCs Taxed?

Limited Liability Companies (LLCs) offer flexible taxation, allowing them to be taxed as pass-through entities or corporations, depending on the choices made by the LLC members. Here’s a brief overview of how LLCs are taxed:

Default Taxation (Pass-through): By default, the IRS does not tax LLCs directly. Instead, profits and losses “pass through” the business to the LLC members, who then report this income on their personal tax returns. This means that the business itself does not pay income tax, but the members do, on their share of the profits.

This is the same way that sole proprietors are taxed. So, in this way you are not adding any additional complications by forming an LLC. But, LLCs can also choose to be taxed as a corporation.

Corporate Taxation: An LLC can elect to be taxed as a corporation. If this election is made, the LLC pays corporate income tax on its profits at the corporate tax rate. Any dividends distributed to members from the LLC’s after-tax profits are then taxed again on the members’ personal tax returns.

LLCs are a simple way to help protect your personal assets from potential legal claims against your business. LLCs are also flexible tax structures. They add credibility to a business and offer privacy protection. They’re a smart choice for structuring a small business.

What Are the Maintenance Costs of Owning an LLC?

LLCs are formed on the state level, so depending on which state you live in, this answer will differ. Most states require an annual report to be filed for LLCs. This might sound intimidating, but for most states, this requirement is really just an annual fee with minimal information requirements. Most fees range from $100-$300. Read our state annual report guide for specific information on your state.

What is a Registered Agent?

A registered agent is an official go-between for the state and an LLC owner. Most states require that LLCs maintain a registered agent. An LLC owner can either serve as their own registered agent or hire a professional. The requirements to serve as your own registered agent are minimal. Typically you must simply have a physical address in the state in question and be willing to staff that physical location during all business hours.

Hiring a professional registered agent is beneficial for most small businesses because they offer privacy and they free business owners up to not have to staff an office at all times. Read our registered agent guide for more details in your state.

Reasons to Hire a Service to Form Your LLC

You don’t need a service to start an LLC, but online formation services have made it so affordable and fool-proof that unless you’ve formed a few LLCs already, we usually recommend using one. It’s worth the support alone to be able to talk to an expert if you get hung up.

Why You Might Want More Than Just Formation Service

LLC formation has become a competitive environment. To remain relevant, the best services have evolved over the years to cater to become full service small business management tools. Most companies now offer additional valuable services, including:

• Registered agent services
• Compliance monitoring
• EIN and annual report filing services
• Legal Templates
• Web hosting and domain services

The 5 Best LLC Services of 2024

Read summaries of our conclusions here. For more details, read the full reviews. Choose the company that’s best for you and follow the link to get your LLC started today!

Form an LLC With Northwest Registered Agent

Northwest Registered Agent charges $39 for an LLC, but they include things that the free LLC services charge extra for, like an operating agreement and expedited filing. It’s nice to know if you get stuck you can call and speak to a knowledgeable human in the Pacific Northwest. Their customer service is actually what they’re most popular for. They also feature 1 year of free registered agent service, and they do not sell customer data. Privacy advocacy is baked into their business model. Read the full Northwest Registered Agent Review for more!

Form an LLC With ZenBusiness

Zen makes forming an LLC as easy as texting a friend. If you don’t want to know how the sausage gets made, hire Zen. They’ll ask you a series of questions about your business and give you back an LLC that’s perfect for you. Zen is especially good for very busy and very new business owners, who might let an annual report slide unnoticed. read the full ZenBusiness Review for more!

Best $0 LLC Formation

Form an LLC with Bizee today!

Bizee was recently rebranded from Incfile. They offer multiple formation packages so you can get exactly what you need. There are no added services with Bizee’s free LLC package, but if you don’t want registered agent services don’t need an operating agreement or expedited filing, then it’s hard to go wrong with Bizee. Lifetime compliance alerts! Read the full Bizee Review for more!

Form an LLC With Legalzoom today!

Legalzoom is the 800 pound gorilla in the room of online business services. They are the best recognized brand and have a long track record of reliability. You can rely on them to get your business set up. They offer a ton of additional services too. They are more expensive than the other sites we review, but sometimes it’s worth it to pay a little extra for familiarity. Read the full Legalzoom Review for more!

Form an LLC with Tailor Brands today!

Tailor Brands has invested heavily in their website and their concepts are good. The signup process is intuitive and quick. What makes Tailor Brands stand out is their branding and logo tools. With one checkout, you can get an LLC, a company logo, domain, website design, and more. Read the full Tailor Brands Review for more!