We independently select all products and services. While we earn a commission from partner links, commissions do not affect our editors’ opinions or evaluations.
Advertiser Disclosure
TESTED: Best LLC And Formation Services Of 2026
Audited & Verified: Nov 3, 2026, 4:08am
How We Analyzed
We didn’t stop at checkout. We tested 18 LLC formation services all the way through submitting paperwork and legally forming actual companies. By completing the entire process, we uncovered aggressive upsells and hidden costs. Read our methodology.
Quick Dive
While LLCs are usually easier to form than corporations, businesses can reap considerable benefits by tapping the expertise and speed of LLC services. We’re here to help you find the best LLC formation service for your needs.
Experts’ Picks for Best LLC Services
Our testing found LegalZoom delivered the most complete filing experience, with excellent guidance, transparent pricing and one of the strongest workflows we evaluated.
On LegalZoom’s Website
ZenBusiness prepares and submits LLC filings to the state within one business day without charging an extra fee for it, and our testing found the filing process to be polished and easy to follow.
On ZenBusiness’ Website
Formations makes LLC formation easy with a streamlined filing process, clear pricing and one of the strongest user dashboards we tested.
On Formations’ Website
Northwest Registered Agent stood out in our testing for bundling a free business address, website, email and registered agent service for just $39.
On Northwest Registered Agent’s Website
Inc Authority pairs free LLC formation with a free EIN, and our testing confirmed its free package delivers on what it promises.
On Inc Authority’s Website
Harbor Compliance specializes in ongoing compliance management, and our testing found its platform is designed to support businesses long after formation.
On Harbor Compliance’s Website
Our testing found Rocket Lawyer stood out for its attorney access, educational resources and guided filing experience, making help easy to find when you need it.
On Rocket Lawyer’s Website
Bizee lets you form an LLC for free and includes a year of registered agent service, and our testing confirmed the offer remains free through checkout with no pressure to upgrade.
On Bizee’s Website
BetterLegal pairs LLC formation with a robust suite of startup services, and our testing found its bundled add-ons were clearly explained and easy to customize.
LLC Attorney pairs LLC formation with attorney-trained advisors and unlimited legal consultations and one of the strongest post-formation platforms we tested.
How We Picked the Best LLC Services
How We Evaluate the Best LLC Services
-
18
companies formed
We tested each service by forming a real LLC and filing with the state
-
103
hours of phone and desk research
13 researchers mystery shopped to collect information
-
24,678
user feedback collected
Reviews were collected & evaluated from leading review sites & online forums
| Company | Consumer Sentiment Index | Ease of Use | Cost Effectiveness | Transparency & Hidden Fees | Customer Service | Document Quality |
|---|---|---|---|---|---|---|
|
ZenBusiness
|
|
9
|
5
|
3
|
9
|
9
|
|
Formations
|
|
5
|
7
|
9
|
10
|
6
|
|
LegalZoom
|
|
7
|
6
|
7
|
8
|
8
|
|
Northwest Registered Agent
|
|
6
|
1
|
1
|
3
|
3
|
|
Inc Authority
|
|
10
|
11
|
11
|
1
|
4
|
Staff Editor
Staff Writer
Rachel Williams
Rachel Williams is a small business editor at Forbes Advisor with two decades of professional editing experience. Over the last five years, she has specialized in small business content, helping entrepreneurs start and grow their businesses. Her expertise includes LLC formation, business structures, business licenses and registered agent services.
Expertise:
Jennifer Simonson
Jennifer Simonson is a small business staff writer at Forbes Advisor with 20 years of experience. She has researched and reviewed dozens of LLC formation and business registration services to help entrepreneurs choose the right provider for starting and maintaining their businesses. Her coverage includes provider reviews, comparisons and guidance on compliance, registered agents and pricing.
Expertise:
Rachel Williams
Rachel Williams is a small business editor at Forbes Advisor with two decades of professional editing experience. Over the last five years, she has specialized in small business content, helping entrepreneurs start and grow their businesses. Her expertise includes LLC formation, business structures, business licenses and registered agent services.
Featured Partners
1
LegalZoom
$0 + State Fee
Varies By State & Package
2
ZenBusiness
$0 + State Fees
Varies By State & Package
3
Formations
$0 + State Fee
Varies By State & Package
The Top LLC Formation Services
ZenBusiness
$0-$299
Yes
7-10 business days
Our Expert Review
Our research found that ZenBusiness is the best LLC service for expedited filing. ZenBusiness prepares and submits LLC filings to the state within one business day if you opt for its Pro or Premium plans, and it boasts a 100% accuracy guarantee. While the filing time with your state will vary, you can at least know that ZenBusiness will get your LLC application into the state’s hands within one business day.
Our product testing team found ZenBusiness’s dashboard to be excellent. It combines formation tracking, compliance tasks, documents, finances and business management tools all in one place. Its artificial intelligence (AI) assistant is available throughout the process and can answer questions about business names, licensing and formation requirements, although it occasionally struggled with some of our simple workflow questions.
The biggest downside is the number of upsells. ZenBusiness presents several optional add-on services before checkout, including a few that appear more than once. Still, for business owners who want a fast LLC filing process backed by ongoing business tools after formation, ZenBusiness is one of the strongest options we reviewed.
ZenBusiness offers an optional rush filing upgrade for customers who want to expedite the LLC formation process.
Pros & Cons of ZenBusiness
|
Business logo builder included in Pro and Premium plans |
Lots of upsells during sign-up |
|
Free plan includes one year of compliance service |
Expensive registered agent service ($199 a year) |
|
One-day processing included with Pro and Premium packages |
One-day processing not available on free plan |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#9Ease of Use
Ranked 9 out of 11For Ease of Use- 60% of people had positive sentiments
- 13% of people had neutral sentiments
- 27% of people had negative sentiments
-
#5Cost Effectiveness
Ranked 5 out of 11For Cost Effectiveness
- 35% of people had positive sentiments
- 15% of people had neutral sentiments
- 50% of people had negative sentiments
-
#3Transparency and Hidden Fees
Ranked 3 out of 11For Transparency and Hidden Fees
- 4% of people had positive sentiments
- 8% of people had neutral sentiments
- 88% of people had negative sentiments
-
#9Customer Service
Ranked 9 out of 11For Customer Service
- 30% of people had positive sentiments
- 2% of people had neutral sentiments
- 68% of people had negative sentiments
-
#9Document Quality
Ranked 9 out of 11For Document Quality
- 14% of people had positive sentiments
- 2% of people had neutral sentiments
- 84% of people had negative sentiments
ZenBusiness receives a wide range of feedback for its LLC formation and compliance services. Some users appreciate the straightforward setup process, informative support and comprehensive packages that assist with business filings and ongoing compliance.
However, many express dissatisfaction with unexpected charges, automatic renewals and difficulties canceling services. Customer support is often described as unresponsive or difficult to reach, leading to frustration when issues arise. The upselling of additional services is seen by some as unnecessary, adding to the costs.
While ZenBusiness can provide convenience and save time with legal paperwork, some users feel they are charged for services they could manage more cheaply on their own. The experience with ZenBusiness varies significantly, depending on individual expectations and specific service interactions.
Our Testing Experience
ZenBusiness offered an easy-to-follow LLC formation experience that balanced guidance with flexibility. The standout feature for us was Velo, the company’s AI assistant, which was integrated throughout the workflow. In several cases, it provided useful answers about business names, licensing and formation requirements, helping explain why information was being collected and what it would be used for. The experience wasn’t perfect, but it was still the most meaningful use of AI we encountered during testing.
The checkout process clearly separated today’s charges from future recurring fees, making it easy to understand what we were paying now versus what we would pay later. ZenBusiness also accepted a virtual mailbox address during formation, which may be useful for business owners who want to keep their home address private.
ZenBusiness presents a steady stream of optional services throughout the process, including compliance services, EIN filing, tax planning, financing, business banking, website services, licensing reports and document kits. Most were clearly priced and easy to decline, but there were noticeably more offers than we encountered with other providers, and a few reappeared after we had already declined them.
The order process for ZenBusiness was full of upsells, like this EIN and business document upgrade.
The dashboard was excellent. It combines formation tracking, compliance tasks, documents, finances and business management tools into a single interface, with Velo available throughout. It feels less like a filing portal and more like a small business operating platform. If your goal is simply to form an LLC as quickly as possible, there are cleaner workflows available. But if you’re looking for a platform that can support the business after formation, ZenBusiness has one of the strongest overall ecosystems we tested.
I came away pretty impressed by ZenBusiness. The formation process was easy to follow, Velo was actually useful and the dashboard felt designed to help run the business after formation.
— Dave Ellerby, Forbes Advisor vice president of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated ZenBusiness:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.5
|
4.0
|
3.5
|
5.0
|
4.0
|
4.5
|
Formations
Our Expert Review
Our research found that Formations is the best LLC service for ease of use. Its formation workflow is straightforward with an intuitive process that stays focused on completing the filing instead of pushing users through a long sales funnel.
Unlike competitors that feed customers through multiple sales pages and add-on offers before reaching checkout, Formations has a fast and intuitive workflow. If you are new to the LLC formation world, Formations will walk you through the process. All you have to do is answer a short set of questions about your business, choose a package, navigate state requirements and track your application through real-time progress updates.
While Formations is easy to use, business owners who need a robust postformation platform for ongoing legal support will likely need to look elsewhere. It is the right fit, however, for someone who wants to get an LLC formed quickly without fighting through a platform built to sell them something else.
Formations uses a step-by-step questionnaire to gather information needed for LLC formation.
Editor’s note: While our parent company has an interest in Formations, this ranking was subjected to our team’s standard rigorous editorial process, which remains independent of any influence from formations companies, business relationships, affiliates or any other external parties.
Pros & Cons of Formations
|
Expert assistance with experience in 80+ industries |
Business compliance documents only available on most expensive plan |
|
Money-back guarantee of accurate setup |
Expedited filing costs extra on lower plans |
|
Free consultation with a business tax expert with all plans |
Free plan does not include phone support |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#5Ease of Use
Ranked 5 out of 11For Ease of Use
- 60% of people had positive sentiments
- 20% of people had neutral sentiments
- 20% of people had negative sentiments
-
#7Cost Effectiveness
Ranked 7 out of 11For Cost Effectiveness
- 33% of people had positive sentiments
- 33% of people had neutral sentiments
- 24% of people had negative sentiments
-
#9Transparency and Hidden Fees
Ranked 9 out of 11For Transparency and Hidden Fees
- 0% of people had positive sentiments
- 0% of people had neutral sentiments
- 100% of people had negative sentiments
-
#10Customer Service
Ranked 10 out of 11For Customer Service
- 8% of people had positive sentiments
- 25% of people had neutral sentiments
- 67% of people had negative sentiments
-
#6Document Quality
Ranked 6 out of 11For Document Quality
- 0% of people had positive sentiments
- 100% of people had neutral sentiments
- 0% of people had negative sentiments
Formations LLC receives a mixed response from its users. Some express dissatisfaction with unauthorized bank charges, fraudulent transactions and unresponsive customer support, raising serious concerns about trust and service reliability. Many users also report issues with slow business registration processes, confusing website information and persistent, unwanted sales calls.
On the positive side, some customers appreciate the helpfulness of the staff, timely paperwork filing and the array of services provided, such as LLC formation, bookkeeping and tax preparation. However, the overall quality of customer interactions and service responsiveness remains inconsistent, with significant room for improvement.
Our Testing Experience
Formations provided a very straightforward LLC formation experience during testing. The workflow was fast, intuitive and remained focused on completing the filing rather than pushing users into additional services. Pricing, recurring costs and optional add-ons were generally disclosed clearly, and every upsell could be declined without disrupting the process.
We also found it stood out for its transparency. Registered agent costs, EIN services, operating agreements and expedited filing options were clearly disclosed before purchase, and the order summary made it easy for us to distinguish between immediate costs and future recurring charges. The dashboard was also one of the strongest tested, emphasizing formation status, document access and next steps rather than sales opportunities.
The Formations user dashboard is well laid out, making it easy to find your business documents and get useful business tools.
While Formations LLC presented numerous optional services, including compliance support, tax coaching, licensing assistance, financing and payment processing, the offers were generally well explained and easy to decline. Overall, Formations LLC combined strong transparency, a highly usable workflow and an excellent dashboard into one of the most consumer-friendly formation experiences tested.
Formations combined one of the simplest workflows I tested with some of the clearest pricing disclosures. While there were plenty of optional services available, it was always obvious what was required and what wasn’t.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated Formations:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.5
|
5.0
|
4.5
|
5.0
|
4.0
|
4.5
|
LegalZoom
$0-$299
Yes
14 days
Our Expert Review
Our testing found that LegalZoom is the most complete LLC filing experience. While other providers simply collect the information needed to file your LLC, LegalZoom guides business owners through each decision with clear explanations, educational content and a wide selection of optional business services, notably legal services. Combined with its broad selection of optional services, it creates the most comprehensive formation workflow we tested.
Every provider we tested offered the core services needed to form an LLC, but LegalZoom paired them with the most robust guidance throughout the filing process. In addition to optional services such as an EIN, operating agreement, registered agent service, business license support and virtual mail, it offers attorney guidance, intellectual property services and estate planning. This allows business owners to address more of their legal needs in one place instead of turning to additional providers after formation.
LegalZoom’s sign-up process includes excellent explanations about add-on services to help you make the right decision.
Pros & Cons of LegalZoom
|
Business document library has 150+ customizable legal forms |
No free registered agent with any plan |
|
Free LLC package includes tax consultation |
Free plan offerings are sparse compared to competitors |
|
Operating agreement and EIN included with paid plans |
Attorney consultations in paid plans only free for 30 days |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#7Ease of Use
Ranked 7 out of 11For Ease of Use
- 62% of people had positive sentiments
- 10% of people had neutral sentiments
- 28% of people had negative sentiments
-
#6Cost Effectiveness
Ranked 6 out of 11For Cost Effectiveness
- 22% of people had positive sentiments
- 24% of people had neutral sentiments
- 54% of people had negative sentiments
-
#7Transparency and Hidden Fees
Ranked 7 out of 11For Transparency and Hidden Fees
- 3% of people had positive sentiments
- 7% of people had neutral sentiments
- 90% of people had negative sentiments
-
#8Customer Service
Ranked 8 out of 11For Customer Service
- 42% of people had positive sentiments
- 1% of people had neutral sentiments
- 57% of people had negative sentiments
-
#8Document Quality
Ranked 8 out of 11For Document Quality
- 20% of people had positive sentiments
- 4% of people had neutral sentiments
- 76% of people had negative sentiments
LegalZoom receives mixed feedback for its LLC formation services. Users appreciate its convenience, wide range of services and often straightforward process, which can save time and effort for those unfamiliar with business laws. However, the platform is frequently criticized for aggressive upselling, unexpected fees and overpricing compared to smaller competitors or direct state filings.
Some users report issues with communication and support, errors in documentation and difficulties in resolving problems or obtaining refunds. While some find the service satisfactory for basic needs, others feel let down by its cost and customer service, suggesting it may work best for those who thoroughly understand the process and potential costs involved.
Overall, experiences vary significantly, highlighting the need for potential customers to carefully evaluate their specific needs and alternatives.
Our Testing Experience
We found LegalZoom’s formation workflow to be really strong. Pricing and package differences were clearly presented up front, and the platform consistently provided useful explanations about registered agents, EINs, compliance requirements and tax elections. Users could decline nearly every optional service without disrupting the filing process, creating a level of transparency and control that stood out among providers tested.
The most aggressive sales activity occurred after purchase, though. LegalZoom followed up with an outbound phone call and email promoting a $599-per-year Business Essentials package using a limited-time discount offer. While the website experience was definitely consumer-friendly, the postpurchase sales effort was significantly more persistent than we expected.
We found the dashboard was polished and easy to navigate, with strong document management features and a wide range of legal and business tools. However, it functioned more as a legal services marketplace than a dedicated LLC management center. Overall, LegalZoom combined excellent workflow design, strong educational content and high levels of consumer control with an extensive sales and partner ecosystem.
LegalZoom’s dashboard is easy to use but seems to put legal services more front and center than LLC management tools.
The online experience felt like legal software. The postpurchase experience felt more like talking to a salesperson at a used car dealership.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated LegalZoom:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.0
|
5.0
|
3.0
|
4.5
|
3.0
|
4.0
|
Northwest Registered Agent
Our Expert Review
Our research found that Northwest Registered Agent is the best budget LLC service. For just $39, it bundles a free business address, domain, website, email, phone line, brand protection tools and a free year of registered agent services into its LLC formation service.
If you are a budget-conscious business owner, these bundled services are useful because they cover both the LLC filing and several early business costs in one low upfront price. While some competitors advertise low-cost formation, they typically charge separately for registered agent services and business email or a virtual address.
Our experience of setting up an LLC with Northwest was refreshingly practical. The workflow was lean and there was almost no unnecessary marketing language. The trade-off is that Northwest offers less handholding than some competitors. There’s no AI assistant, no business coaching and the dashboard is functional but simple. If you want ongoing guidance throughout your first year, a platform like LLC Attorney may serve you better.
Northwest Registered Agent uses a simplified LLC formation process with transparent pricing.
Pros & Cons of Northwest Registered Agent
|
One year of free registered agent service |
Free mail scanning limited to five standard letters a year |
|
Strict focus on privacy |
EIN sold separately |
|
Free lifetime web hosting included with formation plan |
Lacks its own business name search tool |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#6Ease of Use
Ranked 6 out of 11For Ease of Use
- 78% of people had positive sentiments
- 9% of people had neutral sentiments
- 13% of people had negative sentiments
-
#1Cost Effectiveness
Ranked 1 out of 11For Cost Effectiveness
- 80% of people had positive sentiments
- 9% of people had neutral sentiments
- 11% of people had negative sentiments
-
#1Transparency and Hidden Fees
Ranked 1 out of 11For Transparency and Hidden Fees
- 32% of people had positive sentiments
- 5% of people had neutral sentiments
- 63% of people had negative sentiments
-
#3Customer Service
Ranked 3 out of 11For Customer Service
- 82% of people had positive sentiments
- 1% of people had neutral sentiments
- 17% of people had negative sentiments
-
#3Document Quality
Ranked 3 out of 11For Document Quality
- 65% of people had positive sentiments
- 4% of people had neutral sentiments
- 31% of people had negative sentiments
Northwest Registered Agent receives mainly good feedback from users. Many appreciate its affordable LLC formation services, transparent pricing and privacy protections. The company is often praised for its effective customer service, with representatives available to guide users through processes efficiently. Users also value the free year of registered agent service and additional perks like operating agreements and business addresses.
However, there are criticisms regarding hidden fees, slow response times and challenges in reaching support. Some customers faced issues with domain services and unexpected charges, leading to dissatisfaction. While many find their services reliable and straightforward, providing satisfactory experiences, others express frustration over perceived deceptive practices and communication problems.
Overall, Northwest Registered Agent is seen as a viable option for LLC formation, particularly for those valuing privacy and simplicity, though experiences vary.
Our Testing Experience
Northwest Registered Agent was one of the most straightforward and transparent providers we tested. Unlike several competitors that position themselves as business launch platforms or legal services providers, Northwest remains focused on its core strengths, which are registered agent service, privacy protection and business formation.
The workflow had very little friction and almost no unnecessary marketing language. What surprised us most was the amount of features bundled into the base offering. Most providers we tested either charge separately for these services or use them as recurring add-ons. Northwest presents them as included benefits and repeatedly reinforces that they are not free trials. That approach, combined with transparent renewal pricing and the absence of default-selected paid add-ons, made the overall experience feel unusually consumer-friendly.
Northwest Registered Agent uses a simplified LLC formation process with transparent pricing and limited upselling.
The company also handled addresses better than almost any provider we tested. Northwest actively recommends using its registered agent address for public filings and mailing purposes, integrating privacy protection directly into the service rather than selling it through separate virtual address products. Throughout the process, it maintained clear distinctions between billing, contact, mailing and filing addresses, which helped avoid the confusion we encountered elsewhere.
The dashboard was functional but relatively simple. It focused on account management, services, documents and registered agent support. For users who simply want to set up an LLC and protect their privacy, Northwest Registered Agent delivers one of the strongest overall experiences in the category.
Northwest Registered Agent did something surprisingly rare in this category: it treated me like an adult. Pricing was transparent, optional services stayed optional and the company focused on helping me form the LLC rather than constantly trying to sell me something else.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated Northwest Registered Agent:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
5.0
|
4.5
|
5.0
|
4.0
|
5.0
|
5.0
|
Inc Authority
$0-$472.33
Yes
12 days
Our Expert Review
Our research found that Inc Authority is the best LLC service for a free LLC and EIN. It’s the only provider on our list that includes an EIN with its free LLC plan, saving business owners time and avoiding the additional service fee that most LLC providers charge for EIN filing. While you can get a free EIN from the IRS, having an LLC service gather this for you at no charge saves you the paperwork.
Inc Authority is also one of two companies on our list that provides a free registered agent for a year with its $0 plan. New business owners can get started while only paying the state filing fee.
During our testing, we found that the workflow offers a lot of optional services like operating agreements, tax planning, banking products and branding, and working through them takes longer than it should if all you want is basic formation. However, most are clearly priced and easy to decline.
Inc Authority is an ideal service for those who want to minimize early costs and don’t need much handholding after filing. If you are looking for a platform to manage your business long term, you will likely outgrow it, but it is hard to beat for getting an LLC off the ground without spending much.
Inc Authority presented a lot of add-ons during the checkout process.
Pros & Cons of Inc Autohrity
|
Choice of EIN or expedited processing with free plan |
Nonstop pitches for add-ons during checkout process |
|
30-day free trial of compliance service |
No DBA filing service |
|
Free registered agent with free LLC plan |
No prices listed for premium LLC service bundles |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#10Ease of Use
Ranked 10 out of 11For Ease of Use
- 77% of people had positive sentiments
- 1% of people had neutral sentiments
- 22% of people had negative sentiments
-
#11Cost Effectiveness
Ranked 11 out of 11For Cost Effectiveness
- 51% of people had positive sentiments
- 8% of people had neutral sentiments
- 41% of people had negative sentiments
-
#11Transparency and Hidden Fees
Ranked 11 out of 11For Transparency and Hidden Fees
- 16% of people had positive sentiments
- 4% of people had neutral sentiments
- 80% of people had negative sentiments
-
#1Customer Service
Ranked 1 out of 11For Customer Service
- 77% of people had positive sentiments
- 1% of people had neutral sentiments
- 22% of people had negative sentiments
-
#4Document Quality
Ranked 4 out of 11For Document Quality
- 70% of people had positive sentiments
- 0% of people had neutral sentiments
- 30% of people had negative sentiments
Inc Authority receives good reviews from customers. Many users appreciate the company for its knowledgeable and helpful staff, emphasizing smooth LLC formation and professional guidance with business credit services. Representatives are often praised for their clarity, patience and quality customer service, making the process straightforward and supportive.
However, some customers express dissatisfaction with aggressive upselling, unexpected fees and reports of communication issues. Additionally, a few users have criticized the company for misleading information and billing practices. Overall, while many find the service beneficial and user-friendly, some clients warn of potential drawbacks, particularly regarding transparency and pricing.
Our Testing Experience
Inc Authority offered one of the strongest value propositions we encountered during testing. The company advertises a free LLC, free first-year registered agent service and a choice between a free EIN or free express processing. And unlike some competitors, those benefits actually survived the checkout process.
The workflow is longer and more sales-oriented than providers like Northwest Registered Agent or Bizee. Inc Authority asks several business profiling questions before getting into the formation details and presents a steady stream of optional services throughout the process. These include operating agreements, compliance services, website and branding tools, business license research, tax services and banking products. There are a lot of offers, but most are clearly priced and easy to decline.
What stood out was that Inc Authority generally avoided the fear-based messaging used by some competitors. The company clearly wants to build a broader relationship beyond LLC formation. The biggest downside is that the experience can feel like moving through a marketplace of add-on services before reaching the finish line.
For customers focused on keeping formation costs low, Inc Authority is hard to ignore. The free package is legitimate, the included benefits are substantial and the final cost matched the advertising.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated Inc Authority:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
5.0
|
4.0
|
4.0
|
2.5
|
5.0
|
4.0
|
Harbor Compliance
$99
No
1 day
Our Expert Review
Our research found that Harbor Compliance is the best LLC service for compliance help. In addition to LLC formation, Harbor Compliance offers registered agent service with annual report reminders, an entity management software for tracking entity status and documents, and a license manager for researching, managing and renewing business licenses.
While some LLC formation services focus on business registration, Harbor Compliance is built for businesses that need help staying compliant after formation. Its Entity Manager software gives business owners a centralized view of where their entities are registered, stores formation documents and tracks annual report deadlines. The License Manager helps businesses research, manage and renew the licenses their specific industry or location requires. This is something that most LLC services do not touch.
Harbor Compliance is not trying to compete on price and a first-time business owner forming a single-state LLC might be paying for infrastructure they won’t need for years. But it is the right choice for businesses that expect ongoing filings, multistate registrations or licensing requirements. That said, it’s probably overkill for anyone else.
Harbor Compliance’s compliance tool prompts users to check their compliance status and identify potential filing gaps.
Pros & Cons of Harbor Compliance
|
Strong compliance focus |
More expensive than competitors |
|
License management tools for regulated industries |
No free plan |
|
Low-cost registered agent service for the first year |
Maybe more in depth than simple businesses need |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#8Ease of Use
Ranked 8 out of 11For Ease of Use
- 76% of people had positive sentiments
- 4% of people had neutral sentiments
- 20% of people had negative sentiments
-
#10Cost Effectiveness
Ranked 10 out of 11For Cost Effectiveness
- 15% of people had positive sentiments
- 8% of people had neutral sentiments
- 77% of people had negative sentiments
-
#10Transparency and Hidden Fees
Ranked 10 out of 11For Transparency and Hidden Fees
- 0% of people had positive sentiments
- 3% of people had neutral sentiments
- 97% of people had negative sentiments
-
#5Customer Service
Ranked 5 out of 11For Customer Service
- 49% of people had positive sentiments
- 0% of people had neutral sentiments
- 51% of people had negative sentiments
-
#10Document Quality
Ranked 10 out of 11For Document Quality
- 20% of people had positive sentiments
- 0% of people had neutral sentiments
- 80% of people had negative sentiments
Harbor Compliance receives mixed reviews with a notable number of critiques regarding their customer support, billing practices and service efficiency. Many users express dissatisfaction with the complex filing processes, high fees, lack of timely responses and service errors such as failure to file critical documents.
Issues with their registered agent services, such as communication lapses and uncommunicated third-party engagements, are frequently mentioned. Some users are frustrated with automated customer service responses and refund challenges.
On a more positive note, there are reports of responsive and helpful account managers, streamlined compliance processes and effective nonprofit support, indicating that some clients have had favorable experiences with certain aspects of their software and compliance services. Nevertheless, the overall sentiment shows considerable room for improvement, particularly in customer service and transparency.
Our Testing Experience
Harbor Compliance felt different from most of the other providers almost immediately. The company never really seemed to be trying to sell an LLC. It felt like it was trying to keep us compliant after we had one. The site is packed with educational content, compliance resources, licensing information and entity management tools.
The formation workflow itself was straightforward and professional. Pricing was clearly presented, and the company separated formation fees, state fees and registered agent services in a way that was easy to follow. Harbor’s additional services are focused almost entirely on compliance-related services such as annual report management, EIN filing, operating agreements and tax elections. The company generally accepted “no” for an answer, though.
Harbor Compliance’s sign-up process includes offers like this $99 operating agreement.
One thing that became clear throughout testing is that Harbor Compliance is not really targeting the same customer as many of the lower-cost formation services. The platform appears designed for businesses that expect to have ongoing compliance obligations, multiple registrations, licensing requirements or future growth into additional jurisdictions. Even before gaining access to the account portal, the help center revealed a surprisingly deep compliance management platform.
The trade-off is cost. Harbor was one of the more expensive services tested, and some entrepreneurs may find they are paying for capabilities they do not need. But for businesses that want ongoing compliance support, Harbor felt more like a compliance partner than an LLC filing service.
Harbor never really felt like it was trying to sell me an LLC. It felt like it was trying to keep me compliant after I had one.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated Harbor Compliance:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.0
|
4.5
|
5.0
|
3.0
|
4.5
|
4.5
|
Rocket Lawyer
$34.99-$64.99 per month
No
1 day
Our Expert Review
Our research found that Rocket Lawyer is the best LLC service for customer service experience. Its LLC formation service comes with more built-in support than most providers, including phone support, attorney consultations, legal document reviews, AI-powered assistance and educational resources integrated throughout the platform.
If you expect to need help after forming your LLC, you’ll also like that Rocket Lawyer is a complete legal assistance platform. Its membership includes legal documents, e-signatures, Rocket Copilot AI, contract review, legal reminders and options to ask or consult with a Legal Pro, depending on the plan. Its membership model is especially useful for business owners who want more than a filing service. Instead of sending you through checkout and leaving you with a dashboard of compliance tasks, Rocket Lawyer gives you a place to create contracts, review documents and get answers to legal questions as your business grows.
The downside of this model is that it may offer more services than some users need. Several services, such as EIN filing, registered agent service and trademark filing, were preselected during our testing.
Rocket Lawyer’s Copilot homepage provides access to legal guidance, contract review and document creation tools.
Pros & Cons of Rocket Lawyer
|
Free LLC formation on all plans |
Video calls with legal professionals limited to 20 minutes |
|
Unlimited personalized documents and e-signatures |
Registered agent costs extra for all plans |
|
Access to legal professionals |
Membership is a monthly, recurring cost |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#3Ease of Use
Ranked 3 out of 11For Ease of Use
- 83% of people had positive sentiments
- 3% of people had neutral sentiments
- 14% of people had negative sentiments
-
#3Cost Effectiveness
Ranked 3 out of 11For Cost Effectiveness
- 76% of people had positive sentiments
- 8% of people had neutral sentiments
- 16% of people had negative sentiments
-
#5Transparency and Hidden Fees
Ranked 5 out of 11For Transparency and Hidden Fees
- 23% of people had positive sentiments
- 5% of people had neutral sentiments
- 72% of people had negative sentiments
-
#4Customer Service
Ranked 4 out of 11For Customer Service
- 85% of people had positive sentiments
- 1% of people had neutral sentiments
- 14% of people had negative sentiments
-
#1Document Quality
Ranked 1 out of 11For Document Quality
- 80% of people had positive sentiments
- 5% of people had neutral sentiments
- 15% of people had negative sentiments
Rocket Lawyer offers a range of legal document services and a subscription model that some users find beneficial for its ease of use and access to templates. Users appreciate the platform’s ability to simplify document creation and the helpfulness of certain customer service representatives. The app is valued for being user-friendly and a good resource for legal needs.
However, negative feedback often centers around billing practices, including unexpected charges and difficulty canceling subscriptions. Customers have also expressed dissatisfaction with customer service responsiveness and transparency regarding charges. Complaints about trademark services highlight issues with communication and filing errors.
Overall, while some users find Rocket Lawyer convenient and cost-effective for basic legal tasks, others are frustrated with its subscription model and customer service challenges.
Our Testing Experience
Rocket Lawyer is really a legal services platform that happens to offer LLC formation, rather than an LLC formation company that offers a few legal services on the side. That distinction became clear fairly quickly once we got into the workflow during testing. The formation filing itself is free with membership, but the real product is the recurring legal subscription, which includes Rocket Copilot AI, legal documents, e-signatures, contract review, attorney consultations and access to additional legal services.
The workflow was easy to complete and generally well executed. Rocket Lawyer provided more educational content than most providers we tested, including guidance on business structures, legal resources, visible support options and clear disclosures around its AI tools. Membership pricing, free trial terms, renewal costs and cancellation options were ultimately disclosed clearly before purchase.
The biggest criticism is that several services were preselected by default, including EIN filing, registered agent service and trademark filing. None of the offers relied on scare tactics or compliance warnings, but the workflow consistently nudged users toward additional paid services.
The dashboard reflects the company’s broader legal focus. Rather than emphasizing compliance management or company administration, Rocket Lawyer steers users toward legal tools such as Rocket Copilot, AI contract review, document creation and attorney access. For business owners who expect to need ongoing legal support, that may represent good value.
Rocket Lawyer’s dashboard is different than competitors; it focuses more on offering legal tools.
Rocket Lawyer was one of the strongest providers I tested when it came to legal guidance and educational content. The trade-off is that you’re buying into a legal membership ecosystem rather than a simple LLC formation service.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated Rocket Lawyer:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.0
|
4.5
|
3.5
|
4.0
|
4.0
|
4.0
|
BetterLegal
$299
No
2 days
Our Expert Review
Our research found that BetterLegal is the best LLC service for add-on services. It offers a very complete set of additional services with clear pricing, making it easy to customize support as your business evolves.
At $299, its LLC formation service already includes a robust offering of an EIN, operating agreement, banking resolution, website, tax consultation, insurance evaluation and business forms. The optional services include some unique add-ons not available from other companies. Registered agent service, compliance management, license and permit research, business amendments, tax and bookkeeping, payroll, HR and business banking are all available. And while it’s not advertised on its website, a quick Google search will show that BetterLegal occasionally offers to waive the $299 fee, leaving you only having to pay the state filing fee.
The formation process from start to payment was one of the fastest we tested, without the need to navigate through multiple screens to enter your information. For business owners who want more than articles of organization but don’t want to spend time vetting a dozen separate vendors, BetterLegal consolidates the process well.
BetterLegal presents optional add-on services during the LLC formation process so customers can customize their purchase based on their business needs.
Pros & Cons of BetterLegal
|
Easy-to-understand formation process |
No free year of registered agent service |
|
EIN included |
Expensive compared to competitors |
|
Free website and tax analysis with LLC formation |
Add-ons can get expensive quickly |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#1Ease of Use
Ranked 1 out of 11For Ease of Use
- 87% of people had positive sentiments
- 2% of people had neutral sentiments
- 11% of people had negative sentiments
-
#2Cost Effectiveness
Ranked 2 out of 11For Cost Effectiveness
- 86% of people had positive sentiments
- 7% of people had neutral sentiments
- 7% of people had negative sentiments
-
#4Transparency and Hidden Fees
Ranked 4 out of 11For Transparency and Hidden Fees
- 23% of people had positive sentiments
- 8% of people had neutral sentiments
- 69% of people had negative sentiments
-
#7Customer Service
Ranked 7 out of 11For Customer Service
- 59% of people had positive sentiments
- 1% of people had neutral sentiments
- 40% of people had negative sentiments
-
#2Document Quality
Ranked 2 out of 11For Document Quality
- 61% of people had positive sentiments
- 0% of people had neutral sentiments
- 39% of people had negative sentiments
BetterLegal receives a wide array of feedback from users, reflecting both positive and negative experiences. Many customers appreciate the straightforward and efficient process for LLC formation, highlighting the quick turnaround times, clear instructions and competitive pricing compared to other services. Users often commend the customer service for being responsive, professional and helpful throughout the setup process, which is seen as easy and convenient.
On the flip side, several users report significant issues with customer support, including unresponsiveness to inquiries, difficulties in canceling services and continued billing after cancellation requests. Some users also express dissatisfaction with the lack of transparency in pricing and delays in receiving documents.
While BetterLegal is praised for its user-friendly service and cost-effectiveness by many, others experience frustration due to communication lapses and billing disputes. Consequently, experiences vary, with some customers finding the service reliable and easy to use, while others encounter challenges with support and service delivery.
Our Testing Experience
BetterLegal delivered a very clean and efficient formation experience during testing. The ownership, management and formation workflow was well organized and easy to follow. Registered agent and compliance services were presented separately, with clear pricing of $120 per year each, allowing users to choose only the services they needed.
Pricing was straightforward. BetterLegal waived its advertised $299 formation fee, leaving only the state filing fee and any selected optional services. The formation process reached the payment stage in approximately 17 minutes, making it notably faster than some competing providers.
Our primary concern emerged after payment. Despite explicitly instructing the filing team that no EIN was required, the postpayment workflow requested a phone number, Social Security number and date of birth to obtain an EIN. No obvious option was provided to skip this step. At the same time, BetterLegal’s confirmation email suggested that LLC formation was already moving forward independently of EIN processing.
A second email from Mercury Bank indicated that a business checking application had been prefilled using formation information supplied during checkout. While no account had been opened, the experience highlighted how closely BetterLegal integrates LLC formation, banking, EIN processing and other startup business services.
If you want to launch a business and open a bank account, BetterLegal’s ecosystem makes a lot of sense. If you just want to form an LLC, the experience becomes a little harder to untangle.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated BetterLegal:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.5
|
4.5
|
4.0
|
3.5
|
4.0
|
4.5
|
LLC Attorney
$49-$399
No
Same day
Our Expert Review
Our research found that LLC Attorney is the best LLC service for legal support. Unlike most filing services, LLC Attorney pairs the formation process with attorney-trained advisors and on-demand access to licensed attorneys.
This allows you to get help choosing the right setup instead of only filling out a standard formation questionnaire, making LLC Attorney a good fit for business owners who want legal support around formation.
The platform’s Sage AI assistant is another differentiator worth noting. During our testing, it answered basic formation questions directly without pivoting to a sales pitch, which is a low bar that several competitors failed to clear. The biggest caveat is the subscription model. LLC Attorney’s business model is built around ongoing compliance renewals, and a preselected multiyear offer appears before checkout, which can catch first-time users off guard.
LLC Attorney’s ongoing compliance plan must be subscribed to in addition to the plan cost.
Pros & Cons of LLC Attorney
|
One-on-one access to specialized business attorneys |
EIN not included in starter plan |
|
No extra cost for same-day filing |
Mandatory subscription for compliance renewals |
|
Includes instant bank account setup |
Additional fee for attorney access |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#2Ease of Use
Ranked 2 out of 11For Ease of Use
- 74% of people had positive sentiments
- 5% of people had neutral sentiments
- 21% of people had negative sentiments
-
#8Cost Effectiveness
Ranked 8 out of 11For Cost Effectiveness
- 59% of people had positive sentiments
- 5% of people had neutral sentiments
- 36% of people had negative sentiments
-
#8Transparency and Hidden Fees
Ranked 8 out of 11For Transparency and Hidden Fees
- 10% of people had positive sentiments
- 2% of people had neutral sentiments
- 88% of people had negative sentiments
-
#6Customer Service
Ranked 6 out of 11For Customer Service
- 55% of people had positive sentiments
- 2% of people had neutral sentiments
- 43% of people had negative sentiments
-
#7Document Quality
Ranked 7 out of 11For Document Quality
- 47% of people had positive sentiments
- 0% of people had neutral sentiments
- 53% of people had negative sentiments
LLC Attorney receives mixed reviews from customers regarding its services. Many users praise the LLC formation support as fast, easy and affordable, highlighting helpful customer service and straightforward processes. The company is noted for its user-friendly platform and effective guidance throughout the LLC setup.
However, some customers express concerns about misleading advertising, hidden fees and difficulties in communication and cancellation processes. Reports of unauthorized charges and deceptive practices are also mentioned, alongside dissatisfaction with certain procedures, such as registration and customer service encounters. While some have positive experiences and recommend the service for its simplicity and support, others remain wary due to issues with transparency and trust.
Our Testing Experience
LLC Attorney was one of the biggest surprises of our testing. The company starts with a simple single-page workflow that collects most of the formation information up front. That sounds like it should be overwhelming, but it worked surprisingly well. The green completion indicators made it easy to track progress, and the AI-generated backup company name suggestions solved a problem that many other providers simply leave to the user.
The Starter package was also much stronger than expected. Attorney access, an operating agreement, banking resolution, organizational minutes, privacy support and expedited filing were all included at a price point where many competitors were still trying to sell those items as add-ons. The company is built around an ongoing compliance subscription. However, unlike some providers, we found it very clear to see what was included, what renewed later and what the ongoing cost would be.
The dashboard was also one of the best we tested. It provided compliance tracking, mail handling, document signing, attorney access, banking resources, insurance referrals, financing tools and company management features in a single place.
LLC Attorney’s dashboard was one of the best we tested.
By the end of testing, LLC Attorney felt less like a filing service and more like a platform designed to help new business owners through their first year. The biggest drawback was the subscription model and the preselected multiyear offer before checkout, but overall, it delivered one of the strongest combinations of workflow, transparency and postformation functionality we encountered.
By the end of testing, LLC Attorney felt less like a filing service and more like a platform designed to help new business owners through their first year.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated LLC Attorney:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.5
|
5.0
|
4.5
|
5.0
|
5.0
|
5.0
|
Bizee
Our Expert Review
Our research found that Bizee is the best free LLC service. Its free Basic plan includes first-year registered agent service, a virtual address, dashboard access, support resources and other core features without forcing upgrades into higher-priced plans.
The biggest advantage is that Bizee includes one year of registered agent service with any formation package. Many registered LLC services charge extra for registered services or include it on the highest-tiered plan, so this can save new business owners a meaningful amount during the first year.
The only real downside we found during our testing is that the communication consent step during checkout felt more aggressive than the rest of the process. Although Bizee showed an option to opt out of phone calls and text messages, we could not continue without granting consent. For business owners looking for a low-cost LLC formation service without navigating an overwhelming sales funnel, however, Bizee is one of the best options we tested.
Bizee’s checkout clearly separates its free LLC formation package from optional paid upgrades, making it easy to form an LLC without spending more than the required state filing fee.
Pros & Cons of Bizee
|
Lifetime compliance alerts on paid plans |
Expedited processing costs $50 for Pro plan |
|
S-corp election filing included in paid plans |
Business contract templates are $150 add on for Pro plan |
|
Free registered agent service for one year with all plans |
Business domain, email and phone offered only in Premium plan |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and products we review. This data is currently separate from our overall rating out of 5.
-
#4Ease of Use
Ranked 4 out of 11For Ease of Use
- 80% of people had positive sentiments
- 2% of people had neutral sentiments
- 18% of people had negative sentiments
-
#9Cost Effectiveness
Ranked 9 out of 11For Cost Effectiveness
- 57% of people had positive sentiments
- 14% of people had neutral sentiments
- 29% of people had negative sentiments
-
#6Transparency and Hidden Fees
Ranked 6 out of 11For Transparency and Hidden Fees
- 17% of people had positive sentiments
- 5% of people had neutral sentiments
- 78% of people had negative sentiments
-
#2Customer Service
Ranked 2 out of 11For Customer Service
- 77% of people had positive sentiments
- 1% of people had neutral sentiments
- 22% of people had negative sentiments
-
#5Document Quality
Ranked 5 out of 11For Document Quality
- 58% of people had positive sentiments
- 4% of people had neutral sentiments
- 38% of people had negative sentiments
Bizee displays a mix of positive and negative feedback from users. Customers laud its comprehensive and user-friendly platform, which simplifies the process of establishing an LLC, with many emphasizing the speed and efficiency of the service. The availability of prompt and professional customer support adds to the positive experiences.
Despite its ease of use and supportive staff, Bizee faces criticism over issues such as unexpected charges, misleading service descriptions and unfulfilled promises regarding expedited services. Some users express dissatisfaction with communication and claim complexity in resolving issues, including delays in receiving necessary documentation, such as EINs. While customer service often receives praise, there are reports of it being unhelpful and frustrating at times.
Overall, Bizee is recognized for providing efficient services, but potential customers should be cautious of possible upsells and varying service experiences.
Our Testing Experience
Bizee delivered one of the more balanced experiences we encountered during testing. The company offers a genuine free formation package, and unlike some competitors, that package remained usable all the way through checkout.
The workflow strikes a middle ground between bare-bones formation providers and companies that try to build a complete business ecosystem around the LLC. Bizee presents several optional services, including EIN filing, operating agreements, virtual addresses, tax consultations and business banking referrals. The company also did a better job than many competitors of disclosing renewal pricing before purchase, including the ongoing costs for registered agent and virtual address services.
As mentioned, our biggest concern was communication consent. That issue aside, Bizee delivered a transparent and relatively low-pressure experience.
For customers looking for a low-cost LLC formation service, Bizee is one of the stronger options I tested. The company combines competitive pricing, good transparency and a capable dashboard.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated Bizee:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
5.0
|
4.5
|
4.0
|
4.0
|
5.0
|
4.5
|
MyCompanyWorks
$79-$279
No
2-3 business days
Our Expert Review
Our research found that MyCompanyWorks is the best LLC service for same-day processing. It is the only company on our list that offers same-business-day processing for orders submitted by 3 p.m. EST to ensure a quicker turnaround time.
And unlike other LLC services that offer expedited processing, MyCompanyWorks includes it for free across all plans. You also get a more complete formation package than you might expect from a fast-filing service, including an operating agreement, organizational minutes, online order tracking, scanned documents, lifetime compliance alerts and unlimited phone and email support.
Our testing team found the dashboard to be better than expected, giving you access to compliance tracking, company management tools and startup resources after the filing is complete.
MyCompanyWorks clearly presents optional upgrades such as rush filing and compliance support, while keeping its core same-day processing benefit available without an additional fee.
Pros & Cons of MyCompanyWorks
|
Same-day processing available |
High prices for add-ons |
|
Unlimited phone and email support on all plans |
No free plan |
|
Offers 100% satisfaction guarantee |
Free year of registered agent service not included in Basic plan |
Consumer Sentiment Index
- 0–5 Poor
- 5–7 Fair
- 7–10 Good
We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5.
-
#11Ease of Use
Ranked 11 out of 11For Ease of Use
- 100% of people had positive sentiments
- 0% of people had neutral sentiments
- 0% of people had negative sentiments
-
#4Cost Effectiveness
Ranked 4 out of 11For Cost Effectiveness
- 40% of people had positive sentiments
- 0% of people had neutral sentiments
- 60% of people had negative sentiments
-
#2Transparency and Hidden Fees
Ranked 2 out of 11For Transparency and Hidden Fees
- 0% of people had positive sentiments
- 0% of people had neutral sentiments
- 100% of people had negative sentiments
-
#11Customer Service
Ranked 11 out of 11For Customer Service
- 0% of people had positive sentiments
- 0% of people had neutral sentiments
- 100% of people had negative sentiments
-
#11Document Quality
Ranked 11 out of 11For Document Quality
- 0% of people had positive sentiments
- 0% of people had neutral sentiments
- 100% of people had negative sentiments
MyCompanyWorks has mainly poor reviews. Many users express dissatisfaction with their experiences, citing issues such as unexpected charges, poor communication, billing disputes and a lack of professional customer service. Several customers also highlighted problems with the notification and payment processes, leading to significant frustrations. Additionally, accusations regarding misleading practices and high service fees contribute to a negative perception.
However, there are mentions of MyCompanyWorks offering useful services, such as their LLC and corporation setup assistance, registered agent services and privacy features, which some users find beneficial. Despite providing services to many clients nationwide, the overall sentiment suggests that prospective customers should cautiously assess their options, especially given the recurring themes of billing and service issues.
Our Testing Experience
The aspect that stood out about MyCompanyWorks was that it didn’t seem to be built exclusively for people starting their own businesses. It felt like it was built for accountants, consultants, bookkeepers and other professionals setting up companies for clients as much as it was for entrepreneurs. The reseller option, which removes MyCompanyWorks branding from client-facing materials, was genuinely different from anything else we tested.
The formation process itself was straightforward. The company accepted a commercial mailbox address without issue and included some useful workflow shortcuts, such as applying a single address across multiple fields. The biggest weakness was pricing presentation. The advertised Basic package looked inexpensive, but several add-ons like EIN filing and the Business License Compliance Package were preselected by default. Removing those services brought the total cost down significantly.
The dashboard ended up being stronger than expected. It combines compliance tracking, company management, bookkeeping, tax resources and startup guidance into a single platform. Overall, MyCompanyWorks felt less like a filing service and more like a company management platform with a strong focus on professional users and resellers.
The MyCompanyWorks dashboard quickly gives you access to your documents, company info and additional services offered.
MyCompanyWorks felt like it was built as much for accountants and consultants as it was for business owners. The workflow was straightforward, the dashboard was useful and the reseller functionality was genuinely different from anything else I tested.
— Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
We tested each LLC formation service on five key areas and rated them on a scale of 1 through 5.
- Pricing evaluates transparency, recurring costs and overall cost competitiveness.
- Workflow evaluates ease of use, educational content and completion experience.
- Upsells evaluates the relevance, transparency and intrusiveness of optional services.
- Dashboard evaluates postpurchase account management, compliance tracking and business-management functionality.
- Value evaluates what customers receive relative to the total cost of ownership.
- Overall reflects the complete testing experience and is not a simple average of the individual category scores.
Here’s how we rated MyCompanyWorks:
| Pricing | Workflow | Upsell | Dashboard | Value | Overall |
|---|---|---|---|---|---|
|
4.0
|
4.5
|
4.0
|
4.5
|
4.0
|
4.5
|
Comparison: Best LLC Services Side-By-Side
Use this table to take a look at how each of the best LLC filing companies stacks up against one another.
| Provider | Details |
|---|---|
| Get Started On ZenBusiness' Website | Best For Best Expedited LLC Filing Starting Price (excluding State Fees) Free |
| Get Started On Formations' Website | Best For Best for Ease of Use Starting Price (excluding State Fees) Free |
| Get Started On LegalZoom's Website | Best For Most Complete Filing Experience Starting Price (excluding State Fees) Free |
| Get Started On Northwest Registered Agent's Website | Best For Best for Budget Starting Price (excluding State Fees) $39 |
| Get Started On Inc Authority's Website | Best For Best for Free LLC and EIN Bundle Starting Price (excluding State Fees) Free |
| Get Started On Harbor Compliance's Website | Best For Best for Compliance Service Starting Price (excluding State Fees) $99 |
| Get Started On Rocket Lawyer's Website | Best For Best Customer Service Experience Starting Price (excluding State Fees) $34.99 per month |
| Best For Best Add-On Services Starting Price (excluding State Fees) $299 | |
| Best For Best for Legal Support Starting Price (excluding State Fees) $49 | |
| Get Started On Bizee's Website | Best For Best Free LLC Service Starting Price (excluding State Fees) Free |
| Best For Best for Same-Day Processing Starting Price (excluding State Fees) $79 |
5 Lessons Learned From Creating 18 LLCs
Behind the Testing
Not every publication is obsessive enough to form 18 LLCs in a matter of days, but that is exactly why we did it. To properly identify the best LLC services, we created 18 companies in Wyoming and went through the entire formation process ourselves to track pricing, upsells, checkout transparency, dashboard quality and support. Here are the biggest lessons we learned from speed-creating 18 LLCs back to back:
- We expected to form companies—we didn’t expect the ongoing relationships with sales reps.
- Some sales funnels were so long that forming the LLC felt like a side quest.
- We’re now the proud proprietors of 18 LLCs and one massive admin headache.
- The award for best upsell goes to the $99 business pack that was just a personalized binder.
- The low point was a phone call from a salesperson while we were still in the online sales funnel for the same LLC service.
Our Best LLC Services Testing Experience
We evaluated 18 LLC formation services by creating a Wyoming LLC with each provider and completing the full formation process from sign-up through checkout. During testing, we assessed pricing transparency, workflow quality, upsells, dashboard usability, recurring costs, compliance support, EIN services and overall value.
We then scored each company on a scale of 1 to 5, with 5 being the best. Below is an explanation of each scoring category, along with how our top 11 formation services scored.
Our Testing Framework
Dashboard Score
The Dashboard Score evaluates the usefulness of the provider’s postpurchase platform. Providers scored highest when the platform continued to provide meaningful value after the LLC had been formed. Factors considered included:
-
Formation tracking
-
Document access and management
-
Compliance monitoring
-
Account management tools
-
Business management functionality
-
Ease of navigation
-
Overall usefulness after formation is complete
Workflow Score
The Workflow Score evaluates the overall quality of the formation experience from initial landing page through order submission. Providers scored highest when the formation process was intuitive, efficient and remained focused on completing the LLC filing. Factors considered included:
-
Ease of navigation
-
Number of steps required
-
Clarity of instructions
-
Quality of educational content
-
Data-entry efficiency
-
Ability to complete formation without unnecessary friction
-
Acceptance of reasonable address types such as commercial mailboxes
Value Score
The Value Score evaluates what customers receive relative to the total cost of ownership. Factors considered included:
-
Formation cost
-
Registered agent cost
-
EIN pricing
-
Included features
-
Dashboard functionality
-
Ongoing subscription requirements
-
Long-term recurring costs
Overall Score
The Overall Score reflects the complete testing experience and is not a simple mathematical average of the individual categories. In addition to the individual scoring dimensions, the Overall Score considers:
-
Balance between strengths and weaknesses
-
Quality of the end-to-end customer experience
-
Long-term usability
-
Consumer friendliness
-
Whether the provider delivers on its core value proposition
Upsell Score
The Upsell Score evaluates both the quantity and quality of upsell activity throughout the customer journey. Higher scores were awarded to providers that presented optional services clearly while respecting customer choices. Factors considered included:
-
Number of upsell screens
-
Use of preselected services
-
Presence of recurring subscriptions
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Transparency of pricing
-
Ease of declining optional services
-
Use of fear-based, consequence-based or compliance-focused messaging
-
Postpurchase marketing activity
Pricing Score
The Pricing Score evaluates the transparency, competitiveness and predictability of provider pricing. Providers scored highest when pricing remained transparent throughout the process and final costs closely matched customer expectations. Factors considered included:
-
Advertised price versus actual checkout price
-
Disclosure of state fees and recurring costs
-
Registered agent pricing and renewal rates
-
EIN pricing
-
Presence of mandatory add-ons or hidden fees
-
Clarity of package structures
Our Testing Results
The table below breaks down how each of our top LLC services scored in all five testing categories. While a handful got the same Overall score, the category scores show where the rest of their strengths are. Some excelled in pricing transparency while others stood out for their dashboard or workflow.
After testing 18 LLC services, it became clear that the actual filing process was very similar across all providers. We found the real differences emerged in everything surrounding the filing, including pricing transparency, workflow design, dashboard usability, upsell tactics and the overall customer experience. LLC Attorney and Northwest Registered Agent earned the highest overall scores by having intuitive workflows, transparent pricing and strong long-term value.
Another big takeaway was that the advertised starting price doesn’t always reflect what you’ll actually pay. Low introductory prices, such as a $0 plan, have become the norm, but optional add-ons, registered agent renewals and recurring subscriptions can quickly increase the price.
We also found that upsells aren’t necessarily a bad thing—it all comes down to how they’re presented. The providers we scored highly for upsells (Northwest Registered Agent, Harbor Compliance, Formations and LLC Attorney) clearly explained what each service did and made it easy to say no. Others, such as LegalZoom, Rocket Lawyer and ZenBusiness, relied on repeated prompts, preselected add-ons or urgency-driven messaging that made the process feel more like a sales pitch.
After filing, the postpurchase experience varied a lot too. Some provider dashboards were basically just a place to download formation documents, while others, such as LLC Attorney, Formations and ZenBusiness, included compliance tracking, document management, AI tools and/or business resources. If you plan to use your LLC service beyond the initial filing, the quality of the dashboard can be just as important as the formation process itself.
Overall, our testing showed that the best LLC service isn’t just the cheapest. A smooth workflow, easy-to-understand pricing and a useful dashboard create the entire experience and will provide the best value to the customer.
—Dave Ellerby, Forbes Advisor Vice President of Editorial Science and product tester
LLC Formation Services Pricing Comparison
Compare the prices of each of the LLC services featured in this article, including the range of plan costs, registered agent service cost and annual report filing cost.
| Company | Basic Plan Price | Midtier Plan Price | Premium Plan Price | Registered Agent Service Cost | Annual Report Filing Cost |
|---|---|---|---|---|---|
| ZenBusiness | $0 | $199 | $299 | $99 for 1st year; renews at $199 | $100 + state fee |
| Formations | $0 | $399 | $519 | Included with Essentials & Secure plans; renews at $199 per year | $199 per year + state fee |
| LegalZoom | $0 | $249 | $299 | $249 per year | $199 per year + state fee |
| Northwest Registered Agent | $39 | N/A | N/A | Free for the 1st year; renews at $125 per year | $100 + state fee |
| Inc Authority | $0 | $49 (our quote) | $472.33 (our quote) | Free for the 1st year; renews at $199 per year | Must call to get a quote |
| Harbor Compliance | $99 | N/A | N/A | $99 for the 1st year; renews at $149 per year | $199 + state fee |
| Rocket Lawyer | $34.99 per month | $49.99 per month | $64.99 per month | $125 per year; Plus or Pro plan required | $100, requires Pro plan |
| BetterLegal | $299 | N/A | N/A | $120 per year | $120 per year + state fee |
| LLC Attorney | $49 | $199 | $399 | $14.99 per month (part of Standard compliance add-on) | $14.99 per month (part of Standard compliance add-on) |
| Bizee | $0 | $199 | $299 | Free for the first year; renews at $149 per year | $129 + state fee |
| MyCompany Works | $79 | $199 | $279 | Included in Entrepreneur & Complete plans; otherwise $119 per year | $99 + state fee |
Compare Your First-Year and Ongoing LLC Costs
Use our calculator below to easily see your first-year costs and next-year costs with any LLC provider, based on the services you need.
Compare Best LLC Formation Services Features
Here’s a list of some of the top features of the best LLC filing companies, including whether or not they have a registered agent service, EIN assistance and more.
| Company | Free Registered Agent | EIN Assistance | E-Signatures | DBA Filing Service | Compliance Service | Business License Service |
|---|---|---|---|---|---|---|
| ZenBusiness | No | Yes, included with Pro & Premium plans | No | Yes, added cost | Yes, included with Pro & Premium plans | Yes, added cost |
| Formations | Yes, with Essentials & Secure plans | Yes, included with Essentials & Secure plans | No | Yes, added cost | Yes, added cost | Yes, added cost |
| LegalZoom | No | Yes, included with Premium and Pro plans | Included with Premium and Pro plans | Yes, added cost | Yes, added cost | Yes, added cost |
| Northwest Registered Agent | Yes | Yes, added cost | No | Yes, added cost | Yes, added cost | No |
| Inc Authority | Yes | Yes, included | No | No | Yes, added cost | No |
| Harbor Compliance | No | Yes, added cost | No | Yes, added cost | Yes, added cost | Yes, added cost |
| Rocket Lawyer | No | Yes, added cost | Included | Yes, added cost | Yes, added cost | No |
| BetterLegal | No | Yes | Additional cost | Yes | Yes, added cost | Yes, added cost |
| LLC Attorney | No | Yes, included with Professional & International+ plans | No | Yes, added cost | Yes, added cost | No |
| Bizee | Yes | Yes, included with Premium and Standard plans | No | Yes, added cost | Yes, added cost | Yes, added cost |
| MyCompany Works | Yes, with Entrepreneur & Complete plans | Yes, included with Complete and Entrepreneur plans | No | Yes, added cost | Yes, added cost | Yes, added cost |
User Opinions of Best LLC Services
Forbes Advisor collects consumer sentiment indirectly by collecting customer feedback across the internet using the Consumer Sentiment Index (CSI). This is how real customers described their opinion of the top LLC services:
| Company | CSI Rating | Satisfaction Level | Common Positive Sentiments | Common Negative Sentiments |
|---|---|---|---|---|
| ZenBusiness | 4.7 | Poor | Straightforward setup process, informative support and comprehensive packages | Unexpected charges, difficulties canceling services and upsells |
| Formations | 5.2 | Fair | Helpful staff, timely paperwork filing and good array of services offered | Unauthorized bank charges, unresponsive customer support and confusing website information |
| LegalZoom | 4.9 | Poor | Wide range of services, straightforward process and good customer service | Aggressive upselling, unexpected fees and more expensive than other competitors |
| Northwest Registered Agent | 7.7 | Good | Transparent pricing, effective customer service and free registered agent | Slow response times, hidden fees and unexpected charges |
| Inc Authority | 7.3 | Good | Knowledgeable and helpful staff with a smooth LLC formation process | Aggressive upselling, unexpected fees and communication issues |
| Harbor Compliance | 5.8 | Fair | Helpful account managers, streamlined compliance processes and effective nonprofit support | High fees, lack of timely responses and service errors |
| Rocket Lawyer | 7.8 | Good | Ease of use, access to templates and simple document creation | Unexpected charges, difficulty canceling subscriptions and poor customer service responsiveness |
| BetterLegal | 7.6 | Good | Efficient and straightforward LLC formation process and responsive customer support | Difficulty canceling services, lack of pricing transparency and delays in receiving documents |
| LLC Attorney | 6.1 | Fair | User-friendly platform, affordable and helpful customer service | Hidden fees, difficulties with canceling service and misleading advertising |
| Bizee | 6.5 | Fair | User-friendly platform, efficient and speedy service and professional customer service | Unexpected charges, misleading service descriptions and delays in receiving documentation |
| MyCompanyWorks | 4.6 | Poor | Useful setup assistance and privacy features | Billing disputes, poor communication and unprofessional customer service |
How To Choose the Best LLC Service
With so many LLC formation services offering similar plans, it’s important to look beyond the price tag. Comparing features, filing timelines, registered agent services and overall value can help you find the best fit for your business.
—Eric Proos, co-founder of Next Era Legal, a firm providing fractional general counsel to growing and scaling companies
Determine Which Essential LLC Features You Need
First up: consider which features your business actually needs. Small business owners with straightforward operations may only need help filing the required state paperwork, while businesses that plan to hire employees, open business bank accounts, get financing or add partners may benefit from LLC formation features like EIN registration, operating agreement templates and ongoing compliance support.
To help guide you, here’s a list of common LLC service features and whether they’re truly necessary if you’re just getting started.
| LLC Service Feature | Necessary for New Businesses? |
|---|---|
| Business Name Availability Search | Yes |
| Completion & Filing | Yes |
| Yes | |
| EIN Service | Helpful for beginners |
| Template | Helpful for beginners |
| Ongoing Compliance Support | No |
| Domain Name and Website | No |
| Tax and Legal Consultation | No |
Evaluate Processing Speed
Filing speed can be an important factor when choosing an LLC service, especially if you need to open a business bank account, sign contracts, hire employees or begin operations quickly. When comparing providers, pay attention to the amount of time it takes the LLC service to prepare and file your paperwork, not just the state’s processing time.
LLC service providers usually offer standard processing timelines of seven to 10 days, while some, like LLC Authority and MyCompanyWorks, offer same-day standard filing. Others, like Formations and ZenBusiness, charge extra for expedited filing or same-day processing. If timing is not urgent, LegalZoom and Harbor Compliance are great LLC formation services that take between one and two weeks to file.
Prioritize Providers With Registered Agent Service
Every state requires an LLC to list the name and address of the person or company that will receive official state and legal documents sent to the business. While you can act as your own agent, most businesses designate a registered agent to serve as their official contact. A registered agent service can be useful for business owners who work from home and do not want their personal address listed publicly.
When shopping around for an LLC service, look at whether a registered agent service is included in the plan. Many LLC services like Northwest Registered Agent and Bizee provide the first year of service free, then start charging an annual fee after year one.
Compare Pricing and Value
Apart from Rocket Lawyer’s subscription model, the prices of the company formation services we reviewed are similar, making the features and services included in each package just as important as the upfront cost. While several providers advertise free or low-cost LLC formation, you’ll still pay your state’s filing fee, and the included features can vary significantly.
For example, five of the LLC services we evaluated offer free basic LLC formation (plus state fees), but some include valuable extras such as an operating agreement, compliance alerts or a free year of registered agent service, while others charge additional fees for those same features.
Northwest Registered Agent and LLC Attorney stand out for their low-cost LLC services ($39 and $49 plus state fees, respectively), and several of the vendors we evaluated sell a midrange package priced between $79 and $199 plus a state fee, so it’s worth comparing what each package includes before deciding which service offers the best overall value for you.
Why Would a Formation Service Be Free?
Some LLC formation services advertise free plans as a customer acquisition strategy rather than a fully comprehensive offering. In most cases, the free tier covers only the basic preparation and filing of formation documents. Revenue is generated through optional add-ons such as registered agent service, EIN filing, operation agreements and compliance tools.
The free plan model allows providers to lower the barrier to entry for new business owners and build trust early. Monetization then comes through upgrades as business needs become more complex. Several of the LLC services we reviewed had a free plan option, including LegalZoom, Inc Authority and ZenBusiness.
What Are the Pros and Cons of Forming an LLC?
Forming an LLC can give business owners liability protection, tax flexibility and fewer administrative requirements than a corporation. However, LLCs can also come with funding limitations, self-employment taxes and state-level fees.
| Pros of forming an LLC include | Pros of forming an LLC include |
|---|---|
| ✔ Liability protection: LLCs protect members from being personally liable for the business’s financial and legal obligations, with some limits.
✔ Pass-through taxation: LLC profits and losses “pass through” directly to the members, avoiding the double taxation of other corporation types. | ✔ Lower formation costs: LLCs are less expensive to form than corporations, especially with so many free business formation services available.
✔ Fewer regulations: LLCs are subject to fewer management and financial regulations than corporations. |
| Cons of forming an LLC include | Cons of forming an LLC include |
|---|---|
| ✖ Harder to attract investors: LLCs can’t issue stock the way a corporation does, so growth may require additional money from existing members or from adding new members.
✖ Taxes on undistributed income: LLC profits are typically taxed annually at the member level, whether or not distributions are made. | ✖ Self-employment taxes: LLC members are categorized as self-employed and must pay directly for federal services such as Social Security and Medicare.
✖ Possible state-level taxes: Some states apply an additional franchise tax on LLCs. This tax may be a flat fee or a percentage of profits and revenue.
|
LLC Formation Service vs. DIY: Pros and Cons
Using an LLC formation service comes down to convenience versus cost. A service handles the paperwork, filing requirements and state-specific rules for you. This saves time and reduces the risk of errors, especially if you are unfamiliar with legal forms or compliance steps. Many also bundle useful extras like registered agent service, operating agreement templates and ongoing compliance reminders that can help keep your business in good standing.
The trade-off is cost. While the base plan may seem affordable or even free, add-ons can add up quickly compared to filing directly with the state. Going the DIY route is the most cost-effective option since you only pay state fees, but requires more effort, attention to detail and the willingness to navigate your state’s legal requirements on your own.
Forbes Advisor staff writers Dennis O’Reilly and Kristy Snyder contributed to this article.
Editor’s note: While our parent company has an interest in Formations, this ranking was subjected to our team’s standard rigorous editorial process, which remains independent of any influence from formations companies, business relationships, affiliates or any other external parties.
State LLC Services Guides
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.