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Table of Contents
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Table of Contents
Contents
By
Ru Chen
Key Takeaways
So you want an LLC to shield yourself from liability. An incorporation service might be right for you. Poor incorporation can cause legal and financial issues, whereas high-quality services help you minimize risk, comply with state-specific regulations, and build a strong business foundation.
Wondering what is the best incorporation service? Let’s compare the top incorporation partners for launching a business based on service quality, pricing, filing speed, and customer support.
Your time matters. Whether it’s your first or tenth business, paperwork can be strenuous and complex. Each business structure has its own tax and legal implications. Corporations need to file formation documents, reserve a name, complete annual reports, obtain an EIN, and more. Pouring resources by yourself into these steps can be a waste. If you’re doing it yourself, you might also miss deadlines or forget to file an annual report.
You’re the expert in your field. It only makes sense to delegate incorporation to a compliance expert so you can focus on other parts of launching your business. An incorporation service is great for simplifying your paperwork and preventing legal missteps during the business formation process.
You can also obtain added business services, such as:
Registered agent services: You can hire an incorporation service company as your registered agent. Registered agents are crucial for any business, since they handle incoming paperwork such as tax notices and lawsuits. A great advantage to having a registered agent being someone outside of your company is that you can preserve your privacy.
Annual report filings: Most states require corporations and LLCs to file annual reports by a specific date. This may mean filing by a deadline based on your company’s anniversary or by the state-standard deadline (e.g. April 15th).
Compliance reminders: Setting up a recurring notification is essential for compliance reasons. Missing a filing deadline can lead to fines and other negative consequences. Compliance reminders ensure you never miss a deadline.
Branding tools: Having a consistent brand is important, but brands should also adapt to market trends. Incorporation services can provide you with helpful brand and marketing expertise.
Business launch support: Any additional support for your launch can give you a burst of confidence.
According to the King County Bar, small businesses are particularly vulnerable to lawsuits. In fact, they get hit by a disproportionately high share of all business liability lawsuits, and the average liability lawsuit costs $54,000. If you’re wondering why do small businesses fail, liability lawsuits are a key reason.
Liability is often not an immediate concern for startups and new businesses with other pain points to stress over. However, if you stick with a sole proprietorship when it’s not advisable, it can lead to costly concerns down the line. LLC and other business structures provide invaluable liability protection.
Of course, an LLC (Limited Liability Company) isn’t right for every business. There are also C Corp, S Corp, and Nonprofit business structures. Sole proprietorships and partnerships may also be better for your situation. Before forming a business through an incorporation service, make sure to research whether incorporation is right for you.
When a business gets sued, the company gets served with a Service of Process. More often than not, this is a headache-inducing and embarrassing situation. It is not good PR for a company to have police officers with the Service of Process showing up in front of the business location.
A professional registered agent is great for improving privacy. If your company needs to receive a legal or tax document, the registered agent can receive it in your place, and then promptly notify you.
Registered agent services are also a smart way for home-based business owners to avoid junk mail. The registered agent has their address in the public record, which means anyone (e.g. marketers and solicitors) can cause trouble.
Registered agent services that come with incorporation services are also very important for those who are incorporating in a state other than their current business location. State law requires you to have a registered agent with a physical address in the state of incorporation.
Owners who travel frequently or lack a permanent working location should also obtain registered agent services. Otherwise, important business and legal documents may be unable to reach you.
Rating: 4.9/5
Want everything in one place? Tailor Brands makes it easy and affordable to plan, launch, and grow your company. You get free basic LLC formation (only state fees apply), so startups on a budget should consider Tailor Brands. Their full suite of business tools includes:
After reviewing the top incorporation services, we can confidently say that Tailor Brands is the best for entrepreneurs who want a simple formation process. No complex terms, no overwhelming services, no excessive fees. Simple.
Companies that are looking for branding and marketing support can benefit from Tailor Brands’ all-in-one business formation tools and services. Over 30+ million people have launched businesses using their services.
Plus, for a limited time, you can get 35% off plans and up to $50 in Amazon gift cards.
Rating: 4.7/5
If you’re looking for the best bang for your buck, Northwest is the best option. They believe in privacy, transparency, and stellar customer service.
Privacy is so important to Northwest that they’ve trademarked Privacy By Default®. This means that they do not sell your info in return for free filing, unlike many of the incorporation services that do.
Each client gets assigned a Corporate Guide, which is particularly useful for new entrepreneurs. The local business expert will answer your calls and walk you through questions from “how do I make my website cooler” to “what does my business structure mean”. These things are much easier said than done if you’re not a tech or marketing wiz.
Price-wise, Northwest again follows their privacy first mission, as they have no hidden fees. Of all the services we’ve reviewed, they actually have the lowest renewal pricing. After 1 year of free registered agent services, the renewal fee is only $125/year.
Make sure to use our special Favy discount to redeem a $10 off the usual $39.
Rating: 4.5/5
Need fast, fast, fast filing (that is still reliable)? ZenBusiness offers 1-day processing. The company has formed over 700,000 businesses, earning them an A+ BBB rating and excellent Trustpilot reviews. They provide "Worry-Free Compliance" for maintaining LLC status year-round.
You can also get 50% off registered agent services from ZenBusiness. These agents can help you organize tax notices and any other incoming documents related to your business. If someone were to sue your business, the register agent would be alerted and they would then notify you.
Note that ZenBusiness operates off a subscription model that is cheaper at first but more expensive after the first 12 months. We recommend checking all of the ZenBusiness subscriptions so you know what services and fees you’re signing up for.
Rating: 4.3/5
As the name suggests, LegalZoom is best for companies that have legal needs. Access an extensive legal network for broader legal services, not just incorporation. LegalZoom is great for entrepreneurs that want more control over the formation and legal processes since LegalZoom lets you take charge.
You can launch for free with the LegalZoom Basic package (just pay state fees).
Startups that are more financially cautious can benefit from LegalZoom’s 100% satisfaction guarantee. If you’re not happy within the first 60 days, you can obtain a fee refund. The company has supported budding entrepreneurs for over 20 years.
Rating: 4.2/5
On a budget? Bizee is perfect for small startups with minimal upfront budget. The incorporation company was bootstrapped and founded in 2004, having since served over 1,000,000 entrepreneurs. The best part about Bizee is that they charge a one-time fee with no strings attached.
Bizee’s incorporation service means you only need to pay state fees. You get a free registered agent service for the first year, which is useful for fresh startups.
You can also set up lifetime company alerts for compliance. You don’t need to worry about missing compliance deadlines even if you move on from Bizee.
Cost vs. included services: Even if the LLC formation fee (other than state fee) is free, it might not mean much if the incorporation service doesn’t offer what you need. Make sure to evaluate the cost based on what services are included. A higher-end service can cost a few hundred dollars a year.
Speed of business formation: Consider your business formation timeline to see whether you’re willing to pay more to expedite the filing and formation process. For example, ZenBusiness offers 1-day processing, making it better for owners in a rush.
Registered agent service quality: Registered agents are a point of contact for a business within the state. They need to be knowledgeable and reliable.
Post-incorporation support: Many incorporation services offer lasting branding tools and compliance reminder services.
Privacy: So many B2B services online today collect your information and have a loose privacy policy. This can end with your information being sold outside your awareness. Because of this, we want to highlight how Northwest values privacy and has a robust privacy protection policy.
Hidden fees: Be careful of any hidden charges or subscription fees that can catch you off guard. Everyone has probably experienced it by now in today’s society – you get a free trial for a month, and then the annual subscription fee is sky high. Always read the subscription details before paying for incorporation services (or any other services).
Navigating business formation and ownership structures is tricky. Professionals can help your business sort out specialized legal and tax concerns.
Professional assistance becomes practically necessary if there are:
Multiple owners and investors: Whenever there is potential for dispute, it is a good idea to hire professional, external help to incorporate. That way, all the necessary reports and forms are filed clearly and objectively.
Complex equity arrangements: Experts like LegalZoom can help you draft comprehensive agreements to minimize disputes and miscommunications.
Operations in highly regulated industries: Some sectors are heavily regulated, meaning new corporations must comply with industry-specific regulations. These industries include pharmaceutics, healthcare, financial services, and insurance.
International business formation needs: Forming an international business is a whole different beast compared to a domestic LLC. For example, non-US residents trying to form a legal business entity in the U.S. will need to carefully go over all the documentation and compliance requirements.
Choose an incorporation partner that aligns with your own business goals and limitations.
Let’s recap the key features of each top incorporation service:
Tailor Brands: Free basic LLC formation. Best all-in-one incorporation service
Northwest: 1 year of free registered agent services. Stellar data protection and customer service from real people
ZenBusiness: 1-day processing speed and starts at $0 plus state fees. Good for startups looking for an affordable, user-friendly platform
LegalZoom: 100% satisfaction guarantee + team of tax and legal professionals
Bizee: One-time free, no strings attached
Before opting for business incorporation and registered agent services, make sure to consider your budget, timeline, state of incorporation, and structure. Finding the right one can make a huge difference.
Ru Chen
Content Writer
Ru Chen is a content writer with several years of experience in creating engaging and well-researched articles. She mostly writes about coffee, business, digital marketing, and law. In her free time, she can be found watching horror movies and playing board games with her partner in Brooklyn.
Ru Chen is a content writer with several years of experience in creating engaging and well-researched articles. She mostly writes about coffee, business, digital marketing, and law. In her free time, she can be found watching horror movies and playing board games with her partner in Brooklyn.
