Many new and existing business owners choose to invest in an affordable business formation service in order to avoid mistakes, save time, and just focus on growing their business.
Due to the ample choices available, however, many find it hard to pinpoint both how to structure their business and which service would be the best fit for their unique needs.
To help with this, we’ve explored which structure is right for you and covered the top business formation services to help you get started, allowing you to make an informed choice and launch your business with confidence.
How Should You Structure Your Business?
Before diving into our top recommendations, it’s important to first understand the type of business formation services we’ll be reviewing, as there are many different structures you can form, including:
- Sole proprietorships
- Partnerships
- Limited Liability Companies (LLCs)
- Corporations
We’ve focused on providers that specialize in helping users form an LLC because this is the most practical choice for new and growing businesses due to its range of benefits — including personal liability protection, tax flexibility, and simplicity.
Choosing not to incorporate, while not uncommon, isn’t recommended as these structures don’t offer any type of personal liability protection; this means that, as the business owner, you could be held personally responsible for resolving any debts or legal actions your business might encounter.
For this reason, many small business owners choose to incorporate as an LLC as it keeps their personal assets separate from those of their business, thereby safeguarding their savings, home, and other assets if any financial or legal challenges arise. This separation not only offers peace of mind but also establishes a level of credibility that can benefit your business in the eyes of clients, vendors, and financial institutions.
Additionally, the tax flexibility and management simplicity of LLCs makes them the preferred choice for many new and growing businesses over forming a corporation, which must adhere to far more formal requirements, has less operational flexibility, and faces double taxation.
Top 5 Business Formation Services
The table below provides an overview of our top recommended business formation services so that you can compare each of their key features at a glance, before we explore them in more detail later on.
| Best Business Formation Services | Key Features |
|---|---|
Tailor Brands
4.8/5 |
Top Recommended Service
|
Northwest
4.4/5 |
|
LegalZoom
4.1/5 |
|
ZenBusiness
3.8/5 |
|
Bizee
3.6/5 |
|
1. Tailor Brands: Best LLC Formation Service
Tailor Brands is our top pick for business formation, offering a streamlined, all-in-one platform that’s ideal for entrepreneurs who want an affordable and user-friendly service.
Key Features
- Comprehensive Setup Process: Tailor Brands’s platform provides one of the simplest pathways to LLC formation, walking users through all the essential steps in less than 10 minutes with guidance on everything from business name selection to state filing requirements.
- Free Formation Option: Tailor Brands offers one of the most comprehensive free formation packages available, with access to this provider’s Business Coaching Program being granted on top of basic LLC formation.
- Business Growth Tools: Unlike many other services, Tailor Brands provides support that extends far beyond LLC formation, with tools that help your business with both branding and building an online presence (e.g., customized website templates, a logo design tool, branded merchandise, and social media kits).
- Personalized Business Plan Tool: To ensure you’ve got the guidance you need to succeed from day one, Tailor Brands also provides a tool that can produce customized plans specific to your business type, industry, and growth goals as part of some of its packages.
- Ongoing Support: Even once the process of forming your LLC has been completed, Tailor Brands continues to provide resources and assistance for ongoing compliance, filing requirements, and growth strategies — making it extremely simple for you to stay on track as your business grows.
| Pros | Cons |
|---|---|
| Offers a solid free formation option | No free registered agent service in any package | Extremely quick and easy to use |
| Extensive business growth and branding tools | |
| Personalized guidance beyond initial setup |
Pricing Overview
Tailor Brands offers its users the choice of three distinct plans:
- Lite ($0): Covers basic LLC formation and grants access to their Business Coaching Program.
- Essential ($199): Includes everything in the Lite package as well as the option for expedited processing and ongoing compliance help each year (e.g., mandatory report filings and reminders).
- Elite ($249): On top of all of the above, this package also grants access to the Tailor Brands’s full suite of business growth and branding tools.
Recommended Service
Tailor Brands is our top recommendation for starting an LLC as it provides free, hands-on guidance throughout every step of the process.
You can also obtain a 30% discount off their most premium package using our link below if you’re looking for the most comprehensive support.
Start an LLC with Tailor Brands ($0 + State Fees)
2. Northwest: Best Customer Support
Northwest Registered Agent is a great alternative that earned second place in our rankings for its commitment to safeguarding client information and top-notch customer service.
Key Features
- Registered Agent Services: Alongside each formation package, Northwest includes a year of free registered agent services (which typically cost $125 per year) to help ensure your business remains compliant and handle all official business communications on your behalf.
- Corporate Guides: Each customer is assigned a “Corporate Guide”, which is a dedicated support representative that’s been trained to assist you with any questions you may have regarding the LLC formation process, regulatory compliance, and any other business-related needs.
- Transparent Billing: As part of its commitment to transparent pricing, Northwest offers notifications and reminders before it bills you for its services — we really appreciated this touch as it made sure we were fully aware of when to expect costs, helping to avoid unexpected fees.
- Extensive Learning Resources: The platform provides a library of free resources covering federal and state compliance requirements, giving users access to practical guides for running their LLCs.
| Pros | Cons |
|---|---|
| Excellent privacy protections | No completely free plan | No hidden fees | Premium features are only available as add-ons |
| Free registered agent service for the first year | Not BBB-accredited |
| Personalized support through Corporate Guides |
Pricing Overview
As part of its transparent approach to billing, Northwest Registered Agent only offers a single paid plan — this normally costs $39 (plus state fees), but is available for $29 with our discount. If you opt for one or seven-day processing this will add an extra fee that varies depending on your state.
This basic plan forms an LLC in your home state, though you can also opt in for the following add-ons:
- Compliance Filing: $100
- EIN Filing: $50
- S Corporation (S-corp) filing: $50
- Mail Forwarding: $20 per month
- Virtual Office: $29 per month
- Virtual Phone Service: $9 per month
- Corporate Supplies: $15 to $125
Best For: Business owners who prioritize privacy and consistent customer support over extensive add-ons and lower upfront costs.
3. LegalZoom: Best for Ongoing Legal Services
LegalZoom is a trusted brand that greatly simplifies the process of starting a new business by combining its standard LLC formation services with access to comprehensive legal support through its team of experienced attorneys.
Key Features
- Wide Range of Legal Services: LegalZoom provides services beyond LLC formation — such as will and trust creation, trademark filing, and intellectual property protection — that make it a one-stop shop for the many different types of legal support your business may need.
- Document Library and Tools: The platform includes a vast library of customizable legal documents for both business and personal use, which is an invaluable resource for any business that may need to handle complex legal situations.
- Ongoing Compliance Support: LegalZoom offers optional compliance services designed to assist businesses with maintaining their legal standing — which includes help with things like annual reports, state filings, and other ongoing regulatory requirements.
| Pros | Cons |
|---|---|
| Comprehensive range of legal services | Additional costs for faster processing times | Full refund in 60 days if you’re not satisfied | Much higher price point |
| Compliance support included in all packages | Limited package personalization |
Pricing Overview
LegalZoom breaks down its offerings into the following three packages:
- Economy ($149): Includes standard LLC formation as well as a free business website created using Wix.
- Standard ($329): Offers 5-day priority processing of LLC formation requests, as well as a Founder’s kit and a personalized notebook.
- Express Gold ($349): Processes LLC formation requests in one to two days and also ships your business’s documents with expedited shipping once the formation process is complete.
LegalZoom’s pricing for LLC formation services is notably higher compared to other providers in this list, though this is understandable considering all the legal help you also receive.
Best For: Business owners seeking a one-stop solution for both business formation and legal needs.
4. ZenBusiness: Best for Financial Integrations
ZenBusiness stood out to us, in particular, due to its affordable pricing and commitment to supporting small business owners beyond initial setup, with access to expense tracking and tax deduction tools provided as standard with all packages.
Key Features
- User-Friendly Dashboard: ZenBusiness provides an intuitive online dashboard to help you track formation status, compliance deadlines, and key business documents — ensuring you stay on top of annual reports and filings. On top of this, it also includes highly valuable expense tracking and tax deduction tools that are accessible regardless of the package you purchase.
- Compliance Services: ZenBusiness goes beyond just offering formation support by including ongoing compliance services, reminders for annual reports, and an optional registered agent service as part of its packages.
- Accuracy Guarantee: To help put their customers’ at ease, ZenBusiness offers a 100% accuracy guarantee on all your business documents, ensuring all filings are correctly prepared and submitted. In the event of an error, they cover the cost and immediately resubmit any necessary documents, which saves time and prevents delays.
| Pros | Cons |
|---|---|
| 100% accuracy guarantee in all packages | Registered agent service costs extra | Free tax savings consultation | Limited customer support on Saturdays |
| Free compliance reminders | Frequent upsells after formation |
Pricing Overview
ZenBusiness’s pricing structure offers a balance of affordability and flexibility, with the following three core packages available for customers:
- Starter ($0): Processes requests for LLC formation in seven to 10 business days and also includes ZenBusiness’s “Worry-Free Compliance” service for one year, which handles all your LLC’s compliance requirements.
- Pro ($199): Offers expedited 1-day processing alongside an EIN, operating agreement template, and includes the Worry-Free Compliance service as long as your package subscription is active.
- Premium ($299): Includes all of the perks above in addition to a business website, domain name registration, business email address, and access to premium customer support.
You can also decide to add any of the following extras to your package:
- Operating Agreement: $99
- EIN: $99
- Expedited Filing: $79
- Business Document Templates: $99
- Business Website: $129 per year
- eCommerce Website: $279 per year
- Domain Name Registration: $25 per year
- Business Email: $25 per year
- Business Banking: $5 per month
- Unlimited Tax Advice: $49 per month
Best For: Small business owners looking for ongoing support and help with staying compliant at a budget-friendly price.
5. Bizee: Best for Free Educational Tools
Bizee offers a cost-effective option for LLC formation that makes it ideal for entrepreneurs on a budget. We especially appreciated the resources provided through its Learning Center — including its compliance guides and industry-specific tips — as they contain invaluable information for new business owners.
Key Features
- Free State Filing Option: Bizee’s basic package includes free LLC formation (plus state fees), helping entrepreneurs on a budget to get their businesses legally established without any added costs.
- Learning Center Access: Bizee’s Learning Center offers a comprehensive range of articles and guides covering topics from compliance to industry-specific business advice, which makes it very easy for new business owners to quickly understand all relevant regulations they’ll be faced with.
- Additional Business Services: While their basic formation package is free, Bizee also offers various a la carte services and higher-tier packages for business owners who want extra help, such as EIN registration or annual report filing.
| Pros | Cons |
|---|---|
| Great free formation option | Frequent upsells | Access to a wide range of educational business content | Higher cost for a la carte services |
| Simple, guided setup process | Requires free account creation for access to educational resources |
Pricing Overview
When it comes to pricing, Bizee’s offerings are straightforward and provide great value for entrepreneurs looking to keep costs low. The provider divides its services into three main packages:
- Basic ($0): In addition to preparing and filing your LLC’s Articles of Organization, this package also includes a free registered agent service for the first year (then $119 per year after this), as well as a free business tax consultation and access to Bizee’s online dashboard.
- Standard ($199): Alongside all of the Basic features, this package also includes an EIN, operating agreement draft, lifetime compliance alerts, unlimited phone and email support, and assistance with setting up your business bank account.
- Premium ($299): On top of all the features outlined above, the Premium package also includes templates for business contracts, domain name registration, help setting up your business email, and expedited filing for all official documents.
Best For: Entrepreneurs seeking a low-cost solution, as well as access to educational resources to effectively grow and manage their business once they’ve formed it.
Best Business Formation Services FAQs
What is an LLC formation service?
An LLC formation service helps individuals to legally establish their businesses as a Limited Liability Company (LLC).
These services handle the essential paperwork and state filings, as well as often offering compliance tools, registered agent services, and support to guide you through the startup process.
Which LLC service is the best?
While the best LLC formation service will ultimately depend on your specific business needs, we recommend Tailor Brands for most businesses due to its hands-on guidance through each step of the process, as well as optional post-formation support.
Northwest Registered Agent is another great option that comes in a close second in our rankings due to its excellent privacy protection measures and customer service.
What is the cheapest LLC formation service?
Tailor Brands and Bizee offer affordable LLC formation services with basic plans starting at $0 (excluding state fees). These two service providers offer essential tools at no cost, though you’ll need to pay additional fees for extras like expedited processing or ongoing compliance.
Is it necessary to use a business formation service?
While not required, a business formation service can greatly simplify the process of forming an LLC by managing paperwork, filings, and compliance on your behalf.
As such, these services help prevent mistakes, save time, and will allow you to focus on growth — rather than attempting to navigate complex legal requirements by yourself.