Best LLC Filing Services in 2021
The best LLC filing services allow you to file all LLC paperwork in less then 10 minutes. They support you through the process if needed and can help make sure all your paperwork is accurate and being sent to the right place.
What is an LLC – LLC basics
LLC stands for Limited Liability Company and was first accepted as an authorized legal business entity in the late 1970s in Wyoming. Since then, it is recognized in every state and has become one the most popular business structures for SMBs primarily because of its liability protection. It offers business owners the simplicity of a general partnership in terms of formalities and taxes, yet with the personal protection and shield against company debts and liabilities of a corporation. Otherwise, you could be held personally responsible for the mistakes your business might make.
Why use an online filing services to form my LLC
Online legal service providers offer a fast and cost-effective solution to forming a business. These filing services and industry experts offer all the services you would need to start and run your business, such as preparation and filing of LLCs and corporations, business licenses, legal documents, compliance, EIN, and registered agent services, all in one place, for an affordable price.
With online legal service providers, forming your business is a quick, straightforward, and smooth process. We’ve tested more then a dozen of the best online LLC services so all you need to do to get started is select one of the top business formation services from the list below and complete your business registration online in less then 10 minutes.
Best LLC filing services
fast & affordable worry free business formation
Pros & Cons
You can register your LLC with ZenBusiness for $49 (+State fees). Their starter package will cover the following: Standard Filing Speed, Registered Agent, Operating Agreement Template, 100% Accuracy Guarantee (As they state on their site). However, it will not cover all the essentials for your business. The pro package will cover all the essentials to launch your business for $199 +state fees (The price for this package was reduced in 2021 from $249 to $199).
Award-winning LLC formation service
Pros & Cons
You can register your LLC or corporation with IncFile for free (+State fees). The free package will not cover all the essentials for your business, but it includes; Preparing & Filing of the Articles of Organization, Unlimited Name Searches and FREE Registered Agent Service for a year.
Offers top LLC filing speed
Pros & Cons
You can register your LLC or corporation with SwyftFIling in less than 10 minutes. The standard package includes everything you need to launch your business including: Verify Company Name Availability, Preparation of Articles of Organization, Document Filing with Secretary of State, Online Access to Your Incorporation Documents, Lifetime Customer Support (Phone & Email), Free 30 Minute Business Tax Consultation, ComplianceGuard™ Company Alerts, Free Domain Name, Obtain Federal Tax ID (EIN), Custom LLC Operating Agreement, Custom LLC Banking Resolution and more.
Recommended state to form an LLC
While you can file in any state you wish, bear in mind the extra fees and paperwork required when you file an LLC outside the state that you do business. Even if you are a freelance writer with clients around the world, you are going to be taxed in the place where you are doing business. Even if you travel a lot, pick a state where you live or have the most connection – where you own a house, where you have your driver’s license, or where you pay your state taxes.
Domestic LLC vs. Foreign LLC
A domestic LLC means you register your LLC in your state of residence and you do business mainly in that state. This is the most common and cost-effective scenario.
A foreign LLC is used when you have registered your LLC in one state, and you have a physical facility or storefront in another state. In order to do business in that second state, you need to file a foreign LLC. Foreign LLCs tend to cost more and require a registered agent service. Conversely, if you file for an LLC in another state for some reason, and you do business in your home state, you will have to file a foreign LLC in your home state in order to do business there.
Does my LLC have to be registered in the state I live in?
No, but that is most often the clear choice. If you do business in one state or have a physical address or store, filing in the state you reside in has advantages. Filing out of state requires a registered agent as well as filing as a “foreign LLC” for each state you do business in. It often saves a lot of money to file in your state of residence. However, if you do not have a physical facility or storefront or are planning on conducting most of your business out of state, you can explore filing an LLC in another state.
Taxes are paid where money is made. It doesn’t matter if you file in Delaware and do business in Nebraska, taxes will need to be paid in Nebraska. You also still need to pay fees in Delaware, as that is where you originally filed paperwork. Filing in more than one state makes things a little trickier. A registered agent represents your interests in other states and helps keep all of the filings up to date.
Additional benefits of LLC structure
Another huge benefit of forming an LLC is its flexibility. You get to choose whether you want to be managed as a partnership (member-managed LLC) or as a corporation (manager-managed LLC) with all its formalities, such as a board of directors and annual meetings, or just forgo those completely. You also get to elect how your LLC will be taxed by the IRS; as a sole proprietorship (single-member LLC), as a partnership (multi-member LLC) or as a corporation. Filing your LLC as an S corporation has some great tax advantages as it allows business owners to split their income between their distribution as a partner and status as an employee. This type of LLC tax structure can result in paying less self-employment tax and leaving more money in your pocket.
Moreover, LLCs can also be turned into a corporation down the road if the business takes that direction. With the simplicity, liability protection, and flexibility of an LLC, it is no wonder why so many business owners select this type of business entity when forming a company.