What is an LLC service?
An LLC service provider helps business owners form limited liability companies. To do so, they collect the information required to file the articles of organization with the Secretary of State. They also fill out the forms, send them to the proper address, track the status and inform customers when the LLC is formed.
Many LLC providers offer ancillary services that can help LLCs get up and running such as access to registered agents, help with legal documents and contracts, and establishing EINs.
How does an LLC service work?
An LLC service primarily helps individuals to establish new LLCs. Typically, one of these services will:
- Collect the information about the LLC and its owners which is required by the state.
- Collect filing service fees.
- File the forms with the Secretary of State.
- Receive a response that the company has been successfully formed (or not).
- Inform the business owner of the successful formation and deliver their articles of organization, or the other official document provided by a state to LLCs.
- If the LLC wasn’t formed, they can help to try and resolve the issue.
In addition to helping LLCs get established, service providers often offer a variety of packages with multiple other services.
What does an LLC service cost?
While pricing varies across the providers, the base plans typically range from $0 to $99, the mid-tier plans from $100 to $249, and the high-tier plans from $224 up to $324. The price ranges of most companies aren’t too far apart from each other.
To find the best deal, it’s important to look at what you get for the price. All of these plans include LLC filing but vary beyond that. The most common add-ons are registered agent services, EINs, operating agreements, bank resolutions, business bank accounts and tax consulting. The incentive on premium plans is often expedited filing to speed up the turnaround time. A few also offer customizable business contract templates, notably Rocket Lawyer, which specializes in that service.
If you opt for an LLC filing plan that doesn’t come with a lineup of services, chances are, the company is going to try to sell them to you as you check out. If you don’t need them, just click no and nothing should be added to your bill.
Warning: Be sure to check each line item carefully at checkout as some companies sneak in paid subscription services under the guise of free trials.
Lastly, no matter which service provider you choose, you’ll have to pay the filing fee in your state, which should be shown to you during the quoting and checkout process.
How to choose the right LLC service for your small business
The right LLC service provider for your small business is going to be the one that best meets your needs for the best price.
For example, would you like a registered agent service? Providers charge anywhere from $99 up to $396 for the service, so you’ll want to find a provider that offers a good deal. Further, you may need a variety of documents after getting set up. If you don’t have a lawyer at your disposal, it could be convenient and cost-effective to find a provider that offers help with documents as well.
If you’re not sure where to start, here are a few questions to ask before shopping around:
- Will you need help with documents like the operating agreement, banking resolution and EIN?
- Do you want a business checking account, business email, or website to be included?
- Do you want access to a business and/or tax consultant?
- Do you want guidance from an experienced business attorney?
- Do you need a registered agent service?
- Do you want a corporate seal?
- Do you need the LLC filed as soon as possible?
- Do you want an LLC provider with a strong rating after thousands of customer reviews?
With these answers, you’ll be better able to narrow down LLC service providers by ruling out those that aren’t a match.
How to start an LLC
Here are the common steps business owners follow when starting an LLC:
- Step 1: Pick a business name that’s not currently taken in your state. Reserve the name if you aren’t filing right away.
- Step 2: Choose a registered agent, the person who will be available at a physical address within the state during normal business hours for official communications.
- Step 3: File the LLC organization forms with the Secretary of State and pay the required fees.
- Step 4: Set up your LLC operating agreement, an internal document that overrides state law and establishes how your LLC will be managed.
- Step 5: Document organizational minutes; a permanent record of actions and decisions from an organizational meeting held by LLC managers and members.
- Step 6: Get an EIN.
- Step 7: Set up a business bank account.
- Step 8: Register in any other states where you plan to do business, when necessary.
While you may need to take extra or fewer steps depending on your situation, these are common for LLC owners.
“While the main action needed is to file a document with the state of formation, an LLC, even if owned by one individual, should also have an operating agreement and organizational minutes. Once formed, the business should get an EIN from the IRS and open a new bank account for the business,” says Keren de Zwart, owner of Not Your Father’s Lawyer.
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