Key Takeaways

  • Business formation companies guide entrepreneurs through forming an LLC or corporation by handling paperwork, filing documents, and ensuring legal compliance.
  • Top providers like IncFile, CorpNet, MyCompanyWorks, BizFilings, and MyCorporation offer services such as registered agent representation, EIN filing, and compliance reminders.
  • Choosing the right business formation company depends on factors like budget, features offered, turnaround time, and ongoing support.
  • Many companies also offer legal structure consultations, helping you decide whether an LLC, corporation, partnership, or sole proprietorship is best for your business model.
  • Additional services — like DBA registration, trademark filing, and annual report management — can help maintain compliance and reduce legal risk.

Knowing the best LLC formation company is important if you want to use an outside company to help you form your LLC. Even if you are unfamiliar with how to form an LLC, such companies provide you with the information you need in order to know what steps are necessary for forming your LLC.

Furthermore, if you have any issues or questions regarding your business formation, you can reach out to the LLC formation company that you are using to obtain information regarding important deadlines and other applicable fees you might owe in order to form your LLC.

Advantages of a Corporation

There are several LLC formation company options to choose when forming your LLC, some of which are cheaper and more favorable than others. Keep in mind that these companies don’t do the work for you, but rather provide you with the information you need to help you easily form your business. While these companies don’t form your business for you, they do some of the work by offering registered agent services. They also can obtain an Employer Identification Number (EIN) on your behalf after you’ve formed your business. Some of the companies that offer such services include:

  • IncFile
  • CorpNet
  • MyCompanyWorks
  • Bizfilings
  • MyCorporation

IncFile

IncFile is a formation company that provides its services to customers wanting to form a business. Its base rate is $49, but this fee can increase depending on the type of business structure you want and the complexity of the business formation. IncFile was established in 2004 in Houston, Texas and has served over 150,000 businesses since its inception.

IncFile provides one year of registered agent service, a one-hour free tax consultation, and a number of other benefits. IncFile also provides what is known as a gold package, which is an LLC service bundle costing approximately $149. This package provides you with your LLC formation, registered agent, and an Employer Identification Number (EIN). Most states require these three things in order to form your business.

CorpNet

CorpNet was established in 1997 by a husband and wife duo and has served over 100,000 businesses. It offers a combination package at $228, which includes business formation, registered agent service, and an EIN. The company offers a 100% satisfaction guarantee. It also offers between 60 days and one year of registered agent service for lower-tier packages. You can use this company to register a DBA, file annual reports, and submit a trademark request.

MyCompanyWorks

MyCompanyWorks was established in 2001 and has provided its services to over 50,000 businesses. With a base rate of $79, the company offers a Startup Wizard checklist, which provides you with information regarding the business formation process so that you don’t miss any necessary steps. The company also offers a 100% money-back guarantee if you aren’t happy with its services. MyCompanyWorks, unfortunately, doesn’t offer a livechat option or weekend support.

BizFilings

BizFilings is another popular choice. This company was formed in 1996 and offers a variety of options. In fact, even if you aren’t a customer of BizFilings, you can still use its business name search check database at no cost to see if the company name you want is available to you. Another great feature of this company’s services is the fact that it offers six months of registered agent services for free with any package you choose.

The company also has a Toolkit, which provides informational guides on the formation of your business, along with ongoing compliance and tax requirements. The basic formation package also includes a company alert tool so you can remain on top of deadlines, along with a library of sample forms for you to look at when drafting your documents. You can also use this company to file a DBA, apply for licensing, and even dissolve your business.

MyCorporation

MyCorporation has been in business since 1995 and has assisted over one million customers since its inception. While most formation companies don’t offer an annual reporting service, MyCorporation offers this service for a period of 12 months with most of its LLC formation packages. One of the packages you can choose offers automatic reminders of important filing dates, while also offering unemployment insurance and income tax withholding services.

Additional Services Offered by Formation Companies

Beyond basic LLC or corporation setup, many business formation companies offer additional services that support long-term growth and compliance, such as:

  • DBA (Doing Business As) Registration: Operate under a different name without forming a new entity.
  • Trademark Filing Assistance: Protect your intellectual property early in the business lifecycle.
  • Business License Research: Guidance on permits and licenses required by local and state authorities.
  • Corporate Kit and Seal: Organizational tools that help maintain formal records and enhance professionalism.
  • Business Compliance Monitoring: Alerts and assistance for ongoing filing requirements to avoid fines or dissolution.

These services can be particularly valuable for entrepreneurs with limited legal knowledge or those expanding operations into multiple states.

What to Look for in Business Formation Companies

Not all business formation companies are created equal. When choosing the best partner for your startup, evaluate the following factors to ensure you’re getting the most value:

  1. Pricing Transparency: Look for companies with clear, upfront pricing and no hidden fees. Compare base package costs and premium add-ons like EIN filing or compliance alerts.
  2. Included Features: Some providers include extras like operating agreement templates, compliance tracking, or domain and business email setup.
  3. Customer Support: Check for availability of live chat, phone, and email support — ideally including extended hours or weekend assistance.
  4. Turnaround Time: If you need your LLC formed quickly, choose a company with expedited filing options.
  5. Ongoing Compliance Tools: Features like annual report reminders, document storage, and registered agent renewal services can save time and prevent costly mistakes.

Reading verified customer reviews and checking state-specific experience can also guide your decision, especially if you’re forming a business in a state with unique filing requirements.

Choosing the Right Business Structure Before Formation

Before you select one of the many business formation companies available, it’s important to understand which legal structure fits your goals, liability preferences, and tax strategy. Each structure comes with distinct advantages and considerations:

  • Sole Proprietorship: Simplest to form and maintain, but the owner is personally liable for debts and obligations.
  • Partnership: Offers shared responsibility and profits but also shared liability unless structured as a limited partnership (LP) or limited liability partnership (LLP).
  • Limited Liability Company (LLC): Offers liability protection and pass-through taxation. LLCs are the most popular choice for small businesses due to their flexibility.
  • Corporation (C Corp or S Corp): Best suited for companies seeking investors or going public. They provide strong liability protection but require more formalities and tax considerations.

Business formation services often offer educational resources or consultations to help you make the right choice before filing.

How Business Formation Companies Support Your LLC

Business formation companies do more than just submit paperwork — they act as your partner in launching a legally compliant, fully functional business. These companies specialize in navigating state requirements, ensuring that all filings are accurate and submitted on time, and helping entrepreneurs understand the legal implications of their choices.

Here’s how they typically assist during and after the formation process:

  • Filing Key Documents: They prepare and submit Articles of Organization or Incorporation to the state, which is essential to forming your LLC or corporation.
  • Registered Agent Services: Most states require businesses to designate a registered agent to receive legal documents. Many formation services include this for free in the first year.
  • Employer Identification Number (EIN): Many business formation companies help you obtain an EIN from the IRS, which you’ll need for taxes, banking, and hiring employees.
  • Operating Agreements and Bylaws: They may provide customizable templates to outline the governance and ownership structure of your company.
  • Compliance Assistance: Ongoing compliance tools — like filing annual reports, maintaining good standing, and tracking deadlines — help prevent penalties and dissolution.

By leveraging these services, entrepreneurs can focus on building their business instead of managing complex legal paperwork.

Frequently Asked Questions

  1. Are business formation companies worth the cost?
    Yes. They save time, reduce errors, and ensure compliance with state laws — which can help you avoid costly mistakes and penalties during startup.
  2. Can I form an LLC without a business formation company?
    Yes, you can file the paperwork directly with your state. However, many business owners use formation companies for convenience, legal guidance, and additional support services.
  3. What’s the average cost of using a business formation company?
    Basic packages typically start around $0–$100 plus state filing fees. Premium services with registered agent, EIN, and compliance support can range from $150–$300 or more.
  4. Do business formation companies offer legal advice?
    While most provide legal information and document support, they don’t offer legal advice. For complex needs, consider consulting an attorney.
  5. How long does it take to form an LLC with a formation company?
    The timeline varies by state but generally takes 1 to 3 weeks. Many services offer expedited options for an additional fee.

If you need help learning more about the different LLC formation companies or forming your LLC, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.