LLC Formation Services: Everything You Need to Know
LLC formation services are businesses that specialize in forming LLC at the state level. Every state has its own rules and regulations in forming a business.3 min read
LLC formation services are businesses that specialize in forming limited liability companies at the state level in the United States. Every state has its own rules and regulations around the forming of a business (of any type). Services often understand the ins and outs of forming a limited liability company in a particular state or even many states.
What Is an LLC?
Limited liability companies or LLCs are businesses that are formed at the state level in the United States.
Laws are different from state to state. However, LLCs provide limited liability protection for their owners in every state. This means that the owners of the limited liability company are protected from being held responsible for the liabilities and debts of the business.
The general requirements for setting up an LLC are quite similar from state to state. While in no state is legal counsel required if the LLC has multiple owners or investors it is advisable to seek legal advice due to the complexity of ownership.
As an entity, a limited liability company is very flexible. This flexibility is one of the reasons that LLCs are such a popular way to organize a business. Some of the flexibility advantages of forming an LLC:
- Limited liability companies can take on the tax elections of any entity
- Limited liability companies can be member-managed
- Limited liability companies can be manager-managed
- Limited liability companies can determine who has control
- Limited liability companies can determine who has liability protection
What Types of Services are Available for Forming an LLC?
A quick search on the internet provides options for every budget and need. Some new business owners don’t want to pay the amount generally necessary to hire a lawyer to form their LLC. However, you may find that lawyers in this area of practice charge a modest flat fee that is competitive with some of the limited liability company formation services out there. It’s important that you know how much you can afford to spend to form your limited liability company.
What are some of the things you should look for when hiring a service?
- Know what your budget can comfortably afford and what service is included for the price.
- Experience of the provider forming limited liability companies in the state in which you wish to form your LLC.
- Variety of services you may need to avail yourself of in the state in which you wish to form your LLC (like a registered agent for example).
- Recommendations for the service by people you know or from online reviews (even Yelp has many providers with reviews).
- Guarantees of the service by the provider to mitigate your risk (look for a 100 percent satisfaction money-back guarantee).
- Ease of use of the service through customer service, online chat, or by phone.
- Free features that come with being a customer.
- Legal professionals on staff to help ensure they are compliant with all laws.
LLC formation services are vendors for your business just like any other vendor. Do your research and figure out what you need and how much you can afford to spend. Remember that these services often understand the ins and outs of forming a limited liability company in a particular state or even many states.
If you need help with setting up an LLC or any other legal need, you can post your legal need on UpCounsel’s marketplace. Upcounsel is a marketplace of legal help for you and your business. 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, Stripe, and Twilio.