Published On: Thu, Aug 6th, 2020

Are LLC incorporation services worth their price?

When it comes to forming your LLC, you have two choices: DIY or use an incorporation service. Not surprisingly, in the US: companies who offer this are oozing value when compared to other jurisdictions. Below we will take a look at why it may be worth considering any of the many award-winning US organizations who are leading the way globally.

Trying to form an LLC by yourself can be exciting, but also daunting. It takes time, effort and research and, unless you are comfortable with filing legal paperwork to ensure your company is compliant with the state laws in which you plan on operating, can be complicated and confusing. Fortunately, you don’t have to go it alone. You could hire a lawyer, which could put a dent in your savings, or for a reasonable cost, use a formation company to do the entire formation process for you.

What are the benefits of using a formation service?

1. It is saves you money

Filing your LLC by yourself can lead to mistakes. For example, completing and filing documents incorrectly can cause delays, which sets you back on doing the work you ideally want to concentrate on – getting your business off the ground. When using a professional online service formation company it doesn’t matter if you understand the legalities of forming an LLC or not. They do everything on your behalf and have experts who constantly carry out company formations, resulting in faster, more accurate results. In addition, incorporation services can be much more cost effective than hiring a lawyer to form your LLC. The best incorporation services range between $39 – $349.99, each with their own sets of affordable features and pricing for your business structure.

2. You avoid mistakes

When forming your company yourself, you will need to know the laws, fees and requirements of the state in which you plan on doing business. Unless you have some legal experience or understand legal jargon, it is best to have a professional formation service take on this task for you. Having your LLC created by an online business formation service who knows the requirements of each state and how things work in the state in which you plan on doing business, can expedite the formation of your company, leaving you stress-free.

3. It keeps your business compliant
When forming your LLC you will have to ensure it is compliant with the state rules. To do this you will need the following. 

  1. A registered agent: Simply put, this is an individual or business entity that receives or sends legal documents such as tax forms and notice of lawsuits on your company’s behalf. The registered agent’s physical address (in this instance, the formation company’s) will be listed on the public record, rather than your company’s, which will prevent anyone from accessing your personal information.  Depending on the package and you choose, most incorporation companies offer up to a year free registered service agent service.In addition, having an incorporation service handle this part of your business will ensure that you keep track of official notices like annual report filings. 
  2. An EIN: Also referred to as a Federal Tax Identification Number, you will use an Employer Identification Number (EIN), to open bank accounts for your LLC. It also allows the IRS to keep track of your business’ tax report. The majority of online business registration companies offer this service.
  3. File Formation Documents
    To make your LLC officially exist, you will need to file LLC formation documents, known as Articles of Organization, or Certificate of Organization, or Certificate of Formation, with the Secretary of State’s office. Because LLC formation companies know each state’s rules, they can expedite this process for you.

Most LLC formation companies offer the above services as, saving you the time and worry from having to complete these documents correctly.

4. Paperwork processing is simplified

The amount of paperwork and time it takes to research and successfully file an LLC can be laborious and monotonous. With an online formation service you simply answer a few questions regarding your business, and they take care of the rest for you. 

5. You are supported

Forming your business by yourself can be stressful, especially if you run into problems or are unsure of what to do. Online corporation services offer extensive support by phone and email. Some have websites that feature valuable free educational content, informative FAQs and state-by-state guides, while others can help you find accountants and legal professionals in your state, a service most LLCs require sometime during their formation.

After forming my business is there anything else I need to do?

There are ongoing compliance requirements you will have to meet. These differ from state to state. An online service can keep you notified of any legal requirements you need to take care of with the state long after you file your LLC, allowing you to run your business worry-free.


When forming an LLC you are required to pay state fees, irrespective whether you formed your business yourself or used a formation service to do it for you. Using a formation service adds to your costs, but it also takes a lot of your plate, saving you time, and ensuring your business is compliant and remains compliant with state laws. There are few countries in the world where incorporation is so affordable and efficient as in the US. 

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