Create An LLC: The 9 Best Entity Formation Services - Nav
Start an LLC in minutes with a business formation service
Forming a legal entity is the first step toward growing your business. Choose one of the business formation services below, or log in to Nav to see Nav’s top picks for your business.
Business Formation Services
| Service | Cost | Entity Types Supported | Noteworthy Perks |
|---|---|---|---|
| Inc Authority | - Free* - *Plus state fees |
- LLC - S-Corp - C-Corp - Nonprofit |
- Free LLC, Registered Agent, and EIN/Tax ID - Free Business Advisor Support - Premium Business Packages |
| LegalZoom | Starts at $0 + filing fees | - LLC - Corporation/INC - Nonprofit |
- Hands-on Attorney Consultations - Industry Leader in Online Business Formation |
| Tailor Brands | Cost- $0 + State fee | LLC | Receive up to $50 in new business gifts |
| Swyft Filings | Free + State Filing Fees | - LLC - S-Corp - C-Corp - Non-Profit - DBA |
- Fast Turnaround Time - Free Dedicated Business Specialist - 100% Satisfaction Guarantee |
| Doola | $297 + State fees | - LLC - DAO LLC - C-Corps - S-Corps |
- Exclusive partner perks - Compliance services available - In-house bookkeeping software - Free Business call |
| FileForms | $199 per year for Unlimited Filing & Compliance Monitoring | - LLC - S-Corp - C-Corp - Partnerships |
- File accurately in under 10 minutes - Secure, direct connection to the U.S. Government - Continuous monitoring to maintain compliance - Avoid fines up to $10,000 |
What is Business Formation?
Business formation is the process of legally forming a business structure such as an LLC, S Corporation, C Corporation, Limited Partnership or nonprofit corporation. Properly creating and maintaining a business entity can provide legal protection and tax benefits.
The Benefit Of Using A Business Formation Service
Forming a business entity requires filing paperwork with the state, paying filing fees, and following procedures to maintain the legal structure of the business. A business formation service can streamline the process so you can focus on other aspects of your new business.
What Are The 4 Types Of Business Organizations?
- Limited liability company (LLC)
- S Corporation
- C Corporation
- Partnerships
Comparing Business Entity Types
| Type of Entity | Formation Process | Personal Liability Protection | Taxes |
|---|---|---|---|
| Sole Proprietor | Not required to file with state | None | Taxes flow to personal income taxes |
| LLC | File with state | Members are not personally liable | Taxes flow through to members. May elect to be taxed as a corporation |
| S Corp | File with state | Shareholders not personally liable | Taxes flow through to shareholders. Owners may be able to reduce taxes through payroll plus distributions |
| C Corp | File with state | Shareholders not personally liable | Double taxation: corporate profit taxed at corporate rate and dividends taxed again |
| Partnership | File with state | None for general partners | Taxes flow through to partners |
Pros and Cons of Each Type of Entity
Sole Proprietorship
Pros
- Unlimited number of shareholders
- Foreign shareholders allowed
- Different classes of stock
Cons
- Expensive to form and maintain
- Double taxation
LLC
Pros
- Fairly easy to set up
- Limited liability
- Pass through taxation
Cons
- Filing fee required
S Corp
Pros
- Limited liability
- Pass through taxation
Cons
- Limited to 100 shareholders
C Corp
Pros
- Unlimited number of shareholders
- Different classes of stock
Cons
- Double taxation
Partnerships
Pros
- Limited partners can invest without control
Cons
- General partners are personally liable for debts
How To Choose The Right Business Entity For You
Consider various questions regarding ownership, decision-making, and structure to identify the best fit for your situation.
What is Required of Business Entities?
- Always use a business bank account.
- Get the right insurance.
- Get licenses.
- Understand the requirements for maintaining your business structure.
- Be aware of personal guarantees.