Forming a limited liability company (LLC) for your new business is a great choice. LLCs offer personal liability protection, pass-through taxation, and management flexibility. But LLC laws, which vary by state, can be complicated, so you may find yourself looking for guidance.
You could hire an attorney to help you, but that can be expensive. Instead, there are many LLC service companies that can help you navigate the LLC laws in your state.
Here, we’ll discuss what an LLC service company can do for you and give you some guidance on choosing the service that’s right for you.
What an LLC Service Company Can Do for You
LLC service companies generally offer several services that can help you keep your business in compliance.
Business Formation
To form an LLC, you must file a document, commonly known as the articles of organization, with your Secretary of State. Before you file the document, you need to do a business name search to ensure that your chosen LLC name is not already in use in your state. If you do not do the search and you file your documents using a name that is already taken, your LLC filing will be rejected, leading to delays and potential additional state fees.
An LLC services company can handle the name search and your document filing for you, ensuring that the process is handled correctly and getting your LLC up and running faster.
Registered Agent Services
LLCs in all states are required to have a registered agent, which is the person or company who will receive official correspondence on behalf of your LLC. Your LLC cannot be its own registered agent, but you, as a member, can be. However, a registered agent is required to be available personally at their registered address during standard business hours, which can be too restrictive for a busy entrepreneur.
LLC services companies usually offer registered agent services, meaning that they will act as your registered agent and notify you of correspondence received. They will then make the documents available to you online or by email.
Operating Agreement
An operating agreement for an LLC is a critical document that defines the ownership of the LLC, its management, profit allocations, voting rights of members, and much more. The document is a binding legal document that must contain specific language and provisions.
An LLC service company will provide you with an operating agreement template that you can customize for your business, which can save you the significant fees that you would pay to have an attorney draft your agreement.
Annual Report Filing
LLCs are required to file annual reports in most states, and those reports have a set due date that needs to be met for your LLC to stay in compliance.
LLC service companies offer annual report filing services, saving you time and ensuring that deadlines are met.
Business Documents
As a business owner, you may need any number of business documents, including banking resolutions, contracts, and more. LLC service companies often offer a library of business document templates that you can customize. This keeps you from having to go to an attorney every time you need a new document.
What to Look for When Choosing an LLC Service Company
Of course, all of these services come with a price, so you’ll want to find an LLC service company that fits your budget. Most of these companies offer packages of services for one fee.
You’ll also want to choose a company that provides good customer support, so when you’re shopping around, you can test their support by asking questions through chat, email, or phone. You’ll want a company that gives you straight, professional answers, not one that instead gives you a sales pitch.
You should also check sites like Better Business Bureau and Trustpilot to see how the companies are rated and to read customer reviews. Even detailed comparisons, such as this Inc Authority vs ZenBusiness by SmallBusinessHQ, are a great place to start.
An Example – Northwest Registered Agent
One of the leading LLC services company options is Northwest Registered Agent. They offer one package of services that includes a business name availability search, your LLC formation, an operating agreement, and registered agent services for one year. The package costs only a one-time fee of $39, and the registered agent services will renew after the first year at $125 annually.
Northwest Registered Agent also offers free business document templates, and an annual report filing service that costs $100 annually.
Included with their services are their Corporate Guides, who are dedicated support representatives that are available to answer your LLC questions. Their service is exceptional and is part of what sets Northwest Registered agent apart when compared to competitors.
They also have excellent customer reviews on the BBB and Trustpilot website, as well as several good professional reviews. You can read a review here.
There are, however, some other LLC services companies that would be excellent options to check out. These include ZenBusiness, LegalZoom, and IncFile. All are well priced and have good reviews as well. They all also offer additional services that can be helpful to you.
In Closing
LLCs have many benefits, but also come with laws to navigate. Using an LLC services company can save you considerable time and attorney fees, although you should have an attorney that you can consult if issues ever arise. The important thing is to keep your business in compliance with all laws so that you can focus on growing your business and making money!