Every small business should be run under a formal business structure rather than just being a sole proprietorship. You need to ensure that you are protecting yourself from any liability that may arise from the operation of your company. Creating an LLC (limited liability company) is a great way to make sure your personal assets are protected.
When you create an LLC, you get personal liability protection similar to a corporation, yet with fewer corporate formalities. Also, you get to choose how you wish to have your income taxed. You can choose to be taxed as a pass-through entity like a sole proprietorship or partnership, or you can choose to be taxed as a corporation.
An LLC is a distinct legal entity all on its own. This means that the limited liability company can open up bank accounts, obtain a tax ID number, take out loans and do business, all in its own name. A great advantage to creating a LLC is that you, as an owner, are not held personally liable for debts and liabilities that are solely in the name of the LLC.
It is easy to see why it is becoming more popular for new businesses to create an LLC as they combine a corporation's personal liability protection with a partnership's simplicity. The flexibility of an LLC, and the reduced paperwork requirement when compared to a corporation, makes creating an LLC the choice more smart entrepreneurs are making.
It is also easy to see why many people choose to create their LLC using an online service. You can save yourself a great deal of money by creating your LLC online using a service such as LegalZoom instead of using a traditional law firm. While you could create the LLC on your own, using an online service eliminates the chance of you making a costly mistake when filing all of the necessary paperwork.
There is really no excuse to not use an online service to create an LLC with plans starting as low as $115, plus required state filing fees. The tables below show how the leading online LLC formation services compare.
The money you save versus using a law firm, as well as the comfort of knowing your LLC was filed error free, makes the idea of creating an LLC online a very compelling one.
| Basic Create LLC Packages Include: | ![]() Economy |
![]() Basic |
![]() Economy |
| Read Review | Read Review | Read Review | |
| Price (+State Fees) | $149 | $115 | $149 |
| Preliminary LLC Name Check with State | |||
| Review of Formation Documents | |||
| Preparation & Filing of Formation Documents | |||
| Customized Operating Agreement | $99 | ||
| Sample (Non-Customized) Operating Agreement | N/A | N/A | |
| LLC Kit & Company Seal | $99 | $99 | |
| 6 Months of Registered Agent Service | $149/Year | ||
| Expedited Processing (State Fees May Apply) | $60 | $60 | |
| Expedited Shipping | $20 | $18 | |
| Federal Tax ID (EIN) Application Preparation | $30 | ||
| Prepare Application & Obtain Federal Tax ID (EIN) | $79 | $70 | $75 |
| Business License Application Package | $99 | $99 | |
| Overall Rating |
| Middle Create LLC Packages Include: | ![]() Standard |
![]() Standard |
![]() Basic |
| Read Review | Read Review | Read Review | |
| Price (+State Fees) | $249 | $250 | $279 |
| Preliminary LLC Name Check with State | |||
| Review of Formation Documents | |||
| Preparation & Filing of Formation Documents | |||
| Customized Operating Agreement | $99 | ||
| Sample (Non-Customized) Operating Agreement | N/A | N/A | |
| LLC Kit & Company Seal | |||
| 20 Customized Membership Certificates | |||
| Microsoft Office Accounting Express 2008 Download | |||
| 6 Months of Registered Agent Service | $149/Year | ||
| Expedited Processing (State Fees May Apply) | $60 | ||
| Expedited Shipping | $20 | ||
| Federal Tax ID (EIN) Application Preparation | $30 | ||
| Prepare Application & Obtain Federal Tax ID (EIN) | $79 | $70 | $75 |
| Business License Application Package | $99 | $99 | |
| Overall Rating |
| Top Create LLC Packages Include: | ![]() Express Gold |
![]() Complete |
![]() Complete |
| Read Review | Read Review | Read Review | |
| Price (+State Fees) | $359 | $350 | $399 |
| Preliminary LLC Name Check with State | |||
| Review of Formation Documents | |||
| Preparation & Filing of Formation Documents | |||
| Customized Operating Agreement | $99 | ||
| Sample (Non-Customized) Operating Agreement | N/A | N/A | |
| LLC Kit & Company Seal | |||
| 20 Customized Membership Certificates | |||
| Microsoft Office Accounting Express 2008 Download | |||
| 6 Months of Registered Agent Service | $149/Year | ||
| Expedited Processing (State Fees May Apply) | |||
| Expedited Shipping | |||
| Federal Tax ID (EIN) Application Preparation | |||
| Prepare Application & Obtain Federal Tax ID (EIN) | $49 | ||
| Business License Application Package | $99 | $99 | |
| Overall Rating |