Starting a business in the United States involves more than choosing a name and launching a website. Entrepreneurs also need to decide how to structure the business, register it with the appropriate state, obtain necessary tax identification numbers, and keep up with ongoing compliance requirements.
For many small business owners, an LLC is an attractive option because it can provide liability protection while maintaining a relatively flexible management structure.
However, forming an LLC yourself isn’t the only option. A growing number of entrepreneurs use online business formation companies to simplify the process.
If you’re searching for the best LLC formation services, this guide explains what these companies actually do, how much LLC formation can cost, what to compare before purchasing, and where Bizee fits into the picture.
Affiliate Disclosure: This article may contain affiliate links. We may receive a commission if you purchase a qualifying service through one of our links, at no additional cost to you.
What Are LLC Formation Services?
An LLC formation service is an online company that helps entrepreneurs prepare and submit the paperwork required to establish a limited liability company.
Instead of navigating the entire process yourself, you can provide your business information through an online platform. The service may then prepare formation documents and submit them to the appropriate state agency.
Depending on the provider and package, additional services may include:
- Registered agent services
- EIN assistance
- Operating agreement templates
- Compliance reminders
- Business licenses and permits resources
- Business banking options
- Business contracts
- Virtual address services
- Business phone services
The exact services vary between providers, so it’s important to look at the entire package rather than choosing a company simply because it advertises a low starting price.
Why Do People Use an LLC Formation Service?
Technically, you don’t necessarily need a formation company to create an LLC.
In many situations, an entrepreneur can register directly with the state.
The U.S. Small Business Administration explains that businesses generally need to register with the appropriate state authorities and should research federal, state, and local requirements applicable to their business.
So why pay someone to help?
The primary reason is convenience.
A formation service can make it easier to organize the information, prepare documents, track the filing process, and handle optional administrative tasks.
This can be particularly useful for first-time entrepreneurs who aren’t familiar with state business registration procedures.
Best LLC Formation Services: What Should You Compare?
There is no single LLC formation company that is perfect for every entrepreneur.
Instead, compare providers based on several factors.
1. Formation Price
Price is often the first thing people look at.
Some companies advertise LLC formation packages starting at $0, while others charge a few hundred dollars for their service.
But there’s an important distinction:
The service fee and state filing fee are not necessarily the same thing.
A company may charge $0 for its formation service while the state still requires a mandatory filing fee.
Therefore, when comparing the best LLC formation services, always look at:
Service fee + state filing fee + optional services + recurring fees
rather than simply comparing the advertised starting price.
2. Registered Agent Service
A registered agent is responsible for receiving certain official documents and legal correspondence for your business.
Depending on state requirements, you may be able to act as your own registered agent, or you can hire a professional service.
A professional registered agent can be useful if you:
- Don’t want to use your home address for certain business correspondence
- Don’t have a suitable physical address
- Travel frequently
- Operate a business in a state where you aren’t physically located
- Want someone else to monitor official correspondence
When comparing providers, pay close attention to renewal pricing.
A company might include registered agent service during the first year but charge a recurring annual fee afterward.
3. EIN Assistance
An EIN, or Employer Identification Number, is a federal tax identification number issued by the IRS.
Depending on your circumstances, an EIN may be required for your business.
It can also be useful when opening a business bank account, hiring employees, or handling certain tax-related matters.
One important thing to understand is that the IRS itself provides EIN applications for free.
Therefore, when an LLC formation company charges for EIN assistance, you’re generally paying for the convenience of having the company help with the application, not for the EIN itself.
This distinction is important when comparing packages.
4. Operating Agreement
An operating agreement establishes important rules for how an LLC operates.
It can address matters such as:
- Ownership percentages
- Member responsibilities
- Management structure
- Voting rights
- Profit distributions
- Adding new members
- Member withdrawal
- Dissolution procedures
Requirements vary by state, and not every LLC is legally required to have a written operating agreement.
Nevertheless, having a clear agreement can be useful, particularly when an LLC has multiple owners.
Bizee Review: What Does Bizee Offer?
Bizee is one of the online business formation companies worth considering when comparing LLC services.
The company has been operating since 2004 and states that it has helped more than one million entrepreneurs. Bizee provides business formation services across the United States.
Its services extend beyond basic LLC formation.
Depending on the package, entrepreneurs can access services and resources related to:
- LLC formation
- Corporation formation
- Registered agent services
- EIN assistance
- Operating agreements
- Compliance
- Business banking
- Business contracts
- Business addresses
- Business phone services
This makes Bizee more than simply a document-filing website.
Bizee LLC Pricing Explained
One reason Bizee attracts attention is its advertised entry-level pricing.
At the time of writing, Bizee lists three primary LLC formation packages:
| Package | Bizee Service Fee | State Filing Fee |
|---|---|---|
| Basic | $0 | Additional |
| Standard | $199 | Additional |
| Premium | $299 | Additional |
The Basic package is designed for entrepreneurs who mainly need the core LLC formation service.
The Standard and Premium packages add additional services and features.
However, remember that state filing fees are separate.
Your total cost depends partly on the state where you form the LLC.
Because pricing, promotions, and package features can change, it’s a good idea to verify the current price before placing an order.
Can You Really Form an LLC for $0?
This is one of the most common questions people ask when researching online formation companies.
The short answer is:
You may be able to pay $0 for the formation service, but that doesn’t necessarily mean your LLC will cost $0 overall.
For example, Bizee currently advertises a $0 Basic LLC formation service plus the applicable state filing fee.
The state filing fee is a government-required cost and is separate from Bizee’s service fee.
There may also be additional costs associated with:
- Registered agent services
- Business licenses
- Local permits
- Annual reports
- State taxes
- Optional business services
Therefore, when you see an advertisement for “Form an LLC for free,” read the terms carefully.
The $0 typically refers to the formation service rather than every possible cost associated with operating a business.
DIY LLC Formation vs. Using Bizee
One of the biggest decisions entrepreneurs face is whether to file the LLC themselves or use a professional formation service.
DIY Formation
If you file directly with your state, you may be responsible for:
- Choosing a compliant business name
- Selecting a registered agent
- Preparing formation documents
- Filing with the state
- Obtaining an EIN if necessary
- Creating an operating agreement
- Researching licenses and permits
- Tracking future compliance deadlines
The primary advantage is potentially lower service costs.
Using Bizee
With an online formation company, much of the administrative work can be organized through one platform.
This can save time and reduce the amount of paperwork you need to manage yourself.
The trade-off is that you’ll potentially pay for services you could otherwise handle independently.
For someone who values convenience, that may be worthwhile.
For an experienced business owner who is comfortable dealing directly with government agencies, DIY formation may make more sense.
LLC Formation Isn’t the Same as Legal or Tax Advice
It’s important not to confuse an online LLC formation company with a law firm or accounting firm.
An LLC formation service can help with administrative aspects of establishing a company, but your business may have more complicated legal or tax considerations.
For example, you may need professional advice if:
- Multiple owners have different financial interests
- You’re bringing in investors
- Your business operates across several states
- You’re in a regulated industry
- You’re buying or selling real estate
- Your business has significant tax complexity
- You need customized contracts
The right professional depends on the problem you’re trying to solve.
A formation service may be appropriate for basic administrative tasks, while an attorney or tax professional may be necessary for more complex decisions.
What Happens After Your LLC Is Approved?
Forming your LLC is only the beginning.
Once your state approves the company, you’ll still need to manage the business properly.
Open a Business Bank Account
Keeping business and personal finances organized is important for good financial recordkeeping.
Banks may ask for your LLC formation documents, EIN, identification, and other information when opening an account.
Research Licenses and Permits
An LLC registration doesn’t automatically provide every license required to operate a particular business.
Requirements can depend on:
- State
- County
- City
- Industry
- Business activity
The SBA recommends researching applicable federal, state, and local licenses and permits.
Track Annual Requirements
Depending on the state, your LLC may have continuing obligations such as:
- Annual reports
- Biennial reports
- State taxes
- Franchise taxes
- Registered agent requirements
- Business licenses
Missing an important filing deadline can create unnecessary problems.
How to Choose the Right LLC Formation Service
If you’re still comparing the best LLC formation services, don’t choose solely based on price.
Instead, ask these questions:
What exactly is included?
Check the package line by line.
What will I pay next year?
Recurring fees can be more important than the introductory price.
Is registered agent service included?
If so, determine how much it costs when the included period ends.
Can I obtain my EIN myself?
If you’re comfortable using the IRS system, you may not need to pay someone for this service.
Does the provider operate in my state?
State requirements vary, so make sure the provider supports your formation state.
What additional services might I need?
Consider whether you need:
- Compliance support
- Operating agreement
- Business licenses
- Registered agent
- Business banking
- Business address
Is Bizee a Good Choice for a New Business?
For entrepreneurs who want a straightforward online process, Bizee can be a reasonable option to compare with other LLC formation services.
Its biggest attraction is the $0 + state fee Basic formation option, which allows entrepreneurs to avoid paying a separate formation-service fee for the basic package.
The higher-tier plans may make sense for entrepreneurs who want additional services and convenience.
However, the cheapest option isn’t automatically the best option.
If you are comfortable doing the paperwork yourself, filing directly with your state may cost less.
If you’d rather have the process organized through an online platform, a formation company can save time.
The best choice ultimately depends on how much you value cost savings versus convenience.
Final Thoughts
Choosing an LLC formation service is an important decision, but it doesn’t have to be complicated.
Start by determining what your business actually needs.
If you’re comfortable filing government paperwork yourself, you may not need a formation service at all.
If you prefer an easier online process, compare providers based on their formation fees, registered-agent pricing, EIN assistance, operating agreement options, compliance support, and recurring costs.
Bizee is one option worth considering, particularly for entrepreneurs attracted to its currently advertised $0 Basic LLC formation service plus state fees.
Before purchasing, review the package details and confirm the current pricing and services available for your state.
For many new entrepreneurs, the right LLC formation service isn’t necessarily the one with the lowest advertised price. It’s the one that provides the combination of cost, convenience, transparency, and ongoing support that fits the business.
Explore Bizee LLC Formation Services
Frequently Asked Questions
What is the best LLC formation service?
There isn’t one universal answer. The best provider depends on your state, budget, and the services you need. Compare formation costs, registered-agent fees, EIN assistance, operating agreements, and recurring charges before choosing.
Is Bizee legitimate?
Bizee is an established online business formation provider that has operated since 2004 and states that it has helped more than one million entrepreneurs.
Can I form an LLC for free?
Some companies, including Bizee, advertise $0 formation-service fees. However, the applicable state filing fee generally remains payable.
Is an EIN free?
Yes. The IRS provides EIN applications directly without charging a fee.
Do I need a registered agent?
LLCs generally need a registered agent that meets the requirements of their formation state. In some circumstances, the owner can serve as the registered agent.
Should I form my LLC myself or use a service?
DIY formation can save money if you’re comfortable handling the process yourself. An LLC formation service can provide convenience and additional administrative support.
