The 2021 small business profile indicated that there were roughly 4 million small businesses in California. The outlook for the future is positive with economists predicting that entrepreneurship is on the rise.

Forming a new limited liability company (LLC) does not have to be a difficult process when using the right LLC formation services.

LLC formation services can help to save time and money as they understand the state’s requirements for forming a business. They provide guidance throughout the whole process and ensure that paperwork is completed correctly before it is submitted.

There are plenty of LLC formation services available and choosing the right one can be overwhelming. Considering cost, reliability and usability, we have put together three of the best LLC formation services available in California.

Top 5 LLC Formation Services

1. ZenBusiness

ZenBusiness provides excellent value for money without giving up some great features. Their LLC formation services start at only $49 and include a free 1 year registered agent service. They provide 3 tiers to choose from and are a great choice for start-ups who are on a budget,

Their track record speaks for itself and since 2015, ZenBusiness have helped over 300 000 businesses. Google rates them an impressive 4.8 stars out of 5, making them one of the best formation services in terms of customer satisfaction.

According to the company, they can keep their rates low because they have utilized some clever technology solutions that automates a lot of their processes.

2. Northwest Registered Agent

Probably the best formation service when it comes to customer service. Northwest is a family owned and operated business and their no hassle attitude makes them a breeze to deal with.

Their services start at $39, but it must be noted that there are a lot of ad-ons that could get pricey. Although not as many features as some of the other formation services, they do also include a registered agent service.

They do provide a free do-it-yourself account that provides guidance for those looking for a hands on approach.

3. LegalZoom

LegalZoom is not only popular for its helpful online legal articles, but it is also one of the most well-known formation services around.

Their services start at $79 and there are plenty of customer reviews available for you to make an informed decision. As with the other formation services, LegalZoom also provides a free registered agent service for a year.

If you are looking for ongoing legal services, they offer a variety of general legal services at competitive prices.

FAQ’s

What are the benefits of using an LLC formation service?

There is a good reason formation services have helped millions of businesses to form. Some of the benefits are;

• Professional registered agent service – All of the formation services mentioned offer free registered agent services for a year. Thereafter, they ask for a small annual fee. A registered agent will receive all the legal documents and notices on behalf of the company. They will also keep record of all relevant documents for easy tracking and reference purposes.
• Additional LLC services – Not only can a formation service help to set up the LLC, they are also able to offer additional services such as operating agreements, articles of organization and EIN registration as ad-ons.
• Online tools and ongoing support – Easy to navigate online platforms can help to keep everything in one place. It also provides access to formation documents, information received and state resources.

Is a registered agent service really necessary?

An LLC in the U.S is required by law to appoint a registered agent. This does not have to be a registered agent service though. A trusted individual or the business owner can choose to serve as the registered agent. There are a few rules a registered agent has to abide by, which is often the reason many business owners choose to use a registered agent service.

Can I form an LLC on my own?

Yes, it is certainly very possible to save some money and handle the formation yourself. However, if you are not familiar with the state regulations it could be a hassle and time-consuming. Formation services are not expensive and can really streamline the process providing peace of mind.