Start with the free and official route
Forming a business entity is mostly paperwork. The SBA’s register your business (opens in a new tab) guide explains that for an LLC, corporation or partnership, you register with the state where you do business, usually by filing formation documents (often called articles of organization or articles of incorporation) with the secretary of state or a similar business filing office. Most state offices take filings online.
Before you file, it helps to decide on a structure. The SBA’s choose a business structure (opens in a new tab) page compares sole proprietorships, partnerships, LLCs and corporations in plain language. A tax professional or attorney can help with the tax and liability side, and SBA resource partners such as SCORE and Small Business Development Centers offer free or low-cost counseling (opens in a new tab).
After the entity exists, many businesses need an Employer Identification Number. The IRS lets you apply for an EIN online (opens in a new tab) directly, and the IRS does not charge for it. Some websites charge to “get your EIN” for you; that is a convenience fee, not a government fee.
What formation and registered agent services do
A formation service prepares and submits your state filing for you. Depending on the package, it may also:
- Act as your registered agent, receiving lawsuits and official state notices on behalf of the business.
- Apply for an EIN for you (the same free IRS application you can do yourself).
- Provide a template operating agreement or bylaws.
- Track and file annual or biennial reports with the state.
- Offer mail forwarding, a business address or other add-ons.
A registered agent service is often sold on its own as an ongoing subscription. Owners use one when they do not want their home address on the public record, are not reliably available at one address during business hours, or are registered in more than one state.
What to compare
- Service fee versus state fee: the state fee is unavoidable, so compare only the service’s own charge, and check that quotes show the two separately.
- Registered agent renewal: many packages include the first period and then renew automatically. Look for the renewal price and how to cancel.
- Upsells: operating agreements, EINs, “compliance kits” and expedited filing are often extras. Ask which ones your state actually requires.
- Privacy: whose address goes on the public filing, and whether the service can keep your home address off it.
- Annual-report reminders: whether the service only reminds you or also files, and whether the state fee for that report is included.
- Refund policy: what happens if a filing is rejected or you change your mind before it is submitted.
- Support: how to reach a person if the state rejects a filing or a legal notice arrives.
Red flags
- Charging for an EIN without saying the IRS issues it free.
- Add-ons that are pre-checked or auto-renew without a clear notice.
- Prices that blur the service fee and the state fee together.
- Mail that looks like an official state or federal notice but is a solicitation for a paid service, such as a compliance or certificate offer. Check any notice against your state filing office’s own website before paying.
- Pressure to buy expedited processing when you have no deadline.
How BizKindly is paid
Some companies in this category may pay BizKindly if you sign up through a link on our site. That never changes what this guide says, and every option described here can be used without going through BizKindly.
Questions to ask before you buy
- What is your fee, and what is the state’s fee, listed separately?
- What renews automatically, at what price, and how do I cancel?
- Whose address appears on the public record?
- Do you file my annual reports, or only remind me?
- How do you notify me when legal papers or state notices arrive, and how quickly?
- Can I export my documents if I switch registered agents later?
For more on choosing a structure and the steps after filing, see our business formation guide and the first-year checklist.
Frequently asked questions
Do I need a service to form an LLC?
No. You can file formation documents directly with your state’s business filing office. A service files the same paperwork for you for a fee on top of the state fee.
Is an EIN free?
Yes. The IRS issues EINs free when you apply directly with the IRS. Sites that charge are adding their own fee for filling out the application.
What is a registered agent?
A person or company with an address in the state that accepts lawsuits and official notices for the business. Most states require LLCs and corporations to name one, and owners can often serve as their own.
Why do some owners pay for a registered agent?
Common reasons are keeping a home address off the public record, not being available at one address during business hours, or being registered in several states.
What should I watch for on renewals?
Many packages include registered agent service for a first period and then renew automatically. Check the renewal price and how to cancel before you buy.