Best Corporation Formation Services Compared 2024
Looking for corporation formation services for your startup or business? The best incorporation services offer you many benefits others don't, such as top-notch expertise, fair pricing, and responsive customer service. Most importantly, you can trust them judging from their past results.
Recommended Business Formation Service: Northwest
Top 5 Corporation Formation Services
Startups and entrepreneurs are often so busy planning their business that they don't have the time to manage incorporation services. Not to mention, corporations are formed with a specific type of business ownership structure, which, if done wrong, has legal consequences.
Avoid expensive startup mistakes and get the right incorporation services at the right price with these top five corporation formation services.
Our Approach:
Selecting the best corporation formation service comes down to three things:
- Expertise
- Pricing
- Responsiveness
An important consideration for choosing the best corporation formation service is the level of expertise it has in the field. Services with a much higher level of expertise are far more likely to offer greater quality and more reliable service. They are also more likely to be able to offer services at a lower price point. A corporation formation service with a high level of expertise is also likely to be more responsive when it comes to solving all problems that would arise during the incorporation process.
The Top-Rated Corporation Services for 2024:
- Northwest: Best Overall Corporation Formation
- ZenBusiness
- Bizee
- Rocket Lawyer: Best Corporation Formation for Legal Services
- LegalZoom
Recommendation for Best Corporation Service: Northwest
Northwest is the best option for entrepreneurs who need low-cost corporation formation services as well as knowledgeable customer support.
Our Review of the Top 5 Corporation Services
1. Northwest: Best Overall Corporation Formation
Northwest Registered Agent is our top pick for the best online incorporation service. Northwest is known for its knowledgeable, expert customer support, which means you are likely to receive the help you need during the important stages of the incorporation process.
Northwest provides customers with Corporate Guides, which are highly trained U.S.-based support agents. The service is also extremely affordable — pricing starts at just $29 plus state fees. This corporation formation package offers free mail forwarding, a full year of free registered agent services, phone service, and more.
2. ZenBusiness
ZenBusiness is another great business formation service in the market for entrepreneurs because it offers small-business owners everything they need to start a successful business and grow with their new company. ZenBusiness offers low-cost incorporation services and provides a turnkey business plan that includes branding, marketing, and website design.
ZenBusiness provides business formation services for startups and small businesses with limited resources. This includes everything from small business formation to corporate structuring, accounting, legal, and patenting services.
3. Bizee (Formerly Incfile)
Bizee provides low-cost business formation services for clients throughout the United States. The company has helped its clients start and grow their businesses in every state of the country, helping them comply with local and federal regulations.
4. Rocket Lawyer: Best Corporation Formation for Legal Services
Rocket Lawyer is a business formation services company that provides legal services for the startup and small business market. With offices in the United States as well as internationally, Rocket Lawyer provides its clients with a third-party perspective on their needs, as well as access to legal advice from more than 200 experienced attorneys. Rocket Lawyer offers a number of service levels based on the needs of their clients, including a one-day turnaround service that provides legal advice for individuals who are seeking incorporation.
5. LegalZoom
Clients seeking to start a business can use LegalZoom business formation services. This website offers easy-to-use tools and guidance to help clients through the process. LegalZoom also offers consultations to help clients choose the best business structure for them. However, the pricing for even basic corporation formation services is typically more expensive than other companies.
Best Corporation Services: Breakdown
A corporation formation service company has expertise in the process of structuring a company. This includes all the legal processes in order to form a business entity. Corporations are formed with a specific type of business ownership structure, which has legal consequences.
Nowadays, there are many corporation formation service companies that offer different types of formation services. Some offer incorporation services, while others offer legal and state registration services.
We explored many business formation companies and found the best ones for forming a corporation:
1. Northwest: $29+/year (plus state filing fee)
Northwest Registered Agent is an excellent corporation formation service, providing essential features at a cost-effective price. It includes filing, a free year of premium registered agent services, customer privacy protection, an accessible online dashboard to track your business documents, and more.
Northwest is well-known for its knowledgeable customer support. They provide highly trained US-based support agents, and every customer has a Corporate Guide assigned to their account, so you can connect with the same person every time you need questions answered.
Top Features
- Same day filing
- Free year of registered agent services
- Initial Resolutions
- Operating Agreement or Corporate Bylaws
- Phone service
- Membership Certificates or Share Certificates
Pros
- Positive customer reviews
- Data privacy protection
- Easy-to-use online ordering process
- No hidden fees or “free trials”
- Knowledgeable customer support you can trust
Cons
- You’ll need to pay extra fees for essential formation features such as an EIN
2. ZenBusiness: $49+/year (plus state filing fee)
ZenBusiness provides entrepreneurs with a complete package including corporation formation, LLC formation, share issuance services, and more!
We like ZenBusiness because it is an expert in forming corporations for low prices, and its customer support is expert and extremely responsive.
ZenBusiness can't be beaten when it comes to forming a C corporation (or any business entity, for that matter).
Top Features
- Articles of Incorporation preparation and filing
- Name availability search
- Corporate bylaws
- Free accounting consultation and tax assessment
- Chat, phone, and email support
- Employer Identification Number (EIN) assistance (included in Pro and Premium packages)
- "Worry-Free Compliance" (included in Pro and Premium packages)
- Business website and domain name (included in Premium packages)
Pros
- The fastest way to prepare and file formation documents for your corporation. Just enter some basic details when forming a corporation (e.g., board of directors, remaining shareholders, etc.), and you're on your way.
- Quick and easy search for your business name.
- Ability to keep things like your EIN and IRS Form 2553 (for S corporations) all in one place to save yourself from unnecessary headaches.
- ZenBusiness provides unlimited lifetime alerts as well as online access to your dashboard, so you never have to worry about maintaining compliance
Cons
- Monthly fee
3. Bizee: $0+ (plus state filing fee)
Bizee provides all the services and support you need to incorporate your business in the US. For a one-time fee, it offers incorporation in every state, all the required forms, and more. The company takes care of everything for you!
Top Features
- Articles of Incorporation preparation and filing
- Free registered agent service for one year ($119/year thereafter)
- Unlimited business name searches
- EIN assistance (included in Gold and Platinum packages)
- IRS Form 2553 preparation and filing (included in Gold and Platinum packages)
- Corporation bylaws (included in Gold and Platinum packages)
- Business banking account and tax consultation (included in Gold and Platinum packages)
Pros
- Free registered agent service for one year
- Designed for busy business owners who don't have time to worry about corporate paperwork.
- Secure online dashboard access to all necessary information
- The company provides a hassle-free experience, from formation to maintenance.
- The formation kit comes with everything necessary to start your business.
- Unlimited name searches
- Get service alerts on your dashboard for banking resolutions or other important info.
Cons
- Some helpful add-ons, like assistance with filing IRS Form 2553 for S corps, cost extra
4. Rocket Lawyer: $99.99 (plus state filing fee)
Rocket Lawyer provides services such as preparing and filing the Articles of Incorporation and preparing and filing annual reports.
Rocket Lawyer also helps with other legal aspects, such as filing the Articles of Dissolution, creating a non-disclosure agreement, and creating a lease agreement.
Top Features
- Articles of Incorporation preparation and filing
- Business name reservation
- Compliance support
- Access to business specialists and attorneys
- IRS Form 2553 preparation and filing ($69 extra)
- EIN assistance ($59.99 extra)
- Registered agent services ($149.99/year for nonmembers and $111.99/year for members)
- Seven-day free membership trial ($39.99/month thereafter)
Pros
- Rocket Lawyer provides a seven-day free trial
- Businesses can choose to use Rocket Lawyer's wide network of specialists for their more complicated questions
- Members receive access to a variety of legal documents on their online dashboard
Cons
- Services are not as widely available as those offered by traditional law firms
- Some formation services, like obtaining an EIN and filing Form 2553, cost extra
- Does not offer a free year of registered agent services
5. LegalZoom: $149+ (plus state filing fees)
LegalZoom is a company that provides legal and incorporation services on the internet. It was founded in 2001 and has expanded to provide services in personal, family, and business law.
LegalZoom also offers incorporation services such as incorporating an LLC, corporation, or nonprofit. It also provides legal services such as wills, living wills, trusts, living trusts, powers of attorney, and healthcare directives.
Top Features
- Articles of Incorporation preparation and filing
- IRS Form 2553 preparation and filing ($60 extra)
- Professional corporation filing ($50 extra)
- Registered agent services ($249/year)
- Bylaws, resolutions, EIN assistance, and business licenses ($249 extra)
- Legal setup advice (free 10-day trial, then $39.99/month)
- Total Compliance package (free 10-day trial, then $280/year)
Pros
- LegalZoom is an established formation company with many customer reviews and years of experience.
- Businesses have the ability to get assistance forming a professional corporation
Cons
- Far more expensive than the above alternatives
- No free year of registered agent services
- Paid attorney advertising
What Is the Difference Between an S Corporation and a C Corporation?
The difference between an S corp and a C corp is the difference between pass-through taxation and double taxation. Most people get a little confused about what this means.
A C corp is almost always a large company, while an S corp can be a large or small company.
S Corporation
An S corp is a tax designation that allows business owners to be taxed as employees of their company. S corps have a limited number of shareholders, do not offer their shares to the general public, and do not pay corporate income tax. Shares are limited to a maximum of 100.
C Corporation
A C corp is a publicly-traded corporation that offers its shares to the general public and pays corporate income tax. C corps are typically what people think of when they discuss corporations in general.
Final Thoughts
Northwest and ZenBusiness offer entrepreneurs some of the best incorporation services online. In addition, both will help you set up a separate legal entity with the state's office to safeguard against personal liability.
With both, you can set up an LLC, S corporation, or a C corporation. Setting up limited liability companies or C corps helps ensure you don't pierce the corporate veil, meaning your personal assets stay protected as you manage your day-to-day operations.
All of the companies mentioned in this review will help you to form a corporation, create a shareholders agreement, set up a board of directors (initial directors/corporation's directors), corporate officers (e.g., chief financial officer), manage all the state forms, annual meetings, bank accounts, manage your corporate status, register a business name, file the Articles of Incorporation with the state's business service division, and everything else you need to become a legal entity.
Frequently Asked Questions
A registered agent, also known as a resident agent, statutory agent, or agent for service of process, is a company or individual that is authorized to accept legal documents such as summons, subpoenas, and legal notices on behalf of the company.
Corporations are typically required to designate a registered agent for their company that is based in the state they do business in.
Officers are the people in charge of an organization or company. They are responsible for overseeing the company and making sure that it is doing well.
A corporation protects personal assets by creating a corporate veil.
The corporate veil is a legal term that refers to the legal separation between a corporation and its owners.
The veil is usually pierced when the corporation is used to commit illegal acts, but it can also be pierced if the owners misuse the corporation to protect their personal interests.
A limited liability company (LLC) is a business structure that provides some protection against liabilities. This means that the owners of the company are not liable for the debts and obligations of the business. This is different from a corporation in which the shareholders are liable for the debts and obligations of the corporation.
While both can issue stock. Corporations are business entities that are taxed twice: the company pays taxes, and shareholders pay personal income taxes on dividends. This is commonly referred to as "double taxation."
For tax purposes, most new businesses form an LLC. Even so, corporations and LLCs protect you better than a sole proprietorship and constitute acceptance as a separate entity in the eyes of the federal government.
The Articles of Incorporation is a legal document that contains all the company information, which includes the company name, registered agent, and the address of the company.