Frequently Asked Questions

LLC stands for Limited Liability Company. It's a business structure that protects your personal assets from business debts and lawsuits.

Think of it as a protective bubble around your personal stuff. If your business gets sued or goes into debt, your personal home, car, and savings are generally protected.

It depends on your risk and goals. Consider an LLC if:

• You have clients or customers (lawsuit risk)
• You're making decent money (>$5,000/year)
• You want to appear more professional
• You plan to grow the business
• You want to separate business and personal finances

Skip it (for now) if you're just testing an idea or making very little money. You can always form one later!

A registered agent is a person or company that receives legal documents on behalf of your LLC. Think of them as your business's official mailing address for important stuff.

They handle:

• Legal notices and lawsuit papers
• Tax documents from the state
• Official government correspondence
• Compliance reminders and deadlines

Yes, but it's usually not worth it. Here's why:

Requirements if you DIY:

• Must have a physical address in the state (not a PO Box)
• Must be available during ALL business hours
• Your address becomes public record
• You can't move without updating the state

Why most people use a service:

• Maintains your privacy (their address, not yours)
• Never miss important documents
• Can work from anywhere/travel freely
• Costs about $100-200/year (worth it for peace of mind)

Bad things. Don't skip this!

• Your LLC can be dissolved by the state
• You lose "good standing" status
• Fines and penalties (varies by state)
• Can't legally operate or open bank accounts
• May lose liability protection
• Miss important legal deadlines

Every LLC must have a registered agent. It's the law in all 50 states. No exceptions.

One-time costs:

• State filing fee: $50-$500 (varies by state)
• Formation service: $0-$300
• EIN from IRS: Free (or $50-150 if service does it)
• Operating agreement: $0-$150

Ongoing costs:

• Registered agent: $100-$300/year
• State annual fee: $0-$800/year (varies by state)
• Business license: $50-$400 (if required)

Total first year: Usually $200-$800 all-in, depending on your state and service choice.

It's real, but here's the full story:

• They charge $0 for their service (preparing and filing paperwork)
• You still pay state fees ($50-$500, no way around this)
• They make money on add-ons like registered agent service
• It's a loss leader to get you in the door

These deals are legit and often a great value! Just understand you'll still pay state fees and probably want their registered agent service.

Good question! Watch for these:

Common "surprise" charges:

• Registered agent renewal (after free first year)
• Compliance reminders or monitoring
• Mail forwarding fees
• Document storage or portal access
• "Processing" or "convenience" fees

Questions to ask:

• What's the registered agent price after year one?
• Are compliance tools included or extra?
• Do you charge for document delivery?
• Any fees for cancellation?

It depends on your needs, but here's our quick take:

Honestly? You can't go wrong with any of our top 3. They're all reputable and will get the job done.

Must-haves:

• Registered agent service included or available
• Clear, upfront pricing
• Customer support (phone or chat)
• Good reviews and reputation

Nice-to-haves:

• Operating agreement template
• EIN obtainment service
• Compliance reminders
• Business website/email
• Banking introductions

Red flags:

• No phone number or support
• Lots of hidden fees
• Pressure to buy immediately
• Too good to be true pricing

Yes! Millions of LLCs are formed online every year. It's actually the standard way to do it now.

Why it's safe:

• Established companies with years of experience
• Secure, encrypted websites
• They file directly with your state
• Money-back guarantees
• Better than DIY (fewer mistakes)

Just stick with reputable services (like the ones we recommend) and you'll be fine. Avoid random pop-up ads or too-good-to-be-true offers.

Not much! Here's the checklist:

• Business name: Must be unique in your state and end with "LLC"
• Business address: Can be home address or virtual office
• Registered agent: Name and address (or use a service)
• Member info: Names and addresses of owners
• Business purpose: Can be general like "any lawful business"

💡 Pro tip: Check if your desired name is available before starting. Most services offer free name checks.

Two timelines to consider:

Your time:

• Filling out the form: 10-15 minutes
• That's it for you!

Processing time:

• Standard: 5-10 business days (most states)
• Expedited: 1-3 business days (+$50-200)
• Same day: Available in some states (+$100-500)

Some states are super fast (looking at you, Wyoming - same day!), others are slower (California can take 2-3 weeks standard).

Your immediate to-do list:

1. Get your EIN from the IRS (free, takes 5 minutes online)
2. Open a business bank account (keeps finances separate)
3. Get business insurance if needed
4. Create operating agreement (even if not required)
5. Get necessary licenses/permits for your business type
6. Set up bookkeeping (even just a spreadsheet)

Most formation services provide guides and reminders for these steps. You're not alone!

Yes, but with some caveats:

What you CAN change:

• Business name (file amendment with state)
• Business address
• Registered agent
• Add or remove members
• Business activities

Dissolving your LLC:

• You can close your LLC anytime
• File dissolution paperwork with state
• State fees are usually NOT refundable
• Service fees might be refundable (within 30-60 days)

Don't stress too much - you can adjust as you go. Most entrepreneurs pivot and change things along the way!