Jake Lawson here. After 15+ years guiding over 1,200 entrepreneurs through LLC formations across all 50 states, I’ve tested, used, and sometimes been burned by every major formation service on the market. I’ve dealt with their customer support at 2 AM, tried to cancel services during busy periods, and even had my credit card charged by companies I thought I’d left behind. Today, I’m sharing the unvarnished truth about who’s actually worth your money.
Looking for an LLC formation service? The landscape is filled with marketing promises, hidden fees, and services that sound identical but deliver vastly different experiences. Let me cut through the noise and tell you who actually gets the job done right.
My Testing Methodology
Before we dive into rankings, here’s how I evaluate these services:
- Personal usage: I form LLCs using these services for real businesses
- Customer service testing: I call with complex questions and time their response quality
- Cancellation attempts: I try to cancel services to see how difficult they make it
- Hidden fee discovery: I go through entire checkout processes to find surprise charges
- Long-term relationship assessment: I track how these companies treat customers after the initial sale
Bottom line: These aren’t theoretical reviews. This is hands-on experience with real money and real consequences.
My Top 5 LLC Formation Services
#1. Northwest Registered Agent – The Honest Professional
Formation Cost: $39 + state fee
My Rating: ⭐⭐⭐⭐⭐
Northwest tops my list because they do something revolutionary in this industry: they tell you exactly what you’re paying upfront and never change that price at checkout. After testing dozens of services, this basic honesty is rarer than it should be.
Why Northwest Wins:
- Complete address privacy throughout your entire formation (not just registered agent)
- No upsells, no hidden fees, no surprise charges
- One year of registered agent service included free
- Customer service reps who actually know business formation law
- Straightforward cancellation policy (I tested this personally)
The Address Privacy Game-Changer: Northwest is the only major service that lets you use their address for your entire LLC formation—not just as a registered agent. Your name and personal address never appear on public records. This feature alone is worth the price difference.
Real Talk About Customer Service: I’ve called Northwest at weird hours with complex questions. Every time, I’ve reached a knowledgeable human who could answer without putting me on hold to “check with a supervisor.” That’s not common in this industry.
Real Talk About Customer Service:
I’ve called Northwest at weird hours with complex questions. Every time, I’ve reached a knowledgeable human who could answer without putting me on hold to “check with a supervisor.” That’s not common in this industry.
What You Actually Pay:
- Formation: $39
- State fee: varies by state (Delaware $90, Wyoming $100, Florida $125)
- Registered agent year 1: Free
- Registered agent year 2+: $125/year
No surprises, no gotchas, no fine print.
#2. MyCompanyWorks – The Value Alternative
Formation Cost: $79 + state fee
My Rating: ⭐⭐⭐⭐
Recently acquired by RASI but maintaining their small-business focus, MyCompanyWorks provides solid formation services with more extras included than most competitors charge separately for.
What I Appreciate:
- Fast processing times that actually meet their promises
- Includes services others charge extra for
- Responsive customer support that understands small business needs
- Fair pricing without aggressive upselling
Where They Fall Short:
- No comprehensive address privacy option
- Some upsells during checkout (though not aggressive)
- Basic service quality that doesn’t match Northwest’s premium level
Best For: Entrepreneurs who want good value and don’t prioritize complete privacy protection.
#3. ZenBusiness – The Sleek Underperformer
Formation Cost: $0 + state fee (but read the fine print)
My Rating: ⭐⭐⭐
ZenBusiness has a beautiful website and offers “free” formation, but their business model relies on expensive ongoing services that auto-renew at rates significantly higher than competitors.
The Hidden Math:
- Formation: “Free”
- Registered agent year 1: “Free”
- Registered agent year 2+: $199/year (vs. Northwest’s $125)
- Annual cost difference: $74 more per year than Northwest
What Works:
- Modern, intuitive website design
- Compliance dashboard for ongoing management
- Good selection of additional services
What Doesn’t:
- Auto-renewing services that are hard to track
- Expensive renewal rates after the free trial period
- Customer service that focuses more on upselling than helping
Real Talk: ZenBusiness isn’t bad, but their “free” model ends up costing more than paid alternatives after year one.
#4. Bizee (formerly IncFile) – The True Budget Option
Formation Cost: $0 + state fee
My Rating: ⭐⭐⭐
Bizee delivers on their promise of free formation, and their business license research tool is genuinely useful. They’re a solid choice if you need basic formation without hand-holding.
What Actually Works:
- Truly free formation (you only pay state fees)
- Decent business license research service
- One year of registered agent service included
- Clean, functional website without excessive upsells
The Limitations:
- Customer service can be inconsistent
- Strict refund policies
- Limited guidance for complex situations
- No address privacy options
Best For: DIY entrepreneurs who just need paperwork filed and won’t need ongoing support.
#5. Rocket Lawyer – The Subscription Trap
Formation Cost: $99 + state fee ($0 if you pay $40/month subscription)
My Rating: ⭐⭐
Rocket Lawyer wants to bundle LLC formation with legal document access, attorney consultations, and other services. For most entrepreneurs, this expensive approach is overkill.
The Subscription Math:
- Monthly subscription: $40
- Annual cost: $480
- What you get: Formation + registered agent + legal document access
When It Makes Sense:
- You’re already paying for legal document services
- You need regular attorney consultations
- You’re running multiple businesses requiring ongoing legal support
For Everyone Else: You’re paying $480/year for services you could get for $164 (Northwest’s formation + ongoing registered agent fees).
Bottom Line: Only makes financial sense if you use multiple services consistently.
Services I Don’t Recommend
LegalZoom – The Overpriced Underperformer
Why They Didn’t Make the List:
- Expensive formation fees ($149+ vs. competitors’ $0-79)
- Slow processing unless you pay for expedited service
- Difficult cancellation process
- Customer service focused on sales rather than support
- No address privacy options
Real Talk: You’re paying premium prices for brand recognition that provides no actual business benefit.
What You Actually Need vs. What They Try to Sell You
After helping over 1,200 entrepreneurs, here’s what you actually need for LLC formation:
Essential (You Need These):
- Articles of organization filed with your state
- Registered agent service (or serve as your own)
- Operating agreement (can draft yourself)
- EIN from the IRS (free, takes 15 minutes)
Usually Unnecessary:
- Expedited processing (most states process quickly anyway)
- Corporate kit with binders and seals (digital copies work fine)
- Business license research (start with state websites first)
- Trademark searches (most small businesses don’t need immediate protection)
Never Necessary:
- “Lifetime” registered agent service (these companies get acquired or go out of business)
- Business credit monitoring (handle this yourself)
- Legal insurance (specific business attorneys are more valuable)
Red Flags to Avoid
After testing dozens of services, here are the warning signs that indicate you should look elsewhere:
Pricing Red Flags:
- Advertised prices that change at checkout
- “Free” services with expensive auto-renewing components
- Lifetime service claims (no company provides truly lifetime service)
- Pricing that’s too good to be true ($10 formation fees always have massive catches)
Service Red Flags:
- Customer service that can’t answer basic formation questions
- High-pressure sales tactics during the signup process
- Difficulty finding cancellation information on their website
- Reviews mentioning surprise charges or billing issues
Website Red Flags:
- Confusing pricing structures
- Excessive upsells during checkout
- Claims about “required” services that aren’t actually required
- Lack of clear information about what’s included
DIY vs. Service: Making the Right Call
Should you form your LLC yourself or hire a service? Here’s my framework:
Form It Yourself If:
- You’re comfortable with government paperwork
- You want to save $40-80 on formation fees
- You don’t mind your address being public record
- You have time to research your state’s specific requirements
Hire a Service If:
- You value your time over the cost savings
- Address privacy is important to you
- You want professional guidance through the process
- You need ongoing registered agent service anyway
Never Worth Paying For:
- Services charging more than $100 for basic formation
- Complex packages with services you don’t understand
- “Premium” features that don’t provide real business value
State-Specific Considerations
Different states have different formation requirements and timelines:
Fast Processing States:
- Delaware: 1-2 business days online
- Wyoming: 1-2 business days online
- Nevada: 1-2 business days online
Slower Processing States:
- California: 5-10 business days
- New York: 3-5 business days
- Illinois: 5-15 business days
States with Special Considerations:
- New York: Requires publication in newspapers (expensive)
- California: High annual franchise tax ($800 minimum)
- Wyoming: Very business-friendly, low fees
- Delaware: Corporate-friendly laws, good for complex structures
The Real Cost of LLC Formation
Here’s what you’ll actually pay for quality LLC formation:
Budget Option (Bizee):
- Formation: $0
- State fee: $90-200 (varies by state)
- Registered agent year 1: Free
- Registered agent year 2+: $119/year
- Total year 1: $90-200
- Ongoing: $119/year
Professional Option (Northwest):
- Formation: $39
- State fee: $90-200
- Registered agent year 1: Free
- Registered agent year 2+: $125/year
- Total year 1: $129-239
- Ongoing: $125/year
Premium Difference:
You pay $39 more upfront for Northwest’s address privacy and superior service quality. The ongoing costs are nearly identical.
After Formation: What Happens Next
Forming your LLC is just the beginning. Here’s what you need to handle next:
Immediate Next Steps:
- Get your EIN from the IRS (free, 15 minutes online)
- Open a business bank account (keep business and personal finances separate)
- Create an operating agreement (even single-member LLCs need this)
- Understand your ongoing compliance requirements (annual reports, etc.)
Ongoing Responsibilities:
- Annual reports to your state (requirements and fees vary)
- Tax filings (quarterly estimated taxes, annual returns)
- Registered agent maintenance (keep contact info current)
- Operating agreement updates (when ownership or management changes)
Making Your Decision
Here’s my recommendation framework:
For Most Entrepreneurs: Northwest Registered Agent
- Best combination of service quality, privacy protection, and fair pricing
- Professional service that’s worth the small premium
For Extreme Budget Consciousness: Bizee
- Truly free formation with acceptable service quality
- Good choice if you don’t need ongoing support
For Complex Multi-Service Needs: MyCompanyWorks
- Good value if you need business license research and other extras
- Solid alternative to Northwest if privacy isn’t a priority
Avoid Unless You Have Specific Needs: ZenBusiness, Rocket Lawyer
- More expensive over time without proportional benefits
Never Recommend: LegalZoom
- Overpriced, slow, and difficult to work with
The Bottom Line
After testing every major LLC formation service and personally using them for real businesses, Northwest Registered Agent consistently delivers the best combination of service quality, privacy protection, and fair pricing.
Yes, you can save $39 by using Bizee’s free formation, but Northwest’s address privacy feature alone is worth that small premium. When you’re building a business, protecting your personal information and working with a company that treats customers fairly matters more than saving a few dollars upfront.
The LLC formation industry is filled with marketing hype, hidden fees, and companies that make big promises but deliver mediocre service. Choose based on who actually delivers what they promise, not who has the flashiest website or loudest advertising.
Your LLC formation choice sets the tone for your business relationships. Choose a company that operates with the same professionalism and integrity you want to bring to your own business.
Questions about LLC formation or need help choosing the right service for your specific situation? That’s exactly why I built llciyo.com—to provide unbiased guidance based on real experience, not affiliate commissions.
Ready to form your LLC? Start with our state-by-state formation guides to understand your specific requirements, then choose the service that best fits your needs and budget. No sales pitches, just the facts you need to make smart decisions.