Starting a business is an exciting journey, and one of the first steps is forming a legal structure for your company. A popular choice for many entrepreneurs is to create a Limited Liability Company (LLC). LLC formation services like ZenBusiness and Bizee (former Incfile) can make this process easier and more efficient. In this blog, we’ll explore what LLC formation services are and why you need one. We will also compare ZenBusiness and Bizee to help you choose the best option.
What Are LLC Formation Services and Why Do You Need One?
LLC formation services help you establish your LLC by handling the paperwork and legal requirements to register your business with the state. These services ensure that your LLC is set up correctly and complies with the state laws, saving you time and reducing the risk of mistakes.
Benefits of Using an LLC Formation Service:
- Simplicity: They streamline the process, making it easy even if you’re unfamiliar with legal procedures.
- Time-Saving: They handle the paperwork, allowing you to focus on other aspects of your business.
- Expertise: They have the experience and knowledge to ensure your LLC is set up correctly.
- Compliance: They help you meet state requirements and deadlines, reducing the risk of penalties.
ZenBusiness Overview
ZenBusiness is known for its affordability and user-friendly platform, making it an excellent choice for beginners. They offer three packages:
ZenBusiness Packages:
| Starter Plan ($0 + State Filing Fees) |
Pro Plan ($199 + State Filing Fees) |
Premium Plan ($299 + State Filing Fees) |
| Name Availability Search | All Starter Plan Features | All Pro Plan Features |
| Business Formation | Employer Identification Number (EIN) | Business Website |
| Online Dashboard | Operation Agreement | Business Email |
| Lifetime Customer Support | Worry-Fee Compliance | Domain Name Registration |
| Processes in 5-7 Business Days | Processes in 1 Business Day | Processes in 1 Business Day |
Join over 700,000+ small business owners with ZenBusiness.
Starting at $0 + state fees
Key Features
Business Formation Services: ZenBusiness offers LLC and corporation formation starting at $0 plus state fees, providing a streamlined process to officially establish your business.
Worry-Free Compliance: The platform provides compliance alerts, annual report filing, and amendment services to help maintain your business’s good standing with state requirements.
Integrated Business Tools: ZenBusiness includes features like business banking, expense tracking, invoicing, and tax filing assistance, all accessible through a user-friendly dashboard.
Why We Recommend It
ZenBusiness simplifies the process of starting and managing a business by offering comprehensive services in one place. Its affordable pricing, combined with tools for compliance and financial management, makes it a practical choice for entrepreneurs seeking efficiency and support.
Pros & Cons
- Affordable Entry Point: Offers a free Starter plan (excluding state fees), making it accessible for new business owners.
- Comprehensive Services: Provides a range of tools beyond formation, including compliance assistance and financial management.
- User-Friendly Platform: Features an intuitive dashboard for easy navigation and management of business services.
- Auto-Renewal Fees: Some services, like the Worry-Free Compliance, auto-renew at higher rates after the first year.
- Potential Upselling: Users may encounter additional offers and services that can increase overall costs.
- Limited Free Features: The free plan has basic features; advanced tools require upgrading to paid plans.
Bizee Overview
Bizee, formerly known as Incfile, is another popular LLC formation service offering comprehensive packages. They also have three packages:
| Silver ($0 + State Filing Fees) | Gold ($199 + State Filing Fees) | Platinum ($299 + State Filing Fees) |
| Name Availability Search | All Silver Plan Features | All Gold Plan Features |
| Business Formation | Employer Identification Number (EIN) | Business Website |
| Free Registered Agent Service for One Year | Operation Agreement | Business Email |
| Lifetime Company Alerts | Banking Resolution | Domain Name Registration |
| Online Dashboard | Lifetime Company Alerts | Business Email |
| Unlimited Phone and Email Support |
Starting from $0 + State Fee
Key Features
Streamlined LLC formation and compliance services
Business license registration and management
Registered agent services for ongoing compliance
Why We Recommend It
- Provides a free LLC formation service (state fees still apply)
- Free registered agent service for the first year
- Ensure that all your contracts, documents, and forms are solid without the expense of hiring a lawyer
- Fast filing process that can be completed in as little as a few minutes
Pros & Cons
- Quick and easy LLC formation process
- Comprehensive compliance tools
- Affordable pricing for small businesses
- Limited additional services compared to larger competitors
- Some services may require additional fees
Pros and Cons
ZenBusiness
Pros:
- Affordable Starter Plan: Their $0 Starter Plan + state filing fee is ideal for new businesses on a tight budget.
- User-Friendly Platform: Easy to navigate and use, perfect for beginners.
- Comprehensive Packages: The Pro and Premium plans offer much value, including EIN and compliance services.
Cons:
- No Free Registered Agent Service: Unlike Bizee, ZenBusiness does not offer a free year of registered agent service.
- Additional Costs: Some services, like EIN and Operating Agreement, are only available in higher-tier plans.
Bizee
Pros:
- Free Registered Agent Service: All packages include one year of registered agent service.
- Comprehensive Gold and Platinum Plans: These plans include essential services like an EIN, an Operating Agreement, and a business website at a lower price than ZenBusiness.
- Lifetime Company Alerts: Helps keep you informed about important compliance deadlines.
Cons:
- Complex Platform: This can be more challenging to navigate compared to ZenBusiness.
- Higher State Filing Fees: State filing fees can be higher depending on your state, which may add to the overall cost.
In-Depth Look at Features
Registered Agent Service
A registered agent is a person or service that receives legal documents for your business. Both ZenBusiness and Bizee offer registered agent services but with different conditions. ZenBusiness provides this service as an add-on, while Bizee makes it accessible for the first year with all their packages. After the first year, both services charge an annual fee.
Online Dashboard
Both ZenBusiness and Bizee offer an online dashboard where you can manage your LLC formation documents and monitor your compliance status. These dashboards are designed to be user-friendly, but ZenBusiness is often praised for its more intuitive interface, which can be particularly helpful for beginners.
EIN (Employer Identification Number)
An EIN is like a business’s social security number. It’s necessary for opening a business bank account, hiring employees, and filing taxes. ZenBusiness includes EIN services in its Pro and Premium plans, while Bizee offers it in its Gold and Platinum plans.
Operating Agreement
An Operating Agreement is a document that outlines the ownership and operating procedures of your LLC. It’s crucial for defining the members’ roles and responsibilities. ZenBusiness and Bizee include this document in their mid-tier and top-tier packages.
Compliance Alerts
Staying compliant with state regulations is vital to avoid fines and penalties. ZenBusiness and Bizee offer compliance alerts reminding you of important filing deadlines. Bizee includes this feature in all their packages, which helps you stay on top of compliance requirements without additional cost.
Business Website and Domain
In today’s digital age, online presence is essential for any business. ZenBusiness and Bizee include business website creation and domain registration in their top-tier packages. This is an excellent option to establish an online presence quickly and professionally.
Customer Support
ZenBusiness and Bizee provide lifetime customer support, ensuring you can get help whenever needed. ZenBusiness is known for its friendly and responsive customer service, which is especially beneficial for those new to business formation. Bizee also offers robust customer support but may require more patience due to its complex platform.
User Reviews and Reputation
ZenBusiness
ZenBusiness has received positive reviews for its affordability, ease of use, and excellent customer service. Users appreciate the straightforward pricing and the helpful resources available on their website. ZenBusiness is often recommended for new business owners who need a simple and reliable LLC formation service.
Bizee
Bizee, formerly Incfile, is well-regarded for its comprehensive features and the inclusion of a free registered agent service for the first year. Customers value the extensive resources and lifetime alerts provided by Bizee. However, some users find the platform more complex than ZenBusiness, which can be a drawback for those seeking simplicity.
Conclusion
Choosing the exemplary LLC formation service depends on your specific needs and budget. ZenBusiness is an excellent choice for a beginner looking for a more affordable and user-friendly platform. Their Starter Plan offers basic LLC formation at no cost, and their higher-tier plans provide additional valuable services.
On the other hand, Bizee (formerly Incfile) might be a better option if you need a free year of registered agent service and are willing to deal with a more complex platform. Their Gold and Platinum packages offer comprehensive features at a competitive price.
Both platforms have strengths, so consider the most important features to you and your business. Whether you choose ZenBusiness or Bizee, using an LLC formation service can save you time, reduce stress, and ensure your business is set up for success.
