If you’re starting a business and forming a limited liability company (LLC), you may be wondering where to start. Forming an LLC is often a challenge, but it’s important to do it correctly to get your business off on the right foot.
Using an LLC formation service like ZenBusiness can save you time and hassle and ensure that your formation documents are properly executed.
Forming an LLC with ZenBusiness is a very straightforward process.
When you first go to the site, you’re prompted to begin entering your business information beginning with your desired business name. Then a chatbot will start a “conversation” with you and ask you a series of questions.
First, it will confirm whether you want to form an LLC or a corporation. Once you select LLC, you’ll be asked for your state. This allows their system to do a business name search in your state to make sure that your proposed business name is available.
Then you’ll enter your first name and answer several questions about your business.
Before you can continue, you’ll be asked for your last name and email. Once you do so, you’ll be offered recommended services that you can purchase in addition to the LLC formation service, beginning with their registered agent service.
Registered Agent Services
A registered agent is a person or company authorized to accept official correspondence on behalf of your LLC, such as legal or financial documents. A registered agent must be personally available during normal business hours in order to accept such correspondence.
You can be your own registered agent, but then you must be personally available during those hours at your registered address. This can prevent you from leaving your office to do things you need to do to run and grow your business.
A registered agent service like ZenBusiness takes this burden away from you. They will notify you of all correspondence and make important documents available to you online.
The ZenBusiness registered agent service costs $99 per year, but saves you considerable time and allows you the freedom to be where you need to be.
EIN and Business Documents
The next service you’ll be offered is a service to obtain your employer identification number (EIN) for you, combined with access to a business documents library.
An EIN is required if your LLC will have more than one member or if you plan to hire employees. It’s like a social security number for your business, allowing the IRS to identify your company. It’s used for tax reporting purposes.
The ZenBusiness business documents library makes a host of business document templates available to you, such as confidentiality agreements, loan documents, and many more.
You can purchase both of these services together for $149, or you can purchase either one alone for $99.
Next, you’re offered the service plans offered by ZenBusiness. The chatbot will recommend a package, or you can choose to see all options.
ZenBusiness offers three LLC formation service plans.
The Starter Plan is $49 plus the state filing fee, which varies by state, and includes a business name availability search, your LLC formation, and an annual compliance service. The annual compliance service will handle all your required LLC filings, including annual reports that may be required by your state.
Note that the starter plan will renew after a year at $199 per year.
The Pro Plan is $199 per year plus state filing fees, and includes the following:
- LLC formation service
- Operating Agreement template
- Annual Worry-Free Compliance as described above
- Automatic expense tracking
- Tax deduction tagging
- Expedited service – your LLC will be formed and approved faster than the standard filing time included in the Starter Plan
The Premium Plan offers everything in the Pro Plan with an even faster “rush filing” service, along with a domain name and a customizable website for your business. The plan costs $299 per year plus state filing fees.
Once you select your plan, you’ll be offered some add on services including a financial tracking tool, expedited or rush filing (if you chose the Starter Plan), web services, and an operating agreement.
The operating agreement is one that you should consider adding if you didn’t choose a plan that included one.
An operating agreement is not required in most states, but it’s a critical document. It defines ownership percentages in the LLC as well as how profits are distributed. It also contains other crucial provisions, so it’s highly recommended that you have one.
The ZenBusiness operating agreement online template allows you to just fill in information in a document that already contains all the required legal language. It costs $125 which is far less than you would pay an attorney to draw one up for you.
After you select whether to purchase additional services, you’ll be ready to check out! The whole process from start to finish should only take about 15 to 20 minutes.
Once your LLC is formed, which should be within 2 weeks or less, you’ll be able to access your formation documents on the ZenBusiness site at any time.
Using the ZenBusiness formation service is easy and will ensure that your documents are filed correctly. They also offer several other services that can save you time and money. ZenBusiness services are a great value and can free you up to focus on what’s important – making your new business a success!