Creating an LLC? You might not need LegalZoom or ZenBusiness

June 28, 2023

by a searcher from Colorado State University in Fairfield, CT, USA

This is an FYI for folks creating an LLC in the state they reside. I was under the impression that I needed a service to do this for me (LegalZoom, ZenBusiness, etc.), but after research it seems that much of what these services offer can be found by simply going to the websites of the state you reside, and the IRS. I live in Connecticut, and creating an LLC was as simple as a 5 minute online form and $120 fee. The IRS has a similar trivial form to receive an EIN number in just a few minutes. So before shelling out $500 + state fees for one of these services, look into your own state to see if the process is straightforward.

However, these services can be helpful if you are creating an LLC in the state you are not residing, because they can be your Registered Agent in that state, which is often a requirement.

This is clearly not legal advice, but hoping to save some folks time and money if they in a similar situation.

Reply by a professional
from Boston University in Chicago, IL, USA

I'm a CPA in Chicago and can't agree more! There are many different things that business owners can do directly on the government websites and portals without paying high priced fees. There are benefits to the platforms, but if you are willing to do the research complete the process, going direct can save a significant amount of $. For the corporate documents, you will want to make sure to seek an attorney or reputable solution for guidance.

Reply by a searcher
from University of Kansas in Kansas City, MO, USA

Great post. I've done this on multiple occasions and haven't used any of the legal services (LegalZoom, et al). The bigger challenge, in my opinion, is deciding the right entity type and tax structure. People looking to form a new entity should do their homework on those topics before making a decision. This is not legal advice.

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