Free LLC Formation
Tailor Brands offers free online LLC formation services. You just need to pay the state filing fees and nothing else. It doesn’t charge a dime to help you form an LLC online quickly.
Form an LLC Online for Free, Quickly and Conveniently
Can you really form an LLC online for free? Wondering how it works and which LLC services you should use? If you’re struggling with these questions, we’re here to help.
Read this detailed guide to find all the information you need about free online LLC formation.
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What Is an LLC?
An LLC (Limited Liability Company) is a popular business structure in the United States that combines the flexibility of a sole proprietorship or partnership with the personal liability protection of a corporation.
It’s a legal entity that provides business owners with legal protection for their personal assets while offering tax advantages and simplified management compared to corporations.
If you want to form your LLC yourself, follow our step-by-step instructions, mentioned later in this guide.
I Want to Access the Guide
Want to make it quick and delegate to an expert? Based on market research, we recommend Tailor Brands to form an LLC online.
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Why We Chose Tailor Brands
- 01 Absolutely Free
- 02 Quick & Convenient
- 03 Trustworthy
Why Form an LLC Over Other Entities
LLCs offer a lot of advantages over other business entities. You get the liability protection of a corporation, without the strict management rules and formal structure. When you form an LLC online, you will get the following benefits.
Liability Protection
LLC owners (also known as members) are generally not personally responsible for business debts or lawsuits. When you form an LLC online, you create a legal entity that’s separate from its owners and is responsible for its debts and liabilities.
LLC members cannot be held responsible for paying off the LLC’s debts and their personal assets are protected in case the company fails to pay off the debtors. In case of a business lawsuit, LLC members are protected and not held liable.
Affordability
You can form an LLC online by paying the state filing fee. It’s simple and affordable to form, compared to more formal business structures like a corporation. You can even hire a professional like Tailor Brands and still get the service for free.
The ongoing costs of running an LLC are lower than that of a corporation as there are fewer record-keeping and filing requirements. There are no mandatory meetings or the need to maintain detailed meeting and financial records for an LLC.
Ease of Management
Limited liability companies offer a lot of flexibility to members on how they want to run their businesses. This is particularly useful when you start a small business with few members and want complete control over how your business will operate.
Unlike corporations, which have strict management guidelines, often dictated by the state, LLCs can choose how they want to run. Members can decide the decision-making process and assign managers to take care of operations.
Ownership Flexibility
When you form an S-corp, you are limited by how many shareholders the business can have and who can be a shareholder. Limited liability companies have no such limitations, neither on the number of members they can have nor the eligibility.
A single-member LLC will only have one member, but a multi-member LLC can have as many members as needed. Even non-residents of the US can be members of an LLC, but they can’t be shareholders in an S-corp within the country.
Flexible Tax Options
An LLC can choose to be taxed as a sole proprietorship, an S-corp, or any other entity, depending on the number of members. A single-member LLC will follow the the pass-through taxation of a sole proprietorship, by default.
A multi-member LLC can opt for the pass-through taxation of a partnership or choose to be taxed as an S-corp or a C-corp. Members can decide based on the tax laws of the state of LLC formation and choose the most beneficial structure.
Other Legal Rights
Unlike sole proprietorships and partnerships, which are dependent on their owners, LLCs are separate legal entities. They have certain legal rights, similar to those individuals have. This gives LLCs an edge over some other business entities.
An LLC has the right to enter into legal contracts, without involving the members. It can also buy assets, such as real estate, equipment, and property in its name. This boosts the personal liability protection for members by keeping them separate.
Want to Save Time?
Hire a professional service provider like Tailor Brands ($0 + State Filing Fee) to form an LLC online.
We’ve reviewed and compared all major industry players and recommend Tailor Brands for its cost, ease of use, and excellent customer support.
Apply for an LLC for FreeWhy Choose an LLC Over a C-Corp
If you want to form an LLC online but are still confused about whether it’s the right choice over a C-corp, this will help. Here’s a quick overview of their key differences to help you make the right choice.
Swipe horizontally to view the full table
| Feature | Limited Liability Company(LLC) | C-Corporation (C-Corp) |
|---|---|---|
| Taxation | Pass-through taxation: profits pass to owners who file individual tax returns. | Double taxation: corporate taxes on profits + individual taxes for dividends. |
| Tax Rates | Owners pay taxes at individual tax rates. | Corporations: 21% federal rate. Shareholders: Taxed on dividends at individual tax rates. |
| Ownership Restrictions | No limit on the no. of owners (members); can be individuals, corporations, or LLCs. | An unlimited number of shareholders; can be foreign individuals or entities. |
| Stocks | Limited liability companies cannot issue stock to raise capital. | Multiple classes of stock are allowed.(e.g., common, preferred). |
| Management Flexibility | High flexibility. Members decide how they want to run the LLC, with no external guidelines. | Must follow strict management formalities (e.g., board meetings, minutes, bylaws). |
| Liability Protection | Limited liability protection for members. | Offers one of the best liability protections among all business entities. |
| Ability to Raise Capital | Low, as there are no shares or stock. However, it can get loans and investor funding. | Easier to raise capital, can issue multiple types of stock, and can have unlimited shareholders. |
| Ideal For | Small businesses that want a simple structure that’s easy to manage. | Large businesses that plan to grow rapidly, raise venture capital, or go public. |
Ready to Form an LLC Online?
If you decide to form an LLC online over a C-corporation, Tailor Brands can help. The best part is that you can form an LLC online at zero cost.
Trust us, we’ve reviewed and compared many options to shortlist Tailor Brands for its excellent service and ease of use. Leverage its free LLC formation services today!
Start Your LLC in MinutesWhy Choose an LLC Over an S-Corp
A common dilemma among people who want to form an LLC online is whether an S-corp would be a better choice. Both have pros and cons, so you need to make the choice.
Here’s a quick comparison to help you decide if you want to form an LLC online or an S-corp.
Swipe horizontally to view the full table
| Feature | Limited Liability Company(LLC) | S-Corporation (S-Corp) |
|---|---|---|
| Taxation | Pass-through taxation by default, but has the flexibility to be taxed as a corporation. | Pass-through taxation where income is reported on shareholders’ tax returns. |
| Self-Employment Taxes | Self-employment taxes on all net income (unless it’s being taxed as a C-corp). | Only the salary is subject to self-employment taxes; distributions are not. |
| Ownership Restrictions | No limit on the no. of owners (members); can be individuals, corporations, or LLCs. | Limited to 100 shareholders, who must be US citizens or permanent residents. |
| Stock Issuance | Cannot issue any type of stock or distribute shares. | Can issue stock (only one class of stock allowed). It’s good for raising capital. |
| Management | More flexible management structure (members or managers can run the LLC). | Not very flexible. S-corps must have a board of directors and officers. |
| Profit Distribution | Flexible. LLCs can allocate profits in any way agreed upon by members. | Must distribute profits in proportion to the share ownership of shareholders. |
| Formation Costs | Generally lower than that of an S-corporation. | Generally higher than the cost of formation for a limited liability company. |
| Ongoing Requirements | Less formal; no annual meeting requirements, fewer corporate formalities. | Must hold annual meetings, keep minutes, and comply with other corporate formalities. |
| Tax Flexibility | LLCs can choose to be taxed as a sole proprietor, partnership, S-corp, or C-corp. | No flexibility; all income flows through to shareholders’ individual returns. |
| Ideal for | Entrepreneurs who need flexibility and want a simpler, less regulated structure. | Small businesses with fewer owners, looking for a tax-efficient structure. |
Want to Form an LLC Quickly?
We recommend leveraging Tailor Brands’ free service for a quick and convenient LLC setup.
It offers a great and hassle-free customer experience and amazing customer support, making the process a breeze. And it costs absolutely nothing!
Form an LLC with Tailor Brands - Quick and FreeHow to Form an LLC Online: A Step-By-Step Guide
1. Choose an LLC Name
- Pick a name that reflects your business and allows scope for growth.
- Ensure your business name is unique and not being used by any other business.
- Keep it short, easy to spell, and easy to remember for your customers.
- Avoid using any misleading or deceptive words or phrases in the name.
- Always check if a matching domain name is available before you finalize.
2. Reserve Your LLC Name
- Find out if your chosen state of formation allows business name reservations.
- Typically, states allow you to reserve LLC names for 90-120 days, but not more.
- Some states allow a renewal of the name reservation, but most do not.
- Find the filing fees for reserving a name for your LLC within your chosen state.
- Your reserved LLC name will be official once you file the LLC application.
3. Select a State
- Choose your home state, as it’s easier to run a business from where you reside.
- If your home state has high tax rates, choose other states to form an LLC online.
- The first choice should be states that levy no taxes, which can save money.
- Consider ongoing compliance requirements when choosing a state.
- Opt for states that offer business-friendly laws to form your LLC online.
4. Pick a Registered Agent
- Decide if you want to be your own agent or outsource to a professional.
- Choose if you want an individual or agency to handle your legal documents.
- If you plan to operate your business across states, opt for a national agency.
- Look for agents that also offer legal services or compliance reminders.
- Ensure that your chosen agent meets the eligibility criteria and state requirements.
5. File the Articles of Organization
- Include information about your LLC, from its name and address to its purpose.
- Add details on LLC members, including their names, addresses, and roles.
- Provide the name, address, and other info of your registered agent.
- Add information about the organizer—the person filing the Articles of Organization.
- Mention if you plan to run your LLC perpetually or for a specific duration.
6. Draft an Operating Agreement
- Mention the ownership structure of the LLC, including member roles.
- Add the management structure and decision-making process as well.
- Mention the initial and planned capital contributions by each LLC member.
- Create guidelines for how and when the profits and losses will be distributed.
- Mention conflict-resolution procedures—mediation, arbitration, etc.
7. Apply for an EIN
- You’ll need to apply for an EIN to open a bank account with some banks.
- The most common use case of an EIN is that it’s required for filing payroll taxes.
- You’ll also need one if you want your LLC to be taxed as a C-corp or an S-corp.
- Having an EIN shows vendors, banks, and customers that your LLC is legitimate.
- It builds trust with investors, who’ll be more likely to invest if you have an EIN.
8. Get Licenses and Permits
- Businesses often need a general business license to operate in specific locations.
- Regulated professions like real estate and consulting, need professional licenses.
- Businesses in the food or medical industries may need health permits.
- If you run a freelance business, you need a home-based business permit.
- You may need federal licenses if your LLC is in a federally regulated industry.
9. Open a Bank Account
- You’ll need your LLC formation documents to prove your LLC is a legal entity.
- Next, you’ll need an EIN to prove your LLC’s identity and credibility to banks.
- You’ll need to provide business information, such as name and address.
- An LLC operating agreement to prove who can manage the account.
- You may also be asked to show business licenses and permits to some banks.
10. Get Your Business Insured
- General liability insurance to protect against claims of bodily injury.
- Professional liability insurance protects against claims of negligence or errors.
- To protect physical assets, get business property insurance.
- Workers’ compensation provides medical benefits and wage replacement.
- Product liability insurance for claims of injury caused by unsafe products.
11. Apply for a DBA
- You can apply for a DBA if your LLC name is too long for marketing purposes.
- Acquire multiple DBAs to give distinct brand names to different brands.
- When you expand into new geographic markets, you may need a local name.
- Instead of multiple LLCs for different businesses, you could get multiple DBAs.
- Some businesses also get a DBA to give a different name to their online store.
12. Comply with Regulations
- File your taxes accurately, ensuring you don’t miss the annual tax filing deadline.
- File your LLC’s annual report on time and pay the state filing fees, as required
- If you change your registered agent, you need to notify the state authorities.
- Renew all licenses and permits before they expire, to stay compliant.
- If there are any changes in ownership structure, notify the authorities.
Why Choose Tailor Brands for LLC Formation
Tailor Brands is a highly trusted LLC service provider you can consider to form an LLC online for free. It makes the process a breeze.
- 20+ Tools & Services
- 5-Day Phone Support
- 4.5 TrustPilot Rating
- 24/7 Email Support
Why We Recommend Tailor Brands to Form an LLC Online
Though there are numerous LLC formation service providers, Tailor Brands stands out for its expertise and trustworthiness.
Here are some of the many reasons why you should use it to form an LLC online.
Expedited Processing
Irrespective of which plan you choose to form an LLC online, its team will review and file an LLC application on your behalf in two business days. Most companies offer this at an added cost.
Added Perks
Apart from LLC formation and other services, Tailor Brands offers free Amazon gift cards with its paid plans. You get a $30 gift card with the Essential plan and $50 with the Elite plan.
Access to Experts
With Tailor Brands, you can get access to a whole team of business experts, specializing in different areas. Whether you need help with taxation or banking, there’s someone who can help you out.
20+ Services
Other than its free and paid plans, Tailor Brands offers numerous a la carte services. You can choose from over 20 different services and pay for the specific services that you want to utilize.
Reliable Services
Tailor Brands has helped over 500k LLCs get started and is trusted by entrepreneurs nationwide. You can rely on the expertise and work ethic of its team, who will make the process a breeze.
Form an LLC online with Tailor Brands. Its team of professionals will ensure accurate filing and help you form an LLC online as quickly as possible.
Leverage Tailor Brands to Form an LLC OnlineWhat Customers Say About Tailor Brands
“Was very knowledgeable and walked me through the process every step of the way. Highly recommend their services.”
- Charles Kelley, LLC Customer
“The experience I had with Tailor Brands is phenomenal. They meet you where you are in your side hustle, turning it into a business”
- Dante Alonzoh, LLC Customer
How Much Does it Cost to Form an LLC Online with Tailor Brands
These are the various plans and services Tailor Brands offers to help you form an LLC online.
Lite
$0 +State filing fee
Includes:
- Online business formation to help you form an LLC online by filing your application.
- Business coaching to guide you on running a successful business.
- Expedited 2-day processing
Essential
$199/year +State fee
Everything in Lite plus:
- Annual compliance reminders to ensure you don’t miss deadlines.
- LLC operating agreement that covers guidelines on how the LLC will be run.
- $30 Amazon Gift Card.
Elite
$249/year +State fee
Everything in Essential plus:
- Website domain free domain for one year. DIY website builder included.
- Logo maker, digital business card designer, and other tools.
- $50 Amazon Gift Card.
Additional Services
Price differs by service
Includes:
- Business Permits and Licenses: Tailor Brands will help you find the specific requirements for your business and obtain business licenses.
- Employer Identification Number: Tailor Brands will help you apply for an EIN or tax ID, taking care of the entire process.
- Bank Account: Tailor Brands will help you find the best banking solutions for your LLC and help you open a business account.
- Business Insurance: Tailor Brands can help you figure out which types of insurance covers you need and get those for you.
- Tax, Accounting, and Invoicing: After you form an LLC online, Tailor brands can provide various accounting, tax, and bookkeeping services.
Choose Tailor Brands to Form an LLC Online
Tailor Brands should be your first choice to form an LLC online. It’s free, offers hassle-free services, and is trusted by businesses nationwide.
- Convenient plans starting from $0
- Pay individually for different services
FAQ
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1. How can I form an LLC online?
Here are the steps you need to follow to form an LLC online:
- Choose a Unique Name for Your LLC: It should follow the naming convention of the state of LLC formation and should not be used by any other business.
- Reserve Your LLC Name and Domain: If you’re not ready to form an LLC online but have chosen a name, reserve it. Also, find and buy a matching domain name.
- Select a State for LLC Formation: Choose a tax-friendly and business-friendly state to form an LLC online. Compare filing fees, tax rates, and more to make an informed decision.
- Pick a Local Registered Agent for Your LLC: This should ideally be done before you form an LLC online. Choose a local agent who’s reliable and highly rated.
- File the Articles of Organization for Your LLC: To legally apply for an LLC online, you’ll need to file your articles of organization and pay the state filing fee.
- Draft an Operating Agreement for Your LLC: This can be done both before and after you file for an LLC online. Make sure you include all important guidelines on how to run your LLC.
- Apply for an Employer Identification Number: Once you form an LLC online, you’ll need an EIN for numerous business purposes. Apply for one as soon as you can to ensure the rest of the steps go smoothly.
- Get the Required Business Licenses and Permits: Find out the requirements for your type of business and location and apply for all the necessary licenses.
- Open a Business Bank Account for Your LLC: This is another crucial step after you form an LLC online. Choose a reliable banking partner that offers convenient business banking services.
- Get Your New Business Insured: Your job is not done after you file for an LLC online. You should also get it insured to protect your business from potential threats.
- Apply for a DBA, If Needed: If you want to use a trade name or assumed name to run your business, you can apply for a DBA. You may also get multiple DBAs if you want to use a different name for different brands or business lines.
- Stay Compliant with Regulations: Lastly, forming an LLC online is just the first step, but complying with regulations is an ongoing thing. File taxes on time, submit annual reports, and follow all other requirements.
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2. How much does it cost to form an LLC online?
If you choose to form an LLC online yourself, you just need to pay the state filing fee, which differs from state to state. It could be anything from $40 to $300, depending on the state where you want to apply for an LLC.
However, if you outsource the LLC formation process to an agency or professional, they may charge for their services. Tailor Brands, however, doesn’t charge anything to help you form an LLC online. So, you can get professional LLC formation services, without any added cost.
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3. Which service provider should I use to form an LLC online?
There are many service providers that can help you form an LLC online, but we recommend Tailor Brands. With decades of experience and over 500k LLCs formed, Tailor Brands offers unmatched online LLC formation services.
Its team will help you form an LLC online without hassle and make the process simple and convenient for you. They’ll take care of the entire online LLC formation process, so you don’t need to worry about a thing.
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4. Do I need an EIN for my LLC?
After you form an LLC online, you should apply for an EIN, irrespective of whether it’s mandated by the state or not. Having an EIN is useful in various business situations, from opening a bank account to getting funding from investors.
So, don’t skip this step, after you form an LLC online and get an EIN as soon as you can.
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5. Is it better to form an LLC online or via other methods?
It’s much easier and faster to form an LLC online than sending your application via mail or fax or filing in person. All other methods require more time, both for application filing and processing.
When you form an LLC online, you can submit your application instantly. Most states process online LLC applications much faster than physical applications.
The good news is that most states have online portals that make it easy to form an LLC online. Alternatively, you may also leverage the services of professional companies like Tailor Brands to form an LLC online.
Ready to Form an LLC Online?
Tailor Brands has helped over 500k LLCs get started and can help you form an LLC online quickly and efficiently. Leverage its free LLC formation services to file for an LLC online today
It makes the process of forming an LLC online much simpler and more efficient.
File an Online LLC Application
