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July 2004
Home / Business / LLC

Should you choose an LLC or an Incorporation?

Read below to find comments and reviews on LLC service providers. Every major LLC service provider on the Internet is listed.

LLC vs. Corporation

Now the question is, what is the best choice for your business? Form a corporation or an LLC? In order to determine which is right for your goals, let's look at the similarities and differences between the two. The main similarities between LLCs and corporations are:
  • Both are legal entities created by a state filing
  • Both help protect personal assets from your business liabilities
  • Both have few ownership restrictions
The main differences between LLCs and corporations:
  • Corporations issue stock and are owned via stock. LLCs do not issue stock. Like partnerships, LLCs are simply owned by the members and/or the managers of the company.
  • Corporations are required to hold annual meetings and to keep written minutes. LLCs do not have this requirement, resulting in less official paperwork.
  • Corporations are taxable entities, and they must pay taxes on their profits at the corporate tax rate. LLCs, like sole proprietors, partnerships and S Corporations, are "pass-through" tax entities. This means that the profit or loss generated by the business is reflected on the personal income tax return of the owners, thus avoiding the double taxation of paying first corporate tax on profits and then personal income tax on distributions of profits.
Just remember that whether you're considering a corporation or an LLC, it is very important to form a business entity that protects your personal assets and your family.

Who Can Form a LLC?

Because of their flexibility and relative simplicity, the LLC is well suited for both start-up businesses and more mature businesses. LLCs have been gaining speed in recent years. In fact, new LLC formations now out-number new corporation formations in several states. LLCs have several "ease of use" advantages. Also, as the needs of your company changes, the existing business structure can be amended or a new business structure can be formed quickly, easily and affordably.

Costs to Consider
Online LLCs can cost from $100 to $500 plus state fees depending on the depth of scope of the package you choose. The basic package that online services offer will most likely cover all the fundamentals you will need . Some extras found in "gold" or premium packages may include but are not limited to a prepared application for your Tax Identification Number , name search and registration and rush service . The same basic services from an attorney can cost upwards of $1000.

How Long Will This Take?
You can expect to spend 20 to 30 minutes filling out forms if creating an LLC online. Most services will allow you save your work and come back later so all the information does not have to be inputted in one sitting. An LLC will usually take 20 to 35 days to form after the articles are filed depending on the state. Your final package is then sent to you shortly thereafter.

Limited Liability Corporations Fast, Easy and Smart
Many companies that offer online LLCs provide their clients with a 100% satisfaction guarantee on their services, available customer service and legal document reviewers that examine your information for completeness and other common errors. Just as each LLC is unique, the diversity of services offered by online companies is immense. For a complete listing of reviewed sites that offer LLCs online and how they compare as far as ease of use, price, specific services offered and customer service please view the companies below.

Sites that offer LLCs

LegalzoomAvg Review Score: 4.58
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Legal Spring Comments: Legalzoom has processed over 15,000 LLC's. This is no surprise, since you'll save $1,341 over having a lawyer do ... more ...

Corporate.comAvg Review Score: n/a
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Legal Spring Comments: has been forming business entities since 1899! What more information do you need? This comes directly ... more ...

MyCorporation.comAvg Review Score: n/a
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Legal Spring Comments: is one of the legal entity forming powerhouses on the Internet today. Very few online incorporators ... more ...

Legalfilings.comAvg Review Score: n/a
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Legal Spring Comments: Legalfilings was formed in 1995, and claims to have formed over 7,000 companies. This is a small number compared to ... more ...

Business FilingsAvg Review Score: 5.00
Click Here to go to Business Filings
Click Here to read reviews about Business Filings LLCs
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Legal Spring Comments: Business Filings is the third or fourth largest incorporator on the Intenet. They have been in business since 1996, ... more ...

CompaniesInc.comAvg Review Score: 5.00
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Legal Spring Comments:

At, for $99, you get:

Included in your package:

CorpCreationsAvg Review Score: n/a
Click Here to go to CorpCreations
Click Here to read reviews about CorpCreations LLCs
Click Here to learn more about CorpCreations
Legal Spring Comments: They don't have the most fancy web site, and their incorporation questionnaire is just one long page, but it's simple ... more ...

If you know of a company not listed here that provides LLCs, please let us know by sending a message to our content division.

LLC Discussions

LLC Formation Questions
... Finally, does anyone have any thoughts on using companies like to perform the LLC formation for me? Thanks in advance for your advice, CD - Mar 30, 2004 by Collins DeLoach - View Thread (4 articles)

Re: Starting a partnership that crosses state lines.
... As for DBA, you might be better of with an LLC or LLP. ... Check out for info on types of business organization and how to proceed. ... - May 28, 2003 by Fred - View Thread (2 articles)

Re: Differences - C-corp, S-corp, LLC, LLP
... You can check out Legal Zoom and Nolo Press and read up on what you need to do. ... Fred Parker Lynn Consulting Group, LLC http://www ... - Sep 7, 2003 by Fred - View Thread (2 articles)

Re: Starting a business need legal help PLEASE!!!
... I have no ties to other than a satisfied customer. ... Concrete Landscape Borders IRS Treatment of the One-Member LLC. ... - Sep 20, 2003 by Jim Sharp - View Thread (7 articles)

Anyone form an LLC or SCorp on the web?
... LLC but cannot afford the $700 a lawyer wants to charge me to consult me to make sure an LLC is the way I want to go (it is) Anyone use MyCorporation.COm or ... - Dec 26, 2003 by Lenny - View Thread (11 articles)

NETLINK> Netlink Server Additions: Tue 03/24/98
... Labels, Inc </a> <a href=""> USCA MyCorporation </a> <a ... href=""> USCT R &amp; R Communications, Llc </a> <a ... - Apr 3, 1998 by Gleason Sackman - View Thread (1 article)

Re: Q: Limited Liability Company setup
... Return address modified to reduce spam </BLOCKQUOTE> &nbsp;I set an LLC up in ... from the state.&nbsp; They are are <A HREF="">http://www ... - May 13, 1997 by Dale Bueche - View Thread (2 articles)

Re: Computer Consultant: should I form a company?
... life. Check out the Company Corporation at where you can start your LLC for a reasonable fee. If you ... - May 31, 2002 by MartyM - View Thread (9 articles)

Legal Site Reviews and Comments Needed
Companies such as Legalzoom,,, CompleteCase, US Legal Forms ... companies offer products such as Incorporation, LLC, DBA, Living ... - Jun 21, 2004 by Cynthia Bates - View Thread (1 article)

Re: internet business - legal and tax questions
... I have been thinking about LLC, which is a flaw through taxation entity with ... There are internet services like where you can register a ...
misc.entrepreneurs.moderated - Oct 21, 2003 by azzuri - View Thread (8 articles)

Best Incorporation Service of 2004:

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"I used to think incorporating was for only for big businesses. With LegalZoom I was able to protect my family and keep more money in the bank every year. "

Stu Redding
Salt Lake City, UT


"I built my business on top of LegalZoom products. I could never afford a lawyer so this was the next best thing. "

Kenny Jackson
Sacramento, CA


"Business owners should really look into incorporating. It can really protect them in a law suit situation. "

Fred McDonald
New York, NY

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