Starting a new business is an exciting milestone, but the legal paperwork required to make it official can often feel overwhelming. Many entrepreneurs choose to use online formation services to streamline the process and ensure that every document is filed correctly with the state. One of the most popular and cost-effective tools for this task is Incfile, which has recently rebranded as Bizee. This service specializes in helping individuals form Limited Liability Companies (LLCs), S-Corporations, C-Corporations, and Nonprofits with minimal stress.
The primary goal of using a service like this is to save time and avoid the common pitfalls of DIY filing. From checking name availability to appointing a registered agent, the platform guides you through each step. This article provides a comprehensive, step-by-step guide on how to navigate the formation process, choose the right package for your needs, and understand what happens after your business is officially registered.
Why Use a Formation Service for Your LLC?
While you can technically file formation documents directly with your Secretary of State, many business owners prefer a guided experience. Formation services provide a user-friendly interface that translates complex legal requirements into simple questions. This reduces the risk of errors that could lead to your application being rejected or delayed.
Another significant advantage is the inclusion of a registered agent service. Every LLC is required by law to have a registered agent to receive legal documents and official government correspondence. Many online services offer this for free for the first year, which provides a layer of privacy and ensures you never miss a critical deadline.
Preparing for the Formation Process
Before you begin the online application, it is helpful to have several pieces of information ready. Having these details on hand will make the process much faster and prevent you from having to stop mid-way to do research.
- Business Name: You should have a primary name and a few backups in case your first choice is already taken in your state.
- Business Address: This can be a physical office or, in many states, a home address.
- Member Information: Decide who will own the business and what their roles will be.
- Designated Manager: Determine if the LLC will be member-managed (owners run daily operations) or manager-managed (owners hire a manager).
Step 1: Choose Your Entity and State
The first step on the platform is selecting the type of business entity you wish to form. For most small business owners, an LLC is the preferred choice because it offers personal liability protection and flexible tax options. However, you can also choose to incorporate as a C-Corp or S-Corp if your business model requires it.
Next, you will select the state where you want to form your business. Usually, this is the state where you live and plan to conduct most of your operations. Keep in mind that each state has its own filing fees, which are separate from any service fees charged by the platform.
Step 2: Select a Service Package
The platform typically offers three tiers of service to accommodate different budgets and business needs. Understanding what is included in each can help you make the best financial decision for your startup.
The Silver Package
This is often the most popular choice for budget-conscious entrepreneurs. It usually covers the basics of business formation, including the preparation and filing of the Articles of Organization. In many cases, the service fee for this tier is $0, meaning you only pay the mandatory state filing fees. It also typically includes a year of free registered agent service.
The Gold Package
The middle tier includes everything in the Silver package plus essential documents like an Operating Agreement and an Employer Identification Number (EIN). The EIN is crucial for opening a business bank account and hiring employees. This package is designed for those who want a “turnkey” solution so they can start operating immediately after filing.
The Platinum Package
The highest tier is meant for business owners who want premium features. This usually includes expedited filing speed, a library of legal contract templates, and a domain name with business email. While more expensive, it provides the most comprehensive support for a new brand.
Step 3: Provide Business and Member Details
Once you have selected a package, you will enter the specific details of your business. The platform will ask for your business name and perform a preliminary search to see if it is available. If the name is taken, you will be prompted to choose another.
You will also need to provide the names and addresses of the “members” (owners) of the LLC. You can choose to keep your personal address private in some states by using the registered agent’s address for public records, depending on the specific service options you select during checkout.
Step 4: Designate a Registered Agent
As mentioned earlier, a registered agent is a legal requirement. During the setup process, you will be asked if you want to use the platform’s professional registered agent service. For the first year, this is usually included for free with most packages. After the first year, there is an annual fee to maintain this service. Using a professional service ensures that someone is always available during business hours to accept legal notices on your behalf.
Step 5: Review and Submit
The final step in the online process is the review page. It is vital to double-check all the information you have entered. Ensure that the business name is spelled correctly and that the member addresses are accurate. Once you submit the application and pay the state fees, the platform sends the documents to the state government for processing.
Filing times vary significantly by state. Some states process applications in a few business days, while others may take several weeks. If you are in a hurry, you may have the option to pay for “expedited filing” to move your application to the front of the line.
Post-Formation Requirements
Once the state approves your filing, your business is officially a legal entity. However, there are a few more steps you should take to ensure your business remains in good standing and operates professionally.
- Obtain an EIN: If you didn’t get this in your package, you must apply for one through the IRS. It acts like a Social Security number for your business.
- Open a Business Bank Account: It is critical to keep your personal and business finances separate to maintain your liability protection.
- Create an Operating Agreement: This internal document outlines how the business is run and how profits are distributed. Even for single-member LLCs, this is a vital document for legal clarity.
- Check for Local Licenses: Depending on your industry and location, you may need specific city or county permits to operate legally.
Conclusion
Using a professional service to form your business allows you to focus on your vision rather than getting bogged down in administrative hurdles. By following the structured steps provided by the platform, you can ensure your LLC is set up correctly from day one. Remember that formation is just the beginning; staying compliant with annual reports and maintaining a registered agent are ongoing tasks that will keep your business protected for years to come.
If you are ready to take the next step in your entrepreneurial journey, start by gathering your business details and selecting the package that best fits your goals. For more information on managing your new venture, explore our other articles on business banking, tax requirements, and professional networking.