How LegalZoom makes it easy to start an LLC

LLCs are beneficial to most small business owners. LegalZoom makes the process of setting one up simple.

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Sitting in a recording studio in front of a keyboard, a woman in a brown sweater is smiling because she's doing what she loves after forming an LLC.

by Belle Wong, J.D.
updated May 11, 2023 ·  3min read

If you've been considering forming a limited liability company (LLC) to make your small business official, you can kickstart your LLC using LegalZoom's easy and affordable LLC formation service. LegalZoom has helped more than 2 million people launch their LLCs since 2001.

man and woman in the kitchen starting an LLC with LegalZoom

Why are LLCs so popular?

LLCs are the most popular business entity, and for a good reason:

  • LLCs are easy to form.
  • LLCs are typically easier to maintain and manage than other legal business entities.
  • LLCs provide small business owners with benefits such as liability protection that aren't available to sole proprietorships or partnerships.

What are the pros and cons of an LLC?

As with all legal business entities, there are pluses and minuses to running your business as an LLC. But for many small business owners, the pros often outweigh the cons.

The benefits of an LLC

LLCs provide many benefits, including:

  • An LLC's limited liability status helps protect your personal assets.
  • Running your business as an LLC gives you increased credibility as a business.
  • Having an LLC usually makes it easier to open a business bank account.
  • Unlike a corporation, you retain flexibility in running and managing your business with an LLC.
  • You can choose a "disregarded entity" status for IRS taxation purposes, meaning you claim your LLC's income on your personal tax return.

The disadvantages of an LLC

There are also certain disadvantages to an LLC, such as:

  • There are fees and costs associated with running your business as an LLC. For example, depending on your state, initial filing fees and annual fees exist to maintain your status.
  • While it can be less burdensome to maintain an LLC than a corporation, you will still need to ensure you stay up-to-date on all of your yearly filing and fee obligations.
  • It may be more difficult to attract investors.

How does an LLC protect you?

One significant advantage of an LLC is the limited liability protection it offers the small business owner. If you maintain your LLC as a separate entity—meaning you don't mix your personal assets with the LLC's assets—your personal assets should be protected from business related lawsuits and creditors.

Are there exceptions to an LLC's limited liability protection?

In addition to mixing your business and personal assets, there are some other exceptions to an LLC's limited liability protection:

  • You'll still be liable for any personal guarantees you've made for your LLC's debts.
  • You can still be held liable if you're sued for damages caused by your own negligence or wrongdoing.
  • You may be liable for your LLC's unpaid payroll taxes.

How do you use LegalZoom to start an LLC?

Making your business official by forming an LLC doesn't have to be complicated. Here's how to start an LLC with LegalZoom in three simple steps:

  1. First, select the package that best fits your business needs.
  2. Next, answer a few questions and consider additional business services that can help you. Customer support is available if you need it.
  3. After you confirm and place your order, we'll check the information provided for completeness and consistency, check your name with the state, and file your paperwork.

Is LegalZoom a good way to start an LLC?

As a small business owner, you're already juggling many tasks. The decision to register your business as an LLC doesn't have to mean adding more to your plate. Since 2001, LegalZoom has helped 3 million entrepreneurs form, run, and protect their businesses and is here to help your business too.

Small business owners all across the country have used LegalZoom to form their LLCs. Here are a few of the testimonials:

  • "Excellent people and great professional service. The person I spoke to walked me through with patience, knowledge, and professionalism. She showed me the details of opening an LLC with relative ease and clarity. The tools they offer are affordable and intelligent, encompassing parts of the business that I hadn't even thought of yet. I am quite happy and relieved to have found LegalZoom." - Catherine D., Eugene, OR
  • "I used LegalZoom for setting up our LLC, and it could not have been easier. User-friendly, and when I had a question I just picked up the phone—on a weekend—and spoke to someone who answered my question as well as sent me contact information in an email in case I had further questions. Highly recommended!" - Margaret S., Nellysford, VA

If you're ready to make your business official and protect your personal assets by starting an LLC, LegalZoom makes the LLC business formation process straightforward, convenient, and affordable.

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Belle Wong, J.D.

About the Author

Belle Wong, J.D.

Belle Wong, is a freelance writer specializing in small business, personal finance, banking, and tech/SAAS. She spends h… Read more

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of the author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.