ZenBusiness
The fastest way to form an LLC, with a free registered agent year one.
- LLC, S-Corp and C-Corp
- Free registered agent year one
- Compliance reminders included
Easy Business Formation
Today, your brand becomes a real business.
Form your LLC in minutes. Paperwork, state filing and registered agent - handled.
Filed for you
State paperwork, end-to-end.
Ready in days
Most LLCs approved in 1-3 days.
Protected day one
Personal liability shield from filing.
More options to consider
Hand-picked alternatives. Pricing and terms set by each partner.
- Same-day filing available
- EIN + operating agreement
- Brand identity tools bundled
Filing eligibility and pricing depend on your state.
Business Services
How to start an LLC or corporation the right way -The Complete Guide
Decide between LLC, S-Corp, and C-Corp, pick the right state, get your EIN, and set up a registered agent. Vetted formation partners and what each one is really good at.
Forming a business is the moment your brand stops being an idea and starts being a legal entity that can sign contracts, open a bank account, hire people, and protect you from personal liability. The mechanics are simple, but the decisions you make in the first hour - entity type, state, registered agent, EIN - shape your taxes and your paperwork for years. This guide walks through what actually matters, what does not, and which formation partners get this done with the least friction.
Most founders do not need a lawyer for a standard LLC or single-class C-Corp. You need a partner that files the paperwork correctly the first time, keeps you compliant going forward, and does not bury you in upsells you will never use.
At a Glance
- For most US small businesses, an LLC is the simplest and cheapest entity that still protects your personal assets.
- C-Corps make sense if you plan to raise venture capital or issue stock to employees.
- State of formation matters less than founders think. Form where you actually operate unless you have a specific reason not to.
- A registered agent is required by law in every state. Use a service, not your home address.
- Total cost is usually 100 to 400 USD in state fees plus an optional 0 to 300 USD service fee.
- Delaware is overrated for non-VC businesses. It adds a foreign-qualification filing in your home state plus a franchise tax, with no real upside for an owner-operated LLC.
- Wyoming and New Mexico are the cheapest formation states (50 to 100 USD), with strong privacy protections - useful if you want your home address off the public record.
Why formation is not optional
Operating an unincorporated business means your personal assets - your savings, your car, your house - are on the line if anything goes wrong. A customer slips, a contract sours, a vendor sues. Without an entity, you are personally responsible.
Forming an LLC or corporation creates a legal wall between you and the business. The business owns its own contracts, its own debts, its own bank account. If the business gets sued, your personal assets are generally protected as long as you keep things clean (separate bank accounts, proper paperwork, no personal expenses run through the business).
Beyond protection, formation unlocks the practical building blocks of a real business: opening a business bank account, accepting payments under a brand name, getting business credit, hiring contractors with a proper W-9, and looking credible to enterprise customers who will not buy from a sole proprietor.
What you actually need to decide
1
Entity type
LLC, S-Corp, C-Corp, or Sole Proprietorship. For 95 percent of new businesses, this comes down to LLC vs C-Corp. LLCs are simpler, taxed like a sole prop by default, and have flexible ownership. C-Corps are heavier on paperwork but required if you want to raise venture capital or grant stock options.
2
State of formation
Form in the state where you actually do business. Delaware is famous for big-company law but adds a foreign-qualification filing in your home state and a Delaware franchise tax. Use Delaware only if you have investor or legal-structure reasons to.
3
Registered agent
Every entity needs a registered agent with a physical address in the state of formation to receive legal documents. Use a service so you are not pinned to your home address or office hours - 50 to 150 USD per year is normal.
4
EIN (Employer Identification Number)
The federal tax ID. Free from the IRS and takes about 10 minutes online. Required for the business bank account and for hiring anyone. Some services charge a fee for this - do not pay if you are comfortable with a short form.
5
Operating agreement or bylaws
Internal document that defines ownership, profit splits, and decision-making. Not filed with the state, but required if you have co-founders. A weak or missing one is the single most common cause of co-founder disputes.
LLC vs S-Corp vs C-Corp: the practical view
LLC (Limited Liability Company)
Simple to form, flexible to run, taxed by default like a sole proprietorship (or a partnership if multi-member). You report business income on your personal tax return. No corporate tax return required.
Best for: Freelancers, consultants, small agencies, e-commerce stores, local services, side businesses.
LLC taxed as S-Corp
You keep the LLC structure but elect S-Corp tax treatment with the IRS. This lets you split income between salary and distributions, which can lower self-employment tax once profits are large enough.
Best for: Profitable LLCs earning 60k+ USD per year where the founder works in the business.
C-Corp
The standard entity for businesses planning to raise venture capital. Double taxation (company pays corporate tax, you pay personal tax on dividends) but supports preferred stock, stock options, and clean ownership splits.
Best for: Startups planning to raise funds, issue stock options, or eventually go public.
Sole Proprietorship
No formation at all - you just start operating. No liability protection, no business identity. The only reason to consider this is short-term informal testing.
Best for: Almost no one. Form an LLC instead.
LLC vs C-Corp at a glance
| Topic | LLC | C-Corp |
|---|---|---|
| Setup complexity | Low - one filing, simple operating agreement | Medium - bylaws, board, stock issuance, 83(b) filings |
| Default tax treatment | Pass-through (you pay on personal return) | Double tax (corp pays, you pay on dividends) |
| Raising venture capital | Difficult - VCs prefer C-Corps | Standard structure for VC and angels |
| Issuing stock options | Awkward | Standard |
| Ongoing paperwork | Light - annual report and state fee | Heavier - board minutes, separate corporate tax return |
| Best for | Bootstrapped, profitable, owner-operated | VC-backed startups, multi-founder equity splits |
How to choose in 6 steps
- 1
Decide LLC or C-Corp
If you have any plan to raise venture capital in the next two years, start as a Delaware C-Corp. Otherwise, default to an LLC in your home state.
- 2
Pick your state
Form where you operate. Delaware adds cost and complexity unless investors require it.
- 3
Choose a formation service
Most founders should not file the paperwork manually. A service for 0 to 300 USD prevents typos that can take months to fix and includes registered-agent service for the first year.
- 4
Get your EIN
Direct from the IRS for free, or let your formation service do it. Required for a business bank account.
- 5
Open a business bank account
Use the LLC or corp name and EIN. Never mix personal and business funds - this is the single fastest way to lose your liability protection.
- 6
Set a calendar reminder for annual filings
Almost every state requires an annual report or franchise tax. Missing it dissolves your entity. Use your formation service to handle it automatically.
Common mistakes to avoid
Forming in Delaware because someone said you should
Fix: Unless you are raising VC, Delaware costs more and adds a foreign-qualification filing in your home state every year. Form where you operate.
Using your home address as the registered agent
Fix: It becomes public record and you will be on every solicitation list known to man. Pay 50 to 150 USD per year for a real service.
Skipping the operating agreement with co-founders
Fix: Write it before you write your first line of code. Cover ownership splits, vesting, what happens if someone leaves, and how decisions get made.
Running personal expenses through the business account
Fix: Courts can "pierce the corporate veil" if you treat the entity as a personal piggy bank, exposing you to personal liability anyway. Keep it clean.
Forgetting the annual report
Fix: Most states require it and dissolve your entity if you miss it. Set a recurring calendar event or use your formation services compliance feature.
Pro tips
- Get your EIN directly from the IRS yourself. It is free, takes 10 minutes, and you avoid an upsell that adds nothing.
- When choosing a name, run a USPTO trademark search at the same time you check the domain. A clean domain plus a clean trademark is worth the extra 30 minutes.
- For multi-member LLCs, write the operating agreement with the question "what happens if one of us wants to leave in 18 months" front and center. Most boilerplate templates skip this.
- If you elect S-Corp tax treatment, you must pay yourself a "reasonable" salary through payroll - not just distributions. Get a CPA before making the election.
- Open the business bank account the same week you form. Delaying invites mixed funds, which weakens your liability shield.
- Pay the state filing fee on a business credit card from day one - it gives you a clean paper trail and starts your business credit history before you even open the bank account.
- If you are forming with a co-founder, agree in writing on what triggers a buyout (a one-page term sheet is enough) before you sign the operating agreement. Lawyers cost 10x more after a dispute starts.
- Skip the corporate kit, embossed seal, and minutes binder upsells. No bank, no investor, and no auditor will ever ask to see them. They exist to pad the cart.
Beyond the name
Everything you need after the name is yours
Once your brand name is set, we get you live and running with the partners that handle everything else - fast, professional, and ready for customers.
Logo design
Hand the brief to professional designers or run a full design contest, whichever fits your budget and timeline.
Design your logo
Website builders
AI website builders with drag-and-drop editing turn a simple prompt into a live, mobile-ready brand site in minutes - no developer required.
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Professional email
you@yourbrand.com on enterprise-grade email, set up the moment you own the domain. Calendar, drive and meetings included.
Set up emailFrequently Asked Questions
For a standard single-member or simple multi-member LLC, no. A formation service is enough. For C-Corps, complex ownership splits, or anything involving investor stock, a startup lawyer (1 to 3k USD flat fee) is worth it.
Online filings in fast states (Delaware, Wyoming, Florida) can be approved in 1 to 3 business days. Slow states (California, New York) can take 2 to 6 weeks. Expedited options are usually available for an extra fee.
Yes. Non-residents can own and form LLCs in every US state. The main extra step is getting an EIN as a non-resident (you cannot do it online and need to file Form SS-4 by fax or mail). Several formation services specialize in non-resident filings.
You can convert from LLC to C-Corp later (statutory conversion or merger) when you are ready to raise. There is paperwork and some tax considerations, but it is routine. Do not over-engineer the structure upfront.
Probably yes, at the city or county level - separate from forming the entity. Requirements vary by location and industry. Your formation service can usually generate a license-research report for an extra fee, or you can check your city website directly.
A DBA lets your LLC operate under a different brand name. Useful if you run multiple brands under one entity. Filed at the state or county level for 10 to 100 USD.
State filing fees range from 50 USD (Kentucky, Arkansas, Mississippi) to 500 USD (Massachusetts) for a single filing. Add 0 to 300 USD if you use a formation service. Then 0 to 800 USD per year in ongoing fees (California has an 800 USD annual franchise tax; many states are under 100 USD). For most founders, the all-in first-year cost is 150 to 500 USD.
Your home state, almost always. Delaware only makes sense if you are raising venture capital or have a specific legal-structure reason. Wyoming makes sense if you specifically need privacy or are a non-resident with no US operating state. For everyone else, forming outside your home state adds a foreign-qualification filing plus duplicate fees with zero benefit.
Legally, in most states, yes - if you are physically present at that address during business hours. Practically, no. Your address goes on the public state record forever, you will get junk mail from filing-renewal scams, and a process server can show up at your door. A 50 to 150 USD per year registered-agent service is one of the cheapest upgrades in this whole process.
Not required by most states, but write one anyway. It is the document that proves your LLC is a separate entity from you personally, which strengthens your liability shield if challenged in court. A two-page template is enough. Most formation services include one.
Got your name? Form the entity in under an hour.
The partners below file in every US state, include registered agent service, and handle EIN, annual compliance and operating-agreement templates. Pick the one that fits your stage.