Company Formation Services Ratings Methodology

Here at Forbes Advisor, we evaluate company formation services via a multi-pronged approach, including extensive product research, hands-on usage and the impressions of actual customers. It is worth noting that some systems carry different ratings across articles. Many company formation products cover multiple categories, and therefore we judge them differently. An example of this would be a product such as LegalZoom receiving different scores for its limited liability company (LLC) formation and registered agent capabilities, although many of its packages offer both.

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The Forbes Advisor Small Business team works tirelessly to examine new products and apply their expertise to give readers clear, concise and useful information. With our team’s combined experience and editorial independence, we strive to give our audience the best information on leading products and services.

To determine the best company formation services, we research a wide range of providers in the space and narrow it down to a select top few for our best-of guides. We analyze those across primary categories with more than a dozen metrics in each space. We then weigh the criteria to favor aspects that matter most to small businesses.

	Value When looking at company formation services, key metrics on value include any startup and renewal fees for services. We also look at any other fees or add-ons from all services. Ideally, a company formation service only charges state filing fees for an LLC and offers other paid services to complement new entrepreneurs. Registered agent pricing can vary based on state laws and regulations as well as what the provider offers   Why it’s important to consumers: All told, new business owners could file their own LLC or registered agent themselves with enough knowledge of their state’s processes and regulations. The value that company formation services bring is taking the legal guesswork out of the equation and taking care of the filing. These platforms also tend to make money by offering additional services such as business document templates and even hands-on guidance from experts. To ensure these vendors are worth the expense over filing directly with states, we consider pricing important when evaluating a company formation service.
	General Features Company formation services mostly offer a uniform set of features; they allow users to file legal paperwork in compliance with their local laws and regulations. What differentiates services tends to be in the extras they offer. While it is typically possible to stick plans to basics such as LLCs and registered agents, many providers offer additional services including ready-made document templates, operating agreements and guidance on planning and strategy. In some cases, vendors even offer additional features such as web hosting and financial tools. We factor in all of these features when deciding on a product score.   Why it’s important to customers: Some customers will only want their LLC or registered agent when they get started with a company formation service. Others will want a full range of features that help them in different aspects of growing their business. We aim to empathize with both types of customers when we evaluate our scoring for features.
	Service and Support When evaluating service and support scores, we look at every support channel companies offer. We also look at the overall availability of support channels via phone or chat. Most services offer limited phone support hours, but some can be reached 24/7.   Why it’s important to customers: Getting help whenever one needs it is crucial when trusting a company with critical legal documents. We weigh those with a wide range of channels and availability higher than those without.
	Expert Scores Our expert score section allows us to apply our expertise and subjective views on the product based on our experience in the space. We look at factors including ease of use, overall value for the money and the company’s popularity within the industry.    Why it’s important to customers: Our team carefully considers each platform to help guide readers to the best purchasing decision for their needs. It is our way of leveraging our experience working with products in the space.

Forbes Advisor Small Business customizes methodologies to best reflect the unique aspects of each product category. This helps readers make the best buying decisions for their needs for each individual category.

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