Carolyn Young has over 25 years of experience in business in various roles, including bank management, marketing management, and business education.
Published on August 16, 2022 Updated on January 28, 2023
If you’re starting an LLC, the business entity formation process is one of the first and most important hurdles. This step can be terribly complex and time-consuming, which is why many entrepreneurs turn to professional formation services.
But which are the best LLC formation services in Alabama? This article takes a closer look, stepping into an entrepreneur’s shoes, to help you choose the service that puts you on the road to success.
Why Use a Business Formation Service for your LLC in Alabama?
A business formation service handles the business formation process for you, making it nearly seamless while offering additional services that can make life easier for a new business owner. Whether you’re forming a limited liability company (LLC) or a corporation, a business formation service takes care of all the red tape, freeing you up to focus on growing your business.
What to Look for When Purchasing an LLC Service in Alabama?
With so many business formation services to choose from, it can be difficult to decide which is best for you. There are four essential elements that can help you make your decision.
Features
Each service offers various products, some more than others, and their plans are all designed differently. You may need some products but not others, so you need to choose a service that has everything you need.
For example, some services offer annual report filing, while others do not. If it’s important to you to have that task off your plate, you’ll want a service that offers that feature.
Another feature you might need is a digital dashboard where you can always access your business formation documents. You’ll want to choose a service that has everything you need to make starting and running your business as easy as possible.
Customer Service and Reviews
One good way to learn about the quality of anything you’re buying is to listen to what people are saying about it. When we review services we look at Better Business Bureau ratings and reviews, as well as TrustPilot reviews. You should look at both positive and negative reviews to find out what people love about the service and issues customers have encountered.
Remember that fake reviews are common, so you’ll have to take some of the reviews with a grain of salt.
Pricing
Of course, you’ll want to get the best value for your money!
Compare the cost of each service for everything you need. The price can really add up when you start adding extras, so be careful not to go too far. You also want to get good value and great customer service, so if you’re considering the cheapest service, check the reviews to see how people felt about it.
Turnaround time
Business formation turnaround times vary with each service, so if you’re in a hurry to get your business up and running, you’ll want to look for the quickest service. You don’t want your order to sit in an office for too long before your paperwork gets filed with the state. Some services differentiate themselves with fast turnaround times, so if they also offer good value, that might be your best choice.
Here we summarize our top four picks of business formation services in Alabama.
Best LLC Formation Services in Alabama
Legal Zoom
4.2/5
LegalZoom offers a wide variety of legal services as well as business formation services, and they’ve been in business more than 20 years.
Incfile offers three business formation packages and their base package, the Silver Package, is free and includes free registered agent services for one year.
With a Rocket Lawyer membership, you can form your business for free and get documents such as an operating agreement, for which other services charge a fee.
LegalZoom is a great one-stop shop for legal services, including LLC formation. They are a bit more expensive than some competitors but offer an overall good value.
LegalZoom offers a host of business documents that most competitors do not, which we think is their differentiator. They’ve been in business for 20 years, which is also a plus.
They also offer trademark and copyright services, unlike most competitors, which can be very valuable for entrepreneurs.
Pricing and features
The $79 Economy Plan includes a business name availability search through Alabama’s state database and the business formation service, with full customer support. It also offers a few extras, including a digital welcome packet and a business newsletter. You’ll also have access to your formation documents online at any time. With state fees, the total cost of this plan is $279.
The $329 Standard Plan includes all the services in the Starter Plan plus a founder’s kit, personalized business embosser, and membership certificates. With state fees, the total cost is $529.
The $349 Express Gold Plan includes all of the services listed above plus expedited filing and express document shipping, making it a better value than the Standard Plan. With the state fees, the cost is $549. An additional state fee for expedited filing will apply.
Note that state filing fees still apply with all these plans.
Pros and Cons
Pros
The Economy Plan offers good value
Reliable customer service
Quick and easy purchase process
Mostly positive reviews
Cons
Some information is difficult to find on the site
Some a la carte services and packages are not good value
Some customers claim delivery issues
Cancellation can be a lengthy and difficult process
Overall, LegalZoom is a reliable service that has been around for a while. If you need a one-stop shop for legal and business services, they are probably your best bet. Their Economy Plan in particular is a good value compared to some competitors, and they also offer great customer service and a user-friendly website. We highly recommend LegalZoom.
The BizFilings Basic Plan offers good value, since they offer a few extras with the plan, including registered agent services for six months. You can purchase extra services with all their plans, including an operating agreement and other forms, and a business license research package.
They don’t offer as many services as some competitors, but if you’re just interested in forming your business, they are a good option.
Pricing and features
The $99 Basic Plan, for a total with state fees of $299 in Alabama, includes a business name availability search and the business formation service, as well as registered agent services for six months, which is something some competitors do not offer. It also offers a 24/7 business monitoring tool, and a library of common business documents.
The $229 Standard Plan includes all the services included in the Basic Plan with the addition of an LLC kit and seal, an operating agreement and other form templates, and expedited processing. In Alabama, the cost with state fees is $429. A state fee for expedited filing will apply.
The $359 Complete Plan includes everything in the Standard Plan with several added benefits:
EIN number
Compliance DVD
Certified copies of LLC documents (state fees apply)
Overnight shipping
The cost with state fees is $559.
Pros and Cons
Pros
All plans offer fair value for the price
Quick and easy purchase process
Good rating with the Better Business Bureau
Good website usability
Cons
Some a la carte services are not good value
Some customers had issues cancelling recurring services
Only one customer review exists — difficult to fully evaluate
Most of the BizFilings plans and services offer good value. Their site is easy to use, and they offer a great customer service experience. They don’t offer as many services as some competitors, but if you’re just looking for a business formation service, they are a good option. If you’re looking for more services, LegalZoom might be a better choice.
Unlike most other LLC formation services, Rocket Lawyer does not offer packages of services, just a la carte service options. They also offer a $39.99 per month subscription service on their site with which you can get legal services, documents, and advice. The subscription has a seven-day free trial.
Pricing and features
With a $39.99 per month Rocket Lawyer subscription, the business formation service comes with no fee, except for the $200 Alabama state fee, and you can get a 25% discount on registered agent services. The subscription gives you access to a host of business document templates, including an operating agreement.
Without a subscription, the business formation service costs $99 plus the $200 Alabama filing fee. You can also purchase other services, including expedited business filing for $100 and an EIN for $59.
Pros and Cons
Pros
Quick and easy purchase process
Good rating with the Better Business Bureau
Membership offers good value if you need legal help
Rocket Lawyer is a unique option, not offering packages of business formation services, but rather a subscription service that allows you to form your business for free and get access to a host of business form templates. We feel that the best value they offer is their subscription membership, which offers robust assistance for any legal concerns.
Incfile offers three business formation packages: Silver, Gold, and Platinum. The Silver Package is free and includes free registered agent services for one year. Incfile also gives customers access to an online dashboard and unlimited phone and email support.
Pricing and features
The free Silver Package includes the preparation and filing of the articles of organization and unlimited name searches. It also includes free registered agent services for a year, making it a great value for only the $200 Alabama filing fee.
The $149 Gold Package offers the added services of an operating agreement, business tax consultation, and lifetime company alerts. It has a few other benefits as well, so it’s an overall good value with a total cost of $349.
The $299 Platinum Package, with a total of $499 including the state fee, has the additional benefit of expedited filing as well as domain name and business filing. You’ll also receive access to business contract templates. However, if you have either the Silver or Gold package, you can gain access to the entire document library for $150.
Incfile also offers a number of a la carte services. For a fee, Incfile can handle tasks like filing your annual report and changing your registered agent.
Pros and Cons
Pros
Affordable, with a free plan that includes all the basics
Most services have a one-time fee vs. annual
Plans include free registered agent services for at least a year
Access to an online dashboard for paid plans
Unlimited phone and email support
Cons
Customer service may be less responsive than some competitors
Limited legal services available
Limited customer support hours, no weekend availability
Incfile is great for entrepreneurs on a budget, as their Silver Package covers the basics and includes a free year of their registered agent service. Competitors like LegalZoom and Swyft Filings have a more robust suite of services, but can be more expensive.
As an entrepreneurial advisory site, we take our responsibilities seriously. We understand that countless entrepreneurs, and potential entrepreneurs, rely on our judgments and insights, particularly when it comes to creating their business.
As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In nearly every case, we:
Examined every page of the service’s website
Reviewed all of their offerings, from a la carte products to packages
Put ourselves in the customer’s shoes, creating an account
Communicated with customer service via chat, email and phone
Gained a full understanding of the customer experience and service value
Thanks to this full immersion in the actual customer experience, our reviewers are able to provide the most complete and insightful analysis of various LLC formation services.
FAQs
Why should I use LegalZoom?
Overall, LegalZoom is a reliable service that has been around for a while. If you need a one-stop shop for legal and business services, they are probably your best bet.
What’s good about Rocket Lawyer?
Rocket Lawyer is a unique option, not offering packages of business formation services, but a subscription service that allows you to form your business for free and get access to a host of business form templates.
Is IncFile a good business formation service?
Incfile is great for entrepreneurs on a budget, as their Silver Package covers the basics and includes a free year of their registered agent service. Competitors like LegalZoom and Swyft Filings have a more robust suite of services, but can be more expensive.
Should I choose BizFilings for my business formation?
Most of the BizFilings plans and services are good value. Their site is easy to use, and they offer a great customer service experience. They don’t offer as many services as some competitors, but if you’re just looking for a business formation service, they are a good option.
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