How to choose a company formation service for a US LLC or corporation

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A company formation service files the paperwork to create your US LLC or corporation, acts as your registered agent, and often helps with the EIN, operating documents, a mailing address, banking introductions and yearly compliance. For founders outside the United States, a good service turns a confusing process into a few online forms; a poor one leaves you with hidden fees, slow support and missed deadlines. This guide explains what formation services do, how their pricing works, and how to choose the right one for your situation.

What a formation service does

At its core, a formation service prepares and files your company's formation documents with the state: articles of organisation for an LLC, or a certificate of incorporation for a corporation. Most also act as your registered agent in the state of formation. Beyond that, services offer a range of extras:

• Applying for an Employer Identification Number (EIN), including for founders without an SSN.
• Operating agreement or bylaws and initial resolutions.
• A US mailing address with mail scanning.
• Introductions to banks and payment processors.
• Annual report filing and compliance reminders.
• Bookkeeping and tax filing, including Form 5472 for foreign-owned LLCs.
• Startup-specific setup such as founder stock, vesting and option plans for corporations.

Do you need one?

You can form a company yourself by filing directly with the state online, which costs only the state fee. If you live in the state and can be your own registered agent, and you are comfortable with forms, doing it yourself is cheap and straightforward.

A service is most useful if you live outside the US and need a registered agent, an EIN without an SSN, a US address and banking help; if you are forming a corporation with founder stock and investors in mind; or if you want someone to track annual compliance. For non-US founders, the time saved and mistakes avoided usually justify the cost.

Types of formation services

• Registered agent-led services, such as Northwest, focus on formation and registered agent service at competitive prices, with optional extras.
• Services for international founders, such as Doola and Firstbase, package formation, EIN, address, banking help and compliance for people outside the US.
• Startup-focused services, such as Stripe Atlas and Clerky, specialise in Delaware C corporations with standard startup documents for founders who plan to raise funding.

Compare them in the company formation ranking and on comparison pages: Northwest vs Doola, Stripe Atlas vs Doola, Doola vs Firstbase, Stripe Atlas vs Firstbase and Stripe Atlas vs Clerky.

How pricing works

Prices typically combine three parts: the service fee for formation, the state filing fee, which varies by state and is sometimes included and sometimes added at checkout, and annual fees for registered agent service and other ongoing features. Entry prices can look low while essential features, such as an EIN for non-US founders or a mailing address, cost extra.

Current entry prices from the providers' own pages:

Prices from vendor websites, checked 2026-10-12; they update automatically.

Northwest From USD 49 + state fee, Doola From USD 297 per year + state fees, Stripe Atlas From USD 500 one-time, Firstbase From USD 99 one-time + state fee, Clerky From USD 427 one-time.

Calculate the total first-year and yearly cost

To compare fairly, add up what you will actually pay:

1. Service fee for formation.
2. State filing fee for your chosen state, from our LLC cost by state table.
3. EIN service if you do not have an SSN.
4. Registered agent fee, and when renewal starts.
5. Mailing address if you need one.
6. Annual compliance or tax filing package if you want it.
7. State annual fees in later years.

Our LLC cost calculator helps estimate first-year and ongoing costs by state.

Support for non-US founders

If you live outside the US, check that the service accepts customers from your country and supports the specific needs of international founders:

• EIN application without an SSN, and how long it typically takes.
• A US address that banks and processors accept.
• Banking partners that open accounts for non-US founders remotely.
• Help with Form 5472 and the pro forma 1120 each year; see Form 5472 for foreign-owned LLCs.
• Support hours that overlap with your time zone.

See how to form a US LLC from abroad for the full process.

State coverage

Some services form companies in all fifty states; others only in Delaware and Wyoming, or only in Delaware for corporations. If you have a reason to form in a specific state, such as living there, check coverage. For founders abroad choosing between the two most popular states, see Delaware vs Wyoming LLC and the Delaware and Wyoming pages.

LLC or corporation

Make sure the service supports the entity type you need. Startup-focused services produce Delaware C corporations with founder stock purchase agreements, vesting, and board consents; general services focus on LLCs and may offer corporations with simpler documents. If you plan to raise venture funding, choose a service experienced with startup corporations. See LLC vs C corp for founders abroad.

Registered agent quality

Since the service will likely be your registered agent, check how it handles legal documents and state mail: how quickly documents are scanned, how you are notified, and whether there are extra charges for forwarding. A missed lawsuit notice can be very costly. See what a registered agent is.

Compliance and tax packages

Many services sell annual compliance packages: annual report filing, reminders, and sometimes bookkeeping and tax returns. For founders abroad, a package that includes Form 5472 can prevent large penalties. Compare what is included with the cost of hiring an accountant directly. A good package is valuable; an expensive bundle of things you will not use is not.

Privacy and data

Formation services handle sensitive data: identity documents, addresses, tax numbers. Check how they store and protect it, and whether they offer privacy features such as acting as organiser so your name does not appear on formation documents where state rules allow. Protect your account with strong passwords and two-factor authentication.

Reading reviews

Look for recent reviews from founders like you, especially regarding EIN timelines, support responsiveness and renewal charges. Complaints about unexpected renewal fees, slow EIN processing or difficulty cancelling are common warning signs. Our methodology explains how we evaluate providers, and the ranking summarises strengths and weaknesses.

Red flags

• State fees hidden until checkout.
• Automatic renewal of expensive add-ons without clear notice.
• Claims of "guaranteed" bank accounts; banks make their own decisions.
• Vague timelines for EIN applications.
• No clear way to cancel or change registered agent.
• Pressure to buy bundles you do not need.

Example: choosing as a freelancer abroad

A freelance developer in the Philippines wants a Wyoming LLC to invoice US clients. She compares three services, adding up the formation fee, state fee, EIN service, registered agent renewal and Form 5472 help. One has the lowest headline price but charges extra for the EIN and address; another includes both and offers an annual compliance package at a reasonable price. She chooses the second, since its total over two years is lower and it covers her main risk, missing Form 5472.

Example: choosing as a startup

Two founders planning to apply to US accelerators choose a startup-focused service that forms Delaware C corporations with standard founder documents, vesting and an option plan, and integrates with banking and cap table tools. The price is higher than a basic LLC service, but it avoids legal work they would otherwise need before fundraising.

After formation: next steps

1. Get your EIN, if not included.
2. Sign your operating agreement or corporate documents.
3. Open a business bank account; see opening a US business bank account from abroad.
4. Set up accounting software and keep business and personal money separate.
5. Put state and federal deadlines in your calendar.
6. Set up payment processing for clients.

Common mistakes

• Comparing headline prices without state fees and add-ons.
• Choosing a service that does not support your entity type or state.
• Forgetting registered agent renewal costs from year two.
• Assuming the service will handle tax filings when it does not.
• Paying for compliance bundles you do not need.
• Ignoring support hours and time zones.

What to prepare before you order

Having information ready makes formation quick. Prepare your chosen company name and a backup, since your first choice may be taken; check availability on the state's business search. Decide the state and entity type. Prepare full legal names and addresses of all owners and their ownership percentages, identity documents, and a short description of the business. Decide who will manage the company: for an LLC, member-managed or manager-managed. If you are using a business name generator for ideas, our business name generator can help, and how to choose a domain name covers securing a matching web address.

How long formation takes

State processing times vary from same-day to a few weeks, and many states offer expedited processing for an extra fee. Delaware and Wyoming are usually quick. The EIN can be the slowest step for founders without an SSN, since applications are processed by fax or mail and can take from a few days to several weeks depending on IRS workload. Banking follows once you have the EIN. Plan for a few weeks in total before you can take payments as the new company, and ask each service for realistic timelines rather than best cases.

Mailing address services

Many founders abroad need a US address for business mail, bank statements and correspondence. Formation services often offer a virtual mailing address with scanning, separate from the registered agent address. Before paying, ask whether banks and payment processors accept it as a business address; some reject addresses known to be virtual. A good mailing address service scans envelopes promptly, lets you request content scans, and forwards or shreds mail on request.

Switching formation services later

If you are unhappy with your service, you can usually change registered agent and move compliance tasks to another provider or an accountant. File a change of registered agent with the state, make sure the new agent is in place before cancelling the old one, update your mailing address with banks and the IRS if it changes, and download all documents from the old provider's dashboard. Check the old service's cancellation terms to avoid an automatic renewal charge.

Formation services and banking

Many services partner with fintech banks and payment providers that accept non-US founders, and can speed up applications by passing on verified documents. Remember that banks make their own decisions and may ask for more information about your business, customers and source of funds. Compare banks in the business accounts ranking, such as Mercury vs Wise Business, and read how to open a US business bank account from abroad.

Questions