Need the ordered path first? Use the Start-to-First-Hire Navigator to see the current official action before comparing optional help.
Direct filing is usually the cleaner choice when
- You understand the structure you intend to form.
- Ownership and management are simple.
- You are comfortable using the official state portal.
- You can calendar recurring reports, fees, and taxes.
- You will separately verify licensing, banking, insurance, and employer requirements.
A formation service may be useful when
- You value guided data entry and filing-status tracking.
- You want a commercial registered-agent option where permitted.
- You want standard templates and a centralized document account.
- You are willing to pay for reminders or administrative convenience.
Decide whether you can be your own registered agent before treating a service as necessary →
Explore LegalZoom’s formation options →
Affiliate disclosure: Business Launch Index may earn a commission if you complete a qualifying action after using this link. Compensation does not change our government-source guidance or make this service necessary. Read our full disclosure.
Stop and seek qualified advice when
- There are multiple owners, investors, vesting, equity, or control questions.
- You are choosing between materially different tax treatments.
- Intellectual property, professional licensing, regulated activity, or unusual liability is involved.
- You are forming in one state while operating, hiring, or living in another.
- You are moving an existing business, changing structure, or transferring assets.
Compare the full cost—not the headline
| Cost layer | Direct filing | Formation service |
|---|---|---|
| Government filing fee | Paid to the state | Usually passed through in addition to service fee |
| Service fee | None | One-time or package fee |
| Registered agent | Self or eligible person/entity, depending on state rules | Often bundled for an initial period, then renews |
| Recurring compliance | Owner maintains calendar | May be a paid subscription or renewal |
| EIN | Free through the IRS when eligible | May be included or upsold |
| Advice | Not provided by the filing portal | Often limited; verify whether legal or tax advice is actually included |
California example
California’s Secretary of State provides the bizfile portal for entity filings and records. For 2026, California LLCs generally face the $800 annual LLC tax in addition to formation-related fees. A formation service does not eliminate that state obligation.
Our recommendation standard
When partner links are added, the direct government route will remain visible first. We will compare the service’s published price, renewal terms, included work, exclusions, cancellation path, and attribution relationship. A larger commission will not convert an optional service into a requirement.