Business Formation Services
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What Are Business Formation Services?
Business formation services assist you in incorporating your business. They help choose what structure best suits your business. They also help ensure the newly established business is legally compliant and starts in a good economic state.
Whether you’re a sole proprietor, an S Corp, a C Corp, a partnership, or an LLC, business formation services will ensure that your needs are met.
Here is an article that describes business formation services.
What Do Business Formation Services Include?
Business formation services can do diverse tasks to expedite the business formation process. Here are some of the tasks that they’ll take off your plate:
- Filing and organizing your business incorporation paperwork. This may include your business formation certificate and Employer Identification Number (EIN).
- Filing your identity verification and other documents for due diligence.
- Ensuring all formation documents are error-free.
- Securing your Certificate of Good Standing and Tax Residence Certificates.
- Checking for required fees and other additional payments.
- Setting you up with registered agents to respond to requests for government fees, taxes, and legal responsibilities.
- Finding and choosing available business names.
- Guiding you through choosing the right business structure.
Here is an article on business formation services.
4 Types of Company Formation
There are four main structures in which you can establish a business: sole proprietorships, partnerships, corporations, and LLCs.
Sole Proprietorship
In sole proprietorships, you make all business decisions and are in complete control. However, you are also entirely liable for all issues incurred in the business.
Your business and personal assets are similar, so they are similarly put at risk when things go south. Moreover, you are the one to pay taxes for the revenue that your business earns personally. This is called a “ pass-through entity ” taxation system.
Partnerships
In a general partnership, two or more individuals join forces to provide the capital and operating needs for the business.
Two types of partners can participate. General partners are the ones who make all the business decisions. They have “personal liability”, meaning they risk their assets if the partnership gets sued or incurs debt.
Limited partners, on the other hand, do not make decisions for the business. Their responsibility is merely to provide capital for the business. They do not have personal liability, so all their assets are protected if problems arise.
Regarding taxation, partners are each taxed on the individual revenue they earn in the business.
Corporation
A corporation is owned and controlled by shareholders to turn a profit (excluding non-profit corporations). However, it is considered a legal entity separate from its owners. Because of this, the business will be taxed as a separate entity.
However, there is double taxation in corporations. This means the corporation will be taxed for its profits, and the shareholders will be personally taxed for their shares.
Corporations have “limited liability”. Therefore, any liability incurred in the business will be paid for by the corporation’s assets and not by the shareholders.
Limited Liability Company (LLC)
Multiple “members own a limited liability company”. These members are not liable for other members’ problems in the business, and their assets remain protected. LLCs also have pass-through taxation so that each member will be personally taxed for their respective profits in the business.
Here is an article to read more on the 4 types of company formation.
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Is LLC Formation the Best Option?
LLC formation is one of the most common business structures in the US. This is not surprising because LLCs combine the best qualities of sole proprietorships, partnerships, and corporations. Here are the notable advantages of LLCs:
- Like sole proprietorships, LLCs are relatively easy to form as they do not require much paperwork or complex board structures.
- Similar to corporations, LLCs offer liability protection to their members, so they won’t have to risk their assets in case of bankruptcy.
- LLCs are taxed like partnerships so that profits can go directly to each individual member. Therefore, there is no double taxation like in corporations. This means that the LLC will not be taxed as a separate entity, and only its individual members will be taxed.
- LLCs rules are also highly flexible. Their flexibility mostly comes from the fact that their governing rules are not as strict as those of corporations. As a result, their operating agreement can be modified anytime should their structure need changes.
- LLCs have management flexibility. Their members are the ones to do the dailies. There is no need for a board of directors with regular meetings. Recording of financial transactions is not subject to as strict requirements.
However, LLCs are not without their disadvantages.
- Some states disallow groups from the professional sector (lawyers, doctors, engineers, accountants, etc.) to form an LLC.
- LLCs ownerships are more complex to transfer than corporations. Unlike corporations, where they simply sell stock to new shareholders, all members in an LLC must agree before a new member can enter.
- Unlike corporations, LLCs cannot exist as a sole entity. This is highly relevant in single-member LLCs, where the LLC will be dissolved if the member dies or becomes bankrupt.
Here is an article to consider whether an LLC is the proper business structure for you.
What Does a Business Formation Attorney Do?
A business formation attorney helps you with the critical aspects of starting a business. Here are some of the things they do:
- Outline information on taxes, regulation fees, and business liabilities for your understanding
- Draft legal documents needed like bylaws, agreements, and registrations
- Obtain required licenses and permits to incorporate your business
- Check available entity names for you to choose from
- Deal with the task of registering your chosen business name
Here is an article outlining what a business formation attorney does.
Should I Hire a Lawyer for Business Formation?
You should hire a business formation attorney to get your business approved faster. These lawyers are up to date with current business laws and regulations in the state and federal government. Their expert guidance in business formation will minimize errors that will cause you to get rejected.
The cost of a business formation attorney outweighs the benefits you save by helping you focus on your business. At ContractsCounsel, we can connect you with the business formation attorney required to meet your needs.
Here is an article on whether you should hire a lawyer for business formation.
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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
How To Get Quotes For Business Formation Services
Meet some of our Business Formation Services Lawyers
Bruce B.
Bruce Burk practice is in the area of small business, labor and employment, contracts, real estate and civil litigation. Bruce has litigated over 40 trials as well as many appeals. He prioritizes client communication and satisfaction as well as delivering high quality work product.
"Attorney Bruce was excellent to work with. Very fast with his responses and answered all my questions."
Cory B.
Attorney Cory Barack specializes in business, real estate, probate, and energy law. He can help you with oil/gas leases, easements, property sales, drafting contracts and wills, setting up companies, and resolving disputes. He is licensed to practice law in Ohio and is located in Eastern Ohio.
Matthew H.
We are a boutique firm located in San Diego that handles civil litigation with a couple other areas of law.
"Matthew was absolutely excellent to work with. He responded to our project request immediately, was always available via text, phone, or email to answer any questions, and handled our demand letter quickly and efficiently. We got a response same-day as a result of Matthew's demand letter, and we had a check in our hands within a few short weeks of hiring him. He even offered to handle a few additional things, like negotiations and document signing, and finalizing the settlement. Would highly recommend Matthew for your legal needs!"
Elizabeth W.
Liz is an experienced insurance professional, having worked with carriers and brokers for over 10 years. She can review or draft a variety of commercial agreements and is here to help your business. Specialties include: Master Service Agreements, business process outsourcing, marketing and partnership agreements, broker agreements, business associate agreements, and NDAs.
"Liz was very responsive, eager to do a good job, and a pleasure to work with."
Daehoon P.
Daehoon P.
Corporate, M&A & Securities Lawyer | Managing Attorney, DP Counsel PLLC Practice Areas: Business Formation | Commercial Contracts | Contract Drafting & Review | Mergers & Acquisitions | Venture Capital | Securities Offerings | Franchise Law | Employment & Equity Compensation | Intellectual Property | Cross-Border Transactions About/Bio: I represent companies, investors, and fund sponsors in corporate transactions, commercial contracting, and private securities matters, from entity formation and early-stage financings to acquisitions, exits, and ongoing strategic counsel. As Managing Attorney of DP Counsel PLLC, I help clients structure transactions clearly, allocate risk thoughtfully, and move deals forward with documentation that is practical, enforceable, and aligned with business objectives. My practice includes both day-to-day commercial matters and more complex transactional work, including venture financings, private offerings, M&A deals, fund-related documents, and cross-border structuring. What I Do: Corporate & Commercial • Entity formation and structuring for corporations, LLCs, and limited partnerships • Operating agreements, shareholder agreements, and governance documents • Commercial contract drafting, review, and negotiation • Vendor, distribution, manufacturing, SaaS, and licensing agreements • Employment, consulting, confidentiality, and equity compensation agreements • Outside general counsel support for growing companies Securities & Private Capital • Private offerings under Regulation D and Regulation S • Private placement memoranda, subscription agreements, and investor documents • SAFE, convertible note, and priced equity financings • Venture capital and private fund formation matters • Fund governing documents and offering document packages • Securities law analysis for private capital raising transactions Mergers & Acquisitions • Letters of intent and term sheets • Stock purchase, asset purchase, and merger agreements • Due diligence coordination and transaction support • Disclosure schedules, closing documents, and post-closing matters • Earnouts, rollover equity, indemnity structures, and related deal terms • HSR, CFIUS, and related regulatory issue spotting for qualifying transactions Digital Assets & Emerging Technologies • Federal-law digital asset and token securities analysis • Entity structuring for blockchain and Web3 ventures • Digital asset fund and operating structures • AML/KYC documentation support and regulatory issue spotting Franchising • Franchise Disclosure Documents (FDDs) • Franchise agreements • Master franchise and area development agreements • Franchise structuring and registration coordination Real Estate Transactions • Commercial real estate acquisitions and dispositions • Real estate joint ventures and syndications • Commercial lease drafting and negotiation • Real estate investment structures and related offering documents Cross-Border & International • U.S. market entry and entity structuring for international clients • Delaware and multi-entity holding structures • Cross-border transaction planning and documentation • Coordination with foreign counsel and tax advisors on cross-border matters Why Clients Hire Me: • Big-law-level drafting with boutique responsiveness • Practical, business-focused advice grounded in execution reality • Clear scoping and transparent fee arrangements • Experience across financings, acquisitions, fund formations, and cross-border transactions Typical Projects: • Contract drafting and negotiation • Entity formation and governance packages • Private offering document suites • Venture financing documentation • M&A transactions from LOI through closing • Fractional or outside general counsel support Industries Technology | SaaS | FinTech | Digital Assets | E-commerce | Healthcare | Real Estate | Food & Beverage | Professional Services
"Thanks Daehoon for going above and beyond and helping me with a lot of detailed information regarding signing multiple contracts. I was very happy with the outcome. Best"
January 24, 2022
Peter W. Y.
Perceptive, solution-driven counselor and experienced attorney. Record of successful verdicts, settlements, negotiations, arbitrations, mediations, and deals. Effective claims management, litigation strategy, and risk consulting. Proven ability to oversee litigation teams, communicate to stakeholders, manage multiple projects effectively, and expand business relationships. Extensive experience handling legal issues in engineering and construction, environmental litigation, corporate and contractual, and insurance issues.
January 24, 2022
Cameron S.
A commercial contracts lawyer with over 25 years of experience (both at large law firms and in-house as general counsel of a public company)
December 4, 2021
Brittany B.
Brittany advises startups and emerging and public companies at all stages of growth, with focuses on formation and corporate governance matters, securities, venture capital financings, M&A and other strategic transactions, commercial contracts and general corporate counseling. Brittany represents clients across a broad spectrum of industries, including technology, automotive, mobility, digital health, consumer products and manufacturing.
December 5, 2021
james a.
Mr. Allen is a seasoned trial and appellate attorney known for his precision, clarity, and results-driven legal writing. With experience handling everything from personal injury to family and criminal law — including service as an assistant public defender — he brings practical insight to every document he drafts. His passion for legal research and writing drives his work on persuasive, court-ready materials, including demand letters, service agreements, and independent contractor contracts. Mr. Allen understands the real-world impact of legal documents and balances legal strength with practical usability. Based in Alabama and licensed to practice law, he brings both legal insight and real-world judgment to every project he takes on.
December 6, 2021
Emily Y.
I am available to advise on entity formation, contracts, and employment policies. I am also comfortable litigating business disputes including partnership disputes and employment cases. Prior to opening my current practice, I worked for several years in a small civil litigation practice focused on employment matters and civil litigation. I attended law school at the University of Colorado, and I went to the University of British Columbia for my undergraduate education.
December 13, 2021
Philip M.
I have been a freelance attorney for several years and have many of my clients returning to me for continued work because of the quality I produce.
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