📅 2026 Update: Important Changes for LLCs and Corporations

Since the original article was written, there have been significant updates in U.S. business law. Key changes include new exemptions under the Corporate Transparency Act and updates to filing fees and processing times for forming LLCs and corporations. Readers can find more details about the article's main topic further down the page.

🏢 Corporate Transparency Act Exemptions

On March 26, 2025, the Financial Crimes Enforcement Network (FinCEN) announced important changes to the Corporate Transparency Act. Now, only foreign-formed entities registered to do business in the U.S. need to file beneficial ownership reports. This exempts all U.S.-formed companies and U.S. persons from these requirements.

💰 Current Filing Fees

State filing fees for articles of incorporation have stayed consistent. They generally range from $50 to $300. Costs can differ depending on the state and sometimes on the number of authorized shares.

For forming an LLC, fees typically range from $40 to $500.

⏳ Processing Times

Standard processing times for business filings can vary widely. They generally range from a few business days to several weeks, depending on the state and the volume of filings. Many states now offer expedited processing options, with times ranging from same-day service to just a few business days.

📝 Steps to Form an LLC

To form an LLC, you need to complete several steps. First, choose a compliant business name. Then appoint a registered agent, file articles of organization with your state, draft an operating agreement, and apply for a federal Employer Identification Number (EIN).

📌 Key Points Summary

  • 🏢 Only foreign-formed entities must report under the Corporate Transparency Act.
  • 💰 Articles of incorporation fees range from $50 to $300.
  • ⏳ Processing times for filings can take from a few days to several weeks.
  • 📝 To form an LLC, ensure you follow the required steps, including filing necessary documents.

💡 Tips for Starting Your Business Structure

Reviewing your specific situation with an attorney can help clarify your business structure needs.

🏗️ Understand Business Structures

Choose between an LLC and a corporation based on your business needs. Each structure offers different tax benefits and legal protections.

📝 Keep Your Name Compliant

Ensure your LLC name includes a legal designator, such as “LLC” or “Limited Liability Company.” This is required in every state to clearly indicate your business structure.

📄 File Necessary Documents

Filing articles of organization is crucial for LLC formation. This document officially establishes your business in the state where you operate.

⏳ Consider Expedited Processing

If you're in a hurry, check if your state offers expedited processing. This can significantly reduce the time it takes to receive approval for your filings.

🆓 Explore Free Resources

Utilize free resources from the Small Business Administration (SBA) and SCORE for guidance. They offer valuable information on starting and managing your business.

🏆 Business Formation Services Ranked by User Reviews (2026)

Various services can assist with business formation and compliance. These include options for registered agent services, legal document creation, and more. The following rankings are based on Trustpilot data as of October 2026.

Remember that ratings can change over time as new reviews come in, and unhappy customers tend to leave more feedback.

🥇 1. Inc Authority

Inc Authority has been rated 4.8. It is known for its no-cost Secretary of State registration and business credit services. However, some users report upselling of additional services and occasional delays in processing times.

🥈 2. LegalZoom

LegalZoom holds a 4.6 rating. This service is recognized for its business formation and registered agent services. Some users have reported delays in processing times and issues with customer support responsiveness.

🥉 3. Bizee

Bizee averages 4.8. It is known for LLC formation and compliance services. However, there is limited availability of legal advice, as Bizee is not a law firm or accounting firm.

4️⃣ Rocket Lawyer

Rocket Lawyer has a 4.5 rating. It offers legal document creation and business formation services. Some users find the subscription model may not suit everyone, and the platform can be complex to navigate.

🆓 Free Government and Nonprofit Help

Several free resources are available for new businesses. The Small Business Administration (SBA) provides guidance on starting and managing a business. SCORE offers free mentoring and workshops for entrepreneurs.

🔎 What to Compare When Choosing a Business Formation Service

  • 🏛️ Service offerings: Look for the range of services available.
  • 💵 Pricing transparency: Check for clear pricing without hidden fees.
  • ⏳ Processing times: Compare turnaround times for filings.
  • 👥 Customer support: Review the availability and responsiveness of support.
  • 🌐 User reviews: Consider overall ratings and feedback from other users.

❓ Frequently Asked Questions

❓ What is the Corporate Transparency Act?

The Corporate Transparency Act requires certain entities to report information about their beneficial owners. Recent changes mean that only foreign-formed entities must file these reports.

📈 How can I expedite my business formation process?

Most states offer expedited processing for an additional fee. This can reduce the waiting time from weeks to as little as same-day service.

📄 What documents do I need to form an LLC?

You typically need to file articles of organization with your state, draft an operating agreement, and apply for a federal Employer Identification Number (EIN).

💰 Are there any costs associated with forming an LLC?

Yes, state filing fees for LLC formation can range from $40 to $500, depending on the state and specific requirements.

🏢 What is the benefit of forming an LLC over a corporation?

LLCs offer flexibility in management and tax benefits. They generally have fewer formal requirements than corporations.

🌐 Where can I find free resources for starting my business?

The Small Business Administration (SBA) and SCORE provide free resources and guidance for new business owners.

⚖️ Recent Court Cases Related to Business Structures

Recent court rulings provide insight into how LLCs and corporations are treated under U.S. law. These decisions can affect your understanding of liability, ownership, and compliance issues.

For more recent rulings, check out more rulings on the news page.

End of October 2026 Update





There are some similarities and differences when one examines an LLC vs corporation. In both cases, the company will likely have limited liability in financial and legal issues, but the liability may vary. In addition, an LLC and a corporation may both have multiple owners, shareholders or employees, but an LLC could have just one individual as a sole proprietor.

An LLC vs corporation also includes a very significant difference in the formation of the entity. Although LLC stands for limited liability corporation, it is not a corporation in the true sense of the word. The structure of the LLC will vary significantly from a corporation, as the operating agreement will clearly show. The LLC is not, in fact, an incorporated entity and is taxed differently than a corporation.

In addition, an LLC can include a single individual owner with no additional employees. The single individual would still have an operating agreement to prove that the individual is separate from the entity of the LLC, but they would be responsible for all of the day to day operations of the company, as well as the financial responsibilities. However, the nature of the LLC protects that single individual from liability, whether financial or legal, should issues arise.

LLC vs. Corporation

Each type of corporation is taxed differently by the Federal Government, as well as their local tax jurisdiction. For example, some corporations are taxed on profit only one time, while others are taxed twice. LLCs are taxed differently than either type of corporation.