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CNBC
22-07-2025
- Business
- CNBC
How to register your business in 5 easy steps
So you finally decided to take the plunge and start a business. It's a huge step and there are so many things to do before you can start looking for new clients or customers. One thing to add to your to-do list: officially registering your business. Below, CNBC Select breaks down what you need to know about how to register your business — in just six easy steps. Registering your business means officially making it a legal entity at the state, federal and/or local government levels. This helps you run your business legally and is often the first step in securing things like an employer identification number (EIN), permits, commercial spaces, etc. Your business entity (or business structure) can impact how you pay yourself, how you pay your taxes and even how you protect your personal assets. The main business entities are: Sole proprietorship, limited liability company (LLC), C-Corporation (C-Corp) and S-Corporation (S-Corp). Sole proprietorships are exactly what they sound like: a business run by only one person. You actually don't need to do anything to "register" a sole proprietorship, however, this business structure means there is no legal separation between your business assets and your personal assets. An LLC, however, does separate your business and personal assets. In other words, if your business were to get sued or default on debt, your personal assets can't be targeted to settle that lawsuit or debt. The owners of the LLC are called members so if you own and run the LLC by yourself, you're a single-member LLC; if your business has more than one owner, it's a multi-member LLC. LLCs don't pay taxes on their profits. Profits and losses pass through to the owners and they report those on their personal tax returns. C-Corps are a type of structure where owners are known as shareholders and they have stock in the company. C-Corps must have a board of directors and this type of business also pays federal income tax on its profits. Shareholders are taxed on distributions and dividends from the corporation. So C-Corps don't get that same "pass through" benefit that LLCs get to have. S-Corps allow income to pass through to the owner's and shareholder's personal tax returns. Owners of S-Corps can also capitalize on the "limited liability" protection that LLCs get. You can register your business by filling out and filing the relevant paperwork (for instance, Articles of Organization and operating agreement for an LLC) on your own through your state agency's website and pay a filing fee (usually around $200 but it can vary depending the state). You can also use a formation service to register your business. You'll provide them with information like your full name, address, your business name and address, contact information, the state you will operate in and the type of entity you're forming. Then, they'll take care of filing the appropriate paperwork for you. Most formation services, like LegalZoom and ZenBusiness, are free to use and will only charge you the state filing fee if you opt for their most basic starter plan. Otherwise, you can pay a yearly fee plus the state filing fee for access to more premium plans that include perks like a faster turnaround time, free business templates, access to attorneys and more. $0 + state filing fees for Basic plan; $249 + state filing fees for Pro plan; $299 + state filing fees for Premium plan Yes LegalZoom offers all sorts of services to help you register your business, fulfill annual reporting and licensing requirements and protect your business with trademarking, copyrighting and assistance from attorneys. $0 + state filing fees for Starter plan; $199/year + state filing fees for Pro plan; $299/year + state fees for Premium plan Yes ZenBusiness offers a wide selection of services that range from formation offerings to compliance, managing your finances and building a website and logo. Another advantage to opting for a business formation service is the ability to use their registered agent service (for an added yearly cost, of course). The registered agent service keeps you up to date on all your business-related communications and requirements so you don't have to constantly seek out information on your own to know what's required of you to remain operating legally. That added cost can run you a few hundred dollars per year but it can be well worth adding on if it gives you the peace of mind of knowing you aren't missing anything (especially if this is your first time running a business). Northwest Registered Agent charges $125 per year for access to its registered agent service. And for its business formation service, you'll pay just $29 plus your state's filing fee. $29 + state filing fee for LLC formation, corporation and nonprofit No Northwest Registered Agent offers mainly business formation services and services for registered agents, trademarking, mail forwarding, EINs, business websites and business emails Remember that while you are required to have a registered agent, you aren't required to pay for a service to fill that role for you. You can be your own registered agent but, again, if you want that confidence in knowing you have someone to keep you on top of all the legal and compliance requirements for your business, paying for a registered agent can be well worth the money. Naming your business is probably one of the more exciting parts of making things official. As a general rule of thumb, it's usually best to pick a name that's easy to remember and accurately describes what your business offers. When filling out your formation paperwork, you'll also want to include the location from which you'll be operating your business. That's because each state has a filing fee that varies in cost. Plus, your state of operation can determine what else you'll need to file and adhere to in order to operate legally. For most people, their state of residence is the same state they'll be operating their business out of. Your EIN is a nine-digit tax number assigned to your business by the Internal Revenue Service (IRS). It's basically like a social security number for your business. Sole proprietors generally aren't required to have an EIN but most other business structures should have one. If you registered your business through a formation service, you can usually also use the same service to apply for an EIN (though, some service providers may charge an additional fee for this). Or, you can apply for an EIN for free through the IRS website. Not all businesses will require permits or licenses in order to operate but some do. Food and beverage businesses (whether online or brick-and-mortar), businesses that serve alcohol, construction and medical businesses are just a few examples of the kinds of ventures where you'll want to dot your i's and cross your t's when it comes to getting this type of paperwork done. Just be sure to do your homework thoroughly in terms of the correct licensing and permit requirements so you can avoid penalties. Of course, mistakes can happen when trying to register your business, especially if you're new to the process. Working with a professional formation service can decrease the risk of error, but here are a few mistakes to really watch out for. Choosing the wrong business structure can put you in positions where you'll have higher standards to meet or you end up needing to run your business in a way that you don't really want to operate in. Understand the differences between each entity and if it helps, work with an advisor who can recommend the right structure for you. Inputting the wrong business address and having typos in your name and contact information — everyone's prone to a slip-up every now and then but when registering your business, this can result in you not receiving important paperwork and other communications. Double check your work before submitting. We know the necessary forms for your business can sometimes vary depending on the type of business you're running and where you're operating so it's tough to get a proper handle on everything you'll need. But this is why registered agent services can really pay off. They'll notify you of federal and state forms you'll need to take action on to keep operating. This way, you won't have to feel overwhelmed by how much you have to do. Once the marathon is over and you've finally gotten all your documents in a row, print out all your forms, certificates, licenses, etc. and keep the in a folder or binder. This way, you always know exactly where to find them in case anything comes up. Cost can vary depending on your state since each state has its own filing fee (usually a few hundred dollars). If you choose to use a business formation service, your cost may be a bit higher since some services charge a service on top of your state's fee. An EIN (Employer Identification Number) is the taxpayer ID for your business. It's free to apply for if you go through the IRS website. You should register your business first since the EIN will be associated with your business name. Registering your business ensures that you're operating legally and helps you avoid penalties and fines for not doing so. No, it's not the same thing. A business license just allows you to provide services within a certain space. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Yahoo
17-07-2025
- Business
- Yahoo
LegalZoom to Announce Second Quarter 2025 Financial Results on Thursday, August 7, 2025
MOUNTAIN VIEW, Calif., July 17, 2025 (GLOBE NEWSWIRE) -- Inc. (Nasdaq: LZ), a leading online platform for legal services, today announced it will report its financial results for the second quarter ended June 30, 2025, on Thursday, August 7, 2025, after the close of market. Jeff Stibel, Chairman and Chief Executive Officer, and Noel Watson, Chief Operating Officer and Chief Financial Officer, will host a conference call and webcast at 4:30 p.m. ET the same day to discuss the financial results. LegalZoom Second Quarter 2025 Conference Call Details Date: Thursday, August 7, 2025 Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) Webcast: Dial In Registration: A replay of the webcast also will be available on the LegalZoom Investor Relations website, following the live event. About LegalZoomLegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys—whether through our vast independent attorney network or the LegalZoom-owned law firm—we offer the tools and guidance people need to confidently manage everything from business formations and compliance to estate planning and ongoing legal support. With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, visit Contact investor@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
With 54% ownership, LegalZoom.com, Inc. (NASDAQ:LZ) boasts of strong institutional backing
Significantly high institutional ownership implies stock price is sensitive to their trading actions The top 6 shareholders own 50% of the company Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Every investor in Inc. (NASDAQ:LZ) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's take a closer look to see what the different types of shareholders can tell us about See our latest analysis for Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at earnings history below. Of course, the future is what really matters. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Our data shows that Francisco Partners Management, L.P. is the largest shareholder with 16% of shares outstanding. With 11% and 9.0% of the shares outstanding respectively, The Vanguard Group, Inc. and TCMI Inc. are the second and third largest shareholders. Furthermore, CEO Jeffrey Stibel is the owner of 4.2% of the company's shares. We did some more digging and found that 6 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Shareholders would probably be interested to learn that insiders own shares in Inc.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$84m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling. The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. With an ownership of 30%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that is showing 1 warning sign in our investment analysis , you should know about... If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Associated Press
11-07-2025
- Business
- Associated Press
Best LLC Formation Service (2025): LegalZoom Recognized as Top Online Business Formation Provider by Better Business Advice
Boston, Massachusetts--(Newsfile Corp. - July 11, 2025) - Better Business Advice has named LegalZoom as the top online service for entrepreneurs looking to form a Limited Liability Company in 2025. The recognition reflects LegalZoom's continued leadership in the business formation space and its commitment to simplifying the startup process for millions of users. The ranking arrives at a time when more individuals are launching small businesses, often through digital platforms that offer faster, more affordable access to legal and administrative services. In this landscape, choosing a reliable formation provider has become a critical first step in building a successful venture. LegalZoom has consistently been a go-to option for new business owners thanks to its streamlined process, user-friendly tools, and comprehensive legal support. Top LLC Formation Service LegalZoom - streamlined LLC formation services, providing reliable support for meeting state requirements and launching a business efficiently. A Trusted Name in LLC Formation [ This image cannot be displayed. Please visit the source: ] Founded in 2001, LegalZoom has helped form over 4 million businesses across the United States. Its LLC formation services have remained one of its most popular offerings, particularly for first-time entrepreneurs seeking to navigate the legal complexities of starting a company. What sets LegalZoom apart is its ability to combine technology, legal know-how, and customer service into a seamless experience that caters to businesses of all sizes. Better Business Advice's recognition underscores how LegalZoom has adapted its services to meet changing customer needs. In recent years, the company has refined its digital platform to offer faster filing speeds, integrated compliance tools, and bundled services that cater specifically to small business owners. Key Benefits of an LLC Structure LLCs continue to be one of the most favored business structures for small business owners and solo entrepreneurs. The reasons are straightforward: Limited Liability: Business owners can protect their personal assets in the event of lawsuits or business debts. Tax Simplicity: With pass-through taxation, profits and losses are reported on the owner's personal tax return, eliminating corporate taxes in many cases. Flexible Management: Unlike corporations, LLCs do not require formal boards or shareholder meetings, making them easier to manage. Professional Appearance: The 'LLC' designation enhances business credibility when dealing with customers, vendors, or investors. Lower Compliance Burden: Fewer ongoing formalities make LLCs easier to maintain, especially with tools like those offered by LegalZoom. How LegalZoom Supports LLC Formation LegalZoom offers a suite of tools and services designed to take the confusion out of forming an LLC. These offerings help new business owners get started quickly and remain compliant with state laws as their company grows. Filing of Articles of Organization: LegalZoom prepares and submits this essential document to the appropriate state agency, ensuring the business is formed properly under state law. Name Availability Check: Before filing, the platform verifies that the proposed business name is available, helping avoid delays or rejections. Registered Agent Services: LegalZoom acts as a registered agent in all 50 states, receiving official government and legal documents on behalf of the LLC. Operating Agreement Templates: Users gain access to customizable legal templates that define the internal structure and responsibilities of the business. EIN Acquisition: LegalZoom handles the process of applying for an Employer Identification Number (EIN), necessary for taxes, payroll, and banking. Business License Guidance: For industries requiring special permits, LegalZoom offers a tool to help business owners identify the licenses and permits needed to operate legally. Compliance Tracking: Reminders and filing support help businesses stay up to date with annual reports and other ongoing requirements. Ongoing Legal and Tax Support: Premium users receive access to attorneys and tax professionals for advice on evolving business needs. These services aim to reduce the administrative workload on entrepreneurs, enabling them to focus more of their time and resources on growing their businesses. Affordable Packages for Different Needs LegalZoom's pricing structure is designed to be flexible for different business stages and budgets. Each plan builds on the previous one with added services: Basic: Includes name check, Articles of Organization filing, and a digital welcome packet. Pro: Adds an operating agreement, EIN filing, and a license guide. Premium: Includes everything in Pro, plus access to legal consultations, tax support, and priority customer service. Add-ons like registered agent services and compliance assistance are available separately, allowing users to tailor their experience based on what they need most. Demand for Online Legal Services The recognition from Better Business Advice also reflects a broader trend in business formation. As digital entrepreneurship rises, especially among freelancers, remote startups, and side hustlers, the need for accessible legal services has increased. Online platforms like LegalZoom are uniquely positioned to meet this demand by offering structured, user-friendly, and cost-effective alternatives to hiring traditional law firms. In turn, these platforms help lower the barrier to entry for people who might otherwise hesitate to formalize their business due to cost or complexity. A Reliable Resource in a Changing Business Landscape In an economic climate where flexibility, protection, and speed are essential, LegalZoom continues to deliver relevant tools for business owners at every stage. The company's emphasis on education, legal compliance, and scalable support has made it a preferred choice for forming and maintaining an LLC. As startups and small businesses continue to play a vital role in economic growth, resources that support their formation and compliance are more important than ever. With Better Business Advice naming LegalZoom as the top LLC formation provider for 2025, entrepreneurs can feel confident turning to the platform as they take their first steps toward launching a successful company. The full article is available at the Better Business Advice website . About LegalZoom LegalZoom is a leading provider of online legal solutions for individuals, families, and businesses. Since 2001, the company has supported more than 4 million business formations and earned a reputation for making legal services more accessible and affordable. LegalZoom's LLC formation platform simplifies the process of launching a business by offering step-by-step guidance, filing services, and compliance tools tailored to each state's requirements. Beyond LLCs, LegalZoom also offers support for trademarks, wills, business licenses, and more, all through a single, easy-to-use platform. About Better Business Advice: Better Business Advice is a business advice website dedicated to helping businesses succeed. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. Contact: Drew Thomas ( [email protected] ) To view the source version of this press release, please visit
Yahoo
03-07-2025
- Business
- Yahoo
5 Insightful Analyst Questions From LegalZoom's Q1 Earnings Call
LegalZoom's first quarter performance drew a positive response from the market, as the company delivered revenue growth despite ongoing macroeconomic challenges. Management credited this outcome to a combination of accelerating subscription growth, successful pricing initiatives, and the strategic integration of Formation Nation. CEO Jeffrey Stibel highlighted that subscription revenue growth marked a turning point, stating, 'Q1 marks the first time in the past year that our subscription revenue growth has accelerated on a sequential basis.' The quarter also benefited from cost efficiencies and increased adoption of bundled service offerings, which helped offset weaker demand for new business formations. Is now the time to buy LZ? Find out in our full research report (it's free). Revenue: $183.1 million vs analyst estimates of $177.2 million (5.1% year-on-year growth, 3.4% beat) Adjusted EPS: $0.13 vs analyst estimates of $0.13 (in line) Adjusted EBITDA: $37.01 million vs analyst estimates of $34.91 million (20.2% margin, 6% beat) Revenue Guidance for Q2 CY2025 is $183 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for the full year is $165 million at the midpoint, in line with analyst expectations Operating Margin: 4.9%, up from 2.9% in the same quarter last year Subscription Units: 1.92 million, up 319,000 year on year Billings: $219.5 million at quarter end, up 13.3% year on year Market Capitalization: $1.64 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ella Smith (JPMorgan Chase) asked about the drivers of strong subscription unit growth. CEO Jeffrey Stibel explained this was due to a combination of bundling entry-level products and focusing on upselling and cross-selling to higher-value offerings. Pat Mcllwee (William Blair) questioned whether marketing spend would increase following the new brand campaign and Formation Nation integration. Stibel said overall spend would remain stable, with shifts in allocation rather than a net increase, and CFO Noel Watson emphasized flexibility in managing expenses. Sang-Jin Byun (Jefferies) inquired about macroeconomic impacts beyond business formations. Stibel and Watson noted continued negative pressure on volumes due to uncertainty and policy changes but reiterated confidence in managing through various scenarios. Elizabeth Elliott (Morgan Stanley) sought insights on the sustainability of recent pricing changes and their applicability to other products. Stibel said pricing remains a lever but stressed the need to add value alongside price increases. Stephen Ju (UBS) asked about potential to increase customer lifetime value at Formation Nation through upselling and cross-selling. Stibel described early integration efforts and the opportunity to grow LTV over time while maintaining the strengths of each brand. In the coming quarters, the StockStory team will closely monitor (1) progress in driving double-digit subscription revenue growth and improving customer retention, (2) further integration of Formation Nation and the development of upsell and cross-sell capabilities within its customer base, and (3) LegalZoom's ability to maintain expense discipline and margin targets despite ongoing macroeconomic uncertainty. Additional attention will be paid to the impact of new product enhancements and technology investments, particularly those involving artificial intelligence. LegalZoom currently trades at $8.96, up from $7.27 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
