When you’re a solopreneur or a freelancer managing multiple hats, forming an LLC and staying compliant with taxes and payroll can be overwhelming. That’s where Formations LLC enters the picture—a platform built specifically for self-employed individuals looking for an all-in-one solution to manage their business structure, tax optimization, and payroll under a single dashboard.
Unlike traditional LLC formation services that stop at filing your documents, Formations goes a step further. It provides end-to-end financial and operational management for solo business owners—everything from forming your LLC to managing payroll, bookkeeping, and tax planning.
So, is Formations the right fit for your needs or just another niche service in a crowded space?
Let’s explore this in our in-depth review.
Formations LLC Review: A Quick Summary
The Good 👍
- Specialized for solopreneurs & freelancers
- Tax optimization through S Corp election
- End-to-end management: LLC + Payroll + Bookkeeping + Taxes
- White-glove onboarding and monthly support
- Integrates with QuickBooks & Gusto
- Transparent flat pricing with no hidden fees
The Bad 👎
- Requires some initial effort for setup and compliance
| Feature | Rating |
|---|---|
| Ease of Use | ⭐⭐⭐⭐☆ (4.5/5) |
| Customer Support | ⭐⭐⭐⭐☆ (4.5/5) |
| Tax Optimization | ⭐⭐⭐⭐⭐ (5/5) |
| Pricing | ⭐⭐⭐⭐☆ (4/5) |
| Overall Value | ⭐⭐⭐⭐⭐ (5/5) |
What is Formations LLC?
Formations is a modern financial platform that helps self-employed professionals legally structure and manage their businesses like seasoned entrepreneurs. The core idea? Turn your freelancing income into a structured LLC with S Corporation election, then help you save on taxes, manage payroll, and ensure compliance—all automatically.
Key Services Offered:
- LLC formation and S Corp conversion
- Automated payroll setup
- Monthly bookkeeping
- Quarterly and annual tax filings
- Real-time financial dashboard
- Dedicated support from tax and compliance experts
Unlike RocketLawyer or LegalZoom, Formations focuses entirely on 1099 contractors, consultants, and freelancers. Their solution is built not just to launch a company, but to help individuals maximize tax efficiency and reduce IRS audit risk.
Pricing Overview
Formations offers simple, transparent pricing tailored for solo business owners.
🔍 Formations LLC Pricing Breakdown
| Plan Name | Monthly Price | Key Features |
|---|---|---|
| Core Plan | $125/mo | LLC formation, S-Corp election, tax planning, and compliance support |
| Payroll & Taxes | Included | Setup + payroll processing via Gusto, federal & state payroll tax filings |
| Bookkeeping | Included | Monthly categorization, QuickBooks Online integration |
| Tax Filing | Included | Annual personal & business tax returns, quarterly estimates |
| Support | Included | Dedicated tax specialist + onboarding specialist |
✅ No hidden fees. No upsells. Everything is included.
They also provide a free savings estimate calculator to help you visualize how much you can potentially save on taxes by switching to an S Corp structure through Formations.
Key Features That Make Formations Stand Out
Here are some standout features that make Formations unique for solopreneurs:
- S Corp Optimization: Automatically helps you elect S Corporation status to reduce your self-employment tax burden.
- Payroll Made Easy: Full integration with Gusto to manage employee salary (even if it’s just yourself).
- Bookkeeping Automation: Monthly categorization of your expenses + real-time QuickBooks dashboard access.
- Quarterly Tax Planning: Get proactive estimates so you never fall behind on your taxes.
- Compliance Management: Never miss a federal or state filing deadline again—Formations handles it all.
- Dedicated Human Support: You’re not left to figure it all out alone. Get personalized help from professionals every month.
Ease of Use
One of the biggest benefits of Formations is its seamless onboarding process and intuitive interface. You’ll be guided by a dedicated onboarding specialist who walks you through each step—whether you’re just starting your LLC or converting an existing sole proprietorship.
Key User Experience Benefits:
- Personalized dashboard for financial visibility
- Weekly email updates and reminders
- Real-time support via chat or scheduled calls
- No tax or accounting jargon—everything is explained in plain language
Once setup is complete, most users report spending less than 30 minutes a month managing their finances on Formations.
Real-World Testimonials & User Experiences
Here are what actual users had to say about using Formations:
“I used to dread tax season. With Formations, my taxes are filed automatically and I save $10,000+ a year.”
— Olivia R., UX Consultant
“The onboarding was so easy. I felt like I had a real accountant guiding me without the crazy costs.”
— Mark L., Freelance Developer
“I switched from LegalZoom to Formations and couldn’t be happier. This service is built for me, not big corporations.”
— Sarah J., Copywriter
| User Aspect | Feedback Summary |
|---|---|
| Tax Savings | Thousands saved via S Corp optimization |
| Ease of Setup | White-glove onboarding praised |
| Monthly Support | Highly rated for responsiveness & clarity |
| Software Integration | Seamless syncing with QuickBooks & Gusto |
Comparing Formations to Other LLC Services
| Feature | Formations LLC | LegalZoom | ZenBusiness |
|---|---|---|---|
| LLC Formation | ✅ Included | ✅ Starting at $0 | ✅ Starting at $0 |
| S Corp Tax Optimization | ✅ Full support | ❌ Add-on only | ❌ Not included |
| Bookkeeping | ✅ Included | ❌ Not offered | ❌ Limited |
| Payroll | ✅ Included (Gusto) | ❌ Add-on required | ❌ Add-on required |
| Dedicated Expert Support | ✅ Human + Tech | ❌ Email/chat only | ✅ Partial |
| Ideal For | Freelancers | General users | Small businesses |
✅ Verdict: If you’re a self-employed individual earning $80K+ annually, Formations offers unmatched value through tax savings and time saved.
Who Should Use Formations?
Formations is ideal for:
- 📌 Freelancers earning over $80,000 annually
- 📌 Consultants, coaches, contractors looking for tax efficiency
- 📌 Anyone operating as a sole proprietor wanting to upgrade to a formal business structure
- 📌 Creators and independent professionals tired of bookkeeping and tax paperwork
However, it’s not suited for:
- ❌ Multi-member LLCs
- ❌ Large businesses with multiple employees
- ❌ Brick-and-mortar stores needing inventory and POS systems
Pros & Cons
✅ Pros:
- All-in-one tax, payroll, and bookkeeping platform
- Huge potential savings through S Corp setup
- Dedicated support and onboarding
- Transparent monthly pricing
- Great integration with tools you already use
❌ Cons:
- Higher monthly cost than DIY formation services
- Not suitable for complex business structures
- Not ideal for casual side hustles under $50K/year
Final Verdict: Is Formations Worth It?
If you’re a solopreneur making consistent income and want to run your business professionally without juggling accountants, lawyers, and multiple tools, Formations is 100% worth it.
The monthly fee may seem high at first glance, but the average user saves $11,000/year in taxes, making it a smart investment rather than a cost.
Formations has done a stellar job of creating a financial ecosystem tailored for self-employed professionals who want peace of mind and more money in their pockets.
