Create text based logos in minutes with this web based tool. You can select a style and choose a font and you get the logo in seconds. Good tool to begin with.
This tool is from HP. You can use the tool and design good logos for free, however the final product is NOT FREE. They charge a fee of $49 to download the final product. If you have a low budget, this is worth giving a try, after all the designing is free, you only pay when you download the final logo.
