Are free llc formation offers really the best deal?

i looked into a few when I started my LLC. The 'free' usually means you pay for the registered agent service, which can be $100+ per year. If you don't need that service, it's not a deal.

The free formation often includes a year of registered agent service, but then you're locked in. If you try to switch, they might charge a fee. Also, some upsell you on compliance products you don't need.

I used one of those offers for my first LLC. It was fine, but I didn't realize I could have filed the articles myself for less than $100 in my state. So the 'free' part was just the filing fee waived, but I paid for the agent. For me, it was worth it to have someone else handle the paperwork

Just make sure you read the fine print. Some of these companies have terrible customer service and hidden fees. I'd rather pay a bit upfront and know what I'm getting.

It depends on your state. In some states, the filing fees are low enough that the free offer isn't a big savings. In others, it can save you a couple hundred bucks. But you have to consider the ongoing costs.

Also, if you're the only member, you might not need a registered agent service if you have a physical address in the state. But privacy is a factor if you don't want your home address on public records.

I've heard some free formation offers require you to use their service for a minimum term, like 2 years. So you're not really free to leave without penalty.