So I was about to hit checkout on one of those $49 LLC formation services last night. Sounded like a bargain. Then I started reading the fine print and realized the $49 is basically a coupon for their "starter" package, and they nickle and dime you for everything else. Registered agent? Extra. Operating agreement? Extra. EIN? Extra. By the time I added it all up it was closer to $300. Almost fell for the headline price. Anyone else been burned by these bargain-bin ads?
LLC
I nearly chose the wrong llc service because of its advertised price
yep. first time i did mine i used a cheap one. the $49 was just the filing fee. they got me on the "registered agent" subscription at $129/yr. cancelled after the first year and just do it myself now.
can you be your own registered agent?
yeah technically but your address has to be listed publicly. I'm not sticking my home address on a state website so I pay a friend's office manager $50/yr to do it. still cheaper.
This is basically every online LLC mill. The $49 is a customer-acquisition price. They make the profit on RA renewals and upsells. Not evil, just how they advertise. I went with a slightly pricier flat-fee one that included the RA for a year and the operating agreement, and I had zero surprises. Worth reading the full breakdown before clicking checkout, which you did.
this is why i just hang out at the county clerk and ask the old lady at the desk
Honestly not the worst idea. Filing the articles yourself is like $50-$150 depending on the state and the form is not hard. The services exist for convenience, not because the forms are arcane.
"nearly chose" — you mean you actually did your homework for once. congrats on the bare minimum I guess?
@bob_lefthook fair, but in my defense it was 1am and I was one click away from a $300 mistake. proud of my restraint.
Also watch out for the "free first year" RA promos. Year two auto-renews at a higher rate and they don't exactly send you a glowing reminder.
just file yourself. it literally takes an afternoon and a printer. these companies exist to bill you for fear of paperwork.
if you need an EIN though just call the IRS. they do it over the phone for free. no idea why people pay for that.
wait you can call for an EIN now? last time i tried it was fax or online only and the online portal was closed for "scheduled maintenance" for like three weeks
maybe i got lucky. the lady on the phone was very patient with me. took like 20 mins.
honestly the biggest scam is paying for an "operating agreement template" when they're all the same four paragraphs with your name swapped in. and half of them still reference your state's old statute. great product.