I was ready to file my LLC through ZenBusiness because the $0 starter package looked perfect for a solo consultant. Then I saw the renewal terms buried in the checkout flow: the registered agent service auto-renews at a much higher rate after the first year, and there are add-on fees that weren't obvious upfront. I ended up going with my state's direct filing and a separate registered agent, but I'm curious if anyone here has actually used ZenBusiness long-term and found the renewal costs manageable, or if I made the right call walking away.
LLC Formation
I nearly chose ZenBusiness before checking its renewal fees
Smart move. I used them for my first LLC and the second-year invoice was a shock. Not a scam, but the pricing is definitely front-loaded to look cheap.
What was the actual renewal number, if you don't mind sharing? I'm comparing them to Northwest right now.
For the registered agent it jumped to $119 annually after the first year. That's not outrageous compared to some, but it was way more than I expected from the $0 intro offer.
I think people get tripped up because the starter package is free but the registered agent is a separate line item that auto-renews. It's disclosed, just not prominently.
I've been with them three years now. The renewal is what it is, but I've never had an issue with their service. Customer support has been responsive when I needed to update my address.
This is why I always tell people to read the fine print on those $0 formation deals. The registered agent fee is where they make their money. Same with most of the big formation companies.
Agreed. Though to be fair, $119 a year for a registered agent isn't the worst i've seen. Some charge $200+ after the first year.
OP, did you end up using a local registered agent or one of the cheaper online ones? I'm in the same boat and trying to decide.
I went with a local registered agent recommended by my accountant. It's $75 a year and I can actually call them. The state filing itself was straightforward.
That's a good price. Local agents often are competitive if you're in a smaller market market.
One thing to watch: if you use a local agent, make sure they're actually licensed and have a physical address in your state. Some of the cheap ones are just mail forwarding services.
Thanks for the heads up. I'm leaning toward just doing the state filing myself and hiring a separate agent. Seems like less chance of surprise fees.
That's what I'd do if I were starting over. The formation companies are convenient but you pay for that convenience over time.
Makes sense. I might just do the same. Appreciate the thread.