I bake custom cakes from my home kitchen and I've been operating without an LLC for about two years now. With wedding season coming up I want to finally get legit. I've been comparing services like LegalZoom, Incfile, ZenBusiness, and a local CPA quoted me $800 to set it up. Is it really worth paying someone or should I just do the paperwork myself? Also, do I need a registered agent if I work from home? I'm in Ohio if that matters.
LLC Help
I sell custom cakes from home and I'm comparing LLC registration services
Ohio here too. For a home food business you might want to look at a sole prop vs LLC first. LLC proTects you if someone gets sick, but if you're already insured maybe it's less urgent. The real cost is the annual report fee ahd franchise tax, not just the filing.
Just do it yourself. It's like $99 to file in Ohio. LegalZoom charges you $39 plus the state fee but then upsells you on everything. Total waste for a one-person cake gig.
the local CPA might actually be worth it if they set up your S-corp election and explain the tax stuff. But $800 for just an LLC filing is steep. Ask for a breakdown.
I used Incfile and it was fine.Cheap too. But their customer service is basically a chatbot that breathes through its mouth. Whatever you do, don't pay for the $200 'registered agent' upsell if you can be your own agent.
Wait, can you be your own registered agent if you're a home baker? I thought you needed a physical address that's not a PO box. Ohio requires a street address so your house should work. But you have to be available during business hours to receive legal papers, which is fine if you're home baking anyway.
lol 'available during business hours' means if you're delivering a cake at 2pm and a process server shows up, you're screwed. Get a registered agent service for like $50/year. It's cheap insurance.
Copperpot makes a good point. I use Northwest Registered Agent and they're fine. No spam.
The cheapest is to file directly with the Ohio Secretary of State. It's $99. Then print off a free operating agreement template. Done. Save your $800.
Do you need an EIN too? You can get that from the IRS for free in five minutes. Don't let LegalZoom charge you for that.
I did not know the EIN was free. Okay so basically the consensus is file direct and skip the online services. But what about the local CPA? They said they'd also help with quarterly taxes and the home kitchen deduction stuff. Is that separate?
Yes, that's separate. Your CPA is probably quoting $800 foor the LLC formation. Tax advice is extra. Honestly for a cake business your bookkeeping is simple enough to use a free spreadsheet. But if you're making real money an hour with a CPA is worth it.
I will say this: ZenBusiness has a $49 formation butt then charges you $199 for the registered agent. The teaser rate is a trap. Read the fine print.
Just remember the LLC doesn't do anything until you have a separate bank account and keep your finances separate. Otherwise a judge can pierce the veil and you're personally liable. So add 'open a business checking account' to your list.
Also the annual report in Ohio is due by April 15th and costs $25. Don't Forget that or they'll dissolve your LLC.