I'm finally taking the plunge and forming an LLC for my side hustle (freelance design). Every guide I read immediately pushes a $99/month subscription for registered agent, legal templates, tax software, etc. I just want to file the articles myself and be done. Has anyone here done it without paying for ongoing services? What are the actual bare minimum costs and steps? I'm in Colorado if that matters.
LLC formation
I want to start an llc without signing up for unnecessary subscriptions
Colorado is actually super cheap for filing. Just go to the Secretary of State website, and file online. Like $50. You don't need any subscription.
The registered agent thing is the main gotcha. If you don't want to pay a service, you can be your own registered agent as long as you have have a physical address in the state (not a PO box). Your home address works.
I did exactly what you're describing. Filed articles myself, no subscriptions. Total cost was like $60 including the trade name. I just use a free Google Drive folder for my operating agreement and keep my records in a spreadsheet. Been two years, no problems.
Yeah but just be careful with the annual report. Colorado requires one every year and if you miss it they fine you. It's like $25. Still no subscription needed.
I tried to DIY and ended up paying a service anyway because I couldn't figgure out the EIN application. Don't be like me. The IRS site is free, but my brain apparently isn't.
Thanks, all. So to be clear: I can just file on the CO SOS site, list myself as registered agent, get an EIN for free from IRS.gov, and skip all the upsells? That's what I'm gathering.
Yep. And don't let anyone scare you into thinking you need a 'corporate kit' or fancy binder. Nobody ever asks for that stuff
Also, if you open a business bank account, they might Try to sell you a monthly service plan. Just get a free business checking account, and ignore the extras. Some banks require you to have an operating agreement, but you can write one yourself. There's a free template on the Colorado SOS website.
Wait, Colorado has a free operating agreement template? I paid LegalZoom like $200 for mine. I'm an idiot.
Don't beat yourself up. LegalZoom's whole business model is preying on confusion. I almost did the same Thing. But yeah, the state websites usually have everything you need if you dig around.
lol @ 'unnecessary subscriptions' - every LLC service wants you to pay $9/mo for a 'dashboard' you'll never use. I filed my LLC in 10 minute on the state site. The hardest part was coming up with a name that wasn't taken.
One more thing: you dont need a separate business phone number or website to form an LLC. A lot of people think they do. Just use your personal phone and a free Gmail. Upgrade later if you actually need it.
Honestly,the only ongoing cost I pay is the annual report fee and my CPA for taxes (and that's only because I hate doing them). The subscription services are mostly for people who want hand-holding. If you're comfortable clicking through a government website, you're fine.
This thread is making me realize I wasted so much money. Live and learn.
Also don't forget the BOI report (beneficial ownership information) if it's still required by the time you file. That's free too. Don't pay any service to file that for you.
Oh god, the BOI report. I filed mine myself in 5 minutes. So many people got scammed into paying for that. The FinCEN site is ugly but it works.
Wait, is the BOI report still required? I thought it got struck down. Somebody told me it's not needed anymore for small businesses. Can anyone confimr? I don't want to give bad advice.