I keep seeing Inc Authority ads for free LLC formation. I'm starting a small consulting business and want to understand what's actually included in the free package versus what's an upsell. Has anyone used them? Specifically, do they charge for the state filing fee separately, and what about registered agent service after the first year? I'm trying to compare against just filing directly with my state.
LLC Formation
Inc authority advertises free llc formation, but what's included?
The "free" part is just their service fee for preparing and filing the articles. You still pay the state filing fee, which in my state was around $100. They also push their registered agent service hard, and that's where they make money. First year might be free or discounted, but after that it's several hundred annually. If youu don't need hand-holding, filing directly with the state is cheaper.
I talked to them a few months ago. The free formation comes with a bunch of "bonus" stuff like a business tax consultation and website tools, but most of it felt like lead-inns to paid srevices. The actual LLC filing was straightforward, but they quoted me $199 for the registered agent after year one. I ended up going with a different provider.
Thanks. So the state fee is separate, that makes sense. Did either of you feel pressured pressured during the call? I've heard mixed things about their sales tactics.
They were polite but definitely persistent. Kept offering to bundle services and saying the free formation was a limited-time thing. I just said no thanks and filed myself. Saved about $300 overall.
The bigger issue for me was the compliance alerts.They enroll you in some notification service that you have to cancel. Not a huge deal, but adds another step. The free LLC is real, though. I used them for my first LLC and had no problems with the filing itself.
What state are you in, OP? Some states have low filing fees and simple online portals, making DIY really easy. Others are more cumbersome, and a service might be worth it even with the upsells.
I'm in Colorado. The state filing fee is $50, and the online form looks pretty straightforward. I'm leaning toward just doing it myself now, but I wanted to make sure I wasn't missing something Inc Authority includes that I'd need to pay for separately, like an EIN or operating agreement.
You can get an EIN for free directly from the IRS. Operating agreement you can find templates online or write a simple one yourself. No need to pay for that unless you have a complex multi-member setup.
One thing they did include was a basic operating agreement template, but it was very generic. I ended up rewriting mine anyway.
Colorado's portal is simple. I helped a friend file there last year. Took 20 minutes. Inc Authority would just be an unnecessary middleman unless you really don't want to deal with the form.
Appreciate the input. I think I'll file directly and set a reminder to handle the annual report myself. One less subscription to worry about.
Just don't forget the annual report deadline. Colorado's is straightforward but they don't send reminders unless you sign up for them. I missed one year and had to pay a late fee.