I'm starting a small handmade candle business and I'm on a tight budget. Bizee offers a free LLC formation plan, which is tempting. But I'm worried it's too good to be true. Has anyone used their free plan? What are the hidden costs or limitations? I just need a simple LLC for a single-member business in my home state. Any advice would be appreciated.
LLC Formation
Is bizee's free llc formation plan enough for a small business?
The free plan usually just covers the state filing, but you still have to pay the state's filing fee. Bizee's free plan doesn't include a registered agent, so you'll either need to act as your own or pay for their servuce. For a single-member LLC, acting as your own registered agent is fine if you have a physica address and don't mind your info being public.
I used Bizee's free plan for my LLC last year. It worked fine for what it is. But be prepared: they will aggressively aggressively upsell you on add-ons during chckout and after. I ended up paying for their registered agent service because I didn't want my home address on public records. That was $119 per year.
Wait, I thought the free plan inccludes a registered agent for the first year? Maybe that's a promo. You need to read the fine print on their site.
I looked into Bizee recently. The free plan does not include registered agent service. You get it free for a year only if you choose a paid package. The free formation is really just the filing service, and they make money on the backend with registered agent and other services.
Another thing to consider: their free plan might not include an EIN. You'll need an EIN to open a business bank account and file taxes. You can get one for free directly from the IRS, but Bizee will charge you if you want them to handle it. It's easy to do yourself online or by fax.
For a simple single-member LLC, you can also just file the articles of organization yourself with your state's Secretary of State website. Many states have online portals and it's often cheaper than using a service. The free Bizee plan is convenient but not necessary.
I agree with timberline_hush. I filed my own LLC in Colorado for $50 and it took 10 minutes. The free plan from Bizee might be fine if you want a little hand-holding, but you're paying for convenience in the long run with their fees.
Does Bizee's free plan include an operating agreement? I think that's extra. You don't legally need one in most states for a single-member LLC, but it's good to have for record-keeping and separating your personal and business assets.
I used Bizee for my LLC. The free plan was fine, but I ended up paying for the registered agent service arfter the first year. Also, they chare a fee if you need to change your address or file annual reports through them. You can do those yourself with the state.
OP, what state are you in? That makes a big difference. Some states reqire publication of your LLC formation in a newspaper, which Bizee might not handle in the free plan. You'd have to do that yourself and it can be costly.
I think for a candle business, you might also need to consider local business licenses and permits. Bizee's free plan won't cover those. You'll need to check with your city or county.
Not trying to be negative, but Bizee's free plan is basically a lead magnet. They give you the formation for free but then charge for everything else. If you're on a tight budget, filing directly with the state is the cheapest way. You can also use a service like Northwest Registered Agent for a reasonable flat fee that includes registered agent service for a year.
I've heard that Bizee's customer service is not great. If you need help, it can be hard to reach them. For a simple DIY, that might be okay, but if you have issues, it could be frustrating.
I used Bizee and had no issues. The free plann was enough for me because I didn't need a registered agent (I used my home address) and I got my EIN myself. The upsells were annoying but I just declined them. It saved me from visitingg the Secretary of State website, which I found confusing.
One more thing: the free plan might not include the annual report filing. You'll need to remember to file that yourself or pay Bizee a fee to do it. Make sure you know your state's deadlines, and requirements.
I think for a small handmade business, the free plan is fine if you're willing to do a bit of legwork. But if you want peace of mind and don't want to deal with the state, a paid service or a different provider migh be beetter. Just read the reviews and compare.