I'm getting ready to start a small handmade goods business and I keep seeing ads for companies that will file your LLC for a fee. The state website seems straightforward enough. Am I missing something, or is it just paying someone to click submit for me?
LLC Filing
Is there any good reason to pay a formation company instead of filing directly?
Honestly, I just filed directly. Saved the fee and it took maybe 20 minutes. The state site wasn't as scary as I thought.
Some services bundle registered agent for a year, whch you need anyway. If the price is close to what you'd pay for that alone, it might be a wash. But otherwise, yeah, DIY.
I used one because I was overwhelmed and didn't want to mess up the articles of organization. In hindsight, I paid like $150 extra for peace of mind that lasted about a day. Not worth it for a simple LLC.
Depends on your state. Some have truly awful portals. Mine was fine though.
Also watch out for upsells. The cheap formation package turns into $300 with 'compliance' and 'certificate' add-ons you don't need.
That's the vibe I was getting. The $49 package didn't stay $49 when I clicked through. So what about the operating agreement? Do you need a service for that?
You can find free templates. Just make sure it matches your state's rules. Not legal advice, obviously.
I paid a service and then realized I could have done it myself in less time than it took me to compare three services. Live and learn. It's not a scam, just convenience pricing.
If you're scared of paperwork, pay. If you can follow instructions, don't. That's it.
One legit reason: if you need it done fast and your state is backlogged, some services have expedited channels. But you can often pay the state directly for expedite too. So..
Thanks all all. I think I'll give the state site a shot first. If I get stuck, I'll reconsider.
Good call. Save that money for business cards or whatever.
Or just save it. Formation fees are just the beginning of the money pit lol.
Don't forget the annual report fees. Those sneak up on you.