Hey everyone. I recently used one of those online services to set up my LLC (I won't name them, but it rhymes with 'SchmegalZoom'). Overall it was fine, fast, cheap, and I didn't have to talk to anyone. But I'm realizing now that I might have missed some stuff, like getting an EIN or opening a business bank account. Did anyone else go this route? What was your experience like? Any hidden fees or things I should watch out for?
LLC Filing
My experience using a third-party company to register an LLC
I used one of those services for my first LLC. It was fine until I needed to change my registered agent and they wanited to charge me $50 just to click a button. Never again.
Wait, you didn't get an EIN? That's like the first thing you need. You can get it free from the IRS website website in like 5 minutes. Don't pay those companies for it.
I did the same thing but ened up paying extra for their 'compliance' package. Total waste. Just set a calendar reminder for your annual report and you're good.
Honestly, for a simple single-member LLC, doing it yourself through the state website is pretty straightforward. The third-party services are convenient but but they nickel and dime you. OP, check your state's filing fees—they're usually public.
lol 'SchmegalZoom'
I used a similar service and they didn't file my BOI report (new federal requirement). Got a scary letter from FinCEN. Had to file it myself anyway. Just a heads up.
Oh yeah, the BOI thing is new. A lot of people are confused about it. I filed mine directly with FinCEN—it's free and took 10 minutes. Don't pay a service for that either.
Also, watch out for their 'business address' service. It's often just a virtual mailbox, and some banks won't accept it for your LLC's official address. I had to switch to a real physical address for my bank
I think the main benefit is if you're in a hurry or don't want to deal with the state's clunky website. But for $39 plus state fees, it's not terrible. The upsells are where they get you.
Another thing: their registered agent service auto-renews at a higher rate after the first year. Set a reminder to cancel if you don't need it.
Why is everyone ignoring the fact that OP said 'rhymes with SchmegalZoom'? That's hilarious.
I think the key is to read the fine print. I didn't, and ended up paying for a 'certificate of good standing' that I didn't need. Live and learn
Also, don't forget to check if your state requires a publication requirement (like NY). Those services might not include that, and it can be expensive.
To answer your original question, OP: yes, get your EIN from the IRS, open a bank account with your LLC documents, and consider a registered agent if you don't want your address public. But you can do most of it yourself.
I second the registered agent thing. If you're not comfortable being your own, find a local service. It's cheaper and more reliabl than the big online companies.