Used an online service to set up a basic LLC in my state last month. The quote was $49 plus state fee. My credit card was charged $289. I look at the invoice and there is a "registered agent service" for $199 and some "compliance packet" for $39. I never checked those boxes, never spoke to anyone. I called and they said it was part of the default package. I don't even know what a registered agent does. Is this normal? What can I do?
LLC Billing
My LLC formation bill included several things I never requested
Not normal to charge for things you didn't select. Those cheap-formation sites often have pre-checked add-ons, or they make it look like the base price includes them. Check your checkout confirmation email. If it shows only the $49, you have a paper trail to dispute.
$199 is steep for a registered agent unless it's a year and includes mail forwarding. You can usulaly be your own agent in many states. Look up your state's requirements.
I had a similar thing happen with a different company.They auto-enrolled me in a "compliance" service and it renewed the next year without warning. Credit card chargeback was the only way I got it resolved. Document everything.
Was it one of the big names? Some of them bundle a year of agent service into the default cart now and you have to actively remove it. Still scummy if it's not cleaar.
The compliance packet is usually just a bindeer with your articles and an EIN printout. $39 is a ripoff but not illegal if it was disclosed somewhere. Registered agent is different though. If you didn't consent to that, call your bank.
I found the email. The order summary shows only the formation fee and state fee. No mention of the agent or packet. The invoice they emailed after the charge lists them. So they added after the fact.
Then dispute the charge with your card issuer. You have the order confirmation as proof. Also file a complaint with your state's attorney general consumer division. These companies fold fast when regulators call tbh.
Not a lawyer. But if they provided the service already (even without asking), the card company might side with them. Read the terms you agreed to at checkout. There's usually a clause about "affiliated services" buried in there.
You can also just cancel the registered agent service going forward. Find out if they filed anything with the state listing themselves as your agent. If so, you'll need to file a change of agent form with the state, not just cancel with the company.
That's an important point. If they're listed as your registered agent with the state, you can't just ignore it. Your LLC could get administratively dissolved if mail goes unanswered. Check your state's business entity search.
Check the state search first. If they're not listed, you're probably fuine to just dispute the charge and move on. If they are, you have more work to do.
For what it's worth, I've used a local CPA for years and she charges $50 to be registered agent. $199 is insane for a service that mostly just receives mail.
Checked the state site. They are listed as my registered agent. So now I have to file a change form. What happens to the $199 if I cancel? Do I get any of it back ngl?
Probably not through the company. But if you win the chargeback, the bank reverses the whole $199. Then it's on the company to argue. I'd file the change of agent first so you're not stuck with them while the dispute plays out.
This is why I always screenshot the checkout page Before paying. They change the layout and pre-check boxes and hope nobody notices. Sorry this happened.