I was about to use ZenBusiness for my LLC because the startup price was lower than most. Then I read the fine print on their registered agent service. It's only included for the first year at a discount, then the renewal is way more than I expected. Anyone else caught this?
LLC Services
ZenBusiness looked cheaper until I checked the ongoing fees
Yes, this is a common complaint. Their basic package looks cheap because they bundle a one-year registered agent, but the renewal rate is around $199 annually. That's on the higher end compared to standalone agents.
I almost signed up last month. The checkout page added a bunch of extras I didn't need. I backed out and just filed directly with my state.
Always read the renewal terms. Most of these formation services make their money on the back end.
What did you end up doing instead? I'm in the same spot right now.
I ha ven't decided yet. Leaning toward filing with the state and using a separate registered agent that has a flat fee. The total first-year cost is a bit higher but at least it's predictable.
That's usually the better long-term move. ZenBusiness also charges for things like certified copies and expedited filing, which can add up. Just check the state fee schedule yourself.
I used them two years ago. The first year was fine, but the second-year invoice was a shock. I switched agents last month. It was a hassle but worth it.
Switching agents is usually just a form and a phone call. Not that bad.
I filed my articles myself online. Took about 20 minutes. The state website had a walkthrough. Saved the service fee entirely.
Does anyone know if ZenBusiness lets you decline the registered agent at checkout? Or is it mandatory in their bundle?
You can decline it, but then the price shown goes up because the discount is tied to the bundle. So the 'cheap' price isn't really the standalone formation fee.
The pricing structure is designed to obscure the true annual cost. I wish more people talked about this before signing up.
Bottom line: compare total cost over three years, not just the first invoice. That's where the difference shows up.