How to Save Money When Setting Up Your LLC

How to Save Money When Setting Up Your LLC

 

You’ve probably heard of third-party companies who can help you set up an LLC, but is the price really worth it? It can be hard to know who to trust and where to get the best deals, especially when you’re just getting started. Here’s everything you need to know about these companies and how to save money when setting up your LLC. 

 

 

 

 

Legal Zoom, Incfile, Zen Business, and Tailor Brands. What do all of these third-party companies have in common? They all spend a TON of money on ads and marketing. They want you as a customer and they are spending that cash to make it happen. These are the 4 parties I’ll be focusing on today and by the end of this post, you’ll know the costs and benefits of using each one for setting up your LLC. 

 

Disclaimer

What kind of attorney would I be if this didn’t have a disclaimer? I’m a licensed attorney and I practice in Utah and Idaho. I am not your attorney. This is not official legal advice. If you have any questions, please consult with a legal professional in your jurisdiction.

 

 

 

 

How to Save Money When Setting Up Your LLC

 

When comparing these 4 different LLC filing companies, I filed as a single-member LLC living in the state of Texas. I requested an EIN, operating agreement, and registered agent service (first-year sub) to be included in my LLC package. 

 

While this entire experiment is theoretical, I wanted to make sure I was giving the same information so I could really compare the companies as apples to apples. With that in mind, your price may vary depending on what you want to be included in your package and where you live.

 

Third-Party LLC Company Review #1: Legal Zoom

 

The total price for filing with Legal Zoom in my fake scenario came to $550. A large portion of this total amount comes from the registered agent service which is $300/year. So be aware that this registered agent is renewed every year at quite a hefty price. This service should really only cost about $60. 

 

Third-Party LLC Company Review #2: IncFile

 

I filed with IncFile using the exact same scenario and the total came to be $500. Again, notice the registered agent is only good for a certain period of time. And don’t be confused by their term “operation agreement.” This is the same thing as an “operating agreement.” This is a document you will definitely want to set up along with your LLC. You can check out my post HERE to learn more about what an operating agreement is and how to set one up for your business.

 

Third-Party LLC Company Review #3: Tailor Brands

 

Tailor Brands is new on the scene compared to its competitors, but it is doing quite a bit with its marketing, so let’s give it a shot. I went through the filing process and the total came to be $500. So it is the same amount as what we were charged in the IncFile scenario. 

 

Third-Party LLC Company Review #4: Zen Business

 

And last but not least, Zen Business. This one also came out to be $500. At first, it only cost $200/year, but it added a $300 charge for a Texas filing fee. This is going to be the cheapest anyone is ever going to charge you for filing an LLC. Even if you were to file the LLC on your own, you would still have to pay the $300 to the state of Texas. (or the x amount wherever you will file from.)  

 

 

 

 

How to Save Money When Setting Up Your LLC

 

When filing for your own LLC, I want to make sure you are getting charged the cheapest price possible. Let’s talk through how to make sure that happens. First of all, since these third-party companies pay a lot for ads and marketing they will probably show up as some of the first choices when you do any type of search for an LLC. 

 

Just because a company pops up as your first, second, or third option doesn’t mean they are the best choice, the cheapest, or will give you the best customer service. You are the product and these companies are selling to you hard. Keep that in mind as you are doing your research. 

 

Next, be aware of upsells. When going through the filing process on any of these third-party websites, they are going to try and upsell you several times. Some of the common things that they will try to upsell you on are expediting and rush fees. These are not worth it. 

 

Also, look out for upsell packages like a registered agent or virtual mailbox. An agent should only cost about $60/month and a virtual mailbox should only be $10/month. If these companies are trying to charge you 5-10x more, find the service elsewhere. 

 

Another thing they will try to upsell you on are things literally no one needs! Fancy binders, stationary, a rubber stamp with your LLC name, etc. These are completely unnecessary! 

 

Beware of subscriptions! I’ve had clients come to me who got tangled up in a subscription service and it was a complete headache trying to cancel it. I do not wish this on anyone! 

 

 

 

 

How to Save Money When Setting Up Your LLC

 

If you choose to go with a third-party company to file your LLC, these tips should give you the tools on how to save money when setting up your LLC! If you’re hesitant to go with any one of these companies, you can actually set up your LLC all on your own. Check out my post HERE where I walk you through how to do it step-by-step. And make sure to also follow me on Instagram @brittanyratelle so you can keep getting the best tips for making your business legally legit. 

 

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