DIY LLC vs. formation service: what are you actually paying for?
A formation company does not make the LLC more valid than a correctly accepted state filing. It sells a workflow around that filing. The decision turns on whether the workflow prevents a real mistake or merely adds recurring subscriptions.
File directly when the LLC is a routine single-member home-state entity and you can handle the state form, agent, operating agreement, EIN, and calendar. Pay a service when guided entry, document organization, a professional agent, or deadline assistance is worth more than its year-two cost. Hire an attorney when the uncertainty is legal rather than clerical.
F = your state’s required formation fee. A = required year-two state annual-report, franchise-tax, or similar charge. Those government amounts are not provider revenue and differ dramatically by state. “Year 1” below excludes optional rush fees, publication, licenses, tax advice, and other add-ons unless named.
The checkout has at least five different prices
| Charge | DIY | Formation service | Question to ask |
|---|---|---|---|
| State formation fee | F | F, usually passed through | Is this required government money or provider revenue? |
| Service fee | $0 | $0, $39, $199, $299, $399, or another package price | What specific labor or document does it buy? |
| Registered agent | $0 if you qualify and accept the consequences | Sometimes included year one; commonly $125–$199 later | What renews, when, and how do I replace the agent? |
| Compliance subscription | $0 plus your time and state charges | Free reminders or a recurring filing/restoration service | Does it include state fees? What happens if it misses? |
| Documents/add-ons | State forms plus documents you prepare or obtain | Operating agreement, resolutions, EIN, rush, license search, domain, address, tax consult | Is it actually required, customized, recurring, or available free? |
“$0 formation” means a $0 provider preparation fee. The state still charges F. Your second-year cost often reveals the business model: agent renewal, compliance plan, address, website/domain, tax service, or annual-report filing.
The filing, operating agreement, and EIN are different jobs
The state filing creates the LLC. An operating agreement governs ownership and management internally; it is especially important with multiple members, but a generic template cannot safely settle a custom economic or control arrangement. Initial resolutions, membership records, and a banking resolution may also be useful. Ask which documents are included, whether they are tailored to your state and ownership, and whether access survives cancellation.
The EIN is free from the IRS. Northwest currently lists a $50 EIN service for a U.S. responsible party with an SSN. Bizee Standard and ZenBusiness Pro bundle EIN handling into paid packages. Those can be convenience purchases, but never mistake the add-on price for an IRS charge.
A registered-agent address is not a universal private business address
Every state requires an LLC to maintain a registered agent with a physical in-state address and availability for service of process. When allowed, being your own agent costs nothing but can put the agent name and street address in a public registry and requires reliable weekday availability.
A commercial agent can place its address in the registered-agent field and scan legal notices. That may keep a home address out of that field. States can still request principal-office, mailing, organizer, member, or manager information, and banks, tax agencies, licenses, contracts, payment providers, and websites may need other addresses. Ordinary customer mail, returns, checks, packages, and virtual-office work are not automatically registered-agent services.
Northwest makes business-address use a major part of its formation offer. Bizee advertises first-year registered agent service but sells a separate virtual address. ZenBusiness sells registered agent service separately from Starter/Pro. Verify the exact address fields your state accepts before assuming any service produces privacy.
Cancellation must change the state record—not just the card
| Provider | Cancellation | Refund limitation | Control before buying |
|---|---|---|---|
| ZenBusinessCheck current official offer → | Subscriptions are separate. Registered-agent cancellation requires support and a replacement agent; many other cancellations outside listed DNR states also require support. | Formation guarantee is 60 days minus state/third-party fees; registered-agent and annual-subscription rules become restrictive after service begins or 30 days. | List every subscription, renewal date, and post-cancellation document you need. |
| NorthwestCheck current official offer → | Turn off auto-pay/cancel services, then separately change the agent with the state or dissolve the entity. | Its current general terms do not present the prominent blanket formation guarantee ZenBusiness does; obtain current refund eligibility in writing before payment. Government/third-party and completed work should not be assumed refundable. | Confirm service-specific refund and termination terms at checkout. |
| BizeeCheck current official offer → | A formation order must be put on hold before processing; registered-agent service requires assigning a replacement with the state and notifying Bizee. | Orders are generally refundable only before money goes to a government/third party—typically within 24 hours. Auto-renew and third-party fulfillment charges can be non-reversible after application. | Review status immediately; calendar renewal and replacement-agent lead time. |
Canceling a provider does not dissolve an LLC. Conversely, abandoning an LLC does not reliably stop provider billing. Handle the service contract and the state entity as two separate systems.
When convenience is worth purchasing
Reddit owner discussions are most useful as a list of failure modes: people discover renewals after focusing on the $0 headline, buy an EIN they could get free, assume cancellation closes the LLC, or use an agent address as if it were full mail forwarding. Those are anecdotes, not provider-wide verdicts. Turn them into a checkout audit:
- Write F and A from the Secretary of State—not a blog.
- List every provider charge now and at renewal.
- Uncheck anything with no named job.
- Save the exact order summary and terms.
- Calendar cancellation at least 45 days before renewal.
- Download filed articles, receipt, operating agreement, resolutions, EIN letter, and agent details.