Free services in any industry tend to be rather conditional in nature. Most free products come with a handful of footnotes, often in a print so fine it’s easy to miss. Such caveats can end up amounting to a fortune, but with IncFile, you will be guaranteed to get your LLC registration without charge by choosing the right package.
About IncFile
Since its launch in 2004, IncFile has been on a steady climb to the very top of the industry’s online segment and now shares the spotlight with other popular services like LegalZoom and ZenBusiness.
In these years, the company has established itself as one of the most accessible services with free formation options and has formed over half a million entities to date.
But when it comes to allocating costs, creating a business can get somewhat murky in the face of multiple jurisdiction charges that vary by state as well as IncFile’s confusing upselling policies.
To clarify some of the finer details of IncFile’s free and chargeable services, let’s examine what they offer on each level.
Packages
The company follows a tiered pricing system, in this instance consisting of three packages. According to their policy, however, each plan includes a fixed set of features regardless of the level.
- A free registered agent for one year;
- Business bank accounts with BofA;
- Status tracking tools for every purchase;
- Guaranteed next-day processing for every filing;
- Unlimited access to company documentation;
- Certified copies;
- Statement of the organizer;
- Delivery by email or post;
- Unlimited maintenance notifications.
That being said, only the base plan is entirely free—state fees notwithstanding—while the other two are more comprehensive and therefore more costly. But let’s look at each of them individually.
Silver Package: $0 + state fees
This is essentially their starter pack that covers only the most basic steps. In addition to the general features listed above, the Silver package includes the initial drafting and submission of your Articles of Organization as well as business name availability search.
Gold Package: $149 + state fees
As is with all tiered models, this package builds upon the features of the preceding one. But unlike Silver, their Gold package adds such premium features as the creation of the operating agreement and banking resolution, S-corp tax election, business tax consultation, EIN acquisition, and unlimited customer support.
Platinum Package: $299 + state fees
Here, we can see a drastic spike in price, but that’s to be expected of most premium plans. On top of all previously mentioned features, the Platinum package offers access to IncFile’s template library for creating general and individual contracts as well as a free domain name registration (renewal not included) with the adjacent business email address. Expedited processing is applied by default.
Other Features
Some of the premium features in Gold and Platinum plans can be purchased separately. If you only need IncFile’s formation service but plan to use some of the extras later, it’s best you learn a bit more about the individual pricing.
- Operating Agreement ($40): creating this document is vital for optimizing the structural and organizational aspects of any entity, and if you aren’t sure where to start with your agreement, IncFile offers to do it for you while customizing it to the needs of your business;
- EIN ($70): perhaps one of the most important steps in managing a business, the Federal Tax ID is required for conducting operations of such essential nature as enrolling employees or keeping your checking accounts separate;
- Banking Resolution ($35): the resolution is often on the list of documentation requested by banks for creating business accounts;
- Business Contract Templates ($150): this service is included automatically in the Platinum package, but otherwise you will have to pay for access to IncFile’s library if you plan to handle a lot of business contracts in the course of your entrepreneurship;
- Trademark Registration ($199): this is an undoubtedly excellent service for any business creatives seeking to protect and develop their brand;
- LLC Kit ($99): positioned as a formation helper, this personalized kit includes all necessary extras for keeping your documents and books in order;
- Certificate of Good Standing ($49): it’s perfectly possible to apply for this certificate on your own and only paying your state fee, but if you simply don’t have enough time, IncFile can take over the application for you;
- Annual Report ($99): every entity is mandated to inform the state about all internal changes on a yearly or biennial basis, and if you’d rather save yourself clerical headache at the end of your business year, IncFile offers to file the reports for you;
- Foreign Qualification ($149): if your activities started in your home state but plan to open branches in other states, you have to first obtain the necessary certifications in these states, and this is where IncFile comes in, offering to foreign qualify your entity in any jurisdiction;
- DBA ($99): the question of needing an assumed name usually comes up during the expansion process, so every time you require an alias, this service offers to register your entity under another legal name;
- Amendment ($99): your formation Articles can be formally amended upon demand, but if you’re rather new to the process, IncFile can handle all related filings to document any changes in the company;
- Dissolution ($149): closing a company voluntarily still comes with following certain state procedures, and refusing to follow them can be the cause of serious fines; this is why IncFile offers to file all necessary dissolution papers for you, keeping each step fully compliant;
- S-corp Tax Election ($50): although LLCs are classified as flow-through entities, the IRS provisions the change of your taxation system using Form 2553;
- Accounting & Tax Consultation: the pricing with this feature set depends on the exact services rendered, but it does include pro-consultation and the initial return filing without charge plus access to bookkeeping software.
When to Use IncFile to Form an LLC
A point-by-point calculation of IncFile’s packages reveals them to be only partially budget-friendly. The $0 Silver package is ideal for small businesses that work with limited capital since this plan only charges for the state fee that you would have been paying either way if you’d gone down the DIY path.
Other than that, IncFile could get pretty expensive in the long run. But in cases when a business is likely to benefit from some of the premium features, then the Gold package is your best choice. At only $149, it packs some of the fundamental services that cost way more when done by other specialists.
Free LLC Formation Service Alternatives
Even the best of services can’t fit everyone’s needs, and sometimes providers just don’t work well with specific business goals. It’s always prudent to check out similar options and analyze them comparatively.
On the off chance that IncFile is ill-fitting, you could find a suitable replacement in Inc Authority, also known as Inc for Free. Despite its relative youth, the company is run by seasoned professionals with 30+ years of experience.
In addition to the free filing, their team also provides a name availability check, registered agent for 12 months, corporate tax election application, tax consultation, document delivery, and online storage—all free of charge.
Some of their premium services are similar to IncFile, including trademarks and BofA affiliation, but only Inc Authority offers to establish fast credit lines, create funding plans for small entities, handle RLTs, develop websites and the initial marketing strategy.
If you tend to rely on user feedback, Inc Authority has that in abundance, with over 6,242 currently on Trustpilot where it holds an ‘excellent’ score of 4.8/5. Most positive reviews praise the company’s intuitive reps, personalized approach to clients, and lack of upsells.
