Is inc authority really free?
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Inc Authority pushes a “$0 + State Fees” LLC formation deal hard. So, is it actually free? Yeah, mostly, but there are some big catches. Every cost of starting a LLC deserves a close look, and Inc Authority isn’t any different.
The entry-level formation package is genuinely $0 in service fees. Inc Authority will prepare and file standard Articles of Organization with a state agency without levying an in-house processing fee. However, you must always pay state-mandated Secretary of State filing fees, which range from $40 to $500+ depending on jurisdiction. The California Secretary of State states: "The filing fee for Articles of Organization is $70. This fee is required regardless of the service you use to file."
What is truly free in the base package?
Unlike a lot of competitors who lock core features behind pricier tiers, Inc Authority's $0 entry package still throws in a surprisingly wide range of baseline stuff. ZenBusiness and Bizee have free plans too, but Inc Authority's first-year registered agent is what really makes it stand out.
Preparation and State Filing. We’ll draft and electronically submit your Articles of Organization for free. The New York Department of State notes: "Filing fees are separate from any service provider charges. You are paying the state for processing your formation documents."
Business Name Availability Search. We’ll check that the name you want is free in that state’s database.
First-Year Registered Agent Service. Valued at $179 to $249 per year, we cover this free for your first 12 months. That’s a big perk, since competitors like ZenBusiness and Bizee make you pay for it upfront.
Pick the "Bonus" add-on (you choose). You get one premium feature free, usually an Employer Identification Number filing or 24-hour expedited processing. The IRS says: "You can apply for an EIN online at IRS.gov. This service is free."
Digital Document Portal. We give you online access and storage for approved entity documents.
The monetization strategy, where the costs lie
While the baseline service is free, Inc Authority runs on the classic freemium and lead-gen model. If you blindly click through the setup portal, you can easily rack up $300 to $600+ in optional add-ons and recurring charges. The hidden costs of LLC formation usually come from these upsells, not the state fees.
Year-Two Auto-Renewal Subscriptions. Our main money maker is the Registered Agent service. Year one costs nothing. After that, it auto bills you $179 to $249 every year. Most folks don't watch that 12-month date, so the recurring charge catches them off guard. And if you want to switch agents or cancel partway through, you've got to file a formal change with the state, and that costs a fee too.
High-Margin Add-On Services During Checkout. During the multi-step checkout sequence, users are presented with a series of add-on services featuring countdown timers and high-pressure UI elements. An Operating Agreement costs $89, though free standardized templates are widely available online. Minutes and Resolutions cost $99 for digital corporate governance templates that most single-member LLCs don't strictly require. Expedited Internal Filing costs $49 and only accelerates Inc Authority's internal processing, not the state government's speed. S-Corporation Election costs $79 for submitting Form 2553 to the IRS, which can be filed directly for free. Compliance360 offers a free 30-day trial then costs about $147 per year for automated compliance reminders.
Third-Party Affiliate Partnerships. The "Free Business Funding" and "Free Tax Consultation" sessions in the basic package are mostly lead-generation tools. Our partner accountants and banks pay us referral fees when you sign up for ongoing bookkeeping or open a new business bank account.
full cost comparison matrix
The table below shows what you get at the pure $0 level versus a fully upgraded checkout profile, compared to doing it on your own. Comparing Inc Authority vs. ZenBusiness shows how the free agent service creates real value in year one.
| Service Component | DIY (Direct Govt Submission) | Inc Authority Base ($0 Tier) | Inc Authority Full Bundle |
|---|---|---|---|
| State Filing Fee | Mandatory (Paid to State) | Mandatory (Passed to State) | Mandatory (Passed to State) |
| LLC Formation Processing | $0 | $0 | $0 (Included in Tier) |
| Registered Agent (Year 1) | $0 (Act as own agent) | $0 | $0 |
| Registered Agent (Year 2+) | $0 (Self) | $179 – $249/yr | $179 – $249/yr |
| EIN (Tax ID) Filing | $0 (Direct via IRS.gov) | $0 (If chosen as free perk) | Included |
| Operating Agreement | $0 (Free templates) | $0 (Not included) | +$89 |
| Rush Processing | Depends on State | Standard Speed | +$49 |
| Total Year 1 Service Fees | $0 + State Fee | $0 + State Fee | $300 to $600+ + State Fee |
Consumer & regulatory verdict
Is Inc Authority really free? Yes, but there are some big catches. The base service genuinely costs $0 in fees for the initial filing. But it works as a funnel for pricey upsells and required second-year subscription renewals. Northwest and LegalZoom do things differently, charging service fees upfront instead of leaning on auto-renewals.
The Federal Trade Commission has warned people about companies that advertise "free" services but hide costs in auto renewals and upsells. Inc Authority is usually pretty clear during checkout, but that auto renewal model has surprised a lot of users. The Federal Trade Commission says: "Businesses should clearly disclose all terms, including automatic renewal provisions, before consumers make a purchase."
Recommendations for business owners
If you go with Inc Authority, here’s how to get the most out of it and keep costs low. How to keep your LLC compliant covers things like handling your registered agent and staying on top of renewal dates.
- Deselect All Upsells: Skip extra stuff like Operating Agreements ($89), Minutes templates ($99), or Compliance tools at checkout. Free versions are easy to find online or elsewhere.
- Select EIN as the Free Perk: Pick the IRS EIN filing as the free main bonus. It saves you the headache of doing it on your own, though the IRS does give it away for free directly.
- Calendar the Cancellation Window: Mark the 11-month anniversary date to either keep or cancel/transfer the Registered Agent service prior to the $179–$249 annual auto-renewal charge. If you're happy with the service, the renewal price is competitive with other providers.
Frequently asked questions
Yes, the base formation service is free. You just pay the state filing fee. But they make their money through upsells and the registered agent service that renews automatically in year two, which runs $179 to $249 per year.
The main catch is the registered agent auto-renewal at year two. If you don’t cancel or transfer before the 12 month mark, you’ll get billed $179 to $249 every year. They also push add-ons pretty hard during checkout, but you can say no to all of them.
All three give you free or cheap formation help. Inc Authority’s big win is the free registered agent for year one, which keeps $100 to $300 in your pocket. ZenBusiness and Bizee make you pay extra for that agent. But their ongoing costs pretty much match. So it really comes down to whether you’d rather grab that free agent or go with a different feel.