Forming an LLC as a software founder is expensive, full of hidden add-ons, and more confusing than it needs to be. Can we fix it?
Hey IH,
My brother and I recently went through the process of forming an LLC for a couple apps we're building.
We weren't trying to do anything fancy, we just wanted to:
- separate personal liability
- open a business bank account
- connect Stripe
- have something legit behind what we were shipping
On paper, that all sounded straightforward.
In reality, every service we looked at advertised "$0 formation"… and then at checkout:
- $79 for EIN filing
- $99 for an operating agreement
- $249/year for a registered agent
We were at $400+ before we'd really done anything.
What surprised me more than the cost was how unclear everything felt, even after paying. The documents were generic, and we still had basic questions like:
- Do we actually need all of this right now?
- What does a registered agent even do?
- Are these templates enough for a software business?
- Do we need things like ToS/privacy policy to launch?
We were paying to still be confused, with no support.
So we ended up putting together a simpler version for ourselves:
- LLC or Delaware C-Corp formation
- EIN filing
- An operating agreement with IP assignment language
- Registered agent (free year 1)
- Starter ToS + privacy policy templates
- A simple dashboard to track filings / deadlines
We turned that into a product (QuickBiz), but honestly I'm less interested in pitching it and more interested in sanity-checking the idea.
My assumptions:
- Most early-stage software founders don't want to piece this together themselves
- They don't necessarily need custom legal work on day 1, but they do want a clean baseline
- The current market is confusing more than it is helpful
Curious to hear how others approached this, especially what you got wrong or overpaid for.
