Incorporation isn't something most entrepreneurs do every day, which is why a good forms kit can save you thousands in legal fees while keeping you compliant. Whether you're setting up an LLC or a corporation, understanding the true costs—beyond the state filing fee—helps you pick the right DIY solution or know when to hire a lawyer. Let's break down what you'll actually spend and how to choose a forms kit that matches your needs.
State Filing Fees: The Baseline Cost
State filing fees are the first and often smallest cost. LLC formation ranges from $50 to $500 depending on your state; Wyoming and Nevada are cheaper ($50–$100), while California and New York run $100–$310. Corporations typically cost $100–$250 for the Articles of Incorporation filing.
These fees are non-negotiable and go directly to your Secretary of State. A reputable forms kit supplier will tell you the exact fee for your state upfront—this is a red flag if they don't. Some kits include the filing fee; others charge separately.
Forms Kit Pricing Tiers
DIY forms kits span a wide range depending on what they include:
- Basic kits ($50–$150): Bare-bones documents—Articles of Organization or Incorporation, bylaws or operating agreement templates. Best if you have simple ownership, no co-founders, and minimal complexity.
- Mid-range kits ($150–$400): Add resolutions, EIN guidance, registered agent information, and more detailed instructions. Suitable for single-member LLCs or small corporations with straightforward structures.
- Comprehensive kits ($400–$800): Include post-formation compliance documents, ongoing minute books, tax election forms (S-corp election, for example), and sometimes limited phone support. Worth it if you have multiple owners or anticipate needing amendments.
- Premium bundles ($800–$1,500): Bundle incorporation with business licenses, operating agreement customization, and ongoing compliance reminders. These often include a year or two of registered agent service.
Compare at least three suppliers before buying. Mercoly helps you find and compare trusted Legal Books, Forms Kits & Courses providers so you can see pricing, included documents, and user reviews side by side.
Hidden Costs Beyond the Forms Kit
The forms kit price tag doesn't tell the whole story. Budget for:
Registered Agent fees ($50–$300/year): Most states require an LLC or corporation to designate a registered agent for legal service of process. Many kits include this for the first year; others don't. If you use your home address or business address, it's free but less private.
EIN application (free): You need an Employer Identification Number from the IRS, but the application (Form SS-4) is free and takes minutes online or by phone.
Business licenses and permits ($0–$500+): Depending on your industry and location, you may need local or state licenses separate from incorporation. A comprehensive forms kit might guide you; others won't.
Tax filing (varies): Some kits include tax guides; others don't. If you elect S-corp tax status, budget $100–$300 for a CPA or tax software to handle the election and annual filings.
What to Look For in a Forms Kit
Jurisdiction specificity: A kit for Delaware isn't helpful if you're forming in Texas. Confirm the kit covers your exact state.
Plain-English instructions: Legal documents can confuse even savvy entrepreneurs. Good kits explain what each document does and which blanks you must fill in versus which are optional.
Ongoing updates: LLC and corporation laws change. Check if the supplier updates forms when laws shift—ideally included in the purchase price, not sold as an add-on.
Support options: Does the kit include email support, a FAQ, or phone access to a paralegal? Free support is rare; expect to pay $50–$200 for a one-time consultation if needed.
Post-formation compliance reminders: A strong kit alerts you to annual report deadlines and other renewal requirements so your business stays in good standing.
DIY Kit vs. Hiring a Lawyer
A forms kit makes sense if you're forming a straightforward single-member LLC or small corporation with no complex tax implications. Total cost: $200–$500.
Hire a business lawyer ($500–$2,000+) if you have multiple owners, plan to raise funding, operate in multiple states, or need custom agreements and tax structure guidance. A lawyer also reviews your kit-generated documents and catches issues you might miss.
Frequently Asked Questions
Q: Can I use a forms kit from one state to incorporate in another? No. State laws differ significantly—residency requirements, filing timelines, and document naming all vary. Always buy a kit specific to your state.
Q: Do forms kits include everything I need to stay compliant after incorporation? Most basic and mid-range kits do not. They provide initial formation documents but not annual report reminders, amendment templates, or minute-keeping guidance. Look for kits explicitly labeled "ongoing compliance" if you want post-formation support.
Q: What happens if I fill out a forms kit document incorrectly and file it with the state? Minor errors are often fixable by filing an amendment (small additional fee). Major errors may require dissolution and re-filing. Choose a kit with clear instructions and consider a $100 paralegal review if you're uncertain.
Ready to compare forms kits and find the right one for your business structure? Start your search today and get incorporated efficiently.