Question 1

Which entity type is right for me?

Accepted Answer

For most small business owners, an LLC is the best choice. It protects your personal assets and gives you tax flexibility. If you plan to raise venture capital, a C-Corp is usually better. Our wizard recommends the right fit based on your goals.

Question 2

How long does formation take?

Accepted Answer

Most states process filings in 5–15 business days. Expedited filing (1–3 days) is available in many states for an extra fee. Delaware and Wyoming are among the fastest.

Question 3

Can I file myself?

Accepted Answer

Yes — you can file directly with your state. What we add is name-check guidance, entity choice help, EIN filing, an Operating Agreement, a compliance calendar, and CPA support on Pro and Premium.

Question 4

Do you handle all 50 states?

Accepted Answer

Yes, plus DC. Filing fees and processing times vary by state — use our State Fee Estimator on the pricing page for current numbers.

Question 5

What's the 100% accuracy guarantee?

Accepted Answer

If we make an error on your filing that causes it to be rejected, we’ll fix it and refile at no extra cost — including any state refiling fees.

Question 6

Do you offer refunds?

Accepted Answer

Yes. We offer a 60-day satisfaction guarantee on the service portion of our fee. State filing fees are non-refundable once submitted to the state.

Question 7

What's the difference between LLC and S-Corp?

Accepted Answer

An LLC is a business entity. An S-Corp is a tax election. Many owners form an LLC and later elect S-Corp status once they’re profitable. That can save 15.3% self-employment tax on distributions above a reasonable salary.

Question 8

Should I form in my home state or Delaware?

Accepted Answer

Form in your home state unless you have a specific reason not to. Delaware is best for VC-backed C-Corps. Wyoming and Nevada have low fees. If you operate in your home state but form elsewhere, you’ll also need to register as a foreign entity there.

Question 9

Single-member vs multi-member LLC?

Accepted Answer

Single-member LLCs are treated as disregarded entities by the IRS by default — profit flows to your personal 1040. Multi-member LLCs file Form 1065 and issue K-1s to each member. Both offer identical liability protection.

Question 10

Can I convert my LLC to a C-Corp later?

Accepted Answer

Yes. It's a common path: form an LLC to start, then convert to a Delaware C-Corp before raising a priced round. There are two paths (statutory conversion vs 'Delaware flip') — a CPA should help you time the conversion to minimize taxes.

Question 11

What's a PLLC and do I need one?

Accepted Answer

PLLC = Professional LLC. It's required in most states for licensed professionals (doctors, lawyers, CPAs, architects, engineers). If your profession is state-licensed, check with your state's licensing board.

Question 12

What's a Series LLC?

Accepted Answer

A Series LLC creates a master LLC that can have unlimited 'series' underneath it — each with separate assets, members, and liability shield. Popular with real estate investors holding multiple properties. Only available in ~15 states.

Question 13

When should I elect S-Corp status?

Accepted Answer

Rule of thumb: once your business profit exceeds $80,000-$100,000/year. Below that, the payroll overhead usually eats the savings. Our S-Corp calculator on Wizard Step 5 shows the exact break-even for your numbers.

Question 14

What's a 'reasonable salary' for S-Corp?

Accepted Answer

The IRS requires you to pay yourself a reasonable W-2 salary before taking distributions. Industry rule of thumb: 40-60% of net profit, tied to what a comparable employee would earn. Set it too low and you'll invite an audit.

Question 15

Do I need an EIN?

Accepted Answer

Yes, in almost all cases. Every C-Corp, S-Corp, and multi-member LLC needs one. Single-member LLCs technically don't (unless you hire employees or open a business bank account) — but you'll want one anyway. EIN obtainment is included in Pro and Premium.

Question 16

What about state taxes?

Accepted Answer

Every state is different. Some states (TX, FL, NV, WY, SD, WA) have no personal income tax. Others (CA, NY, NJ) have franchise or entity-level taxes. When you sign up for Tax Planning, we'll walk you through the specifics for your state.

Question 17

Can I deduct my LLC formation cost?

Accepted Answer

Yes. Formation fees are a capitalized start-up cost, and you can deduct up to $5,000 of start-up costs in your first year (the rest amortized over 15 years). Talk to your tax professional.

Question 18

What's a registered agent and do I need one?

Accepted Answer

A registered agent receives legal documents on behalf of your business — lawsuits, tax notices, service of process. Every state requires one. You can be your own registered agent (in your state of formation), but many owners prefer a service to keep their home address private.

Question 19

What ongoing filings do I need to make?

Accepted Answer

Most states require an annual report (with a fee) to keep your entity in good standing. If you elect S-Corp, add IRS Form 1120-S. Multi-member LLC files Form 1065. C-Corp files Form 1120. Our Annual Compliance add-on handles all of it.

Question 20

What happens if I don't file annual reports?

Accepted Answer

Your state will move your entity to 'delinquent' status, then eventually 'administratively dissolved.' You lose your liability protection, and a lawsuit that would have hit your business now hits you personally. Not worth the risk.

Question 21

Can I form an LLC on H-1B?

Accepted Answer

Yes, you can own an LLC while on H-1B. You generally cannot actively work for it without separate work authorization. Many H-1B holders form LLCs for passive investments or rental properties.

Question 22

Can I form an S-Corp as an H-1B holder?

Accepted Answer

No. S-Corp shareholders must be US Citizens or Green Card holders. H-1B, L-1, EAD, and ITIN holders are not eligible. Form a regular LLC or C-Corp instead.

Question 23

What about ITIN holders?

Accepted Answer

ITIN holders can own an LLC or C-Corp. You cannot own an S-Corp. When we form your entity, we'll help you use your ITIN correctly on the SS-4 (EIN application).

Question 24

Can foreign non-residents own a US business?

Accepted Answer

Yes. A C-Corp is the standard choice — no citizenship or residency restriction. You can form remotely and open a business bank account (though this has gotten harder post-2020 KYC rules). We can help you navigate the requirements.

Question 25

How do I open a business bank account?

Accepted Answer

You’ll need your Articles of Organization, EIN letter, Operating Agreement, and a government-issued ID. Premium packages include introductions to partner banks to make the process easier.

Question 26

Do you help with business credit?

Accepted Answer

Not directly — but forming an entity is the first step. Once you have your EIN and business bank account for 3-6 months, you can start applying for business credit cards and lines of credit. Our compliance calendar reminds you of the 6-month mark.

Question 27

What are the total costs?

Accepted Answer

Package fee + state fee + any add-ons. Basic is $0 + state fee. Pro is $199 + state fee. Premium is $249 + state fee. State fees range from $35 to $500 depending on the state.

Question 28

Are there hidden fees?

Accepted Answer

No. The price you see is the price you pay. State fees are shown separately and clearly. Add-ons are optional — no upsell tricks.

Question 29

Do you offer discounts?

Accepted Answer

For volume (5+ formations in a year), yes — email us. For nonprofits, yes — we discount our Pro package. For general customers, our prices are what they are.

Question 30

Do I pay again for the annual report?

Accepted Answer

State annual report fees are paid to the state (varies by state). Our Annual Compliance add-on ($149/year) files it for you plus handles compliance reminders. Or you can DIY through the state website.

Question 31

What's the difference between a will and a trust?

Accepted Answer

A will names guardians for your children and decides who inherits your assets — but it goes through probate court, which takes months and is a public record. A living trust lets your family skip probate entirely: assets held in the trust pass directly to your beneficiaries, keep your finances private, and can save thousands in court fees.

Question 32

What documents come in a will plan?

Accepted Answer

Every will plan includes a last will & testament, healthcare directive, medical and financial power of attorney, HIPAA authorization, and pet care provisions. Premium adds a full year of 30-minute attorney consultations, a yearly estate-planning review, and discounts on PaperCounsel products and attorney services.

Question 33

Why do I need powers of attorney with my will?

Accepted Answer

A will only takes effect after you pass. Powers of attorney are the "while you're alive" documents: a financial POA lets a trusted person manage your money if you're incapacitated, and a healthcare directive (living will) names a medical proxy to make treatment decisions you can't. They're the documentation your family hopes you have.

Question 34

Is this legal in my state?

Accepted Answer

Yes. Wills, trusts, powers of attorney, and healthcare directives are recognized in all 50 states and DC. Our documents are drafted to your state's requirements, and the attorney review ensures they're valid and complete before you sign.

Question 35

What does the attorney support include?

Accepted Answer

Within the included window (30 days or 1 year depending on plan), you get unlimited 30-minute consultations. Attorneys answer your estate-planning questions, review your documents, and help you correct mistakes. Premium plans also include an annual 1-hour estate-planning review so your plan stays current.

Question 36

How do I update my estate plan later?

Accepted Answer

Life changes — marriages, births, a new home. With the annual estate-planning review on Premium plans, counsel walks through your assets and family situation every year so your documents stay accurate. Changes can be layered on over time.

Answers to your formation questions.

Most asked

Talk to a real expert about your situation — free.

Answers to your formation questions.

Most asked

Which entity type is right for me?expand_more

What's the difference between LLC and S-Corp?expand_more

When should I elect S-Corp status?expand_more

Do I need an EIN?expand_more

What's a registered agent and do I need one?expand_more

What are the total costs?expand_more

Which entity type is right for me?expand_more

How long does formation take?expand_more

Can I file myself?expand_more

Do you handle all 50 states?expand_more

What's the 100% accuracy guarantee?expand_more

Do you offer refunds?expand_more

What's the difference between LLC and S-Corp?expand_more

Should I form in my home state or Delaware?expand_more

Single-member vs multi-member LLC?expand_more

Can I convert my LLC to a C-Corp later?expand_more

What's a PLLC and do I need one?expand_more

What's a Series LLC?expand_more

When should I elect S-Corp status?expand_more

What's a 'reasonable salary' for S-Corp?expand_more

Do I need an EIN?expand_more

What about state taxes?expand_more

Can I deduct my LLC formation cost?expand_more

What's a registered agent and do I need one?expand_more

What ongoing filings do I need to make?expand_more

What happens if I don't file annual reports?expand_more

Can I form an LLC on H-1B?expand_more

Can I form an S-Corp as an H-1B holder?expand_more

What about ITIN holders?expand_more

Can foreign non-residents own a US business?expand_more

How do I open a business bank account?expand_more

Do you help with business credit?expand_more

What are the total costs?expand_more

Are there hidden fees?expand_more

Do you offer discounts?expand_more

Do I pay again for the annual report?expand_more

What's the difference between a will and a trust?expand_more

What documents come in a will plan?expand_more

Why do I need powers of attorney with my will?expand_more

Is this legal in my state?expand_more

What does the attorney support include?expand_more

How do I update my estate plan later?expand_more

Talk to a real expert about your situation — free.