Picking a formation service is not just about the cheapest sign up price. This guide walks through what should be included, the add on fees that catch founders off guard, and how PowerLaunch prices its plans.
What a formation service should actually include
At a minimum, a formation service should file your LLC or C-Corp with the state, get you a federal EIN, and give you the paperwork that proves your business is real. Here is the baseline checklist.
- State formation filing, done correctly and tracked until approved
- EIN from the IRS, since you cannot open a bank account or file taxes without it
- Operating agreement for an LLC, or bylaws for a C-Corp
- Registered agent service for at least the first year, since every state requires one
- A business address you can use for mail and for the state filing itself
If a service is missing any of these five items, you will end up paying someone else to fill the gap later, usually at a worse price because you are buying it piecemeal.
Hidden lines to watch for
The sign up price is rarely the full story. Ask about these before you pay anything.
Annual state report. Most states require an annual or biennial report to keep your business in good standing. Some formation services charge extra for this every year, on top of the state's own fee. Ask whether it is included or billed separately.
Registered agent renewal. Year one is often bundled in in the low sign up price. Year two renewal is where many services raise the price sharply. Check the renewal rate before you commit, not after.
Expedited EIN. If you are a non-resident founder without a US Social Security number, your EIN can take a few weeks through the standard process. Some services quote a low headline price and then charge extra to speed this up. Know the standard timeline and the expedited price up front.
Tax filing support. Forming the entity is the easy part. If you are a foreign owned single-member LLC, you likely need to file Form 5472 with a pro forma 1120 by April 15 each year. A pure formation service will not do this for you. Ask directly whether ongoing tax filing is included, and if not, what it costs elsewhere.
Bookkeeping and financial reports. If your plan does not include transaction tracking or basic reports, you will be doing your own books or hiring a separate bookkeeper. Factor that cost in when you compare prices.
State filing fees. These are set by the state, not by the formation service, and they vary. A service should pass these through at cost and be transparent about them from the start. Always check the state's own website if a filing fee seems unusually high or low.
Comparing what is bundled
Here is a simple way to think about the layers of service, from bare formation up to a fully run business.
| Layer | What it covers | Why it matters |
|---|---|---|
| Formation only | State filing, EIN, agreement, registered agent | Gets you legally set up, nothing more |
| Formation plus compliance | Adds annual report filing, IRS tax filing | Keeps you in good standing year over year |
| Formation plus finance | Adds bookkeeping, invoicing, financial reports | Gives you numbers to run the business on |
Most founders start out thinking they only need the first layer. Within a year, most need the second at minimum, since annual reports and tax filings are not optional.
How PowerLaunch prices its plans
PowerLaunch runs three plans, and the pricing is built around these layers.
The Launch plan, at $295 a year, covers the formation filing, EIN, operating agreement or bylaws, registered agent, a virtual mailing and business address, an AI assistant inside the MyCG.AI platform, and email support. This is the formation only layer, done properly, with no missing pieces.
The Run plan, at $1,995 a year, adds the annual state report filing, a consultation with a licensed tax professional, business IRS tax filings, transaction tracking with AI categorization, Stripe invoicing, live financial reports, multiple bank connections, e-commerce analytics, and monthly and quarterly closings. This is the compliance and finance layer combined.
The Scale plan, at $2,995 a year or $329 a month, adds everything in Run plus expedited EIN processing, free dissolution if you ever close the business, live call scheduling based on availability, and a dedicated bookkeeper.
On all plans, the state filing fee is charged at cost, since PowerLaunch does not mark this up. Expedited EIN is available as a $295 add on for Launch and Run plans, or included as standard in Scale.
Timelines to expect
Formation speed depends on the state. In Wyoming, Kentucky, and Colorado, filings are typically approved in one to three business days. Most other states take one to two weeks. Rules and processing times vary by state, so check the specific state's site if you need an exact figure for your situation.
EIN issuance for founders without a US Social Security number usually takes two to four weeks through the standard process. Expedited processing brings this down to a matter of days. Once you have the EIN, PowerLaunch can introduce you to Mercury, Wise Business, or Relay for a business bank account, though approval is always the bank's decision, not PowerLaunch's.
The guarantee
If a formation error is PowerLaunch's fault, PowerLaunch corrects it at its own cost and refunds that portion of the fee. State filing fees are set by the government and are never refundable, regardless of the cause of the error. This is a fair standard to look for from any formation service, and worth asking about directly if a provider does not mention it.
What to do next
If you want a formation service that includes the full checklist above with no hidden renewal surprises, you can compare the Launch, Run, and Scale plans and start your filing at powerlaunch.solutions/signup. If you are not sure which plan fits your situation, or you have questions about your specific state or tax setup, book a free 20-minute consultation at powerlaunch.solutions/book and talk it through before you commit.
