The real cost of your LLC: what they don't tell you

You're about to form your LLC and you start comparing prices. You see $500 here, $647 there, $1,800-$3,600 somewhere else. The decision looks easy: cheapest wins. Except it doesn't. The formation price is just the tip of the iceberg. What matters is how much it costs to operate your LLC over a full year.

We analyzed the most popular providers in this market and calculated the real Total Cost of Ownership (TCO). The results may surprise you.

The entry-price trick

Most providers advertise an attractive starting price. But that price does not include what you actually need to operate. Tax filing, bookkeeping, FBAR, renewals... all of those are extras that add up fast.

It's like buying a $5,000 car and then discovering insurance, maintenance and gas cost you $8,000 a year. The price of the car was the smallest line.

TCO comparison: full year 1

We assume basic bookkeeping and full tax compliance. These are the real costs:

*Stripe Atlas does not offer these services. Prices are market estimates for hiring a US CPA or independent bookkeeper.

The cheapest provider on formation can be the most expensive in operation. The entry price is not the real price.

Stripe Atlas: fast, cheap... and then what?

Stripe Atlas is excellent at what it is: a launchpad. For $500, in 48 hours you have your LLC formed with legal documents from Cooley (a top Silicon Valley law firm) and a bank account ready.

But Atlas does nothing else. Literally:

• No tax filing — you need a CPA ($600-1,500/year)
• No bookkeeping — you need a service ($200-400/month)
• No FBAR handling — you need a preparer ($300-500)
• No Spanish-language support — everything is in English
• No compliance monitoring — if you forget the Franchise Tax ($300/year), your LLC drifts into bad standing
• Delaware only — the state with the highest franchise tax floor ($300/year minimum)

For a tech startup chasing VC investors, Atlas makes sense. For a freelancer or digital nomad who needs to operate and invoice, it's only the first step on a long, expensive road.

The "inner-circle" providers: human support, zero technology

The traditional inner-circle Spanish-speaking providers have been around for 10 years. Their strength is personal WhatsApp support and experience forming LLCs in multiple states.

But there are important gaps:

• No dashboard — no client portal, no document portal
• No tools — no calculators, no invoice generators, no tax calendar
• Opaque renewal pricing — year 2+ cost is unclear on their site
• Basic tax filing — $300 separately, no FBAR included
• No integrated bookkeeping — separate service with no published price
• No document verification — PDFs without digital signature or traceability

It's a traditional consultancy with a modern website. If what you want is someone replying on WhatsApp, it can work. If you want a complete ecosystem working for you 24/7, it falls short.

What your LLC provider should include

Before you choose, make sure your provider includes these 8 services in the base price. If any one of them is "extra" or "not available", you'll end up paying more:

1. Formation + EIN — the basics, everyone does this
2. Registered Agent — mandatory every year, cannot be missing
3. Operating Agreement — your internal constitution, should be solid
4. Annual Tax Filing — Form 1120 + 5472, not optional
5. FBAR — if the LLC has accounts outside the US with aggregate balance above $10,000, it can be mandatory
6. Bookkeeping — without bookkeeping you can't file taxes properly
7. Management dashboard — to see your LLC's status, documents, obligations
8. Support in your language — when you have a tax problem, you need to understand it

If your provider only forms the LLC and wishes you good luck, it's not a provider — it's a paperwork shop.

The "low-price" argument

"But $1,800-$3,600 is way more than $647." Yes, the entry price is higher. But let's add up what you actually need to operate legally for one year:

The Manager plan at $300/month is your CFO, bookkeeper, compliance officer, tax preparer and tools platform. Try hiring just one of those roles for $300/month.

So, which is the right choice?

It depends on what you need:

• If you only want to form an LLC quickly and you already have a CPA, bookkeeper and know how to manage compliance: Stripe Atlas ($500) gets the job done.
• If you want basic human support and don't mind handling tax filing and bookkeeping yourself: a traditional consultancy ($647) is a fit.
• If you want to operate your LLC without worrying about anything, with automated bookkeeping, included tax filing, 22+ tools, and a team handling everything: Devil Club is the only option that bundles all of it for one price.

For a detailed comparison of our Club vs Manager plans, see the comparison page. And if you want to understand how an LLC works before deciding, our definitive guide covers everything from scratch. For broader context on US business structures, the SBA's guide is a good starting point.