Inc Authority is an online business-formation service that files your LLC or corporation at no service fee — you pay only your state's filing fee — and earns its money on optional add-ons like registered agent service, EIN acquisition, operating agreements, and ongoing compliance. It competes with ZenBusiness, Incfile/Bizee, Northwest Registered Agent, and LegalZoom. The genuinely free filing tier is real and useful for founders who want the entity stood up cheaply, but the value depends on which upsells you actually need and how you handle registered agent renewals. Just as important for most owners: forming the entity is step one — a brand-new LLC has no deposit history, so the funding you can access in the first few months looks very different from what an established business qualifies for. This guide covers both halves: how to use Inc Authority well, and what a freshly formed entity can realistically do to raise working capital.
Key takeaways
- Inc Authority files LLCs and corporations with a $0 service fee — you pay only your state's filing fee, which varies by state.
- Its revenue comes from optional add-ons: registered agent renewal, EIN acquisition, operating agreements, and compliance filing.
- Registered agent service is often free the first year, then billed annually — the year-two renewal is the most common surprise cost.
- You can obtain your EIN directly from the IRS for free rather than paying the add-on fee.
- A newly formed entity has no deposit or credit history, so banks and SBA loans are usually out of reach in the early months.
- Revenue-based financing and MCA marketplaces approve on business bank deposits and revenue over credit — FICO 500+, funding from about $10,000, decisions often in 24-48 hours.
- No legitimate funder guarantees approval; deposit history in a dedicated business account is what actually unlocks early-stage working capital.
What Inc Authority actually does
Inc Authority is a formation filer, not a law firm. When you submit through their platform, they prepare and file your Articles of Organization (LLC) or Articles of Incorporation (corporation) with the Secretary of State in the state you choose, and confirm once the state approves the entity. That core filing service is offered free — meaning zero service markup — so your only mandatory out-of-pocket cost is the state's own filing fee, which varies widely by state (for example, some states charge under $100 while others run several hundred dollars).
Around that free filing, Inc Authority bundles a menu of paid services most new businesses will consider:
- Registered agent service — often free for the first year, then billed annually. This is the address that receives legal and state notices on your behalf.
- EIN (Tax ID) acquisition — they'll obtain your federal EIN for a fee, though you can get one directly from the IRS for free.
- Operating agreement / corporate bylaws — templated governance documents.
- Business funding analysis and tax consultation — lead-generation-style advisory add-ons.
- Compliance and annual report filing — ongoing reminders and filing of state-required reports.
The honest read from an operator's chair: the free filing is a real deal, but Inc Authority's revenue model leans on the upsells during checkout. Know which ones you need before you start clicking.
What's genuinely free vs. what you pay for
The word "free" does a lot of work in formation-service marketing. Here's the clean separation.
| Item | Cost through Inc Authority | Notes |
|---|---|---|
| Entity filing (service fee) | $0 | The core free offer — genuinely no service markup |
| State filing fee | Varies by state | Mandatory; paid to the state, not Inc Authority |
| Registered agent (year 1) | Often $0 | Renews at an annual rate afterward — watch this |
| Registered agent (year 2+) | Annual fee | Recurring; a common source of surprise charges |
| EIN acquisition | Add-on fee | Free directly from the IRS at irs.gov |
| Operating agreement | Add-on fee | Templated; free templates exist elsewhere |
| Annual report filing | Add-on fee + state fee | You can file these yourself in most states |
Figures above are directional and labeled "for example" where specific — always confirm current pricing and your state's fee at checkout, since both change.
The two line items worth pausing on are the EIN (you can get it yourself from the IRS in minutes at no cost) and the registered agent renewal (the second-year charge is where the "free" service starts generating recurring revenue). Neither is a scam — they're standard industry practice — but a founder who knows the alternatives can decide deliberately instead of accepting the default bundle.
Apply with Merchant Fund Express in 60 seconds. Decisions in 2–4 hours.
Inc Authority vs. the main alternatives
The formation-service market is crowded and the players are more alike than different. What separates them is pricing structure and which services are bundled.
| Provider | Free filing tier? | Positioning |
|---|---|---|
| Inc Authority | Yes (pay state fee) | Free filing, revenue from upsells; free first-year registered agent |
| Incfile / Bizee | Yes (pay state fee) | Similar free-filing model, comparable upsell menu |
| ZenBusiness | Low-cost tiers | Polished UX, strong compliance/ongoing-support framing |
| Northwest Registered Agent | No (flat fee) | Privacy-focused, strong registered agent reputation, transparent pricing |
| LegalYoom-style incumbents | No | Higher price, broad legal-brand recognition |
Comparison is general and for orientation only; verify each provider's current offering directly.
Rule of thumb: if you want the cheapest possible stand-up and you're comfortable managing your own EIN and compliance, Inc Authority or Bizee fit well. If registered agent privacy and transparent, no-upsell pricing matter more to you, Northwest is the usual pick. If you want the most hand-holding, ZenBusiness or a full-service incumbent.
Decision framework: when Inc Authority fits — and when to skip it
Use this to decide fast.
Inc Authority works best when:
- You want your LLC or corporation filed cheaply and you're fee-sensitive on the service side.
- You're comfortable declining upsells and getting your own EIN from the IRS.
- You'll use the free first-year registered agent and set a calendar reminder before the year-two renewal so you can keep, switch, or renegotiate deliberately.
- You're a solo founder or small partnership standing up a straightforward single-state entity.
Avoid it (or choose differently) when:
- You want flat, predictable pricing with no upsell funnel — Northwest is cleaner for that.
- You have a complex structure (multiple owners, foreign qualification in several states, tax elections) that really warrants an attorney or CPA, not a filing service.
- Registered agent privacy is a priority and you don't want your service address rolled into a marketing-heavy platform.
- You're likely to forget the year-two registered agent renewal and get caught by an auto-charge — if that's you, pick a provider whose pricing you'll remember.
The formation choice is low-stakes compared to what comes next. The entity is a container. What determines whether the business survives is cash flow — and that's where the funding question begins.
Forming the entity is step one — funding is the real challenge
Here's the underwriting reality most formation guides skip: a brand-new LLC or corporation has no track record. No business credit file, no seasoned bank deposits, no revenue history. Traditional lenders — banks and SBA-backed programs — generally want to see time in business (often two years), strong personal credit, and financials. A newly formed entity usually doesn't have those yet.
That gap is why so many founders form the entity, then hit a wall when they try to fund it. The good news is that the fastest-moving segment of small-business finance doesn't underwrite the way banks do. Revenue-based financing and MCA-style working capital are approved primarily on your business bank deposits and revenue — not on credit score or years in business. Once your entity has a business bank account with a few months of consistent deposits flowing through it, you can often qualify.
Typical shape of what a revenue-based marketplace looks for:
- Deposits over credit: underwriting weights your monthly revenue and bank-statement cash flow far more heavily than FICO.
- FICO 500+: credit is a factor but not a gate the way it is at a bank.
- Funding from roughly $10,000 and up, sized to your actual revenue.
- 24-48 hours from complete application and bank statements to a decision, in many cases.
No legitimate funder ever "guarantees" approval, and any that claim to should be a red flag. But the practical takeaway for a newly formed entity is clear: open the business bank account the moment your EIN is issued, run your revenue through it cleanly, and give it a few months of deposit history. That history is the asset that unlocks funding — far more than the entity paperwork itself.
For the full picture on how deposit-based approval works, see our guide to revenue-based business financing and our overview of small-business funding options.
A realistic new-entity funding timeline
This is an illustrative sequence for a founder who forms through a service like Inc Authority and wants to be funding-ready as fast as reasonable. Figures are examples only.
| Stage | Action | Funding implication |
|---|---|---|
| Day 0 | Entity filed; wait for state approval | Not yet fundable — no EIN, no account |
| Week 1-2 | State approves; obtain EIN from IRS (free) | Can now open a business bank account |
| Week 2 | Open dedicated business checking; route all revenue through it | Deposit history clock starts |
| Months 1-3 | Run revenue cleanly; avoid negative days and overdrafts | Building the bank-statement profile underwriters read |
| Month 3+ | Apply to a revenue-based marketplace with bank statements | Often eligible for working capital (for example, from ~$10,000), decision in 24-48h |
Timelines vary by business and lender; this is a directional example, not a promise.
The single highest-leverage habit here is discipline in the business account: consistent deposits, minimal negative balance days, and no commingling with personal funds. Underwriters read three to six months of statements to gauge cash-flow health, and clean statements are what turn a young entity into a fundable one.
How to avoid the common Inc Authority mistakes
A short punch list from watching founders go through this:
- Get your own EIN. It's free and takes minutes at irs.gov. Paying an add-on fee for it is optional convenience, not necessity.
- Diary the registered agent renewal. The free first year is real; the year-two charge is where costs appear. Set a reminder 30-45 days out so you can keep, switch, or renegotiate on your terms.
- Decline upsells you can't name a use for. Funding analysis, premium bundles, and tax consults are optional. Add them only if you'd have sought them independently.
- Open the business bank account immediately. Your funding future is built on deposit history — start it the day your EIN lands.
- Don't confuse formation with funding. A clean filing is necessary but not sufficient. Cash flow through the account is what actually gets you capital.
Frequently asked questions
Is Inc Authority really free?
The core filing service is genuinely free — Inc Authority charges no service fee to file your LLC or corporation. You still pay your state's mandatory filing fee, and the company earns revenue from optional add-ons like registered agent renewal (after a free first year), EIN acquisition, and compliance services. So "free" is accurate for the filing itself, but plan for the state fee and any upsells you accept.
What's the catch with the free registered agent?
Registered agent service is typically free for the first year, then renews at an annual fee. That's standard in the industry and not a scam, but it's the most common source of unexpected charges. Set a calendar reminder 30-45 days before renewal so you can keep it, switch providers, or renegotiate deliberately rather than getting auto-charged.
Should I pay Inc Authority to get my EIN?
You don't have to. The IRS issues EINs for free in a few minutes at irs.gov. Paying Inc Authority's add-on fee buys convenience, not something you can't do yourself. For most founders, getting the EIN directly is the better move — and you'll need it right away to open a business bank account.
Is Inc Authority better than ZenBusiness or Northwest?
It depends on what you value. Inc Authority and Bizee lead on cheapest service-side filing with an upsell menu. Northwest Registered Agent is the usual pick for transparent flat pricing and registered agent privacy. ZenBusiness leans into polished UX and ongoing compliance support. If you're fee-sensitive and comfortable declining upsells, Inc Authority fits; if you want no upsell funnel, look at Northwest.
Can I get funding right after forming my LLC with Inc Authority?
Not immediately from traditional lenders — a brand-new entity has no deposit history or business credit, and banks typically want two years in business. The faster path is revenue-based financing, which approves primarily on your business bank deposits and revenue rather than credit or time in business. Open a business account the day your EIN is issued, run revenue through it cleanly for a few months, and you can often qualify (FICO 500+, funding from about $10,000, decisions in 24-48 hours).
How much revenue history do I need before I can qualify for working capital?
Most revenue-based marketplaces read three to six months of business bank statements to gauge cash-flow health. Some will consider applicants with as little as a few months of consistent deposits. The key isn't just length of history — it's quality: steady deposits, minimal negative-balance days, and no commingling with personal funds. Clean statements are what turn a young entity into a fundable one.
What does 'approval on deposits over credit' actually mean?
It means the underwriter weights your monthly business revenue and bank-statement cash flow far more heavily than your FICO score. A bank leads with credit and financials; a revenue-based funder leads with your deposits. That's why this route works for newer entities and owners with imperfect credit (FICO 500+ is typical) — the business's actual cash flow does most of the qualifying.
Are there funders that guarantee approval for new businesses?
No legitimate funder guarantees approval, and any that claim to should be treated as a red flag. Real underwriting always evaluates your bank deposits, revenue, and cash flow. What you can control is being prepared: form the entity, open the business account, build a few months of clean deposit history, and apply with organized bank statements. That preparation — not a guarantee — is what improves your odds.
