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Start a Business Formation and Compliance Filing Service

People search: “llc formation service” (2K+ per month)

Help new entrepreneurs get legal: entity filings, EINs, licenses lists, and the annual compliance calendar, done as document preparation with recurring renewals.

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Difficulty

Intermediate

Startup cost

Free to $500

Time to first $

30 to 60 days

Revenue potential

Medium

Profit margin

80 to 95 percent

Viability

7.0 / 10

Search demand

Medium (2K+ per month)

Where it runs

Online

Best for: Detail-precise administrators who enjoy other people's paperwork

The opening

Why this idea is overlooked

Millions of new businesses form every year and their founders are confused at exactly the moment they have money to spend on clarity; the big filing websites are impersonal and the upsells annoy everyone, which leaves room for a human service, and the annual compliance calendar (reports, renewals, registered agent needs) turns one filing into recurring revenue.

The roadmap

How to start, step by step

1
Learn the unauthorized-practice line first
You may prepare and file documents at the client's direction and explain public requirements; you may not advise which entity is right for their situation, draft custom legal terms, or interpret law for their case, because that is practicing law. Some states also require registration or bonding for legal document preparers; check yours before launching, and build attorney referral relationships for everything over the line.
2
Master one state deeply first
Formation filings, EIN process, state tax registrations, common local licenses, annual report deadlines, and the penalties for missing them. Depth in your home state beats shallow fifty-state claims, and most clients are local anyway.
3
Package formation plus the calendar
A formation package ($150 to $400 plus state fees: filing, EIN, operating agreement template the client completes, and a first-year compliance checklist) and the recurring layer ($10 to $40 per month or $100 to $300 per year for deadline monitoring, annual report filing, and renewal reminders). The subscription is the business.
4
Be the anti-upsell alternative
Transparent flat prices, no surprise renewals, and a human who answers. The big filing sites' reputation for upsells is your marketing; say plainly what everything costs and what you are not allowed to advise on.
5
Find clients at the starting line
Small business development centers, startup workshops, bookkeepers and accountants who see unformed businesses weekly, and content answering the exact questions new founders search. Coaches and course creators with audiences of aspiring founders make strong referral partners.
6
Grow the compliance book
Every formation client becomes a compliance subscriber; add services like DBA filings, license renewals, and good-standing certificates as one-off upsells. A book of 200 compliance subscribers at $15 per month is quiet, durable revenue that compounds every formation season.

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Your first move

Learn your state's formation and annual compliance requirements cold, define the document-preparation boundary that keeps you out of legal advice, and package formation plus a compliance subscription.

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