[rp]

Please remember that the only thing that is "free" is the fee that you would pay this company to do your paperwork. You will have to pay business organization fees to the state of formation no matter what you do (check your state). As noted by others, most states also charge yearly franchise taxes, which is in addition to any federal taxes you are liable for if you see revenue.

[tialys]

Yes but for someone like me (Read: not a lawyer, can't afford one) a service like this can save me a ton of money. I understand there are risks when not working with a lawyer, and I haven't actually submitted yet because my partner and I are discussing this, but in general I think it's helpful if you know you want an LLC/S-Corp and don't need anything complex. You'd have to pay the state fees no matter what, so it's like doing it yourself, only you get some experts to help you out -- free.

[redrobot5050]

Don't take this the wrong way, but hit up slideshare.net for "Starting a Business". There's a great tip in a lot of those presentations: Make a (non-family member) accountant your new best friend. Most CPAs have a "checklist" of what needs to be done (tax wise and regulation wise) to incorporate.