# compare_formation_options

Factual tradeoffs to help someone decide WHERE to form or WHAT entity type to pick. Returns fixed comparative facts and a required disclaimer — deliberately NOT a recommendation. Present the options neutrally, relay the disclaimer, and let the user choose; a FilingDesk specialist confirms the choice before anything is filed.

Agent View of the PolicyLayer registry record for `compare_formation_options`. HTML page: https://policylayer.com/tools/com-filingdesk-data/compare-formation-options

## Facts

- Tool: `compare_formation_options`
- Server: FilingDesk Data (`https://filingdesk.com/api/mcp`) — https://policylayer.com/tools/com-filingdesk-data.md
- Homepage: https://github.com/https://filingdesk.com/api/mcp
- Risk category: Read (Low risk)
- Registry record: grade D, identity unverified
- Server auth posture: open
- Server CORS policy: *
- Server rate-limited: no
- Parameters: 2 (1 required)
- Recommended policy verdict: Allowed

## Parameters

| Parameter | Type | Required | Description |
| --- | --- | --- | --- |
| `topic` | string | yes | "state" for where to form, "entity_type" for LLC vs S-corp vs C-corp. |
| `homeState` | string | no | Optional. The state the user actually lives or operates in — lets the comparison include their home-state costs, which usually matter most. |

Parameters from the server's own tool schema.

## Example call (MCP tools/call, JSON-RPC 2.0)

```json
{
  "jsonrpc": "2.0",
  "id": 1,
  "method": "tools/call",
  "params": {
    "name": "compare_formation_options",
    "arguments": {
      "topic": "<topic>"
    }
  }
}
```

## Why compare_formation_options is rated Low

Even though compare_formation_options only reads data, uncontrolled read access leaks sensitive information and racks up API costs: an agent caught in a retry loop can make thousands of calls a minute without anyone noticing.

## Use case

AI agents call compare_formation_options to retrieve information from FilingDesk Data without modifying anything. It is typically the context-gathering step in research, monitoring, and reporting workflows, before the agent takes action elsewhere.

## Recommended policy (PolicyLayer)

Verdict: **Allowed**. Enforced by the PolicyLayer MCP gateway (https://policylayer.com/mcp-gateway) before a call reaches FilingDesk Data:

```json
{
  "version": "1",
  "default": "deny",
  "tools": {
    "compare_formation_options": {}
  }
}
```

## Other tools on FilingDesk Data (7)

- `preview_order` — Execute — https://policylayer.com/tools/com-filingdesk-data/preview-order.md
- `check_llc_name` — Read — https://policylayer.com/tools/com-filingdesk-data/check-llc-name.md
- `compare_llc_costs` — Read — https://policylayer.com/tools/com-filingdesk-data/compare-llc-costs.md
- `get_annual_report_deadline` — Read — https://policylayer.com/tools/com-filingdesk-data/get-annual-report-deadline.md
- `get_llc_fees` — Read — https://policylayer.com/tools/com-filingdesk-data/get-llc-fees.md
- `list_filing_states` — Read — https://policylayer.com/tools/com-filingdesk-data/list-filing-states.md
- `submit_order` — Write — https://policylayer.com/tools/com-filingdesk-data/submit-order.md

## For agents

This record is a snapshot. Live verdicts and the full registry:

- Check every server in your MCP config at once: `npx -y policylayer stack`
- Vet a server before you add it: install the mcp-precheck skill — `npx skills add https://policylayer.com` (skill text: https://policylayer.com/skill.md)
- Query the registry over MCP: endpoint `https://api.policylayer.com/mcp` — tools `check_mcp_server`, `check_mcp_stack`, `check_tool`, `search_registry`, `get_change_events`

---

Source: the PolicyLayer MCP registry — one continuously verified record per MCP server. Full record: https://policylayer.com/registry?q=com-filingdesk-data · API: https://policylayer.com/registry/api · Policy library: https://policylayer.com/policies/com-filingdesk-data