mpiazzisi--You also appear to have missed the part where they charge another $495 to complete the IRS exemption application--which still excludes the $850 IRS fee. That $495 is an optional add on; preparation of the exemption application is not included in their $400 gold package.
The best investment you can make is the PTOToday Startup Toolkit. It is inexpensive, has everything you need, and is written so parents who haven't done this stuff before can follow it. I can't recommend it highly enough. In the last three years, I've started two PTOs, assisted with the start up of one, am currently assisting in the start up of another one, and next week will start the filings to get a PTO going at a new school that is opening in September. All I've done is follow the instructions in the Startup Toolkit.
I just looked at their website. It looks like the fee only covers preparation of the forms. You would still need to pay state and federal filing fees including the $850 to the IRS for Form 1040.
Our School wants to start a PTO that is a 501c3. I read through most of PTO Today and have seen the costs range about $850 not including the PTO Today startup kit. I went to legal zoom and completed all the steps required to get the costs for them to do this. It includes State incorporation, Federal tax ID and the 501c3. Their cost is $400. Am I missing something can it be this inexpensive and easy???