Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

Payroll4Free.com is a payroll service company, much like ADP or Paychex, except that we focus on very small businesses and offer the basic services free of charge (optional premium services are between $12.50
and $25 per month). The services are primarily supported by advertising that is displayed on the payroll software. Our small business owner clients provide a very valuable target market for advertisers who offer products and services intended for business use.

We have found that for most very small businesses payroll services are generally unaffordable, and they tend to process it in-house to save money. Unfortunately, this often leads to huge payroll tax penalties ($4.2+ billion assessed by the IRS in 2015). We wanted to be able to offer those 30+ million small businesses a payroll option that is affordable, reliable, and service focused, which will allow us to eventually become the #1 small business payroll service provider in the United States.

Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.

Milestones

PAYROLL4FREE.COM, LLC was incorporated in the State of Ohio in May 2012.

Since then, we have:

-  Developed fully functioning payroll software compliant with regulatory requirements in all 50 states

• Increased client growth to 50+ new clients per month with zero marketing expense
• Grown to 1,300+ clients in all 50 states
• 500+ clients paying for at least one premium service
• Rated by clients 4.8/5 in service and support

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2017, the Company had revenues of $95,018 compared to the year ended December 31, 2016, when the Company had revenues of $71,803. Our gross margin was 100.0% in fiscal year 2017, compared to 100.0% in 2016.
• Assets. As of December 31, 2017, the Company had total assets of $115,945, including $114,854 in cash. As of December 31, 2016, the Company had $144,818 in total assets, including $144,161 in cash.
• Net Loss. The Company has had net losses of $16,949 and net losses of $172,577 for the fiscal years ended December 31, 2017 and December 31, 2016, respectively.
• Liabilities. The Company's liabilities totaled $1,855,137 for the fiscal year ended December 31, 2017 and $1,767,059 for the fiscal year ended December 31, 2016.

Liquidity & Capital Resources

At conclusion of this Offering, our projected runway was 4 months before we need to raise further capital.

We are using proceeds as set forth in that Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.

We will likely require additional financing, as we do not have additional sources of capital other than the proceeds from the offering. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

Runway & Short/Mid Term Expenses

Our cash in hand is $150,811, as of March 2017. Over the last three months, revenues have averaged $9445/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $14,048/month, for an average burn rate of $4603 per month. If we are successful in our next fundraise our intent is to be profitable in 30-36 months.

Galaxy Hosted Software LLC will continue to fund the operation if we run out of money.