Direct Incorporation vs IncFile (Who Wins For You?)
Do you need to form a new LLC, but you want to avoid the time-consuming hassles of the DIY route? Thankfully, there are quite a few service providers offering formation assistance online, but it can be tricky to figure out which one to use.
In this Direct Incorporation vs IncFile LLC service comparison, you’ll find side-by-side rundowns of each company’s top attributes. By the time you’re done reading, you should have a much clearer idea of which service you’d like to use to form your new LLC.
* Note: If you would like to compare the top LLC services, we reviewed and ranked the best based on overall value-price-reliability. See Comparison.
Direct Incorporation and IncFile are both popular choices for LLC formation services, and for good reason. They’re both reputable companies that have the necessary knowhow to get the job done right. However, in general we do prefer IncFile for most of our readers.
First and foremost, IncFile’s $49 (plus state fee) base rate is a much lower price than Direct Incorporation’s $147 price point. In addition, IncFile includes a full year of registered agent service with any LLC formation package, which is a feature Direct Incorporation does not offer at all.
Need more information to make your decision? Read on to get the full details on what sets these two popular service providers apart. Which one is the better fit for your business?
5 Things They Have In Common
1) Affordable: With either of these companies, you’ll save hundreds of dollars over hiring an attorney to draft and file your articles of organization. Furthermore, LLCs are fairly simple structures, so you may not need a lawyer’s expertise to begin with.
2) Customer Support: Of course, saving money isn’t the only priority. Direct Incorporation and IncFile both have customer support networks that can save you time and effort. Instead of looking for your own answers when you have questions, simply ask their service reps to get a quick and accurate response.
3) Customer Reviews: Direct Incorporation and IncFile both have collections of online customer feedback which can give you a feel for what the customer experience is like at both companies. Both service providers receive strong reviews from their clients, which is always nice to see.
4) Experience: Both IncFile and Direct Incorporation have loads of experience forming businesses. They’ve each helped form thousands of LLCs, and they certainly have the expertise to form your new company.
5) Additional Services: Are you in the market for other business services in addition to your formation? IncFile and Direct Incorporation offer many other business solutions like federal tax ID numbers (EIN), document prep, etc. Think of them as one-stop business services shops!
6) Efficiency: Do you need to get your new LLC up and running in a hurry? Direct Incorporation and IncFile both have expediting options that can really speed up the process, for an additional fee of course.
Side by Side Comparisons
With a base rate of $49 for LLC formation service, IncFile is significantly cheaper than Direct Incorporation, which has a standard price point of $147. (See Details)
Direct Incorporation includes an EIN with any package, but IncFile provides a full year of registered agent and a 30-minute business tax consultation. While this is pretty clearly an advantage for IncFile, Direct Incorporation’s premium LLC formation packages include some advanced features like web design service, custom logo design, trademark protections, and more.
Direct Incorporation formed in 2003, and they’ve served over 60,000 customers since then. IncFile has been around since 2004, with 150,000+ clients served.
The customer service offered by these companies is pretty comparable in terms of availability hours and support format (phone, email, etc.). The one item we’ll point out in this section is responsiveness. Direct Incorporation is good about returning phone calls and emails in a timely fashion, but IncFile can take a while. We’ve experienced wait times of over 24 hours with IncFile, while Direct Incorporation usually gets back to you much more quickly.
Both Direct Incorporation and IncFile have filing times that vary based on your state of formation. In some states, IncFile has a small edge, and in others Direct Incorporation is a bit quicker. Check their websites for an estimate for your state, but if there is a difference in turnaround times it will likely not be significant.
IncFile has an order status tracking tool on their website that has live updates to keep you informed of where you stand in the formation process. Direct Incorporation includes access to their Client Resource Center with any LLC service, where you’ll have real-time order progress updates and access to your formation documents.
Registered Agent Service
Direct Incorporation does not offer registered agent service. IncFile bundles a full year of registered agent with all of their LLC formation packages, and they sell additional years for $119 annually. (What is a Registered Agent?)
Customer feedback is a big strength for IncFile. They have thousands of customer reviews available online, and nearly all of them are quite positive. Direct Incorporation has a few dozen reviews across the web, and while the majority are positive in nature, they don’t have nearly the volume of feedback that IncFile has.
Ease of Use
IncFile’s website is a bit more slick and streamlined, but Direct Incorporation’s site is quite good as well. This is a toss-up for functionality, and a slight edge to IncFile for aesthetics.
Direct Incorporation and IncFile are both capable of efficiently forming your new LLC. They’re experienced and trustworthy, and they’ll both save you hundreds of dollars over hiring a traditional law firm to handle your formation for you.
Because they’re both strong options, it wouldn’t surprise us if you are still undecided. With that in mind, let’s wrap up this comparison with a brief discussion of scenarios in which you might prefer to use one over the other.
Choose Direct Incorporation if You Are:
Do you need features like trademark protections and logo design? Direct Incorporation is a popular choice for entrepreneurs who want to bundle advanced features in with their formation package.
Choose IncFile if You Are:
Are you looking for the lowest prices? Or maybe you prioritize great customer feedback? These are two common reasons for business owners to choose IncFile.