IncFile LLC Service Review (Advantages & Disadvantages)
IncFile opened their doors in 2004 and they’ve become one of the most popular LLC formation services since, forming over 150,000 businesses.
There are many services that can help you form an LLC online, but IncFile has managed to carve out some space for themselves in this highly competitive industry.
This IncFile LLC service review outlines all of the key factors to keep in mind when considering using their services.
Advantages & Disadvantages
- Starting at the low price point of $49, they’re among the most affordable LLC formation services available.
- Even though their base rate is so low, there’s a full year of registered agent service included in every LLC formation package offered by IncFile. (What is a registered agent?)
- They also provide a one-hour consultation with a business tax professional, which can be a highly valuable bonus for new business owners to make sure they’re laying down a solid foundation for taxation compliance.
- IncFile’s customer support can be difficult to reach at times. While it’s certainly not the norm, we’ve had to wait ~24 hours to get responses to some of my questions.
IncFile LLC Packages – Starting at $49
IncFile has 3 LLC formation packages, each with its own combination of pricing and features. If you’d like to check out the full details of each one for yourself, you can review them here.
Special Offer: Before we get into the details, I’ll point out that every LLC formation package from IncFile includes a full year of registered agent service. That’s a $119 value at no extra charge and is one of their biggest selling points.
Every business is different, so clearly there will be some variation in whether the following statements apply to your specific company. With that said, here are my general opinions on each of their 3 packages for LLC formation.
To begin with, I don’t especially think the top-tier Platinum package is worth the $299 it costs, before state fee. The only features included in this bundle that the other packages don’t have is a library of sample documents and a business website. The website is provided by third-party web design firm SnapWeb, which is a company I’ve never heard of outside the context of IncFile’s service packages, and it still includes a $20/month maintenance fee.
Now we’re left with the Gold package at $149 plus state fee, and the Silver package at $49 plus state fee. Both include the following valuable features for LLC formation:
- One year of registered agent service
- Business tax consultation
- Lifetime company filing deadline alerts
As for the differences between Gold and Silver, there are quite a few. I think the $100 cost differential is justified because the Gold package includes a federal tax ID number or EIN (a $70 value), which the vast majority of companies need. Plus, the Gold tier also has the following customized features that you’d need to pay extra for with Silver:
- LLC operating agreement
- Bylaws and minutes
- Banking resolution
- LLC kit and seal
- Express shipping of completed documents
An operating agreement is a necessity, although you can draft your own if you’d like. The bylaws, minutes, banking resolution and express shipping aren’t must-haves, but depending on your business type and membership structure they might be nice to have. Finally, the kit and seal are entirely symbolic these days, so I don’t put much value on that at all.
Overall, I think the price increase from Silver to Gold is fair, but it’s also not entirely necessary. The EIN is the only feature in Gold that you truly need, and you could certainly just add one onto the Silver package for $70. However, when another $30 beyond that gets you all of the features I outlined, it’s hard to argue with value like that.
What Are Other Entrepreneurs Saying?
IncFile has enough experience in the industry that it’s easy to find customer feedback, which can give you a glimpse of what to expect as one of their clients.
I dove into IncFile reviews all across the web (most of which are found on ShopperApproved), and determined that their customers experience some pretty clear-cut pros and very few cons. If you want the complete picture of their feedback, feel free to check out their many individual reviews, but in general, their customers enjoy the simplicity of IncFile’s services, as well as their reasonable prices.
In short, few competitors can hold a candle to IncFile’s superb customer reviews.
Should You Use IncFile?
When it comes down to it, IncFile has more advantages going for them than disadvantages working against them. Here’s when you should and shouldn’t use them to form an LLC:
When To Use IncFile:
If you’re on a budget but don’t want to completely sacrifice when it comes to features, IncFile is one of the top LLC formation providers in the industry. I don’t hesitate to recommend them to most entrepreneurs.
When NOT To Use IncFile:
The only time I would say IncFile isn’t the right choice is if you think you’ll need a lot of customer service assistance and quick answers.
IncFile has some of the best prices in the industry, with glowing customer reviews to match. They are an easy company to recommend for most LLC formations. If you need to look into some alternatives, check out our list of the top LLC services and how IncFile compares. If you would like to get your LLC started with IncFile, you can visit them directly right now.