IncFile vs LegalZoom (Which is Better to Form an LLC?)
Are you ready to form an LLC but aren’t sure which service to use? LLC service providers like IncFile and LegalZoom can prepare your formation documents and file them for you, which removes a large weight from your shoulders.
Which one is the best option for you?
LegalZoom and IncFile are two of the biggest names in the LLC formation industry, and they’re both reliable, reputable companies. We have no problem entrusting either of them to form your compliant LLC. Still, IncFile has some advantages that make them our preferred option.
Most importantly, IncFile’s baseline price point is just $49, which is a full $100 cheaper than LegalZoom’s $149 offering. Additionally, IncFile includes a full year of registered agent service with their LLC formations, whereas with LegalZoom that’s an extra $159 to add on.
Still not sure which of these service providers to go with? Let’s dive into the details and see if we can make your decision a bit easier.
6 Things They Have In Common
1) Affordable: Both of these providers can save you a significant amount of money over hiring a business attorney to draft and file your formation papers.
2) Customer Support: If you have any questions or concerns, IncFile and LegalZoom have extensive customer support systems with helpful, professional representatives. This is one of the biggest advantages over the DIY route.
3) Security: Their websites both keep your data safe and protect you from malware, thanks to the combination of Norton Web Security and their own security measures.
4) Experience: LegalZoom and IncFile both have extensive track records. Both companies serve thousands of customers every year and are quite capable of handling your formation.
5) Customer Reviews: Seeing as both companies are extensively experienced, there are loads of customer reviews for IncFile and LegalZoom across the web. While the quality of those reviews certainly differs between the two companies, with such a high volume of feedback it’s easy to get a grasp on what their customer experiences are like.
6) Additional Services: They each offer extensive business solutions beyond LLC formation. From registered agent service to business licensing, they can help you just as much down the line as they can today.
Side by Side Comparisons
IncFile is $100 more affordable than LegalZoom. Their base package costs just $49 compared to LegalZoom’s $149 starting price point. (See Details)
With IncFile, you receive a full year of registered agent service and a 30-minute business tax consultation with any formation package, which are two features that LegalZoom does not include. On the other hand, LegalZoom offers a banking resolution with their base formation package, which IncFile lacks.
IncFile has served 150,000+ businesses since they got started in 2004. On the other hand, LegalZoom has a much higher client volume, as they’ve helped over 2 million business clients and formed over 1 million LLCs since 1999.
These are both large companies with extensive support systems, and are both a bit inconsistent as a result. With providers this big, some reps might be more helpful than others, and that’s certainly the case with LegalZoom. As for IncFile, their response times can be quite long, as we’ve experienced wait times in excess of 24 hours to get a response at times.
LegalZoom has extended customer service hours that are highly convenient because you don’t have to interrupt your business day to contact them. They’re available from 8am to 10pm ET every weekday, and 10am to 7pm ET on weekends. IncFile’s support reps are available from 10am to 7pm ET on weekdays, and they are not open on weekends.
LegalZoom’s estimated turnarounds are based on the level of service you order: Economy (30 days), Standard (15 days), or Express Gold (7-10 days). IncFile’s turnaround times are based on your state of formation, and there’s a wide range from 1-2 days all the way up to 8 weeks.
Both services offer online tracking where you can view real-time order status updates. IncFile’s tool is a bit flashier, but both are perfectly functional.
Registered Agent Service
IncFile gives you your first year of registered agent for free with any formation package, and charges $119 annually after that. LegalZoom does not include registered agent with your LLC service, and adding it on will cost $159 per year. (What is a registered agent?)
LegalZoom has mixed feedback from their customers, with 1,500+ reviews and middling ratings on third-party review websites. On the other hand, IncFile gets nearly universal positive feedback from their customers, as the vast majority of their 7,000+ reviews are very positive.
Ease of Use
This is one area where these companies are dead even. Both of them can save you a ton of time and hassle, with easy-to-understand services and efficient LLC formations. They also both have intelligently laid-out websites.
Which Is the Best LLC Service?
As you can see, there are plenty of similarities between IncFile and LegalZoom, but also many differences. In case you’re still undecided about which one to use, let’s review a couple of scenarios that can help you choose whether IncFile or LegalZoom should help you form your LLC.
No matter which one you decide to use for your LLC service, we wish you the best of luck in all your future business endeavors!
Choose IncFile if You Are:
Seeking the best prices? IncFile can save you money over LegalZoom’s base rate, while also including some valuable services like registered agent that LegalZoom makes you pay extra for. Also, if customer reviews are important to you, IncFile has a big advantage in that area.
Choose LegalZoom if You Are:
If experience and brand power are your top priorities, then LegalZoom is the better fit for you.