Are you in the process of starting an LLC online, but you don’t want to go it alone?
In this IncNow vs LegalZoom comparison, you’ll find info on their main common points and differentiators laid out in a convenient fashion, which should help make your decision easier.
With IncNow and LegalZoom, we’re discussing two of the top options for online LLC formation service. They’re both excellent choices, and we think you’ll be quite pleased no matter which one you choose. Our preference in this comparison really comes down to which state you’re forming your LLC in.
If you’re forming a new LLC in Delaware, IncNow is an easy choice and a great alternative to LegalZoom. Their prices are considerably lower, and their customer reviews are very strong. However, if you’re forming an LLC in any other state, LegalZoom is the obvious option because IncNow solely forms companies in Delaware.
Do you need some more information before making your choice? Read on to discover all the details that these services have in common, as well as the ones that set them apart.
Is There a Better Alternative? While IncNow and LegalZoom both have plenty of positives, neither of them are among our absolute favorite companies in this industry.
In general, we prefer to use an online incorporation service like ZenBusiness and IncFile. They include a full year of registered agent service with all of their LLC formation packages and a lot of other solid features. Plus, they have fabulous customer feedback reputations, with thousands of positive reviews all over the web.
6 Things They Have In Common
1) Affordable: Are you operating on a tight budget where every penny counts? IncNow and LegalZoom can save you a tremendous amount of money over hiring a lawyer. Furthermore, since many LLCs are not terribly complex business structures, you may not need an attorney to draft and file your formation documents in the first place.
2) Customer Support: Not only will you save hundreds of dollars, but you’ll also be able to take advantage of their customer service departments. Any time you have a question, you can simply call or email your LLC service provider instead of wasting time digging around for the answers yourself.
3) Experience: Experience is the name of the game, and both of these companies have plenty of it. IncNow and LegalZoom both have thousands of satisfied customers over the years, ensuring you’ll receive professional assistance at a fair price.
4) Efficiency: Is time of the essence for your LLC formation? There’s no need to worry, as these providers can expedite your order to make sure your company is formed quickly. IncNow offers next business day turnarounds, while LegalZoom can have your formation done in as little as a week.
5) Additional Services: Are there other business services needed by your company? Whether you require registered agent service, a federal tax ID number (EIN), or many other business solutions, IncNow and LegalZoom are one-stop shops for your company’s compliance requirements.
6) Educational: Whether you end up becoming a customer of their or not, both of these companies have valuable business resources on their websites for free. IncNow has an informative blog that’s regularly updated with interesting business articles, while LegalZoom has a learning center packed with info about business entity types, taxation issues, and much more.
Side by Side Comparisons
Of course, everyone would rather pay $79 than $99, right? Not so fast. While LegalZoom might have an advantage on the surface, we think you’ll agree that IncNow catches up with them (and then some) in the next few categories.
The biggest difference between these providers is the fact that IncNow only forms LLCs in Delaware, whereas LegalZoom forms businesses in all 50 states. Aside from that, IncNow’s $99 price point includes a full year of registered agent service, whereas LegalZoom doesn’t include this feature in any of their LLC packages. However, LegalZoom does provide a banking resolution that can help you acquire business checking and savings accounts.
Overall, the year of registered agent service in IncNow’s formation package is far more valuable than LegalZoom’s banking resolution. In fact, you would need to add hundreds of dollars to your order to get this valuable service from LegalZoom.
IncNow has been providing business services for a long time, as they’ve served thousands of businesses since they opened in 1974. While IncNow has the longevity advantage, they can’t touch LegalZoom’s customer volume, as they’ve helped more than 2 million business clients since they started offering online business services in 2001.
IncNow has standard 9 am-5 pm ET weekday support hours, but their excellent customer service is more than just a standard offering. Their customers rave about their helpful support reps, and in our own experience, they are certainly both friendly and highly professional.
As for LegalZoom, it’s a bit more of a mixed bag. Some of their support agents are excellent, but they’re such a huge company that it’s no surprise to see some inconsistency. The more reps you hire, the higher the chance that some of them aren’t exactly top-notch. Their extended service hours are great though, as they’re open from 10 am to 8 pm ET on weekdays and 10 am to 7 pm ET on weekends.
IncNow has some fast turnarounds, as they can form your Delaware LLC with a one-day processing time if you order rush service. Without expedited service, IncNow takes about 4-6 business days, which is still quite fast.
LegalZoom’s turnarounds aren’t based on your state of formation, but rather on your LLC service package. Their cheapest package is Economy with a 30 business day turnaround, followed by Standard (15 days), and the top-shelf Express Gold (7-10).
We strongly prefer IncNow’s method because we don’t appreciate LegalZoom intentionally slowing down formations based on how much money you spent on their platform.
LegalZoom has a simple yet effective online order status check tool. Just log into your account on their website to see where you stand in the formation process. IncNow sends order confirmation emails, but if you want to check on your order status beyond that, you’ll have to contact them.
Registered Agent Service
Every LLC in America is required to designate a registered agent, which is a person or business entity that receives important document deliveries (like service of process) from your state government, informs you of the receipt, then forwards the documents to you. This is so crucial because the state needs to have a reliable means of contacting your business at any time.
IncNow charges $90 for your first year of registered agent service and $99 for each subsequent year, and they bundle your first year into any formation package free of charge. If you want registered agent service from LegalZoom it will cost you $299 per year (or $259 for your first year if you purchase it with your LLC formation service), and they do not include this service in their LLC formations.
IncNow’s nearly 800 reviews are overwhelmingly positive in nature, as their clients discuss their excellent customer support and their overall ease of use. LegalZoom has a much larger volume of customer feedback, as you might expect, considering the fact that they’re a significantly bigger operation. We found 4,700+ reviews for LegalZoom, and while they do have some negative reviews mixed in, a majority of this feedback is positive.
Both IncNow and LegalZoom offer their customers access to many other business services, and there is a considerable amount of overlap between what these two companies have to offer. For example, either of them can help you with doing business as (DBA) names, EIN acquisition, foreign qualification, amendments, registered agent service, and more.
On the other hand, there are some services that you can only get from LegalZoom, like trademark services, business licensing, and attorney consultations. LegalZoom also has many personal services like last will and testament, divorce forms, and power of attorney that IncNow doesn’t offer. It’s also worth noting that LegalZoom provides services in all 50 states, while IncNow only serves Delaware businesses.
Which Is the Better LLC Service?
IncNow and LegalZoom are among the top LLC services available online, with the know-how and professionalism you need to form your new company. If you’re still undecided, let’s finish by walking through some situations that may make one or the other service more appealing to you.
➥ Choose IncNow if You Are:
Are you forming an LLC in Delaware? IncNow specializes in Delaware LLCs, with a high degree of expertise when it comes to formations in that state.
➦ Choose LegalZoom if You Are:
Are you forming an LLC in any state other than Delaware? LegalZoom has loads of experience forming companies in all 50 states. They also have tremendous brand power and a customer volume that’s truly impressive.
While both of the LLC services in this comparison offer good overall value and have formed thousands of businesses, we think IncNow is the better option. However, in the larger picture, neither of these LLC services are our top pick. We highly recommend checking out our list of the top LLC services to see which is the best option available.
Frequently Asked Questions
Got questions? We’ve got answers.
If I Decide to Use IncNow, Which Package Should I Choose?
While all three of IncNow’s LLC formation packages are reasonably priced, our favorite is their Basic package, which costs $99 plus state fee.
This package includes not only your LLC formation itself, but also one year of registered agent service. If you are a Delaware resident and choose to serve as your own registered agent, this package costs just $9, which is an incredible bargain.
If you would like to add a 20-page LLC operating agreement to your order, you can step up to the Complete package, which costs $158 after using IncNow’s $50 off coupon.
How Does LegalZoom Stack up to Other LLC Websites?
LegalZoom, one of the most well-known services online, has formed more than 1 million businesses since 2001. Check out the comparison reviews below if you’d like to see how this giant stacks up to other good LLC websites.
LegalZoom compared to:
Does IncNow Handle Extra State Requirements Like New York Publication?
Because IncNow only serves businesses located in the state of Delaware, they do not offer assistance with state-specific compliance requirements in any other state. For what it’s worth, LegalZoom does not help with publication requirements either. If you’re interested in finding a company to handle this process on your behalf, we recommend either ZenBusiness or BizFilings.
Which Service Has Fewer Upsells?
IncNow doesn’t attempt any upsells, as their options for LLC service are presented in a straightforward manner, and they never get pushy about offering upgrades or additional features.
This is in rather sharp contrast to LegalZoom, a company that has so many upsells that we decided to add this question to our FAQ sections!
By the time you even reach the package selection screen on their LLC formation service order form, LegalZoom has already attempted $1,080 worth of upsells.
Do These Services Share My Information With Third Parties?
We think that IncNow and LegalZoom both do well in this regard. So many companies in this industry stuff their LLC formation packages with “special offers” or “free extras” that are actually just ways for them to get your permission to sell or share your personal information with third-party partners.
With IncNow and LegalZoom, you don’t have to worry about this, as they both focus on selling their own products and services to the best of their abilities.
Does Either of These Services Have a Refund Policy?
IncNow has a pretty restrictive refund policy. If you request one before they start preparing your articles of organization, they’ll provide a refund less a $50 cancellation fee.
If they’ve already started working on your documents, they will only refund the state fee that they haven’t submitted yet. After they submit the articles of organization to your state, there are no more refunds.
On the other hand, LegalZoom has one of our favorite refund policies in the industry. Their satisfaction guarantee ensures that anyone who wants a refund will get one, as long as you request it within 60 days of your initial purchase date. They don’t even charge a processing fee!
Which LLC Formation Website Is Faster?
IncNow has some impressive turnaround times. Their standard processing can get a Delaware LLC formation completed within 4-6 days, and their expedited processing can finish the job in just 24 hours. Their turnaround times are much faster than LegalZoom’s in this state.
LegalZoom’s processing times for Delaware LLCs are always slower than IncNow’s, although you can speed up their turnaround a bit if you upgrade to a higher level of LLC service package. Their Economy package has a 30 business day turnaround, the Standard package takes around 15 business days, and their top-level Express Gold package takes 7-10 business days.
Can I Just Form an LLC On My Own, Without a Service?
You certainly can, and quite a few people do form their own LLCs without hiring professional assistance.
We don’t typically advise that our readers try the DIY route without experience though, because each state has its own guidelines for how to form an LLC, and it can be a hassle to learn the intricacies of your formation state’s rules and regulations.
Also, we always appreciate the peace of mind we get from services like IncNow and LegalZoom, because we trust their expertise to form our business correctly.
Ready to Setup Your Business?
Create your LLC with IncNow or read our comparison of the top LLC services.