InCorp vs LegalZoom (Which is Better?)
Are you in the process of forming a new LLC, but you’re finding the DIY option to be a hassle? Fortunately, there are plenty of providers like InCorp and LegalZoom that can assist you, but it can be difficult to discern which one is the best.
In this InCorp vs LegalZoom comparison, you’ll find breakdowns of their common characteristics and defining differences. Hopefully this will make your decision a bit easier!
7 Things They Have In Common
- LegalZoom and InCorp both offer LLC services that are hundreds of dollars cheaper than hiring an attorney. Also, given the relatively basic structure of most LLCs, you may not even need a lawyer to draft and file your formation documents.
- Even though they’re relatively inexpensive, these providers both have extensive customer support networks that can help you navigate your way through any questions or concerns that you may have. Instead of spending hours trying to figure out answers for yourself, you can simply call or email their support reps instead.
- If you find experience reassuring, InCorp and LegalZoom both have plenty of it. They’ve each handled thousands of formations, and they have the expertise to quickly and effectively form your LLC as well.
- If you need additional services, these companies can help. From registered agent to federal tax ID numbers (EIN) and more, LegalZoom and InCorp have many business services that you can take advantage of.
- Is online security a priority for you? InCorp uses McAfee Secure to protect their site, while LegalZoom has Norton Web Security. Both sites are secured against malware and encrypt all data transfers.
- Would you like to learn more about the business world, whether it’s info about business types, tax issues or many other topics? InCorp has a large collection of business articles, while LegalZoom’s knowledge center covers loads of important compliance topics as well.
- Both InCorp and LegalZoom have plenty of online customer reviews that can give you a clear picture of what their customer experience is like.
Side by Side Comparisons
InCorp’s price point of $99 (plus state fee) for LLC formation is cheaper than LegalZoom’s $149 base rate.
These companies offer quite similar feature sets. The one major difference is that LegalZoom includes a customized operating agreement, which defines the structure of your LLC. It’s a feature most companies need, so it’s nice to have it packaged in.
InCorp has served 125,000+ customers since they opened in 1998. While it’s an impressive volume, it still doesn’t hold a candle to LegalZoom, which has served nearly 4 million customers — about half of which are business clients — since their formation in 1999.
InCorp has great support reps, as their customers frequently mention the quality service they receive when they write their reviews (more on that shortly). LegalZoom has somewhat inconsistent customer support, as their service agents are a bit hit or miss, although that isn’t surprising for such a large company. One thing I do really like about LegalZoom’s support is that they have extended support hours that run from 8am to 10pm ET on weekdays and 10am to 7pm ET on weekends.
Like most LLC service providers, InCorp bases their turnaround times on your state of formation. LegalZoom does things a bit differently, instead basing your estimate on which level of service you purchase from them. Their top-tier Express Gold has turnarounds of 7-10 business days, while the Standard tier takes about 15 days and Economy around 30.
LegalZoom has an order status tracking tool on their website that indicates what step of the process your formation is currently in. InCorp doesn’t have any status update tool, but you can email them at any time and ask them where you stand.
Registered Agent Service
InCorp has excellent rates for registered agent, with a base rate of $99 that can get even cheaper with volume discounts: 2 years ($89.10/year), 3 years ($80.52/year), 4 years ($73.06/year) or 5 years ($66.56/year). On the other hand, LegalZoom’s registered agent prices are set at $159 per year.
It’s worth noting that neither of these companies includes registered agent in their LLC formation packages. (What is a registered agent?)
InCorp gets excellent feedback, with the vast majority of their reviews being quite positive. Their customers rave about how quickly they work and also how helpful their support reps are. LegalZoom is a different story, as their feedback is decidedly mixed. There are plenty of people who are satisfied with their services, but they also have a large number of customers who have issues with their support agents.
Ease of Use
InCorp’s services are quite easy to use, but LegalZoom has a slight advantage in this area thanks to their user-friendly website. InCorp’s site isn’t bad, it just isn’t laid out as conveniently as LegalZoom’s site is.
LegalZoom and InCorp are both highly respected companies that are willing and able to help form your LLC. Some of you may still be undecided though, so let’s take a look at some scenarios where you may be more inclined to use one over the other.
Choose InCorp if You Are:
InCorp can save you some money, and they have excellent customer feedback. It’s a winning combination that suits many types of businesses.
Choose LegalZoom if You Are:
Do you place a high value on brand power? How about customer volume? If so, LegalZoom is well worth a look for LLC service.