Are you in the process of forming a new LLC and you require some assistance?
There are plenty of LLC services such as MyCompanyWorks (formerly MyNewCompany) and LegalZoom that can help you out, but it can be tricky to figure out which one will be the right fit for your company.
This MyCompanyWorks vs LegalZoom comparison is structured in a way that highlights the commonalities and differences between these two providers, with the goal being to help you choose which one can best serve your business.
6 Things They Have In Common
1) Affordable: Either of these services is capable of forming your new LLC, while still saving you hundreds of dollars over hiring an experienced business lawyer to handle your formation.
2) Customer Support: Both MyCompanyWorks and LegalZoom have friendly, professional customer service reps who can help you through every step of the LLC formation process, as well as assist you with ongoing compliance requirements.
3) Educational: Need more information, whether it relates to your LLC formation or something else down the line? Both of these companies have learning centers on their websites, where you can find solutions to all sorts of compliance questions.
4) Experience: These are both highly experienced service providers. LegalZoom and MyCompanyWorks have served thousands (or even millions) of customers each, so you can trust them to complete your formation accurately and efficiently.
5) Additional Services: If you require further business services, there’s no need to track down multiple providers. MyCompanyWorks and LegalZoom both offer extensive legal and business solutions, like registered agent service, licensing and permits, etc.
6) Efficiency: Do you need your LLC formed quickly? That’s not a problem for these companies, as they both have options available to speed up your formation’s processing time. It costs extra, of course, but it can be worth it if you are in a hurry.
Side by Side Comparisons
MyCompanyWorks offers LLC formation service starting at $79, which is $20 less expensive than LegalZoom’s baseline price point of $99.
Seeing as these companies have the same price tag on their baseline LLC formation packages, no one is making their decision based on pricing. However, as we continue working our way through each individual section of this competition, you’ll start to see why we prefer MyCompanyWorks to LegalZoom.
With any MyCompanyWorks LLC service package, you’ll receive a custom LLC operating agreement to describe the ownership structure and general operational strategy of your business. In addition, they include a corporate alerts tool that helps you track your compliance deadlines and custom organizational minutes to help you structure company meetings.
LegalZoom doesn’t include any of these features in their base package, but they do provide a banking resolution to help you open business checking/savings accounts.
We’re not exactly thrilled with either of these offerings, as they both lack registered agent service, a feature that top competitors like ZenBusiness, Northwest Registered Agent, and IncFile include with every formation package.
Still, even without this crucial feature, MyCompanyWorks has a significant advantage in this area because its custom operating agreement and corporate alerts system are more valuable than LegalZoom’s banking resolution.
LegalZoom has a marked experience advantage, as they’ve served more than 2 million business customers — and 4 million clients overall — since they started providing web-based business services in 2001. MyCompanyWorks also opened in 2001, and they’re plenty experienced as well, with 60,000+ business clients served.
LegalZoom’s customers love their extended support hours, as they’re open for calls and emails from 10 am to 8 pm ET on weekdays, and on weekends from 10 am to 7 pm ET. While they are highly available, the consistency of their service is a bit hit or miss. Keep in mind that LegalZoom is a huge operation with a large service department, so it’s likely inevitable that some inconsistencies arise from time to time.
MyCompanyWorks doesn’t have the extended support hours that LegalZoom does — they’re only available from 11 am to 7 pm ET on weekdays — but they have a major advantage when it comes to responding to your calls. They return most emails and phone calls in 20 minutes or less, and their helpful, professional service representatives are quite popular with their customers.
MyCompanyWorks’ turnaround times vary by state, from as little as 1-2 business days, all the way up to several weeks. They also offer expedited filings where available.
With LegalZoom, time estimates are tied to the level of service you order, from 7-10 business days with their most expensive service package up to about 30 business days with their most affordable package.
MyCompanyWorks sends you email notifications whenever your status updates, and LegalZoom has an order tracking tool in your account on their website. Both are effective and efficient methods, and it’s really just a matter of preference.
Registered Agent Service
Every LLC in America is required to select 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.
Neither company provides registered agent in their base packages, but MyCompanyWorks does include a year of registered agent service in their $279 Complete package. MyCompanyWorks typically charges $99 annually for registered agent service, whereas with LegalZoom it costs $299 per year for this exact same service.
MyCompanyWorks enjoys stellar customer feedback, with high average scores and more than 3,000 reviews. Their customers often go into detail about the great support they receive, and how customizable their services are.
As for LegalZoom, their feedback is much more mixed. Of their 2,000 reviews, many of their customers are quite satisfied, but others bring up issues like inconsistent support and billing mistakes. Considering LegalZoom has served millions of customers, it’s no surprise that a few of them fall through the cracks every once in a while.
MyCompanyWorks and LegalZoom both offer a wide variety of additional services that can help you form, maintain, and expand your business. They provide many of the same services as well, including doing business as (DBA) names, registered agent service, annual reports, foreign qualifications, and more.
However, MyCompanyWorks also offers virtual office services, which LegalZoom doesn’t. On the other hand, LegalZoom provides access to many personal services in addition to their business services, so they can help you with things like last will and testament, living trusts, power of attorney, divorce papers, and more.
Which LLC Service Should You Choose?
While these companies may offer similar services, they also have plenty of differences that may make one of them more appealing to you than the other. When it comes to forming your LLC, you want to make sure you’re making the best choice.
If you still haven’t chosen which one you prefer, let’s go over some scenarios that might help you make your decision.
➥ Choose MyCompanyWorks if You Are:
MyCompanyWorks has much better customer reviews and it offers more overall value in their premium packages. If that’s important to you, choose MyCompanyWorks.
➦ Choose LegalZoom if You Are:
LegalZoom has the advantage when it comes to two important factors: experience and brand power. If these are priorities for you, then LegalZoom should be a strong choice for your LLC formation.
While both of the LLC services in this comparison offer good overall value and have formed thousands of businesses, we think MyCompanyWorks 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 MyCompanyWorks, Which Package Should I Choose?
Our favorite LLC formation package from MyCompanyWorks is definitely their $79 Basic plan.
With this option, you get some great features along with your formation, including an operating agreement, a company compliance alert system, and organizational minutes.
Does MyCompanyWorks Handle Extra State Requirements Like New York Publication?
While MyCompanyWorks does not offer to handle publication requirements on your behalf, they do offer to “send you detailed instructions for publishing your LLC” if you’re forming in a state that requires it.
Considering that they do this free of charge, we’d say they’ve found a decent way to fill the middle ground between completing this step for you and leaving you to figure it out for yourself.
If you would rather hire a company to take care of this process on your behalf, we recommend either ZenBusiness or BizFilings.
Which Service Has Fewer Upsells?
MyCompanyWorks has very few upsells, and when they do present you with opportunities to add features, they’re not remotely pushy about it.
This is in sharp contrast to the way LegalZoom handles upsells, which is to pile them on as much as possible. Before you even reach LegalZoom’s LLC formation service package selection screen, they’ve already attempted $1,080 worth of upsells.
Do These Services Share My Information With Third Parties?
With MyCompanyWorks, you’ll encounter a couple of “special offers” on their LLC formation service order form that are attempts to share your info with third-party partners.
Specifically, their offer for a business bank account requires them to share your personal information with Bank of America, while their offer for a free domain name and web hosting is available through a partnership with InMotion Hosting.
On the other hand, LegalZoom doesn’t push any third-party partnerships like MyCompanyWorks does. While we certainly don’t care for some of the other ways LegalZoom presents their services (like with upsells), we appreciate that they keep your personal info to themselves.
Does Either of These Services Have a Refund Policy?
Depending on when you ask for your refund, MyCompanyWorks will charge either $25, $50, or $75 as a processing fee. It’s important to note that they will only consider refunding your money before they submit your articles of organization to your state ― there are no refunds available once they’ve taken this step.
As for LegalZoom, they have one of the best refund policies in the industry. As long as you request your refund within 60 days, they will gladly provide one, and with no processing fee! Their satisfaction guarantee is a seriously strong refund policy.
Which LLC Formation Website Is Faster?
LegalZoom takes a different approach to processing times than most of their competitors do, as they’re based on what level of service you order from them, rather than on each state’s order processing capabilities.
If you purchase their Economy package, they estimate a 30 business day turnaround, while their Standard package takes 15 business days, and their Express Gold package takes 7-10 business days.
MyCompanyWorks has more typical processing times, as they vary by state instead of by how much money you spend. In some states, they can have an order processed in just a few days, but other states can take several weeks.
Can I Just Form an LLC On My Own, Without a Service?
You certainly can, and quite a few entrepreneurs do choose to form their own LLCs without assistance. The main reason we’re not huge fans of the DIY route is that every state has a different process for forming LLCs.
Because of this, you’ll need to learn the details of what your formation state requires, which can be a hassle. Furthermore, we appreciate the peace of mind we get from having a professional service form our LLC.
Ready to Create Your Business?
Create your LLC with MyCompanyWorks or read our comparison of the top 7 LLC services.