Incfile vs LegalZoom: LLC Filing Comparison

    by Luke Iovino
Updated May 5, 2021

Are you ready to form an LLC? Forming an LLC can be costly and time-consuming if you do it yourself (DIY). Thankfully for us, there are online LLC formation services that take care of the work. These services focus on the legal and filing side of things, so you can direct your attention to running the business! Creating a strong profitable business isn’t a walk in the park. At a certain point, It’s important to protect yourself by creating a limited liability company (LLC).

Online LLC formation services can help you tackle legal issues without having to pay hundreds or even thousands of dollars to a lawyer. Whether you’re looking to form an LLC, Corporation, or Partnership, Online formation services make it easy. To help you get ahead we researched the major online formation services. Incfile and Legalzoom stood out, that’s why we made a special review for the two top providers.

Top Business Formation Services

Incfile logo

Incfile

• Form an LLC for $0 + State Fees
• FREE Registered Agent Service for a Year
• Trusted by over 500,000+ Businesses
• 100% Transparency

ZenBuisness

• Form an LLC for $49 + State Fees
• FREE Registered Agent Service for a Year
• Launched over 80,000+ Businesses
• 100% Accuracy Guarantee

Northwest logo

Northwest

• Form an LLC for $225 + state fees
• Registered Agent Service included ($125)
• Forming Businesses Since 1998
• 100% Error-Free Guarantee

Our team studied these two LLC formation services to better understand what they offer and how they differ.

Here is a quick side by side:

Legal Service Incfile Legalzoom
Form a Business
File Tax Returns  ????
Creat Custom Legal Documents  ????

In this article, we compared Incfile vs LegalZoom to get a better understanding of these LLC formation services.

Keep reading to find out which one better suits your business.

Incfile: Who Are These Guys?

Incfile began its journey back in 2004. Since then they have become one of the best LLC formation services, helping over 250,000 businesses get up and running.

There are dozens of LLC formation services out there, but Incfile has definitely made it to the top.

Before we get into the package breakdown, check out the basic pros and cons of Incfile:

Pros

  1. Incfile is one of the most affordable business formation services starting at $0 plus state fee.
  2. They have over 15 years of experience in the field and have established hundreds of thousands of businesses.
  3. In spite of their low prices, they offer a full year of registered agent services (an LLC requirement) in each one of their packages.
  4. Incfile includes a lifetime of company updates that they send to your email such as deadlines, annual reports, business licenses, statements of information and more. They make “up keeping” your business painless and easy.
  5. Incfile has great customer feedback.

Cons

  1. We found that their customer support had been difficult to reach. Although we must add, there is an improvement in reviews 2019 and on.
  2. Although they offer free LLC formation services, there are many services that they upsell.

Legalzoom: Legal Who?

Legalzoom is an online formation service that opened their doors back in 2001. They are designed to be a “one-stop-shop” for your legal formation needs.

Legalzoom has one of the strongest reputations and has helped launch over 1 million businesses.

Legalzoom focuses on small business/entrepreneurs that don’t have in house lawyers.

Check out the basic pros and cons of Legalzoom before we compare the two online formation titans:

Pros

  1. Legalzoom is a seasoned established brand.
  2. Legalzoom has an easy to use platform.
  3. They offer a wide range of legal services and products to help business owners tackle all sorts of legal issues.
  4. Legalzoom is a “one-stop-shop,” much cheaper than hiring a lawyer.
  5. They offer a wide range of formation services: Doing business as (DBA), Limited liability company (LLC), Corporation (Inc.), Non-profit organization (NPO), Employee identification number (EIN) and more.

Cons

  1. Legalzoom is on the more expensive end when it comes to online formation services.
  2. Throughout our research, we found that customers complained about a lack of transparency when it came down to fees. We should add that each state has a different cost and could be a part of the misunderstanding.

In this review, we outlined all the key factors of both Incfile and Legalzoom. You will find pricing, features, customer feedback and more in this review

So which LLC formation service is right for you? Incfile or Legalzoom? Continue reading to find out how these giants matchup!

Incfile vs. Legalzoom: Quick Summary

Incfile and Legalzoom both offer LLC formation and legal services online, but they each put an emphasis on different sectors.

Legal Service Incfile Legalzoom
Form an LLC
File a Patent or Copyright ????
Prepare & File Tax Returns ????
Custom Legal Forms ????
1 Year Free Registered Agent Service ????
Speak to a Lawyer ????

Incfile focuses on filing and forming an LLC. They continue to offer business and tax help as you further your business.

Legalzoom also pays close attention to the initial stages of forming an LLC, but they’re more of an “all service” legal provider. They cover more specific legal needs such as trademark applications or drafting a contract.

A bonus with Legalzoom is that they can connect you to a lawyer if you need more specific legal help.

Now that you understand how these two LLC formation services work, let’s dive into a deeper comparison.

Incfile vs. Legalzoom: Head to Head

Incfile and Legalzoom do a great job of making your life, the business owner, simple. They understand that LLC formation and legal filing can be expensive and time-consuming. These platforms offer fundamental legal services for relatively low fees.

These platforms do not supersede the help of a lawyer. If you have a more complicated legal situation or a lawsuit pending, then you should probably hire a lawyer.

Again, Incfile and Legalzoom cover the basics, providing fast and easy to use legal services.

In this section, we will look over the fine print and compare the two platforms head to head.

5 Things Incfile & Legalzoom Have in Common

  1. Experience: Both companies have helped thousands of businesses throughout the formation process. Dealing with legal filing a serious issue and these companies have plenty of experience.
  2. Affordability: Forming an LLC with a lawyer can cost hundreds, even thousands of dollars. These service platforms offer accessible legal services for new business establishments.
  3. Education: Both platforms provide sections with relevant information to learn. Incfile offers a learning center with articles about different business structures. Legalzoom has a great deal of information for entrepreneurs who seek knowledge about legalities concerning business.
  4. Customer Support: Incfile and Legalzoom have a wide variety of customer support systems.
  5. Additional Services: There is more to an LLC than just the formation stage. Incfile and Legalzoom get that. Both platforms have numerous services that can help you down the line with your business.

Incfile vs Legalzoom: Plan Comparison

As mentioned above, Incfile and Legalzoom provide more than just the LLC formation service. Both platforms offer 3 packages to choose from. Some of the services can be purchased independently.

Below we will go over the packages they offer so you can better decide which establishment offers the features that you need.

Side by Side: Basic Plan Comparison

Incfile “Silver” Legalzoom “Economy”
Package Fee (State Fee Not Included) $0 $79
Processing Time Next business day 30 days
Registered Agent 1st-year free, $119 per year following $159 per year
Operating Agreement $40 $99
EIN Registration $70 Must be bundled with Operating Agreement, $159
Annual Compliance Free (company alerts) 1st month free, $320 per year
Counseling Services 1 hour of Tax consultation X

Highlights

  • The cost to file (not including state fee) is $0.
  • Processing time is immediate, the next business day.
  • They are your registered agent for free for the 1st year.
  • The cost to file  (not including state fee) is $79.
  • They offer a 30-day processing order guarantee.
  • An additional $159 if you require a registered agent.

Side by Side: Traditional Plan Comparison

Incfile “Gold” Legalzoom “Standard”
Package Fee (State Fee Not Included) $149 $329
Processing Time Next business day 15 days
Registered Agent 1st-year free, $119 per year following $159 per year
Operating Agreement $99
EIN Registration Must be bundled with Operating Agreement, $159
Annual Compliance Free (company alerts) 1st month free, $320 per year
Counseling Services 1 hour of Tax consultation X

Highlights

  • The cost to file (not including state fee) is $149.
  • The operating agreement is included in the Gold package.
  • The EIN registration is included in the Gold package.
  • The cost to file (not including state fee) is $329.
  • They offer a 15-day processing order guarantee.

Side by Side: Supreme Plan Comparison

Incfile “Platinum” Legalzoom “Express Gold”
Package Fee (State Fee Not Included) $299 $349
Processing Time Next business day 7-10 business days
Registered Agent 1st-year free, $119 per year following $159 per year
Operating Agreement $99
EIN Registration Must be bundled with Operating Agreement, $159
Annual Compliance Free (company alerts) 1st month free, $320 per year
Counseling Services 1 hour of Tax consultation X

Highlights

  • The cost to file (not including state fee) is $299.
  • Business contract templates are included.
  • A business website and domain name are included.
  • The cost to file (not including state fee) is $349.
  • Includes faster processing time.
  • Express delivery.

Incfile vs Legalzoom: Package Summary

Incfile offers 3 LLC formation services, Silver, Gold, and Platinum.

  1. Silver is completely free, you only pay the state fees.
  2. Gold costs $149.
  3. Platinum costs $299.

Silver offers next day filing of formation papers. Gold includes an operating agreement and an EIN registration. Lastly, the Platinum package includes a business website and a domain name.

Legalzoom has 3 LLC formations services, Economy, Standard, and Express Gold.

  1. Economy costs $79.
  2. Standard costs $329.
  3. Express Gold costs $349.

The main difference in the packages that Legalzoom has to offer is the speed and processing time of the order.

Incfile vs Legalzoom: Essential Categories of Service

Incfile and Legalzoom are great businesses to form an LLC online. After looking over the similarities and differences in the packages they offer, we felt the need to compare the essentials.

Below we analyzed 4 key categories of business management. This is how Incfile vs Legalzoom compare:

Pricing

  • As stated above, Incfile can file an LLC for $0 (“Silver package,” not including state fees).
  • Legalzoom offers essentially the same filing service, for $79 (“Economy package,” not including state fees).

Speed

  • Incfile processes all business filing with the state by the next day (included in the “Silver package”).
  • Legalzoom has a slower processing time. They offer a 30-day processing order guarantee (included in the “Economy package”).

Customer Support

  • Both businesses are relatively large and provide extensive help to their customers. With our experience, Incfile can keep you waiting regarding their response time. Their customer service is available from 10:00 am – 7:00 pm on weekdays (eastern time).
  • Legalzoom has extended customer service hours that are fairly comfortable. They are available from 08:00 am – 10:00 pm on weekdays and 10:00 am- 7:00 pm on weekends (eastern time)

Customer Reviews

  • Incfile has fairly positive reviews throughout the web.
    • Many users commented that the business formation and compliance process is easy to use and clear.
    • Few customers complained that Incfile didn’t communicate well.
  • Legalzoom has more diverse customer reviews.
    • Several Legalzoom users stated that they were satisfied with the LLC formation process.
    • On the other hand, plenty of customers complained that they were charged for services they didn’t receive or charged the wrong amount altogether.

So Incfile or LegalZoom, How do I Choose

Incfile and Legalzoom are some of the best-represented businesses in online legal services. No matter who you decide to go with, you’ll make a good choice.

To make the most educated decision ask yourself what YOU really need, cutting out the fluff. Then go over the services we laid out in the article. That way, choosing between Incfile and Legalzoom will be easy.

If you’re a small business and you need assistance along the way with taxes, Incfile is more affordable and might be the right option for you. If you need access to legal forms or possibly a lawyer,  give Legalzoom a try.

Bottom line

Whether you decide to go for Legalzoom or Incfile, truth be told, you’re in very good hands. Incfile and Legalzoom offer top-notch legal help at affordable prices.

The best part of these services is that they offer a “one-stop-shop.” You can take care of your basic legal filing compliances in one place. Although there isn’t an alternative for personal legal representation, both Incfile and Legalzoom cover the basics that you need.

Now that you have your LLC situation figured out, get back to the business!

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