LegalZoom vs. Incfile
Which Is Better for LLC Formation?

Incfile vs Legalzoom Review Image


Searching for the right service to help you start an LLC? We used LegalZoom and Incfile to form LLCs, then compared their features.

In this LegalZoom vs. Incfile review, we answer three simple questions to help guide you through choosing the best service for starting your business.

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four point six out of five Incfile ($49 + State Fees)



KEY CONSIDERATIONS: INCFILE VS. LEGALZOOM

While examining Incfile and LegalZoom, we first focused on the three main questions that would ease any LLC owner’s worries. Answering these questions will boost your confidence so you can choose the service that gets your business formed and running.

For each product, we’ll explore whether the services are a good deal, if there’s a better deal out there, and experiences of other customers using the service.

Is It a Good Deal?

Incfile

Short answer, yes. Along with ranking higher across our other criteria, Incfile provides a great value in its basic features. For only $49, they'll process your order within the next business day and serve as your registered agent free for a year.

Incfile also offers great features in its middle and top tier packages*. Many competitors have frustrating hidden fees and lack transparency in the checkout process. Incfile is not one of these companies. You're only offered additional services relevant to the tier you picked.

*Note: A more inclusive breakdown of each company's basic, middle, and top tier service packages is featured at the end of this review.

LegalZoom

LegalZoom starts with $79 for their most basic LLC formation tier. Other features such as operating agreement creation, EIN registration, and licensing searches have been taken out of the packages and added as a la carte options from $99 to $199 on top of the initial cost. This, along with $159 for registered agent services in the first year make LegalZoom more expensive than it seems at first.

Is There a Better Deal?

Incfile

There isn’t much of a better deal than Incfile when it comes to pricing. In addition to offering a large number of affordable features, we found it to be the best overall service.

LegalZoom

If you’re comfortable with a more established company that has higher brand recognition, LegalZoom is the service you’ll want to go with. There are better deals out there such as Incfile, with its basic tier quickly giving you everything you need. In contrast, LegalZoom’s services require extra fees for the same level of service.

Who Uses This Service And How Was Their Experience?

Incfile

Incfile is used by entrepreneurs interested in starting their own LLC, S-Corporation, C-Corporation, or Non-profit. Here are some verified reviews (From ShopperApproved.com) by people who used Incfile to help launch their businesses:

"Quick and simple. Also the dashboard they provide makes it easy to stay up to date and current on any the business issues having to do with the LLC."

"This company is definitely in my list of trusted companies by now. The services are quick and provided in an extremely professional manner allowing me to focus on my business. The UX of the online dashboard is clean and easy to understand. Highly recommended.”

LegalZoom

Similar to Incfile, those who want to start an LLC, incorporation, non-profit, and so forth use LegalZoom. One of the main differences is that LegalZoom is more focused on full legal services for business beyond just company formation. Here are some reviews (pulled from LegalZoom’s website) by people who used LegalZoom to help launch their businesses:

"I had never started a business before, so LegalZoom was a perfect place to go. It let me take my vision for the company and make it a reality, legally."

"We've used [LegalZoom] for quite a few things over the years, and overall it's gone very smoothly. They've been easy to work with and very affordable."

Takeaway

Based on the questions above, Incfile is a good choice if you want to save money and receive quick, valuable services.

Consider LegalZoom if you want a more experienced and well-known brand.

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Our Recommendation: Incfile

FORM AN LLC WITH INCFILE
($49 + State Fees)

RATING DETAILS: INCFILE VS. LEGALZOOM

After answering the three questions, we further investigated what you should keep in mind before making your choice. We’ve separated these points into four topics which are outlined below.

Incfile LegalZoom
Overall 4.6/5 3.4/5
Cost Value 5/5 3/5
Customer Service 3.5/5 3.7/5
Ease of Use 5/5 3.7/5
Included Features 5/5 3/5

Customer Service

LegalZoom’s customer service is available for more hours, and ratings are available on more platforms than Incfile.

One main area where LegalZoom appears to be the clear winner is in customer service. With more reviews available on platforms like SiteJabber (661 reviews, 3.3/5 stars) LegalZoom tends to outrank Incfile. Their phone support line is also open 34 more hours a week, with additional hours on weekdays and Saturday hours.

Incfile will process your order the next business day as a standard package feature.

This is the sort of customer-focused approach we love to see. While no company can affect the turn-around times of state filing, being as fast as possible in processing orders can make a big difference in decreasing turnaround times.

Included Features

Incfile's operating agreement and EIN services cost less a la carte than LegalZoom and are included in their more premium packages.

LegalZoom no longer offers these necessary features as part of any of their packages. Instead, they are offered on top of the package price, which means the price can add up fast. So if you were to order LegalZoom Standard with an EIN, operating agreement, and registered agent service, you would pay almost an additional $500.

Ease of Use

Incfile’s platform has an edge on LegalZoom’s

Both services are very user-friendly, offering a clean design and simple navigation for LLC formation. However, Incfile provides an ongoing dashboard for the business owner after formation. The dashboard acts as a central repository for important documents that the user can access at any time.

Value

Incfile gives a year of registered agent service for no cost and $119/year after this.

LegalZoom does not give this service away, charging $159/year starting at the time you form your LLC. When combined with the initial difference in price, this means you will save up to $239 in the first year for comparable services.

Read on for a more in-depth, side-by-side breakdown of each company's basic, middle, and top tier service packages to see how these companies differ and which might be a good choice for your company.

See our top 5 service reviews

four point seven out of five ZenBusiness ($49 + State Fees)

four point six out of five Incfile ($49 + State Fees)

four point six out of five Northwest ($49 + State Fees)

Three out of Five Stars LegalZoom ($79 + State Fees)

Three out of Five Stars Rocket Lawyer ($99 + State Fees)

PRODUCT COMPARISONS: INCFILE VS. LEGALZOOM

Incfile and LegalZoom offer additional services beyond forming your LLC. Some features can be purchased independently, offering even more pricing flexibility. Below, you’ll find a side-by-side comparison of their basic packages and the features that are valuable for forming an LLC.

Please note that the service costs for each tier do not include the State filing fees.

Basic Plan Comparison

Processing time refers to the time it takes the formation service to process your application.

Incfile
Next business day
LegalZoom
30 days

The company will act as your legal point of contact for the government to receive important notifications or mailings on your behalf.

Incfile
Free for one year, then $119 per year
LegalZoom
$159 extra per year

A legal document that declares the name or names of an LLC’s owners, their percentage of ownership, and operating procedures for the company.

Incfile
$40
LegalZoom
$99 extra

Employer Identification Number (EIN) works essentially the same as an individual’s social security number, except for businesses. It’s how the government is able to keep track of your business’ tax status.

Incfile
$70 extra
LegalZoom
$60 extra, must be bundled with Operating Agreement for a total of $159

The company will keep you notified of upcoming legal filing requirements, such as your annual reports.

Incfile
Free lifetime company alerts
LegalZoom
One month free, $320/year after

Advisory services provide additional resources or advice on matters pertaining to business, law, and/or tax.

Incfile
Tax: Free 1-hour consultation
LegalZoom
<span style="color:#99437D;" class="center-block glyphicon glyphicon-remove text-center" aria-hidden="true"></span>

The company will assist or arrange for an affiliate to help reserve a domain name for your company website.

Incfile
$199 + $20/month hosting fees via Snapweb
LegalZoom
<span style="color:#99437D;" class="center-block glyphicon glyphicon-remove text-center" aria-hidden="true"></span>

Basic Plan Highlights

For $49, Incfile provides next-day processing and will also serve as your registered agent for one year at no extra cost. LegalZoom only includes a 30 day order processing guarantee, and requires $159 annually to be your registered agent. Incfile also gives you access to a fully-developed platform with company alerts and a 1-hour tax consultation.

Middle Plan Comparison

Processing time refers to the time it takes the formation service to process your application

Incfile
Next business day
LegalZoom
15 days

The company will act as your legal point of contact for the government to receive important notifications or mailings on your behalf.

Incfile
Free for one year, then $119 per year
LegalZoom
$159 extra per year

A legal document that declares the name or names of an LLC’s owners, their percentage of ownership, and operating procedures for the company

Incfile
<span style="color:#99437D;" class="center-block glyphicon glyphicon-ok" aria-hidden="true"></span>
LegalZoom
$99 extra

Employer Identification Number (EIN) works essentially the same as an individual’s social security number, except for businesses. It’s how the government is able to keep track of your business’ tax status.

Incfile
<span style="color:#99437D;" class="center-block glyphicon glyphicon-ok" aria-hidden="true"></span>
LegalZoom
$60 extra, must be bundled with Operating Agreement for a total of $159

The company will keep you notified of upcoming legal filing requirements, such as your annual reports.

Incfile
Free lifetime company alerts
LegalZoom
One month free, $320/year after

Advisory services provide additional resources or advice on matters pertaining to business, law, and/or tax.

Incfile
Tax: Free 1-hour consultation
LegalZoom
<span style="color:#99437D;" class="center-block glyphicon glyphicon-remove" aria-hidden="true"></span>

The company will assist or arrange for an affiliate to help reserve a domain name for your company website.

Incfile
$199 + $20/month hosting fees via Snapweb
LegalZoom
<span style="color:#99437D;" class="center-block glyphicon glyphicon-remove" aria-hidden="true"></span>

Middle Plan Highlights

To start, Incfile includes an operating agreement and EIN number with their Silver package. With LegalZoom those two features will cost you an extra $159 at any package level. LegalZoom’s Standard package adds a Corporate Kit, and reduces processing times to 15 days for an additional $270. Meanwhile, Incfile gives you a “Custom LLC Kit” with their middle tier offering, adding a contract template library and 20 personalized stock certificates on top of regular Corporate Kit essentials, all for almost $100 less than LegalZoom’s middle tier.

Top Plan Comparison

Processing time refers to the time it takes the formation service to process your application.

Incfile
Next business day
LegalZoom
15 days

The company will act as your legal point of contact for the government to receive important notifications or mailings on your behalf.

Incfile
Free for one year, then $119 per year
LegalZoom
$159 extra per year

A legal document that declares the name or names of an LLC’s owners, their percentage of ownership, and operating procedures for the company.

Incfile
<span style="color:#99437D;" class="center-block glyphicon glyphicon-ok" aria-hidden="true"></span>
LegalZoom
$99 extra

Employer Identification Number (EIN) works essentially the same as an individual’s social security number, except for businesses. It’s how the government is able to keep track of your business’ tax status.

Incfile
<span style="color:#99437D;" class="center-block glyphicon glyphicon-ok" aria-hidden="true"></span>
LegalZoom
$60 extra, must be bundled with Operating Agreement for a total of $159

The company will keep you notified of upcoming legal filing requirements, such as your annual reports.

Incfile
Free lifetime company alerts
LegalZoom
One month free, $320/year after

Advisory services provide additional resources or advice on matters pertaining to business, law, and/or tax.

Incfile
Tax: Free 1-hour consultation
LegalZoom
<span style="color:#99437D;" class="center-block glyphicon glyphicon-remove" aria-hidden="true"></span>

The company will assist or arrange for an affiliate to help reserve a domain name for your company website.

Incfile
Free + $20/month hosting fees via Snapweb
LegalZoom
<span style="color:#99437D;" class="center-block glyphicon glyphicon-remove" aria-hidden="true"></span>

Top Plan Highlights

LegalZoom’s Express Gold essentially just adds faster shipping and processing times in addition to access to a 7 day a week customer support line. Incfile, which offers next-day processing at every level, adds expedited shipping to return your filings. Still, the main advantage of Incfile’s Platinum package is the inclusion of business contract templates and a free business website and domain name. For businesses who need website help, this can add a ton of value.

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four point six out of five Incfile ($49 + State Fees)

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