LegalZoom vs. Incfile
An LLC Formation Service Comparison

Incfile vs Legalzoom Review Image


Searching for the right online business formation service to help you start a Limited Liabiity Company (LLC)? For this review, we used LegalZoom and Incfile to form LLCs, then compared their features.

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

RECOMMENDED LLC FORMATION SERVICE


four point six out of five Incfile ($0 + State Fees)



KEY COMPARISON: INCFILE VS. LEGALZOOM

While comparing Incfile and LegalZoom's business formation services, 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 best LLC service that gets your business formed and running.

For each formation company, we’ll explore whether these online LLC services are a good deal, if there’s a better deal out there, and experiences from other customers using Incfile and LegalZoom.

Is It a Good Deal for Online LLC Formation?

Incfile

Short answer, yes. Along with ranking higher across our other criteria, Incfile provides a great value in its basic features. For only the state fee, Incfile will 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 business formation 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 LLC services relevant to the tier you picked.

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

LegalZoom

LegalZoom's legal and LLC services start at $79 for their most basic business formation tier. Other features such as Operating Agreement creation, Employer Identification Number (EIN) registration, and licensing searches have been taken out of the LLC formation 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 for Online LLC Formation?

Incfile

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

LegalZoom

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

Who Uses This LLC 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 Incfile reviews (From ShopperApproved.com) by people who used this LLC formation company to help launch their business:

"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, corporation, non-profit, or other business types use LegalZoom. One of the main differences is that LegalZoom is more focused on full legal services beyond online business formation. Here are some LegalZoom reviews (pulled from their website) by people who used this LLC formation company to help start their business:

"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."

"I think too many people expect too much from this company. Let's be clear, when you do business with Legal Zoom, it's not the same as hiring an attorney. But for simple legal tasks, it's hard to beat Legal Zoom and their great prices."

"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 one of the best LLC services for starting your business if you want to save money, value great customer support that's backed by excellent reviews, and expect to receive quick, thorough online business formation services.

Consider LegalZoom if you want a more experienced LLC formation service, well-known brand, and ongoing legal services past LLC formation.

A cube with LLC printed on its sides

Our LLC Formation Recommendation: Incfile

Start an LLC with Incfile
($0 + State Fees)

RATING DETAILS: INCFILE VS. LEGALZOOM

After answering the three questions, we further investigated what you should keep in mind before selecting the best LLC service for your business. We’ve separated these points into four topics which are outlined below.

Incfile vs LegalZoom Overview
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 LegalZoom reviews available on platforms like SiteJabber (661 reviews, 3.3/5 stars), the company 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.

Incfile provides 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 turn-around times when starting a business.

Included Features

Incfile's Operating Agreement and Employer Identification Number (EIN) services cost less a la carte than LegalZoom and are included in their more premium business packages.

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

Ease of Use

Incfile’s platform has an edge on LegalZoom’s

Both online LLC services are very user-friendly, offering a clean design and simple navigation tools for business owners. However, Incfile provides an ongoing dashboard for their clients after they've gotten started with their business. The dashboard acts as a central repository for important documents that the user can access at any time after their LLC formation.

Value

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

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

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

See our top 5 service reviews

four point seven out of five ZenBusiness ($39 + State Fees)

four point six out of five Incfile ($0 + 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 COMPARISON: INCFILE VS. LEGALZOOM

Incfile and LegalZoom offer additional business formation services beyond starting 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 plan do not include the State filing fees.

LLC Formation: Basic Plan Comparison

Incfile vs LegalZoom Side by Side Comparison
Incfile LegalZoom
ORDER PROCESSING TIME Next business day 30 days
REGISTERED AGENT Free for one year, then $119 per year $159 extra per year
OPERATING AGREEMENT $40 $99 extra
EIN REGISTRATION $70 extra $60 extra, must be bundled with Operating Agreement for a total of $159
ANNUAL COMPLIANCE Free lifetime company alerts One month free, $320/year after
ADVISORY SERVICES Tax: Free 1-hour consultation No
WEB DOMAIN & HOSTING $20/month hosting fees via Snapweb No

Basic Plan Highlights

For just the state fee, 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.

LLC Formation: Middle Plan Comparison

Incfile vs LegalZoom Side by Side Comparison
Incfile LegalZoom
ORDER PROCESSING TIME Next business day 15 days
REGISTERED AGENT Free for one year, then $119 per year $159 extra per year
OPERATING AGREEMENT Yes $99 extra
EIN REGISTRATION Yes $60 extra, must be bundled with Operating Agreement for a total of $159
ANNUAL COMPLIANCE Free lifetime company alerts One month free, $320/year after
ADVISORY SERVICES Tax: Free 1-hour consultation No
WEB DOMAIN & HOSTING $20/month hosting fees via Snapweb No

Middle Plan Highlights

To start, Incfile includes an Operating Agreement and EIN with their Silver package. With LegalZoom, those two business 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.

LLC Formation: Top Plan Comparison

Incfile vs LegalZoom Side by Side Comparison
Incfile LegalZoom
ORDER PROCESSING TIME Next business day 15 days
REGISTERED AGENT Free for one year, then $119 per year $159 extra per year
OPERATING AGREEMENT Yes $99 extra
EIN REGISTRATION Yes $60 extra, must be bundled with Operating Agreement for a total of $159
ANNUAL COMPLIANCE Free lifetime company alerts One month free, $320/year after
ADVISORY SERVICES Tax: Free 1-hour consultation No
WEB DOMAIN & HOSTING $20/month hosting fees via Snapweb No

Top Plan Highlights

LegalZoom’s Express Gold business package 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 any business that needs website help, this can add a ton of value.

RECOMMENDED BUSINESS FORMATION SERVICE



four point six out of five Incfile ($0 + State Fees)

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