LegalZoom vs. Incorporate
Which Is Better for LLC Formation?

Incorporate vs. Legalzoom Review Image


Looking for the best service to start your LLC? We used LegalZoom and Incorporate.com to form LLCs, then compared their features.

In this LegalZoom vs. Incorporate review, we’ll let you know if either is worth your time and money. We also recommend checking out our list of the top 5 LLC formation services.


KEY CONSIDERATIONS: INCORPORATE VS. LEGALZOOM

Choosing a service that will help you start and operate your own business can be nerve-racking. That’s why we’ve presented three questions that will simplify the process and help you make an informed decision.

Is Either a Good Deal?

While its services are expensive, Incorporate.com stands out with world-class customer service. Available across three channels - chat, phone, and email - help isn't hard to find when you need it.

Incorporate also bundles helpful features like operating agreements and EIN registration, enhancing the value of premium packages. LegalZoom offers similar features, but only as a la carte upgrades, reducing their value.

Who Uses Incorporate and LegalZoom?

Both services are used by those who need help forming their businesses--including LLCs, incorporations, and nonprofits.

Here are some verified reviews (pulled from the services’ websites) by people who used Incorporate or LegalZoom to help launch their businesses:

“I chose incorporate.com because it was a fast and easy way to protect myself and my business. Making the decision to become an LLC was the turning point in the legitimacy and profitability of my company. Incorporate.com sends me reminder emails when payments are due so it is easy to remain in good standing with the state.”

"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."

Is There a Better Deal to Form My LLC?

The short answer is, yes, there are many other options to form your LLC in a cheaper, faster, and similarly reliable way.

Takeaway

Incorporate and LegalZoom would be right for you if you enjoy working with more established brands and don’t mind paying extra for premium services.

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)

RATING DETAILS: INCORPORATE VS. LEGALZOOM

Incorporate LegalZoom
Overall 3.6/5 3.4/5
Cost Value 2.5/5 3/5
Customer Service 5/5 3.7/5
Ease of Use 4/5 3.7/5
Included Features 3.5/5 3/5

Customer Service

Incorporate has a knowledgeable and attentive customer service.

The chat representative we worked with was able to answer our questions without any additional hold time. We weren’t redirected to call in or upsold on more expensive services.

Included Features

Getting an operating agreement and EIN is expensive with either company.

Another thing to consider is how each company organizes their pricing tiers for extra features.

Legalzoom does not include these features at any price point, and adding both will add $159 to your order, even with premium packages. Incorporate.com does add both features to their premium packages, though it will cost $179 to add them to their Starter package.

However, you can also join How to Start an LLC’s Business Center for a free operating agreement builder tool, and learn how you can get a free EIN through the IRS.

Ease of Use

Both services are easy to use and have efficient checkout times.

In total, the buying process for Incorporate took about 10 minutes after adding in the time to read each upsell offer description. LegalZoom’s entire order process should take no longer than 15-20 minutes. In case you are unable to complete an order in one sitting, LegalZoom emails a link to your saved answers, giving you the option of completing your order at a later time.

Value

Incorporate’s registered agent service is expensive ($235). 

Contrary to their website’s warning, we decided to act as our own registered service, which they say can delay an order up to six weeks.

Ours was processed by the State and in-hand within 2 weeks, this delivery time may vary for you, but opting out of this service is a good way to save money.

Many other registered agent services are much less expensive, such as Incfile, who includes a year of registered agent service for free with their $49 package.

Both companies are some of the most expensive in the industry.

If you would like to have LegalZoom or Incorporate.com create your LLC, operating agreement, and obtain your EIN within a two-business week time frame, you will end up paying a few hundred dollars.

With less expensive options like Incfile ($49 + State fees) out there, it’s hard to say these are the most cost-effective solutions. However, both companies share the name-brand advantage that some are willing to pay extra for.

Still, Incorporate.com is as well-rounded as any formation service you’ll find, so they have the advantage here. If trust is an important factor, they are a worthy choice but keep in mind there are better alternatives available if you are willing to do a little extra leg work.

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 point four out of five LegalZoom  ($79 + State Fees)
three point three out of five Rocket Lawyer  ($99 + State Fees)

FORM AN LLC FOR FREE USING OUR GUIDE

PRODUCT COMPARISONS: INCORPORATE VS LEGALZOOM

Legalzoom and Incorporate.com can do more than simply register your LLC. They each offer additional services, either included in their formation packages or sold separate. Here is a comparison of what each company offers at each package level.

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.

Incorporate.com
Up to 6 weeks without Registered Agent Service; 5-10 business days with Registered Agent Service
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.

Incorporate.com
$235 extra 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.

Incorporate.com
$99 extra
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.

Incorporate.com
$80 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.

Incorporate.com
LegalZoom
One month free, $320/year after

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

Incorporate.com
Business: General coaching $395 extra
LegalZoom

Middle Plan Comparison

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

Incorporate.com
Up to 6 weeks without Registered Agent Service; 5-10 business days with Registered Agent Service
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.

Incorporate.com
$235 extra 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.

Incorporate.com
$99 extra
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.

Incorporate.com
Included in package
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.

Incorporate.com
Annual Report Preparation and Filing service and Compliance Kit (only for those who register Incorporate.com as a registered agent)
LegalZoom
One month free, $320/year after

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

Incorporate.com
Business: General coaching $395 extra
LegalZoom

Top Plan Comparison

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

Incorporate.com
Up to 6 weeks without Registered Agent Service; 5-10 business days with Registered Agent Service
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.

Incorporate.com
$235 extra 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.

Incorporate.com
Included in package
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.

Incorporate.com
Included in package
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.

Incorporate.com
Annual Report Preparation and Filing service and Compliance Kit (only for those who register Incorporate.com as a registered agent)
LegalZoom
One month free, $320/year after

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

Incorporate.com
Business: General coaching $395 extra
LegalZoom

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)