IncFile vs LegalZoom (Which is the Best LLC Service?)

Are you starting your new business? It is better to skip the legalese and simply focusing on running and growing your business. However, a few legal issues, such as incorporating your company, are unavoidable.

IncFile vs LegalZoom

To help you form your company, you can get help from professional LLC formation companies. When you are forming an LLC, you need a professional service that combines speed, quality, expertise, and provides the best value for money. 

IncFile and LegalZoom are both highly popular, reputable incorporation service providers. However, how will you make a choice between the two? 

Don’t worry – we are to help! 

In this IncFile vs LegalZoom review, we have compared their features, pricing, customer reviews, and a few other important factors that will help you make a perfect choice.

Ready? Let’s get started!

Quick Summary: IncFile vs LegalZoom

Short on time and want a quick summary instead of reading the comprehensive IncFile vs LegalZoom review? Here are a few highlights to make the choice easier for you!

IncFile helps users form their business free of cost – yes, you read that right! Furthermore, once your LLC is formed, they will help you with compliance and business taxes as well.

On the other hand, LegalZoom is a complete legal services provider. Along with LLC formation service, they cover various other legal needs like drafting contracts, filing trademark applications, etc.

  • Signup for IncFile if you want a professional service to form your LLC free of cost, along with a few lucrative features
  • Signup for LegalZoom if you don’t want free services and are looking for a broad range of legal services along with LLC formation

Recommended

IncFile

★★★★★

For the cheapest price, IncFile is our recommended LLC formation service.

LegalZoom

For a broad range of legal services along with LLC formation.

Similarities Between IncFile and LegalZoom

Both IncFile and LegalZoom are popular amongst their users and have a strong reputation in the industry. There are a few similarities between them that endear them to their users. Before, moving on further, let’s take a look at them.

Experienced Companies

When it comes to experience, both IncFile and LegalZoom have provided services to thousands of individuals. They have many years of experience under their belts and have glowing recommendations from their users.

Affordable Services

Business attorneys charge hundreds of dollars to help you form your LLC. If you use IncFile or LegalZoom, the amount you pay will be nowhere close to the hefty bill a lawyer would have placed in your hands!

Educative and Informative

Even though there is a lot of information available online, it takes a long time to find relevant answers. Moreover, you can never be sure whether the info you have found is reliable or not. Both IncFile and LegalZoom have informative sections on their websites.

IncFile has a learning center that contains articles on various business structures. Similarly, LegalZoom has plenty of legal information in their Knowledge Center that might come in handy for entrepreneurs trying to run their companies.

Customer Support

IncFile and LegalZoom have comprehensive customer support systems. You can contact them during their working hours via phone, email, or webchat. If you have any questions about their services, you can simply contact the customer services and get your queries answered!

Additional Services

When you are forming your LLC, it is not all about filing the Articles of Organization. You need a few more features to get your company up and running. With Both IncFile and LegalZoom, you will get features that will benefit your business.

Efficient Process

Both IncFile and LegalZoom have a straightforward, efficient process. You don’t have to learn complex legal jargon or find your way through legal red tape. Choose the services you think are a perfect fit for you and you will get professional and efficient services.

Differences Between IncFile and LegalZoom

Even though both the companies provide LLC formation services, they have few distinctive features that make them stand out. Let’s see what makes IncFile and LegalZoom different from each other.

Types of Services

An important area where IncFile and LegalZoom differ is the types of services you get from each. LegalZoom provides various legal services and is not a sole LLC formation service.  From Legal forms to family law and attorney advice, you will get plenty of legal services from LegalZoom.

On the other hand, IncFile focuses solely on forming your LLC. Moreover, IncFile provides business tax returns service as well which LegalZoom doesn’t.

LLC Formation Rates

You can get your LLC formed at both IncFile and LegalZoom. However, the amount of money you pay for the same services differs exponentially. IncFile offers free services while LegalZoom doesn’t. We will discuss this comprehensively in the next section.

Years of Experience

IncFile was created in 2004 while LegalZoom has been in business since 2001. Therefore, when it comes to the years of experience, LegalZoom has the advantage. 

Registered Agent Services

Registered agent service is available at both IncFile and LegalZoom. However, if you choose a package from IncFile, you will get a full year of the service for free. If you go for LegalZoom, you will have to pay $159.

Side-by-Side Comparison

Now that you have a brief idea about the services you will get from IncFile and LegalZoom, comes the side-by-comparison. In this section, you will get to compare IncFile vs LegalZoom based on the factors that make-or-break a company.

Let’s take a look!

Pricing

As new business owners, budget is one of the most important considerations. You have so many things to take care of and plenty of expenses. Therefore, before you choose any service, it is natural to look at the prices they offer.

No one can beat IncFile when it comes to pricing because they offer their services free of cost. At IncFile, you get three different packages – Silver, Gold, and Platinum. The Silver package is free of cost – you only have to pay the state fees. If you choose the Gold package, you will have to pay $149 and the Platinum package costs $299.

With all three packages, you will get registered agent service free for a year. After that, you will pay $119 annually.

If you go for LegalZoom, you will have to loosen the purse strings. There is no free package at LegalZoom. Moreover, you will not even get a free registered agent service, no matter which package you select. You will have to pay a whopping $159!

At LegalZoom, they have three packages – Economy, Standard, and Express Gold. The first package costs $79 while the standard package is worth $329. The highest-end package costs $349. Moreover, you will have to pay additional money for any other features and services of your add-on.

IncFile

  • Silver: $0
  • Gold: $149
  • Platinum: $229

LegalZoom

  • Economy: $79
  • Standard: $329
  • Express Gold: $349

Honestly, even if the prices offered by LegalZoom were the same as those of IncFile, we wouldn’t recommend it to you. Why? Because the features that you get from IncFile in their packages are way better than LegalZoom’s when it comes to LLC formation. 

In this category, IncFile takes the lead!

Features

Both IncFile and LegalZoom offer various features and services that will benefit your company. Let’s compare the three packages offered by both the companies to know which one offers more value.

IncFile

  • Free Registered Agent Service (one year)
  • Operating Agreement
  • Bank Account
  • Tax-consultation

LegalZoom

  • LLC Guide Book
  • VIP Processing (15 days)
  • Banking Resolution

Basic Package Comparison

The Silver Package ($0) from IncFile offers the following features.

  1. Formation of LLC
  2. Business Name Search
  3. Free Registered Agent Service (one year)
  4. Tax-consultation

If you select the Economy package ($79) from LegalZoom, you get the following services.

  1. Formation of LLC
  2. Business Name Search
  3. Banking Resolution

Would you pay $79 just for a banking resolution? We think not!

  • Order Processing Time. If you choose the basic plan from IncFile, your order will get processed the next business day. With LegalZoom, it can take even a few weeks. Registered Agent Service. With IncFile, this service is free for one year and then you pay $119 annually. On the other hand, there is no free year of the service with LegalZoom. You pay $159 if you want to avail use LegalZoom as your registered agent. This is the same for all three plans.
  • Annual Compliance. You get free lifetime company alerts from IncFile. With LegalZoom, you get the first month free and then pay $320 annually.
  • Advisory Services. With IncFile’s basic package, you get a 30-minute tax consultation free. There is no such feature from LegalZoom.

Mid-Tier Package

The Gold package from IncFile has all the features from the Silver package as well as the following additional features.

  1. Federal Tax Number
  2. Operating Agreement
  3. Bank Account
  4. IRS Form 2553
  5. Banking Resolution

If you select the mid-tier package from LegalZoom, you will get these features.

  1. LLC Guide Book
  2. Business Seal
  3. Business Certificates
  4. Banking Authorization Letter
  5. Document Organizer
  6. VIP Processing (15 days)

These features are certainly not worth $329 at all.

  • Order Processing Time. The order processing time with IncFile is one business day. On the other hand, you will get a 15-day order processing guarantee from LegalZoom. This is the same for the top-tier package as well.
  • Business Operating Agreement. You also get a business operating agreement if you choose IncFile’s Gold package. If you select LegalZoom and want a business operating agreement, you will have to pay $99.
  • Federal Tax ID. In the Gold package, you will get EIN for your company as well. LegalZoom charges $60 for this service.
  • Web Domain and Hosting. By paying $20.monthly, you will also get a web domain for your company via Snapweb. Again, LegalZoom doesn’t offer this service.

Top-Tier Plan Comparison

Here are the additional features you will get if you select the highest-end package from IncFile.

  1. Expedited Filing
  2. Business Contract Templates
  3. Domain Name
  4. Business Email

If you choose the Express Gold package offered by LegalZoom, you will only get the following two additional features. 

  1. Rush Processing
  2. Express Shipping
  • Order Processing Time. The order processing time for IncFile’s package is 1 business day while that of LegalZoom’s is 7-10 business days.

It is clear that not only does IncFile have better rates, but it also wins the race of better features as well.

Experience

IncFile has been helping businesses since 2004. They have plenty of positive reviews, and their customers are satisfied with the quality of services they get. On the other hand, LegalZoom has been around since 2001. 

It is obvious that they have more years of experience under their belt as compared to IncFile. LegalZoom has a large clientele since they not only provide LLC formation services but other legal services as well.

Customer Support

Customer support is an important factor when it comes to choosing online LLC formation services. If you have any query about the services the company provides, you should be able to get in touch with them immediately.

IncFile has email and phone support. Moreover, you also have a live chat option. You don’t have to wait for a long time to talk to a customer rep. Moreover, they respond to your email within one business day. The customer support hours are from 9 am to 6 pm (CST) from Monday to Friday. 

You can contact LegalZoom via email and phone. According to their user reviews, the phone support is responsive while you have to wait for a long time if you send them an email. Moreover, the email response you get from them doesn’t answer your question. Rather, it is a generic email.

The customer support hours at LegalZoom are 7 am to 5 pm (OT) on weekdays and 7 am to 4 pm (PT) on weekends. Even though they have extended support hours due to their availability on weekends, they are hard to get in touch with and this renders the feature almost useless.

IncFile is the clear winner when it comes to excellent customer support.

Turnaround Times (How Long to Create a Company?)

The time it takes to form your LLC depends on two things – your state processing time and the company you choose. 

If you choose LegalZoom, the usual processing time is 30 business days (6 weeks) if you select the standard package. With their Express Gold package, you can cut down the processing time to 7-10 business days.

With IncFile, you get a one-day processing guarantee. This means that they will forward your documents to the state only a day after you place your order. If you want expedited filing, you can choose their Premium package to get your company formed quickly.

Both IncFile and LegalZoom offer flexible turnaround times. However, LegalZoom charges a lot more for their rush filing as compared to IncFile’s expedited filing. Therefore, we give this category to IncFile.

Order Tracking

If you are able to track the status of your LLC formation order, it can help you relax and focus on your business. Both IncFile and LegalZoom have real-time order tracking tools with the help of which you can keep an eye on the status.

This category is a tie.

Registered Agent Service

Every LLC in the United States has to choose a registered agent for their company. This is important because your state of formation requires a credible means of contacting you whenever necessary. With IncFile, you don’t have to pay anything for using their registered agent service. Later. They charge you $119 every year.

No matter which package you select from LegalZoom, you will not get free registered agent service. You will have to pay $159 annually. This is a huge amount. Why would you pay for something if you are getting it absolutely free, right?

It is a no-brainer that IncFile takes the lead here.

Customer Reviews

By now, you must have formed an opinion about IncFile as well as LegalZoom. However, the people who have actually used their services are better equipped to say whether a company is worth it or not. IncFile has been around for over 15 years and has served thousands of customers.

With a few exceptions, most of the reviews we found online are positive in nature. They highly praise the free Silver package, the speed of formation, and the quality of customer service. They have a 4.8-star rating on Shopper Approved with over 19,500+ ratings. 

When it comes to LegalZoom, you will see mixed reviews. Even though their users like the fact that they get access to a multitude of legal services, you will have a lot of dissatisfaction due to slow customer service response.

They are a big company and it is a given that you will have to wait for some time to get hold of their customer reps. However, when you have better options like IncFile available, why would you waste your time waiting, right?

Ease of Use

You are using an LLC formation service so that you can put in your energy somewhere else in your business, right? If the order process takes a lot of time and is confusing, it will defeat the purpose of saving time.

When you sign up for IncFile, you will be guided every step of the way with hyperlinks and tiny question marks in case you have any queries. Moreover, there are very few upsells and if you choose them, the price is immediately reflected on the screen. IncFile has a simple and user-friendly website. Moreover, you get an online dashboard where you can store your documents.

On the other hand, LegalZoom doesn’t give you the option to choose the package you want first. You provide your info and then have to go through several upsells until you reach the package selection part.

Clearly, IncFile takes the lead.

Additional Services

Both IncFile and LegalZoom provide various services. Both companies will help you with LLC formation, annual reports, EIN acquisition, etc. However, the prices of these services differ as we have already discussed above. 

Moreover, if you use LegalZoom, you will have access to various legal services such as living trust, power of attorney, wills, property deeds, etc.

IncFile vs LegalZoom: Which is Best?

Now comes the million-dollar question – IncFile vs LegalZoom: Which one should you choose? From our comprehensive review above, it is clear that IncFile offers more overall value. What is better than getting quality services by paying absolutely nothing!

Still, confused? Don’t worry – we will make it clearer for you!

  • Signup for IncFile if you are searching for the best prices and high-quality services with plenty of experience and feedback

IncFile will be perfect for people who 

  1. Are looking for affordable rates
  2. Value customer support
  3. Don’t need legal help
  4. Need help with business taxes
  • Signup for LegalZoom if you are willing to pay more for brand power and need various legal services along with LLC formation services

LegalZoom is a good choice for those who

  1. Need help on legal issues
  2. Are not on a budget
  3. Don’t need responsive customer support

Recommended

IncFile

★★★★★

For the cheapest price, IncFile is our recommended LLC formation service.

LegalZoom

For a broad range of legal services along with LLC formation.

Frequently Asked Questions

Yes, the basic package from IncFile is free of cost. You will only have to pay the state fees.

IncFile is perfect if you are short on budget and want quality services without breaking the bank. If you want legal services along with LLC formation services, then LegalZoom is perfect for you.

With IncFile, you can request a refund as long as they haven’t processed your order and filed your documents with the state. After that, you will not get a refund. With LegalZoom, you can ask for a refund within 60 days of placing your order.

Unfortunately, neither IncFile nor LegalZoom provide publication services. If you need publication services, you will either have to choose some other LLC formation service like ZenBusiness or take the DIY route.

Yes, you can take the DIY route and form your own LLC. However, since it will take a lot of time and effort on your end, we would recommend using the free package of IncFile and focusing on other business duties!

Cite/Link to This Article

  • Stewart, Suzy. "IncFile vs LegalZoom (Which is the Best LLC Service?)". One Brick Court. Accessed on April 10, 2021. https://onebrickcourt.com/incfile-vs-legalzoom/.

  • Stewart, Suzy. "IncFile vs LegalZoom (Which is the Best LLC Service?)". One Brick Court, https://onebrickcourt.com/incfile-vs-legalzoom/. Accessed 10 April, 2021.

  • Stewart, Suzy. IncFile vs LegalZoom (Which is the Best LLC Service?). One Brick Court. Retrieved from https://onebrickcourt.com/incfile-vs-legalzoom/.