Incfile vs LegalZoom Comparison & Differences for LLC Formation

Denise Elizabeth P
Senior Financial Editor & Contributor

Today we are going to do and Incfile vs LegalZoom comparison so that you can see if one of these formation services are a good fit for forming your company.

But first let’s discuss why many small business owners and entrepreneurs choose to use an LLC formation service.

When starting a business, many entrepreneurs look to business formation services to launch their business entity.

Most small business owners also prefer to focus on running their business and rather than also trying to tackle the legal aspect.

But with hourly rates for business lawyers starting at $100 (that is on the low end!) and going up from there, having a business lawyer handle all of these needs can get really expensive.

Luckily, there are online services that handle the formation of your business, ongoing filings that need to be completed, and even handle the legal aspect of running a successful business.

Best of all, these providers are much cheaper and have a lot to offer.

IncFile and LegalZoom are two of the top contenders in this space.

In today’s article we are going to learn about IncFile vs LegalZoom and compare the two so that you can find the right fit for you and your organization.

*Keep in mind, that the online legal services market is great for handling small legal matters, but if you have a more complicated legal need or are in a lawsuit, you will want to hire a specialized attorney for that.

But if you are looking to form your business and have someone to call for general legal questions regarding starting a business, partnerships, legal documents, etc – IncFile and LegalZoom provide a fast, affordable solution.

Incfile vs LegalZoom Comparison & Differences:

Let’s get started by first learning more about each provider:

IncFile

incfile-logo

If you are looking to form your business, Incfile is an affordable quick option, their packages start at $0 + state fees.

Once your business is formed (LLC (limited liability company), Corporation, S-Corp, Sole proprietorship, general partnership, etc), Incfile can also help with your annual reporting and legal needs.

With over 250,000 businesses formed and helped, they are a well-known company.

Key Features:

  • IncFile business formation service packages include a year of registered agent service, Lifetime Company Alerts, filing deadlines, and more.
  • They can form any type of business entity
  • Over 13,000 positive customer reviews!
  • They are known for having great customer service which are available through phone, email or online chat.
  • Compliance – Once your company is set up, IncFile will help you keep the business in good standing. They can file your annual report, change your business name, obtain a certificate of good standing and more.
  • Basic legal form library

If you are a small business owner on a tighter budget and are looking for a free LLC formation option, then this is a good place to do that and you can add on additional services as needed such as legal advice and more.

Pricing:

IncFile Pricing

IncFile LLC has three packages to choose from and they each offer a different combination of pricing and features, depending what you need.

For all of the details of each formation package, you can checkout their pricing page here .

Silver Package – what is included:

  • $0 + State Fee
  • Preparation and filing of your Business formation papers (Articles of Organization) – these documents are required to form your new LLC and IncFile will create and file them with your state.
  • Name availability search to make sure the name you want for your businesses isn’t already taken by another entity.
  • One Year Free Registered Agent Services – a registered agent is required to form an LLC. A registered agent accepts important documents on the behalf of your business and forwards them to you. IncFile provides this erices for free for one full year. After the first, free year, they charge $119 annually to be your registered agent.
  • Lifetime Unlimited phone and email support
  • Order status tracking
  • Business Tax Consultation service provider – the offer a 30 minutes, no obligation consultation with a certified tax professional and charge for consultation services thereafter.
  • Lifetime company alerts – IncFile will keep track of important deadlines and notify you as they approach.

Gold Package – what is included:

  • $149 + State Fee
  • The Gold package includes everything from the Silver Package to complete your formaiton process
  • EIN (Employer Identification Number – An EIN is a social security number for your business and is to be used when opening a bank account, hiring employees, filing taxes, and more. IncFile will acquire an EIN for you so that you don’t have to do it with the IRS directly.
  • Custom Operating Agreement – IncFile will prepare your custom operating agreement which outlines the ownership structure of your business and ground rules for the way your company will operate.
  • Express 1-3 day shipping of a hard copy of your articles of organization
  • Banking Resolution – This document is created to help you open a business bank account. However, this can easily be done by simply bringing your EIN number to the bank with you.
  • Gold Business Formation Kit – A box with your company’s name on it, a transfer ledger, and document organization tabs to help keep your documents organized.
  • S Corporation Tax form Preparation – This feature only applies if you decide to have your business be taxed like an S Corporation.

Platinum Package – what is included:

  • $299 + State Fee
  • The Platinum Package included everything from the Gold package
  • Expedited Document Filing – this can cut your turnaround time from weeks to days if expedited services are offered in your State.
  • Sample Document Library – Access to legal contract templates to be used as needed
  • Business Website and Domain Name – IncFile has a partnership with SnapWeb and you will receive a professionally designed basic website and pre-made template. This feature requires you to pay SnapWeb’s $20/month hosting fee and the free domain name only applies if you sign up for an annual subscription.

You can read a more in depth Incfile review here.

LegalZoom

LegalZoom is definitely a brand that you’ve probably heard of because they have a lot of brand power.

They’ve done a really good job marketing themselves and getting their name out there.

But there is more behind their name, they really are a great organization.

  • They do huge volumes of LLC formations with over a million businesses formed since 1999.
  • Extended customer service hours
  • Compliance – Once your company is set up, LegalZoom will help you keep the business in good standing. They can file your annual report, change your business name, obtain a certificate of good standing and more.
  • Intellectual property filings – LegalZoom will connect you with a lawyer to help you prepare and file a trademark, copyright, or patent application.
  • LegalZoom has over 100 custom legal forms at your disposal. These forms are customizable to your business needs and are enforceable in court.
  • For a monthy fee, LegalZoom attorneys will review your legal documents, provide phone consultations, and do annual legal checkup of your business.
  • Wills, trusts, power of attorney services

If you want a company that is well-known, has extensive legal experience, and processes high-volumes of business formations on a daily basis, LegalZoom is a good one to consider.

Economy Package (Basic Package) – what is included:

  • $79 + State Fee
  • Name check to make sure the company name you want to use is available.
  • LegaZoom will file your LLC state documents, Articles of Organization for LLCs, and corporation documents.
  • Lifetime customer support
  • Banking authorization letter for opening up bank accounts

Standard Incorporation Package – what is included:

  • $329 + State Fee
  • Includes everything in the Economy package
  • Deluxe organizer binder to help keep all documents organized
  • 20 personalized certificates and a company seal
  • LegalZoom VIP Processing which expedites the process time by 15 business days

Express Gold Package – what is included:

  • $349 + State Fee
  • Includes everything in the Standard package
  • The only additional value this package brings is expedited shipping.
  • Business Advisory Plan (31.25 per month)
  • Incorporating a nonprofit (starting at $99 + state fees)
  • S and C-corporation formation process (starting at $149 + state fees)
  • Corporate amendments (starting at $149 + state fees)
  • Dissolution services (starting at $129 + state fees)
  • Annual reports (starting at $55 + state fees)
  • Registered agent services ($299/year)
  • Trademark registration (starting at $199 + state fees)
  • Utility patents (starting at $699 + state fees)
  • Design patents (starting at $899 + state fees)

Read our more in depth LegalZoom review here.

Conclusion:

Both Incfile vs LegalZoom aim to make forming your new business and getting basic legal help affordable for small business owners.

Instead of paying an attorney a steep hourly rate plus a filing fee, you can access common legal service on these websites for a reasonable, flat fee.

We do want to mention that Incfile focuses mainly on business entity formation and compliance, whereas LegalZoom provides a full spectrum of business and legal service for much less than a law firm.

If you think you will need to rely more heavily on the legal side of the services, then LegalZoom is going to offer a lot more.

However, if you just need company formation services and maintain good standing with the occasional legal question, IncFile is cheaper and will be a great alternative!

Note: We’ve also put together the top LegalZoom competitors if your looking for other alternatives to LegalZoom as well.

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  1. IRS.gov "Limited Liability Company (LLC)" Page 1 . April 7, 2021

  2. SBA.gov "Register with State Agencies" Page 1 . April 7, 2021

  3. SBA.gov "Business Structures - Limited Liability" Page 1 . April 7, 2021