Incfile Vs Legalzoom : What Is Best For Your LLC

February 8, 2020

A limited liability company (LLC) is a business structure of the United States according to which owners are not responsible for the liabilities and debts of a company.

It combines the features of a corporation with the partnership. The LLC is more like a formal relationship and is easy to set up as compared to the corporation and gives more protection and flexibility.

Legal advisors play a very important role while creating a business. These legal advisors give vital assistance in every phase of the business from copyright advice to lawsuits and liability.

They help to organize the business in a better way and do all the required paperwork without creating any overhead for you.

The process of creating LLC can be made easy with the help of legal service providers such as IncFile Vs LegalZoom.

IncFile provides cost-effective service and guides through the whole process. They handle all the administrative steps on your behalf so you do not need to worry much about it.

LegalZoom is another reliable LLC service provider that is easy to use and has all the features for guiding through the process of creating an LLC.

IncFile is cost-effective and has much better customer support.


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Incfile Vs LegalZoom –

IncFile and LegalZoom are known for providing online legal services but both having the focus on different areas. IncFile help in forming the new business initially and later with business taxes and compliance.

LegalZoom is a full legal service provider. They help in initial business set up and compliance similar to IncFile.

In addition to this, LegalZoom also provides other legal assistance such as drafting a contract or filing copyright.

They provide an attorney to help with detailed legal work. We will share the services provided by both in more detail.


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Incfile Vs LegalZoom : Head To Head Review

IncFile Vs LegalZoom both are known for providing legal help to small business owners. The services can be availed on these websites at a reasonable and flat fee.

Though these are not the replacement for an attorney but they can provide a solution to the simple business problems at affordable prices.

While paying to get legal advice, you want to pay for the best. Here is the quick comparison between IncFile Vs LegalZoom that can help you in deciding the best platform for you.

Types of Services

Talking about the types of services provided by IncFile Vs LegalZoom, IncFile has the main focus on the formation of business entity and compliance while LegalZoom provides the complete business legal services.

Below services are provided by both IncFile Vs LegalZoom:

  • Business Entity Formation:

Both IncFile and LegalZoom help to file the formation papers for an LLC and can also verify the company name. Both of these companies provide the registered agent service as part of which you need to name a person who can accept the documents on your behalf.

  • Compliance: 

IncFile Vs LegalZoom provide aid in the good standing of the business after the company is set up. Both IncFile and LegalZoom help to get a certificate of good standing, change the business name and file the annual report of the company.

Apart from the above services, there are some services which are provided by LegalZoom only:


  • Talk To An Attorney:

LegalZoom provides a legal plan for those businesses that need regular legal advice. As part of this plan, LegalZoom review all the legal documents you have, give consultation on phone 30 minutes and give an annual check report of your business.

  • Custom Legal Forms: 

LegalZoom has many legal forms. You can fill the questionnaire to generate the form according to your business need. This is a great option for small business owners to get the draft contracts.

  • Intellectual Property Fillings: 

With the assistance of LegalZoom, you can connect with an attorney who will guide you in filing the copyright, trademark or patent.

In addition to the above services, tax filing is the service that is provided by IncFile only.

LegalZoom can provide you a tax professional who can assist in filing tax while IncFile, on the other hand, can help you in preparing and filing the tax return.

  • Business Tax Services:

IncFile provides you the tax professional who will file a tax return for you and can also guide you in minimizing errors and in tax deductions.

Pricing

IncFile is less costly than LegalZoom for similar services. IncFile comes with three-tier plans, i.e. silver, gold, and platinum.

The silver tier is free, and you only need to pay the state filing fees. The silver plan includes features such as support on email and phone, search for the availability of the name and filing the formation papers on the next business day.


 The Gold plan costs $149 and offers the Form 2553 filing, preparation of minutes of meeting and LLC operating agreement. The Platinum tier comes at $299 and it includes the domain name and business website name.

LegalZoom, on the other hand, also includes the three tiers i.e. Economy for $149, Standard for $239 and Gold for $369. The main difference also comes at the speed of the service. IncFile processes all the services on the next business day while LegalZoom takes 7 to 35 days in processing the formation papers.

Service IncFile Price LegalZoom Price
Form a New Business $0 – $299 + State Fee $149 – $369 + State Fee
Registered Agent Included for Free With Business Formation $159 Per Year
File Annual Report $88 + State Fee $55 + State Fee
File Patent Application Service Not Available $199 + Government Fee
Create Custom Legal Forms Service Not Available $7.95 Monthly / $59 Per Form
File Tax Returns $599 for Business and $299 for Personal Service Not Available
Monthly Legal Plan Service Not Available $31.25 Monthly

Speed

The speed of the service matters a lot for the customer. Comparing the speed of services, IncFile is much faster than LegalZoom.

All the business formation filings are processed the next business day by IncFile irrespective of the tier you purchase.

LegalZoom takes around 7 to 10 business days for processing in case of the expensive plan and 20 to 35 days for the regular tier.

Customer Support

Both IncFile Vs LegalZoom provide various channels for the customers to get support. With LegalZoom, you can send a query to the support team using an email.

Also, there is a FAQ page which contains all the general questions with answers. In addition to this, LegalZoom also offers support on phone available Monday to Friday from 5 AM to 7 PM and 7 AM to 4 PM on Saturdays.

IncFile also provides the support system with an option to send a query on email and contact the support team by phone. The availability is from 9 AM to 6 PM from Monday to Friday. IncFile do not offer phone support on weekends.

User Reviews

Talking about customer reviews and ratings, IncFile has 5-star customer rating and good user reviews making it the best LLC formation service provider.

Customers like the transparent pricing plan that IncFile offers. Moreover, customers find the business information and compliance processes easily and much clearer.

Though, very few users complained about their delayed service and not good communication with customers.

LegalZoom has got mixed user reviews. The main complaint that users have mentioned in reviews is related to the pricing.

Some did not receive the service even after making the payment and some are charged the incorrect amount.

LegalZoom has addressed these customers and tried to resolve them. In addition to that, customers have appreciated the variety of legal services LegalZoom offers.


Ease of Use

IncFile and LegalZoom both provide a user-friendly website and easy navigation tools. Undoubtedly, both these websites save a lot of time and hassle for you.

On LegalZoom, you can easily search the service by its name only. LegalZoom pops up the simple questions and based on that, users are navigated to the required pages. The only drawback of LegalZoom is add-ons which gradually increase the overall cost.

Though IncFile also has the add-ons they are quite overwhelming.

LegalZoom Vs IncFile : Verdict

It is clear that both IncFile Vs LegalZoom have many similarities with a large number of differences.

In my opinion, IncFile review is better than LegalZoom as it saves you money by providing services at a lower price, offering a large number of features.

Though, both IncFile and LegalZoom are the big name in providing the best LLC formation services so you can choose any one of them.

But the best way to choose between these two is based on the type of legal service you need.

You can choose IncFile if:

You want to pay less; if you need good customer service; you want the services in a shorter time span; need tax professionals to file your tax returns.


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You can choose LegalZoom if:

If You want to experience the big brand power; you want to file copyright or trademark; you need an attorney on a regular basis after forming LLC.

Incfile Vs LegalZoom: FAQ’s

Can I name anything to my LLC? Is it compulsory to use LLC in the name?

You can use any name for your LLC as long as it is not being used by any other company. It is not compulsory to use LLC in the name.

Is it necessary to get the tax number for creating my LLC?

Yes, the tax number is absolutely necessary for any business. The tax number acts like Social Security Number for a business.

What is the requirement for an LLC?

To create an LLC, below two documents are required:

  • Certificate of Organization needs to be filed.
  • Operation Agreement is required that describes the operation of the business.

How much do I need to pay to form an LLC?

To form an LLC, you need to file a Certificate of Organization whose fees vary according to the state and is usually lies between $50 and $200. If you are forming an LLC with the help of attorney then attorney fees is also required to be paid.

Conclusion –

All in all, IncFile is economical, provides free registered agent and help you in tracking your services. IncFile provides the best LLC service with great customer support and top-notch user reviews, with quick turnaround time. You can go with LegalZoom if you are looking for a well-known brand with a good LLC formation experience and legal advisor after your LLC formation. Both are the big names and it completely depends upon you whether you want to save money on LLC services or want to have experience with LegalZoom. You won’t regret if you select either of them.

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