Are you planning for starting LLC (Limited Liability Company) business? Do you find legal services quite expensive for your newly-established company? Well, it is a bit challenging to launch any business with legal resources. Hiring a costly lawyer is out of budget for a small business owner. Services like Incfile and LegalZoom are the best substitutes to run your organization legally.
These services help in all the legal issues, like business formation, annual reports, and all other preparations. These online platforms are quite cost-effective and prevent unnecessary expenses. But, it can be confusing to choose any one of them. So now, I will help you in reviewing both platforms with all the similarities and differences to decide which one is better for what type of business.
In the following write-up, we will compare all the factors in detail so that you can confirm to buy the best legal platform for your company. The Incfile vs LegalZoom article explains how you can take advantage of these services for accomplishing your legal issues. Thousands of customers are using these services for boosting their business to the next level. Let us start comparing them to highlight the most effective one.
The table shows a brief comparison between Incfile vs LegalZoom.
|Business Formation (DBA, INC, and LLC)||Yes||Yes|
|Trademarks, Patents and Copyrights||No||Yes|
|Business License and EIN||Yes||Yes|
|Customized Legal Forms||No||Yes|
|Estate Planning and Wills||No||Yes|
Overview Of Incfile
Incfile is an incredible digital platform for the formation of business. It helps in preparing and managing all the legal actions that take place in a company at the attorney price. The significant aspect of using this service is that you can get easy, quick, and reasonable business compliance and formation help. It helps in launching your business and keeps the user compliant. There is an exciting feature that you can enjoy by enrolling in this platform, i.e., tax returns.
Overview Of LegalZoom
LegalZoom is a similar legal-help service provider like Incfile. It also helps in business formation by providing sufficient legal solutions. The platform initiates your company and also, keeps the user compliant. It helps in providing attorney services like family law, contracts, rights for intellectual property, legal planning, etc.
You can enroll in many services if you are using this online platform like filing for patents, trademarks, copyrights, over 100 customized legal forms, and much more.
Types Of Services
There are some similar and different services offered by these two platforms. Let us discuss them in detail.
- Formation of a Business: It is an essential service that is provided to the users by both platforms. They help in creating and managing all the paperwork for non-profit companies, LLC, corporation or partnership. It is quite easy to check the availability of the name of your company and get a proper business identity. You can get registered agents for accepting all the legal documents on behalf of your organization.
- Compliance: Both service providers help in keeping the status of your running business. You can use these platforms for changing the business name, creating an annual report or getting a status certificate for your business.
- Tax Services: The platform helps in connecting your company with a tax professional for preparing and filing tax returns for free. When you work with experts, there are chances of more tax deductions and fewer issues while filing for returns.
- Legal Forms: The application provides more than 100 legal forms, and you need to fill the questionnaire to get the customized one as per your legal requirements. It is helpful for business owners who want to draft contracts.
- Contact to Attorney: The platform offers a legal plan to access every type of help from the attorney. They help in reviewing all the documents, consult you, and check your business status annually.
- Intellectual Fillings for Your Property: LegalZoom helps in connecting you with a lawyer to prepare all the documents. You can also file applications for patents, trademarks, or copyrights.
Forming a Limited Liability Company could be a remarkable choice to make. LLCs are made to follow a simple plan of action and effectively run your business. Plus, it is economical to set up.
Giving no further due, let’s explore the process to form an LLC with IncFile and LegalZoom.
Forming an LLC with IncFile
Here is a list of steps that you need to pull out to form an LLC with IncFile.
- Select the business outfit model and the state you want to set up the business in.
- Select a “package deal” to form your LLC — each package costs different and comes with a special set of features.
- IncFile asks for your contact details.
- Decide if you want to step up the company formation.
- IncFile offers free Certified Agent service for one year.
- Submit the company name, business model type, and company contact info.
- Ask for an Employer Identification Number (EIN) if you need one.
- Pick up a customized LLC kit if you want one.
- Hand-pick the option to get speedy delivery of your company formation documents.
- Confirm the information you have submitted.
- Look out for if you want a Business License Research deal. It will help you understand the basics of business licenses you may need to fill in and file.
- Go for a business tax consultation if you want one.
- Enter your payment details and get started with the company formation process.
Go to the FAQs section to make an informed choice on the LLC formation process.
Forming an LLC with LegalZoom
Pull out these steps to form an LLC with LegalZoom.
- Select the state you want to set up your business in.
- Give information about the field your business operates in.
- Give detailed information on your business activity — what it does.
- Answer business-related specifics —
- The number of owners your business has/ may have
- If your business is new
- Whether your company will have employees in a year
- When do you plan its fiscal year to be
- Submit the company contact information of your newly formed business.
- Share your business name. Also, give an extra name in case the one you have chosen is reserved.
- Give the business owner’s name.
- Share the business manager’s names (if you have any).
- Confirm if you need LegalZoom’s Certified Agent service for $299.
- Share the Agent’s name if he/she does not come from LegalZoom.
- Ask for an EIN from LegalZoom if you need it.
- Opt for a courtesy tax consultation service if you need it.
- Pick up a compliance specific tax package if you want LegalZoom to do it. You can even do it yourself.
- Hire an attorney if you want any help with business formation and planning.
- Go for a business license package if you want one. It will clear your mind on what kind of business licenses you require and how to fill in and file.
- Pick up a “Compliance Calendar” if you need one.
- If you want a “Business Advantage” service, then subscribe to LegalZoom’s dedicated support.
- Open a business checking account if you need it.
- If you require a business credit card or want a business credit consultation, go for it.
- If you require a website domain name or an expert opinion on your website design — go for it.
- Recheck all the details you have submitted for company formation.
- Select the company formation program of your choice and pay the charges.
- Proceed to checkout and enter payment details.
There is limited info available on the LLC formation process with LegalZoom. A bit of further research may be useful.
Undoubtedly, the company formation process is more involved with LegalZoom. We can say it is more effective than the Incfile process.
A handful of Extra Business Services Offered
Both company formation tools provide a handful of add-on business services. Here are a few of the services explained below, with specific costs for each provider.
Certified Agent Services
They provide a certified agent to look after your business filings and paperwork.
|IncFile||First-year Free Service
Later $119 per year
Book your Entity Name
Book a company name for your business even before you undergo the legal process for your company formation.
|IncFile||Service invariably included in the company formation process.
No separate service
|LegalZoom||$49 + State Fees|
Proxy or Superficial Name
Use a proxy business name — The one different from your LLC name.
|IncFile||$99 + State Fes|
|LegalZoom||$99-$119 + State Fees|
Employer Identification Number
Almost every LLC needs an EIN for tax identification and filing process.
|IncFile||$70 (One-Time Fee)
Included in Gold & Platinum Plans
Custom Operating Agreement
An Operating Agreement lays out facts about business owners and how they operate in a business environment.
|IncFile||Included in Gold & Platinum Plans|
Business License Research
LLCs need permits and licenses to work as per legal compliances. Both IncFile and LegalZoom offer a research service.
Corporation Tax Structure
A compliant tax structure can help businesses save on self-employed taxes.
|IncFile||$50 (One-Time Fee)
Included in Gold & Platinum Plans
|LegalZoom||No separate service|
Trademark Checks and Enrollment
Trademark checks help find similar trademarks for those who are willing to register. A Trademark registration looks after a trademark filing and approval process.
|IncFile||$199 + Federal Fee (For Trademark Check & Registration)|
|LegalZoom||$199-$499 (Trademark Check Fee) +
$199-219 (Registration Fee)
Well, both services come with online tracking to help you access real-time order status notifications. The IncFile tool is a bit flashy, but both of them are quite operational.
It is a standard parameter to decide which one to buy because a small business owner can purchase the one, who they can afford. Well, you can purchase these services at a reasonable price. There are three packages provided by IncFile, i.e., Silver, Gold, and Platinum with different features. On the other hand, there are three packages provided by LegalZoom, known as Economy, Standard, and Express Gold. Let us compare these plans with different features.
|Features||Incfile: Silver||LegalZoom: Economy|
|EIN Registration||$70||Combined with Your Operating Agreement, $159|
|Processing Time||Other business day||30 days|
|Counseling Services||Tax consultation for one hour||NA|
|Annual Compliance||Free||Free one Month and then, $320 per year|
3. Supreme Plans
|Features||Incfile: Platinum||LegalZoom: Express Gold|
|EIN Registration||Yes||Combined with Operating Agreement, $159|
|Processing Time||Other business day||7 to 10 business days|
|Counselling Services||Tax consultation for one hour||NA|
|Annual Compliance||Free||Free one Month and then, $320 per year|
|Registered Agent||Free for one year and then, 119 per year||$159 annually|
Pros And Cons
- It is a reasonable business formation platform that offers a free plan to start the service.
- This service has been available in the market for more than 15 years, and many business owners opted it for establishing their company.
- A user can get registered agency services for a year at low prices in all their packages.
- You can access all the essential updates of your company through emails like business licences, deadlines, information statements, annual reports, etc. It helps in running your business seamlessly.
- Millions of customers like this service and provide positive feedback.
- It is hard to react to the customer support team.
- It is an established brand with a user-friendly platform.
- You can get a variety of products and legal services to solve all the legal issues.
- The services of LegalZoom are cheaper than hiring a lawyer.
- You can access services like DBA, LLC, Corporation, NPO, EIN, etc.
- It is an expensive platform to access online business formation services.
- There are several negative customer feedbacks, who complain that there is no transparency in prices for plans.
Common Factors between Incfile and LegalZoom
- Affordable: You can save your money while buying the services for your business formation. These digital platforms are quite cheaper than hiring an attorney for preparing and filing all your documents.
- Customer Support: You can contact the customer team of both service providers if there are any doubts or questions. They both have excellent support team systems with professional representatives.
- Experience: Both platforms have fantastic track records, and it is found that they have served millions of customers in a year and help in starting many businesses.
- Additional Services: You can get incredible business solutions other than LLC formation like business licensing, registered agent service, and much more.
- Efficiency: You can contact these services if you want to kickstart your business quickly. They help in speeding up your business formation process if you buy supreme plans.
Who Utilizes this Service?
- Incfile: This service is best for entrepreneurs that are planning to start their LLC, non-profit, or corporation business.
- LegalZoom: It is a similar business formation platform as Incfile, and anyone who needs to start a non-profit, LLC, corporation, or any business type can use it. But, the significant difference is that it focuses on complete legal services, and not only business formation.
Winner: LegalZoom is the winner and can be used by any business owner who wants to access all legal services from a single platform.
Overall Pricing and Value
- Incfile: In $0, you can access many features of this platform to start your business. In a free plan, you can access registered agent service for one year. After one year, you need to renew it for $119 annually. There are other packages, i.e., Gold in $149 and Platinum in $299. You can access more features if you buy premium plans.
- LegalZoom: It is also a famous business formation service provider that offers a small plan in $79 with basic features. The premium plans are also there, like a Standard of $329 and a premium of $349 for additional features.
Winner: Incfile is the winner here because the basic plan is free, in which you can access basic features.
Tracking Records of the Company
- Incfile: This online business formation platform has set millions of businesses, and it is possible to track records of such companies. The clients posted their positive feedback because they can access complete legal information about their organization wherever they want.
- LegalZoom: Similarly, LegalZoom has also satisfied millions of customers worldwide. They focus not only on business formation services but also help in other legal issues.
Winner: Both service providers are the same in terms of tracking records of the business.
- Incfile: You can contact the customer support team by phone call and email. You will get instant replies or answers whenever you contact them. There is no requirement of wasting so much time when you want answers to your queries.
- LegalZoom: Similarly, LegalZoom allows you to contact their customer support team by phone call and email. Well, the service is quite excellent, but it needs to be improved with time.
Winner: Incfile is the winner because the response time is quite better than LegalZoom
Ease of Use
- Incfile: After signing up your account in Incfile, you can form your business in simple steps. If you do not know what things to do, you can simply go through specific tutorials to understand how it works. The online platform is easy to use, even for novice users.
- LegalZoom: There are no package options while starting the application. Include your personal information, navigate and select the required formation package. It makes the process a bit complicated and challenging to use.
Winner: Incfile is the winner because the online platform is much easier than LegalZoom.
- Incfile: Incfile processes the entire LLC formation process in a single business day. If any business owner pays extra then, it can process the next day. Any user can purchase and book expedited processing by paying extra or get the Platinum package.
- LegalZoom: In the expensive plan, the documents for business formation takes 7 to 10 business days for processing. On the other hand, the cheaper plans need 30 days for processing.
Winner: Incfile is the winner because the processing time is less than LegalZoom.
Final Verdict: Incfile vs LegalZoom 2021
After comparing all the factors, it is found that Incfile is the most effective business formation platform than LegalZoom. You can access many features in its affordable plans, and even you can enjoy basic features without spending a single penny. It takes care of all the legal formalities and documents of any new business. According to my preference, I like to try Incfile because it is quite cost-effective and an effective platform to start a business with ease.
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