IncFile vs. LegalZoom (Ultimate Comparison) – Who is #1?
We are aware that launching a new brand and company on your own would require a great deal of your time. The paperwork for the filing of your business, putting it up, and assuring it is compliant to state regulations will definitely drain all the energy and, in some cases, the enthusiasm you have for your business.
In times like this, working with an incorporation service like IncFile or LegalZoom is the best workaround. They will offer you the essentials in forming your dream business, whether it is a limited liability company (LLC) or an incorporation. There are even some that offer legal services which you can utilize to keep your business sailing and state-compliant for long.
However, we are well aware that there are a lot of companies that provide such services and choosing what works best for you and your business might be challenging too. The good thing is that you just visited the best site that can help you finalize your decision!
Through this comparison article, you will get to know more about IncFile and LegalZoom – two of the top-performing formation services in the US. To assist you and resolve your burden, we have prepared an in-depth comparison guide that will go over the important aspects of both IncFile and LegalZoom that you should be aware of, such as their strengths and weaknesses, similarities, and customer feedback.
Also, we will disclose the answers to customers’ most frequently asked questions and even recommend the service that works best between the two.
Which provider is the best option? Is it Incfile or LegalZoom? Find out in the next sections.
Similarities Between IncFile and LegalZoom
- Pro Customer Support
IncFile and LegalZoom both feature outstanding customer support systems with well-versed and skilled customer service specialists who can answer challenging inquiries and resolve complex issues if you have any. This is one of the most significant advantages of the professional approach over the do-it-yourself method.
Also, both firms’ customer service is highly acclaimed and evaluated on multiple review platforms, which is one of their sources of pride.
- Extensive Track Record
Both IncFile and LegalZoom have a proven track record. Both firms service tens of thousands of consumers each year and are well-equipped to handle your business’ needs.
They have remained one of the top business formation service providers to this day, and they continue to invite more entrepreneurs to sign up to them. Experience counts, and these businesses have a lot of it.
- Speed and Efficacy
If you want to incorporate an LLC quickly, you can rely on both services. You can even start your company with them in 3 to 5 weeks.
In case you want it quicker, these companies can even assist rush the completion of the formation process. You can go for IncFile’s expedited services or avail one of LegalZooms’ higher tier service package. Both of these alternatives come with additional expenses though, but if you badly need an LLC incorporated quickly, they may be worthwhile.
Both sites are protected by Norton Web Security to keep your information safe and secure.
LegalZoom’s Knowledge Center contains a plethora of information organized per category for entrepreneurs interested in learning more about business, how they work, and others.
On the other hand, IncFile has a learning page with materials on various business models, continuing compliance matters, and a useful blog detailing their services, the process, and a lot more.
Side-by-Side Comparison of Their LLC Services
IncFile Cost Efficiency
Incfile, like most business formation service providers, has a three-tiered price model: Silver is $0, Gold is $149, and Platinum is $299.
With the Silver plan, IncFile guarantees that they can assist you form your business and provide registered agent service for an entire year for $0 plus state taxes. After the first year, the registered agent service will renew for $119 per year, which is still a fantastic price as it follows the standard of the industry.
Their Gold package, on the other hand, is only $149 which comes with a number of additional perks that make it more appealing to purchase. It contains an Operating Agreement, an EIN application, annual report notifications, and a variety of offers, such as the establishing of a company bank account and a business tax consultation.
Meanwhile, Incfile’s Platinum plan is $100 more expensive than the Gold plan. It may be useful, though, because it includes a slew of extra services, such as faster filing for your formation documents, an online library of business contract templates, and a web domain name and email address for your company.
All in all, Incfile offers a comprehensive set of services to consumers at a reasonable price. Furthermore, none of the tiers appears to be overwhelmed with unnecessary features. These are unquestionably high-quality bundles at an affordable price.
In terms of pricing, no one can compete with IncFile, as the idea of a free incorporation is undeniably more enticing. So, obviously, IncFile wins in this category because paying nothing is preferable to paying $79 for comparable services.
What makes IncFile an even better value is that they incorporate more valuable features in their LLC formation packages than LegalZoom, without charging any extra fees. A year of registered agent service is not cheap, and adding this service to your LegalZoom formation package will cost you between $249 and $299.
Furthermore, IncFile’s higher-tier plans outperform LegalZoom’s packages, especially with IncFile’s inclusion of annual report service, Operating Agreement generation, and compliance management service.
LegalZoom Cost Efficiency
Similarly, LegalZoom has three bundle tiers: Economy ($79), Standard ($329), and Express Gold ($349).
LegalZoom’s Economy Plan is their most affordable LLC formation option. It starts at $79 plus state costs, which might add up to $130 or more. Typically, they will ship all orders within 30 business days, however this is not guaranteed because state processing times can cause significant delays.
In terms of their Standard Plan, it includes a few things that are really not necessary for businesses nowadays, such as a corporate seal, customized binder, and member certificates. Honestly, the only main benefit of this plan is that your paperwork will be filed considerably faster than with the Economy package. This, however, will set you back $329 plus state costs.
Finally, their Express Gold plan starts at $349, which is a bit costly considering the only added benefit is expedited order processing, which takes approximately 7-10 business days.
Meanwhile, other services such as Operating Agreement preparation, EIN registration, and licensing searches have been removed from the LLC formation plans and were offered as upsells ranging from $99 to $199. Indeed, these add-ons are useful but the pricing is ridiculously expensive.
IncFile Track Record and Reliability
Incfile was founded in 2004 in Houston, Texas, with the goal of providing a quality customer experience at an unbeatable price. Since then, they have assisted over 500,000 entrepreneurs in starting their own enterprises.
They have fantastic customer feedback, with thousands of positive ratings far outnumbering a small number of negative reviews. Customers were drawn to Incfile’s cost-effectiveness and dependability. They have recently made a reputation for themselves, with a year-over-year increase of more than 200 percent, challenging competitors such as LegalZoom.
However, when it comes to customer feedback, Incfile has a big advantage, as they have primarily good feedback compared to LegalZoom’s mixed bag.
In this area, these companies are roughly comparable, yet you may prefer one over the other if you have a high regard for customer feedback or track record.
LegalZoom Track Record and Reliability
LegalZoom has served millions of customers and has been devoted to providing quality services since its founding in 2001. Despite the fact that their primary focus is not on business formation services, they have assisted in the formation of over one million businesses to date.
However, if you look at customer reviews on third-party sites, you will discover that the vast majority of them were dissatisfied with their service speed, customer care, and fees, which caused them to lag behind their competition.
Both companies performed well in this category, thus they both fell short on a few areas. When it comes to experience, LegalZoom clearly has the superiority, since they cater to a bigger customer traffic than almost any other company in this industry.
IncFile Customer Service Quality
Incfile provides customer support by phone or email, and we collected firsthand experience with what their clients are most likely to complain about by testing both ways.
Their customer service is available via phone during business hours, Monday through Friday, from 9 a.m. to 6 p.m. CST. So far, the only expectation that was not satisfied was the amount of time and effort required to speak with a genuine customer service representative. It took numerous phone calls for someone to respond when we used their phone assistance (but maybe that’s our anecdotal experience…).
When we emailed them with the similar question, we received a response the following day. Honestly, we got more thorough responses through email than we had over the phone.
It is also worth mentioning that a large percentage of their customers expressed dissatisfaction with their customer service. These complaints include long wait times, trouble contacting representatives, and unresolved concerns.
LegalZoom Customer Service Quality
Support is available by phone and email at LegalZoom. Their phone support line is open 34 more hours a week, with additional hours on weekdays and Saturdays. To test their contact options, We reached out to them and discovered that calling them is still the best option because it took them almost a week to respond to our email.
Their representative offered extensive and really helpful responses over the phone. The guy we spoke with seemed to be very knowledgeable about their industry. The point where the representative did a hard sell, however, is time-consuming and aggravating. Indeed, it was an enlightening and spontaneous conversation, but it also went beyond our questions.
Still, their phone support is excellent, but their online support badly needs improvement.
These two companies’ customer service services are quite similar, and their hours of operation are almost identical. In this category, however, LegalZoom fared better than IncFile.
Though their customer service still has a lot of opportunity for improvement in this area, LegalZoom’s customer support system still performs better than IncFile’s customer service based on our experience and on customer feedback. Also, LegalZoom offers convenient extended customer service hours, so you do not have to break your workday just to reach them.
IncFile’s Ease of Ordering Process
The IncFile website is laid out in a clear and straightforward manner, leading clients through the process of incorporating an online business organization step by step. You don’t even have to worry if you do not have the time to complete the order in one sitting because Incfile will store your work and allow you to continue it later.
Your steps are personalized as you move through the signup process based on the state you live in and the type of business you want to start. To learn more about a given topic or form item, there are little question marks and a few quick links throughout the application.
A sales tax calculator and a tool for estimating compliance report due dates are available on their website. Also, Incfile’s price is plainly displayed during the signup process, and those costs include state processing fees, keeping you aware of the overall cost.
You are also given an option to add services to your formation plan that are not already covered but, if you do not find them needed in your business, you can just focus on your order and not worry about them.
Both online LLC services are extremely user-friendly, with a clean design and straightforward navigation for business owners. However, the disadvantage of LegalZoom is that it gradually introduces a slew of add-ons that can significantly raise your overall prices, which might be interpreted as a trap. Incfile, on the other hand, has a far more easy and streamlined buying process, and its add-ons, while useful, are not nearly as intimidating or pushy as LegalZoom’s.
LegalZoom’s Ease of Ordering Process
While not difficult to use, LegalZoom’s ordering process is geared to get you to spend more money than you anticipated. Though each process was straightforward, there are a number of costly upsells that occur before you even choose a bundle.
Rather than presenting you with package alternatives first and then guiding you through the order process, you begin by entering your personal information without knowing how much you are intended to spend, which is inconvenient.
Yes, this order process distinguishes them and makes them more intelligent, but it serves no purpose for customers. They do a good job of explaining each add-on that appears and why you might need it, but it would be more appealing to see them after you have chosen a package so you can make a decision without investing a lot of time and effort on not so significant upsells.
IncFile Service Speed & TAT
IncFile’s turnaround times are also determined by how quickly each state processes a business formation, thus they can range from a few days to several weeks in some states. These estimated processing timeframes can be seen on Incfile’s website in a dedicated turnaround time page.
When using standard filing, the majority of states expect formations to take two to three weeks. Expedited filing reduces this time to 1-5 days in most cases.
Because expediting is not available with either of Incfile’s bottom two tiers, clients must upgrade to the $299 Platinum plan to receive the best potential formation times at no additional cost. If you choose a lower tier, however, you can add expedited service as an add-on for an additional $50.
Overall, we favor IncFile’s approach because we don’t agree with LegalZoom purposely dragging down your formation just because you chose not to buy one of their premium bundles.
We always favor organizations like Incfile, who tailor their turnaround times to each state’s standards. In fact, Incfile’s processing rates are faster in most states than when you get one of LegalZoom’s overpriced plans.
LegalZoom Service Speed & TAT
LegalZoom does not specify their turnaround time, however you can get an idea because their turnaround times are based on the package you order rather than the state in which you are forming.
Their most expensive option can get you your completed business formation paperwork in 7-10 business days, but their less expensive packages can take 2 to 4 weeks or longer.
In the end, it all comes down to your patience and budget. If you can afford their premium plan, you will almost certainly receive your paperwork in a week. However, if you are unable to do so, be prepared to offer your greatest consideration and understanding.
IncFile Customer Feedback
Considering IncFile’s so much industry knowledge, it is easy to get customer feedback online that can give you an idea of what you can expect as a client.
Unlike LegalZoom, IncFile is not yet accredited by the Better Business Bureau (BBB), although it does have a 4.5 star rating on this site. On Trustpilot, the picture is totally different, with 54 percent of reviews being completely negative, resulting in a dramatic reduction in star rating to 2.2. Check their profile on Truspilot here.
Nonetheless, inexpensive cost, ease of use, and their affordable packages were some of the most prominent features that clients valued.
Some customers, on the other hand, frequently complain about Incfile’s poor customer service. We have read about a number of major problems and delays as Incfile’s customer service appears to take days to reply to complaints even when they badly need a resolution or a response.
Although there are quite some complaints – the vast majority of the reviews considering Google, Reddit and so on – are positive. You also need to keep in mind that IncFile has formed more than 0.5 million LLCs throughout the years, so we had to give the victory of this category to IncFile.
Now, to give you a more complete picture of how verified IncFile customers thought about their entire experience with them, we gathered a few screenshots of good and negative customer reviews from various platforms and compiled them here for your reference:
IncFile Reviews from Trustpilot:
IncFile reviews from BBB:
LegalZoom Customer Feedback
Currently, LegalZoom maintains a 4.41 rating out of 5 stars on BBB, while sporting 4.3 stars out of 5 on Trustpilot. Given its track record, they have collected a number of feedback from their customers, and while there are some bad reviews mixed in, the vast majority of this feedback is good.
In terms of negative reviews, they are commonly criticized when it comes to customer service and money processing. Keep in mind though that LegalZoom is a large company that not only serves a large number of consumers seeking formation services, but also those who require legal assistance.
We appreciate how their customer care team responds to the majority of reviews and, in particular, seeks out the small number of complainants in order to address issues that remain unresolved. They even provide a money-back guarantee to satisfy those unsatisfied customers for whatever reason.
Now, to give you a more complete picture of how verified LegalZoom customers thought about their entire experience with them, we gathered a few screenshots of good and negative customer reviews from various platforms and compiled them here for your reference:
LegalZoom reviews from Trustpilot:
LegalZoom reviews from BBB:
Which Service is Best For You?
While we are convinced that your LLC creation will go smoothly whether you choose IncFile or LegalZoom as they are two of the best performing LLC formation service providers available, we believe that considering the following instances below can help you decide which one is best for you.
Choose IncFile if… (click here to visit www.incfile.com)
- You are seeking the cheapest LLC service that comes with a package of core business formation services.
- You prefer a company with a high number of happy clients and a long track record of success.
- You do not want a company with annoying hidden costs, a lot of upsells, and a checkout process that is not transparent.
- You do not expect to need legal assistance on a frequent basis.
Choose LegalZoom if… (click here to visit www.legalzoom.com)
- You feel more at ease with a more established corporation with a well-known brand.
- You are willing to pay a higher price for premium services and features.
- You are not in a rush to set up your company.
- You require legal assistance on a regular basis.
Overall Winner of the Comparison – IncFile!
Incfile is unquestionably one of the greatest companies in the online incorporation business. Although LegalZoom is a good firm, it does not even come close to what Incfile provides. IncFile’s costs and value are exceptional, as is their ease of use, and their return times are quick.
Using their basic service, you will be able to form an LLC for free. It also provides a year of free registered agent service as well as a plethora of other important services. Their prices are nearly impossible to compete with.
Furthermore, they have years of experience assisting firms in getting started, and the entire procedure can be done with a few mouse clicks. They are also one of the top 10 best business formation services across the US, so we strongly recommend them and are confident that you will be delighted with their service.
Thus, we feel that whether you choose Incfile or LegalZoom for your business, you have already made significant progress, and this is just one of many milestones you will have to cross to set up and manage your firm.
What Is the Biggest Advantage of Each Service?
When it comes to IncFile, we find their $0 Silver package as their biggest asset. If all you need is the essentials of LLC formation and a year of registered agent service, we believe it is an excellent value.
On the other hand, LegalZoom’s only substantial advantage over Incfile, we believe, is their experience. LegalZoom has served millions of customers over the years since 2001, much outnumbering Incfile’s 250,000+ customers.
Which Service Offers The Best Bundle?
In terms of the best bundle, nothing beats IncFIle. Their Silver plan includes the preparation and filing of your articles of incorporation, as well as 12 months of registered agent service. This is indeed a fantastic deal that contains everything you need. This is also one of the most competitive business formation packages available everywhere.
Which Service Has Fewer Upsells?
IncFile has very few upsells. They do not irritate their customers by constantly asking them to upgrade their service package or purchase services that are not required. And, while IncFile maintains these upsells to a minimum, LegalZoom pushes them on to an absurd degree before you even get to the packages to choose from.
Does Either of These Services Have a Refund Policy?
IncFile’s refund policy states:
“An order is generally refundable until payment is forwarded to any government entity, such as a state or the U.S. federal government (typically within twenty-four hours after an order is placed), less a $30.00 cancellation fee and less any other expenses which have been paid or incurred in furtherance of an order, including payments to any entities, including state agencies or the Federal government or third party vendors. Once payment has been forwarded to any government entity or third party, Incfile cannot accept any cancellations or any other changes to an order.”
Meanwhile, LegalZoom’s satisfaction guarantee is one of the most competitive in the industry. They will give you 60 days to consider your purchase and to check if it was worthwhile. If you find yourself requesting a refund, they will do so without questions asked, and there are no cancellation fees associated with the procedure.