Incfile vs. LegalZoom: Comparing LLC Formation Services

As an entrepreneur or small business owner, you prefer to focus your time and energy on the task that truly lights you up — running your own business. Online service providers like Incfile and LegalZoom can take care of the legal matters that are necessary to start and operate your business, including the first step: LLC formation.

Compared with traditional lawyers, both Incfile and LegalZoom offer LLC formation services at a fraction of the cost. Business owners can also hire both providers to use their registered agent service and other compliance-related services, such as annual reports, to run their businesses successfully. 

But should you go with Incfile or LegalZoom? Read this Incfile vs. LegalZoom review for a comprehensive overview of their LLC formation services, registered agent services, customer support, and more. 

Incfile vs. LegalZoom: At a Glance

• Incfile and LegalZoom offer LLC formation services, but their packages feature key differences. 

• Typically, Incfile offers legal services at a significantly lower price than LegalZoom. 

• Incfile includes a free year of a registered agent service in all their business formation packages, but LegalZoom doesn’t. 

Incfile vs. LegalZoom: What Sets Their Business Formation Services Apart

Since 2004, Incfile has helped over 800,000 business owners start and run their own businesses. After you incorporate your LLC, Incfile also offers various legal services to help your business comply with the law, such as registered agent, foreign qualification, and s corp election services. 

LegalZoom is an established online legal service provider, with over 3.5 million business owners using their services to incorporate and operate their businesses. In addition to LLC formation services, LegalZoom also offers robust legal business services, including trademark registration and tax services. 

Read on to learn more about how Incfile and LegalZoom compare regarding the price, ease of use, and customer support. 

Business Formation Pricing

When you’re starting a business, every dollar counts. This is why Incfile offers a Silver LLC formation package for $0 + state filing fees. This low-cost starter package includes the basics of business formation to get your LLC up and running, including: 

• LLC incorporation 

• Preparing and filing articles of organization

• Unlimited business name searches

• Unlimited phone and email support 

• Free registered agent service for your first year 

The fact that the Silver package includes a free registered agent service for your first year is very valuable. In contrast, LegalZoom charges $299/year for their registered agent service after LLC formation. 

Incfile’s Gold package is the standard and most popular LLC incorporation package. It costs $199 + state filing fees and includes: 

• LLC incorporation

• Preparing and filing articles of organization

• Unlimited business name searches 

• EIN business tax number

• IRS Form 2553 

• Operating agreement 

• Banking resolution

• Lifetime company alerts 

• Online access dashboard

• Business banking account

• Business tax consultation 

• Unlimited email and phone support 

• Live chat order support

• Free registered agent service for your first year

Like the starter package, Incfile packs a lot of value into the Gold package for its price. It includes various services that are typically only available as add-ons, such as an operating agreement.

The Platinum package is the most comprehensive option and costs $299 + state filing fees. It includes: 

• Everything in the Gold package 

• Business contract templates

• Rush next day filing

• Business domain and email 

The main difference between the Gold and Platinum packages is the rush filing. That said, the business contract templates, a domain name, and a business email are nice perks, too. 

LegalZoom charges $79 + state filing fees for their standard package. This basic package includes: 

• Comprehensive name search and business entity filing

• Peace of Mind Review 

• Tax savings consultation

• Complete digital LLC welcome packet

• Digital tracker

• Lifetime customer support

• Entrepreneur’s business newsletter

• Customizable business website powered by Wix

While LegalZoom’s starter package comes with helpful perks like a tax savings consultation, it lacks depth when compared with Incfile’s free Silver package. 

In addition to providing a comparable service for $0 + state fees instead of $79 + state fees, Incfile also offers free registered agent service for your first year. With LegalZoom, it’s only available as an add-on for $299/year. 

During the checkout process, LegalZoom will also offer your various upsells, such as: 

• Operating agreement: $99

• Operating agreement and EIN: $159

• Operating agreement, EIN, and licenses: $199 

• Total Compliance: free for 10 days, then automatically renews for $280/year

• Legal Protect Plan: free for 10 days, then automatically renews for $49/month 

Overall, Incfile offers significantly more valuable LLC incorporation packages than LegalZoom. The free Silver package is everything you need to register your LLC, while LegalZoom charges $79 + state filing fees for a similar service.

Turnaround Times

LegalZoom offers three different processing time speeds. 

A faster turnaround time will cost you quite a lot with LegalZoom. You can expect to pay $250 more if you want your order to be processed within five business days, which is still quite a slow turnaround time compared to other industry providers. 

If you want your LLC formation order to be processed in one business day, you’ll need to pay $270 more for rush filing with LegalZoom. 

When comparing LegalZoom vs. Incfile, Incfile offers significantly cheaper rush filing as a part of their comprehensive Platinum package. In addition to next business day filing, you’ll also get important extras such as an operating agreement and EIN, all for $299 + state fees. 

LegalZoom’s Express Gold package costs $349 + state fees and doesn’t include any significant extra features aside from the one business day filing. It would cost $159 more to get an operating agreement and EIN with LegalZoom. 

It’s important to note that ultimately the turnaround time of your LLC formation process depends on government timelines and the Secretary of State. LegalZoom and Incfile can file for your LLC in one business day, but actual approval and registration will take longer. 

Registered Agent Service

According to the law, your LLC must appoint a registered agent (RA) to receive important legal documents on behalf of your limited liability company, such as a lawsuit, subpoena, or IRS notice.[1] 

You can be your own registered agent. However, many new business owners decide against appointing themselves and instead invest in a registered agent service. Hiring a service provider like LegalZoom or Incfile to be your registered agent comes with multiple benefits.  

Flexibility 

The law requires your registered agent to be present at their designated address during normal business hours. If you serve as your own registered agent, you’ll have to be present at your office Monday through Friday from 9 am to 5 pm without being able to step out to get a coffee or take a vacation. 

Many business owners hire a registered agent service to avoid having to adhere to an inflexible schedule. 

Privacy

Your registered agent’s address becomes public information, which can raise privacy concerns. For example, if you run an online business from home and appoint yourself as your own RA, your home address will become part of the public record. 

Professionalism 

Hiring a professional registered agent means you can have peace of mind knowing that your important documents and communications won’t get lost or misplaced. Typically, registered agent service providers upload your mail to an online portal, so you can always access it. 

Incfile includes one free year of a registered agent service in their business formation package. Whether you choose the Silver, Gold, or Premium package to incorporate your LLC, you’ll have a free registered agent service for your first year in business.

After your first year, Incfile charges $119 annually. The package includes: 

• Expert handling of all of your documents 

• Automatic mail forwarding (including digital) 

• Email and SMS notifications 

• Personalized dashboard 

LegalZoom also offers a registered agent service, but their fee is higher. Priced at $299/year, the LegalZoom RA package includes: 

• Alerts whenever mail is received

• Emails about critical tax and annual report deadlines

• $1M in identity theft protection and credit monitoring services

• Unlimited cloud storage

• If you are switching your RA, LegalZoom will handle the paperwork and cover your fees

When you’re incorporating your LLC with LegalZoom, you can include the registered agent service as an add-on. With Incfile, your first free year will be included automatically. 

Overall, Incfile offers a significantly better deal on registered agent services. You can get the first year free and then pay only $199/year, while LegalZoom provides a comparable service for $299/year without the free trial.

Compliance Services

For your business to maintain good standing in the state, you’ll need to file certain compliance-related documents, some of them on a regular basis. These documents can include an operating agreement, articles of organization, annual reports, and an employer identification number (EIN). 

Incfile offers multiple compliance-related services, including: 

• Amendment: $99 + state fees 

• EIN: $70

• Foreign qualification: $149 + state fees 

• Business license research: $99 

• Annual report: $99 + state fees

LegalZoom is an established legal service provider and has diverse compliance-related offers for entrepreneurs and business owners, including: 

• Operating agreement: $99 + fees

• Initial report: $35 + fees

• Annual report: $99 + fees 

• Compliance calendar: $69/year

• Record keeping: $99/year for unlimited usage

• Bylaws and resolutions: $99

Overall, LegalZoom offers more compliance services than Incfile. However, Incfile still essential basics, such as an annual report. The price points are comparable.

Legal Services

If you need legal help to support your business as it grows, LegalZoom offers a prepaid legal service called The Business Advisory Plan. Once you subscribe, you’ll get access to an independent network of lawyers for legal advice and legal services. 

Each subscription includes: 

• 30-minute vetted lawyer consultations 

• Contract and legal document reviews (up to 10 pages)

• Annual business evaluation (12-month plan only)

• Unlimited downloads from a legal form library

• Discounts on other LegalZoom services 

You can enroll in the Business Advisory Plan for either 6 or 12 months. The 6-month plan is billed twice a year at $259 ($43.16/month), and the 12-month plan is billed once a year at $469 ($39.08/month). 

Incfile doesn’t offer any ongoing legal services to entrepreneurs and small businesses. 

Add-On Business Services

LegalZoom can assist your business in various areas, including: 

• Legal forms and agreements

• Trademark search, registration, and monitoring 

• Business changes and filings

• Tax consultations

• Licenses and permits 

LZ Tax — a LegalZoom company — offers tax preparation services, tax advice, and accounting solutions. They have comprehensive tax plans for both LLCs and corporations, but they’re not transparent about their pricing on their website. 

Additionally, LegalZoom also offers: 

• Corporate supplies, such as stock certificates or a company seal 

• Certified copies of documents your business has filed with the state

• Certificates of Good Standing as proof of compliance 

Overall, LegalZoom can support small business owners at different stages of their entrepreneurial journey. 

Incfile also offers multiple add-on business services, such as: 

• Virtual address

• Certificate of Good Standing

• Trademark registration

• Corporate/LLC kits

• Business bookkeeping and accounting

While Incfile doesn’t offer as many business services as LegalZoom does, you can typically expect lower price points with Incfile. For example, registering a trademark with LegalZoom costs $599 + fees. With Incfile, it’s only $199 + fees.

Customer Support

You can reach Incfile over the phone from 9 am to 6 pm CST Monday through Friday. Alternatively, you can contact them through a customer support request form on their website. While Incfile doesn’t specify when the support team will get back to you, their website promises that it’ll be as soon as possible. 

If you’re an exciting Incfile client, you’ll also have access to your client dashboard, where you’ll be able to track the status of your order, review your company information, see the documents your registered agent uploads, and get alerts on any ongoing requirements. 

LegalZoom customer support is available Monday through Friday, from 5 am to 7 pm PT and from 7 am to 4 pm PT on the weekends. You can contact them over the phone or fill out a contact form on their website to get a response via email. 

Similarities Between Incfile and LegalZoom

LegalZoom and Incfile offer LLC formation services to register your business officially and then business and legal services so you can run it in compliance with the law. The ease of use of both companies is comparable, although LegalZoom’s website is more robust and, as a result, potentially more confusing than Incfile’s.

Incfile vs. LegalZoom: Customer Reviews

Generally speaking, both LegalZoom and Incfile get positive customer reviews. That said, both providers have a fair share of negative reviews, and some are quite concerning. 

For Incfile, multiple customer reviews highlight poor communication, failure to receive a refund, and frequent delays.[2] 

Negative reviews for LegalZoom emphasize poor customer service experiences and failure to deliver the promised service. Several reviews have mentioned that the customers kept being charged for subscriptions they attempted to cancel multiple times.[3] 

Overall, Incfile has more positive reviews than LegalZoom. Almost 20% of customer reviews of LegalZoom on Trustpilot are one-star reviews.[4]

Alternatives to Incfile and LegalZoom

Your LLC incorporation needs to be done correctly and on time. Our LegalZoom and Incfile review has shown that even though both providers are decent options, it might be a better idea to look elsewhere. 

Swyft Filings is a relatively new legal service provider in the space, but it has already helped over 300,000 businesses get off the ground swiftly and run smoothly. Compared to LegalZoom and Incfile, a few things about Swyft Filings stand out. 

Affordable Fees

Swyft Filings offers a comprehensive LLC formation package for just $49 + state filing fees. In addition to the basic LLC incorporation, the package includes multiple extras, such as a statement of organizer and a free domain name. 

LegalZoom offers a similar package for $79 + state filing fees. Incfile has a free starter package, but you may need to wait several weeks before your order is processed. 

Reliable Customer Service 

When you form your LLC with Swyft Filings, you can contact a business specialist directly by phone from 9 am to 6 pm CST Monday through Friday or via their support page. 

Multiple customer reviews for LegalZoom and Incfile emphasize impersonal and uncommunicative customer service. You won’t have this problem with Swyft, and over 5,000 five-star reviews on Trustpilot reaffirm this.[5] 

Quick Processing Times 

Even if you get Swyft Filings’ standard package, you’ll get some of the fastest turnaround times in the industry. And if you need your business up and running ASAP, affordable rush filing options are available. 

If you need a legal service provider you can trust to get your LLC up and running quickly, get started with Swyft Filings today.

Conclusion: Incfile vs. LegalZoom

Our Incfile vs. LegalZoom review shows that business formation is typically cheaper with Incfile, especially considering they have a free starter package available. Incfile packages also include important extras that LegalZoom packages don’t have. 

That said, multiple negative reviews are making business owners look for alternatives to both Incfile and LegalZoom. 

Swyft Filings is one of the best LLC services in the industry. It offers multiple advantages over Incfile and LegalZoom, including low fees, fast processing times, and reliable customer support. 

FAQs

How much does it cost to start an LLC?

Different providers charge different fees for LLC formation services. LegalZoom packages start at $79 + state filing fees. Incfile offers a free starter package. For both of these services, the turnaround time can be rather slow, so business owners are turning to Swyft Filings, which offers affordable fees and fast turnaround times. 

Is Incfile or LegalZoom a better way to start an LLC?

After analyzing the quality of the service Incfile and LegalZoom offer, we recommend looking for another provider for your legal needs. Swyft Filings offers business formation services for just $49 + fees and provides significantly better customer service. 

Is Incfile cheaper than LegalZoom?

Our Incfile vs. LegalZoom review shows that Incfile typically offers legal services at a lower price point. Incfile’s starter package costs $0 + fees, while LegalZoom’s standard package starts at $79 + fees. 

What company offers ongoing legal services?

You can enroll in LegalZoom’s Business Advisory Plan if you need ongoing legal services. It gives you access to an independent lawyer network that you can use for legal advice, legal document reviews, and more. Incfile doesn’t offer ongoing legal services. 

What are some Incfile and LegalZoom alternatives?

If you’re looking for a legal service provider who can help you file for your LLC in less than 10 minutes for just $49 + fees, try Swyft Filings.

Bibliography

1. US Small Business Administration. “Register your business.” Accessed February 3, 20223. 

2. Trustpilot. “Incfile.” Accessed February 3, 2023. 

3. Trustpilot. “LegalZoom.” Accessed February 3, 2023. 

4. Trustpilot. “LegalZoom.” Accessed February 3, 2023. 

5. Trustpilot. “Swyft Filings.” Accessed February 3, 2023.