Swyft Filings vs. LegalZoom: Comparing LLC Formation Services

Using an LLC formation service to form your business entity is a smart alternative to hiring an attorney who charges between $200 and $500 per hour or higher. For a fraction of the cost, an online legal service provider can take care of all the paperwork for you and ensure you comply with federal and state laws. 

LegalZoom is an established legal service provider that has helped over 3.5 million entrepreneurs register their businesses online. However, numerous negative reviews make small business owners search for better options. In this article, we will compare LegalZoom and Swyft Filings, a competitive alternative. 

Swyft Filings vs. LegalZoom: At a Glance

• LegalZoom and Swyft Filings are industry leaders in LLC formation services.

• Swyft Filings has considerably lower costs than LegalZoom for LLC formation, registered agent, and compliance services.

• LegalZoom’s Business Advisory Plan gives customers access to an independent network of trusted attorneys. Swyft Filings doesn’t offer this service but has various legal services available as add-ons.

Swyft Filings vs. LegalZoom: What Sets Their Business Formation Services Apart

LegalZoom’s website states they’re on a mission to democratize law and support small business owners. 

Founded in 2001, LegalZoom started as a tech company offering online legal services. Over the years, it has expanded its reach, creating an independent network of attorneys providing personalized legal advice and launching LZ Tax, a separate branch offering tax advice and accounting solutions.  

Swyft Filings got started by an experienced lawyer who is streamlining and automating the business filing process to help small business owners save time and money. With some of the fastest processing times in the industry and excellent full-service customer support, Swyft Filings stands out as one of the most attractive solutions on the market. 

When it comes to their LLC formation services, registered agent service, legal services, prices, ease of use, and customer support satisfaction, Swyft Filings and Legal Zoom feature key differences. You can find a more detailed analysis in the sections below. 

Business Formation Pricing

The price of the incorporation service with LegalZoom depends on the type of business entity that you are going to form. 

• Limited liability company (LLC): starts at $79 + state filing fees

• Corporation (C corp or S corp): starts at $149 + state filing fees

• Doing business as (DBA): starts at $99 + state filing fees

• Nonprofit: starts at $99 + state filing fees 

As you go through the checkout process, you can also add more services, including:

• Operating Agreement: $99

• Operating Agreement and EIN:$159

• Operating Agreement, EIN, and licenses: $199

Once you incorporate your business, you can use LegalZoom’s other legal services, such as their registered agent service ($299/year) and annual report ($99 + state filing fees), to maintain your business’s compliance with the law. 

Swyft Filings offers three business formation packages to incorporate your LLC: Basic, Standard, and Premium. 

The Basic package costs $0 + state filing fees and includes: 

• Company name availability verification

• Preparation of articles of organization

• Document filing with the Secretary of State

• Free Statement of the Organizer

• Online access to your incorporation documents

• Lifetime customer support 

• ComplianceGuard company alerts (a Swyft Filings tool designed to send you compliance alerts for critical due dates for state filings, such as annual reports) 

• Free domain name from Squarespace for the first year

• Standard filing time

• First-class shipping and handling

The standard package costs $199 + state filing fees and includes everything in the basic package as well as: 

• Federal Tax ID (EIN)

• Custom LLC operating agreement

• Custom LLC banking resolution

• Custom organizational minutes

• Standard filing time 

The Premium package costs $299 + state filing fees and includes everything in the basic and standard packages plus: 

• Electronic delivery of state documents

• Customized digital LLC kit (company seal, 20 customized stock certificates, ownership ledger) 

• Express filing time

• FedEx shipping and tracking 

During checkout, you can also select Swyft Filings’ registered agent service and a business license and compliance package as upsells. The registered agent service fee starts at $199/year, and the business license and compliance package costs $99. 

The basic plan with Swyft Filings is significantly cheaper than LegalZoom, saving you $30. Swyft Filings’ standard and premium packages are more expensive than LegalZoom’s basic LLC formation package, but they include essential features that LegalZoom does not, such as obtaining your Federal Tax ID. 

Turnaround Times

LegalZoom offers three order processing times for its formation process, with rush filing options available. 

Swyft Filings offers standard processing times — some of the fastest in the industry — with the basic and standard packages. If you opt into the premium package, you will qualify for an express turnaround time. 

It’s important to note that whether you choose a premium or an economy package, the speed of the LLC formation process ultimately depends on government timelines and varies by state. Even though LegalZoom can process your paperwork in one business day with their Express Gold package, it does not mean that you will incorporate your LLC in one business day. 

During the checkout process with Swyft Filings, you will see an estimated LLC incorporation timeline unique to each state. LegalZoom does not provide this information. 

Registered Agent Service

According to the law, your LLC must have a registered agent to receive critical legal communications and documents on behalf of your business.[1] These may include subpoenas, lawsuits, or IRS documents that you can only obtain in person. 

Any person can be your registered agent as long as they are over 18 years old, have a street address in the state (not a P.O. box), and can be present at that address during business hours. 

However, investing in a registered agent service is a smart solution for your LLC for multiple reasons: 

• Free up your time: Your registered agent must be at the designated address from 9 am to 5 pm Monday through Friday. Failing to comply with this requirement can create legal issues for your business. Hiring a professional registered agent service means you will have more flexibility in your schedule.

• Keep your privacy: Your registered agent’s address is a matter of public record. Getting a registered agent service means that private details, such as your address, will be kept confidential.

• Get organized: Having a registered agent service means essential documents and communications won’t get lost in a shuffle. This is particularly important for new businesses. 

LegalZoom offers registered agent service for $299/year to ensure your business gets legal notices and critical mail. This package also includes: 

• Alerts whenever mail is received

• Emails about necessary 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 invest in Swyft Filings business formation services, you can get registered agent service as an add-on to stay compliant with the state. Swyft Filings offers this service at a much lower cost than LegalZoom, charging just $199/per year. 

In addition to alerting you whenever mail is received and uploading it to your secure online dashboard, Swyft Filings also uses compliance technology to send you timely reminders about important deadlines and offers automatic renewals. 

LegalZoom and Swyft Filings provide a comparable service, but Swyft Filings charges a significantly lower fee. 

Compliance Services

Your LLC must stay in good standing with the state and keep up with compliance-related documents after incorporation. An operating agreement, articles of organization, employer identification numbers (EIN), and annual reports are just a few of the documents you need to submit to the state regularly.[2] 

LegalZoom offers a variety of legal services to entrepreneurs and small businesses for worry-free compliance, including: 

• Operating agreement: $99 + fees

• Annual report: $99 + fees 

• Initial report: $35 + fees

• Record keeping: $99/year for unlimited usage

• Compliance calendar: $69/year

• Bylaws and resolutions: $99

Swyft Filings also offers a wide range of compliance services, such as: 

• Annual report: $99 + fees

• Initial report: $55 + fees

• Operating agreement: $35 + fees

• Corporate bylaws and shareholders’ agreements: $35 

When you take an overall look at the Swyft Filings vs. LegalZoom comparison, LegalZoom offers a more diverse service suite than Swyft Filings, but Swyft Filings typically offers better rates than LegalZoom. 

The cost difference between LegalZoom and Swyft Filings is quite significant for some compliance services. For example, LegalZoom charges $99 for bylaws and resolutions, while Swyft Filings charges just $35 for a similar service. 

Legal Services

LegalZoom offers personalized legal advice services through its Business Advisory Plan. This legal service works as a pre-paid subscription, and you can get 6 or 12 months of legal support. 

The Business Advisory Plan gives you access to an independent network of trusted attorneys and the following perks: 

• 30-minute vetted lawyer consultations on new legal matters

• 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 offerings

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). 

If you are not interested in continuous legal support and need one-off legal services instead, LegalZoom also offers a variety of additional services in the following areas: 

• Business compliance

• Legal forms and agreements

• Business changes and filings

• Tax consultations

• Licenses and permits 

Swyft Filings does not offer a continuous legal advice service like LegalZoom’s The Business Advisory Plan. However, you can still choose from a variety of legal services that Swyft Filings offers, such as: 

• Amendments and name change service: $99 + state fees

• Conversion: $199 + state fees

• Foreign qualification: $199 + state fees

• Change of registered agent: $149 + state fees

• Withdrawal: $99 + state fees

• 501(c)(3) applications: $495 + IRS fee

• Apostille certificate: $75 + state fees

• Dissolution: $149 + state fees

• Business licenses and permits: $99

• Seller’s permit: $129

• S Corp election: $99

LegalZoom is a better option if you want continuous and personalized legal advice since Swyft Filings does not offer this service. On the other hand, Swyft Filings offers unique services at a competitive price for one-off legal services. 

Add-On Business Services

You can get the following business services with LegalZoom: 

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

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

• Certificates of Good Standing to show that you submitted all necessary reports and fees

To get a certificate of Good Standing or certified copies of your legal documents, LegalZoom offers a standard package at $45 + state fees and a rush package at $75 + state fees. The rush package means your order will be immediately marked for special handling and expedited as appropriate for your state. 

Swyft Filings also offers certificates of Good Standing and certified copies of legal documents. The pricing for state-certified copies starts at $65 + state fees, and the certificate of Good Standing begins at $45 + state fees. Rush options are available for both at an additional cost. 

Customer Support

LegalZoom offers customer support over the phone Monday through Friday, from 5 am to 7 pm PT and from 7 am to 4 pm PT on the weekends. You can also contact them through an email form on their website. 

Swyft Filings customers can contact a real business specialist over the phone from 9 am to 6 pm CST Monday through Friday or send a message through their support page.

Both LegalZoom and Swyft Filings offer a 100% money-back guarantee if you are unsatisfied with their service. 

Similarities Between Swyft Filings and LegalZoom

LegalZoom and Swyft Filings offer similar services, including LLC formation services, registered agent services, and legal services that entrepreneurs and business owners need to form their business entities and stay compliant with the law. Their pricing points are typically similar, but Swyft Filings consistently offers lower rates for most services. 

Swyft Filings vs. LegalZoom: Customer Reviews

Both LegalZoom and Swyft Filings generally get positive reviews. 

Swyft Filings has a track record of more than 5,000 five-star ratings for its LLC formation services. The reviews consistently emphasize personalized customer service and speedy service.[3] 

Trustpilot says some LegalZoom customers have experienced long wait times and low-quality assistance. There have also been instances where a customer was continuously charged for a canceled subscription, and some reviews have reported paying for a service that was never correctly performed.[4]

Alternatives to Swyft Filings and LegalZoom

LegalZoom and Swyft Filings are some of the best LLC services out there. However, there are other decent alternatives that entrepreneurs and small business owners may consider for their LLC formation and legal needs. 

• Tailor Brands: Founded in 2015 in New York City, Tailor Brands initially offered affordable branding and marketing services. Since then, it has shifted its focus to become a one-stop shop for entrepreneurs and small business owners who want to form a legal business entity and create branding materials, such as a logo. 

• Northwest Registered Agent: Another popular option, Northwest Registered Agent, includes a full year of free registered agent service into its business formation package, significantly increasing its overall value.

• LegalShield: In addition to LLC formation services, LegalShield also offers an ongoing small business plan on a monthly subscription basis. The subscription ranges from $49 to $169 per month and gives you access to various features, such as legal advice and research, document reviews, and collection letters. 

Of all these alternatives, Swyft Filings still offers the most competitive rates for LLC formation services and most other legal services. 

Conclusion: Swyft Filings vs. LegalZoom

One of the first online legal service providers on the market, LegalZoom provides a variety of services to entrepreneurs and small businesses, including LLC formation, registered agent services, and compliance services. It also offers subscription-based personalized business advice and tax services. 

However, LegalZoom also has many negative customer reviews, which motivates small business owners to turn to an alternative, Swyft Filings. Swyft Filings offers competitive prices, reliable customer support, and a 100% satisfaction guarantee refund policy. 

Ready to launch your business with Swyft Filings? Get started in less than 10 minutes. 

FAQs

How much does it cost to start an LLC?

It depends on your chosen legal service provider and whether you want a package that includes any extras. LegalZoom offers a standard LLC formation service package at $79 + state filing fees, but adding rush filing can raise your quote to $349. The lite business formation service package costs just $0 + state filing fees with Swyft Filings.

Is Swyft Filings or LegalZoom a better way to start an LLC?

Swyft Filings offers a more comprehensive service at a more competitive price. For just $0 + state filing fees, you will get LLC formation services and extras such as business name availability verification and lifetime customer support. Rush filing with Swyft Filings costs at least $30 lower than LegalZoom. 

Is Swyft Filings cheaper than LegalZoom?

It depends on individual services and add-ons you get, but typically Swyft Filings offers better rates than LegalZoom for the same service. For LLC formation services, Swyft Filings offers rush filing (along with other valuable extras, such as electronic delivery of documents) for $299, while LegalZoom offers rush filing for a whopping $349.

What company offers ongoing legal services?

LegalZoom offers a pre-paid Business Advisory Plan for either 6 or 12 months to provide ongoing legal advice services to entrepreneurs and small businesses. Swyft Filings does not offer legal advice services, but you can choose from various one-off legal services, from foreign qualification to S corp election.

What are some Swyft Filings and LegalZoom alternatives?

Tailor Brands, Northwest Registered Agent, and LegalShield are possible alternatives to Swyft Filings and LegalZoom. However, Swyft Filings consistently offers more attractive rates for most services, including LLC formation, registered agent, and compliance services, with some of the fastest turnaround times in the industry. 

Bibliography

1. Forbes. “What Is a Registered Agent for an LLC & Do You Need One?” Accessed January 29, 2023. 

2. Internal Revenue Service. “Employer ID Numbers.” Accessed January 29, 2023. 

3. Trustpilot. “Swyft Filings.” Accessed January 29, 2023.

4. Trustpilot. “LegalZoom.” Accessed on January 29, 2023.