Legalzoom vs IncFile [Read This Before and Choose Right]

Forming a business can be quite a long and complicated process. Or, at least, it used to be before sites like Incfile and LegalZoom were formed. Whether you’re building a brick-and-mortar business or running your operation entirely online, you need to have all your documentation in place before selling a product.

But, which is better, LegalZoom or Incfile? Unfortunately, it is impossible to answer without first examining some variables and elements of the situation. However, at the end of this comparison guide, you should have enough information to make the right choice for yourself and your business. Here’s everything you need to know about LegalZoom vs Incfile.

What is LegalZoom?

LegalZoom is a website designed to help businesses and individuals access a variety of legal documents and assistance. While most of these services are aimed at forming companies such as LLCs, LegalZoom also covers many other topics. The site was founded in 2001 and has helped millions of businesses and families get the legal help they need for a variety of situations.

In addition to business formation, LegalZoom helps with trusts, wills, copyrights and trademarks, and more. Users can also get legal advice from a real lawyer, if they need it. In general, this site is like a one-stop shop for all kinds of legal documents and assistance, allowing users to access these things without having to pay a retainer.

What is Incfile?

Incfile is a site dedicated to helping entrepreneurs start their businesses. Since 2004, the site has helped over 800,000 companies file the correct paperwork for all types of companies, including C corporations, LLCs, S corporations, and even nonprofits. Incfile offers access to a variety of documents and tools, including employer tax ID, virtual address, registered agents, and even tax consultations.

Another valuable feature of Incfile is that it offers a ton of helpful information for new businesses. The site’s resource center can help entrepreneurs learn more about how to file a DBA, various state requirements for starting a company, and even a business name generator.

Which is Better LegalZoom or Incfile?

As you can see, while there is some overlap, the two sites serve slightly different audiences. LegalZoom focuses on the legal side of running a business or starting a will, while Incfile is solely dedicated to helping entrepreneurs. So, it’s hard to say if one is “better” than the other. In fact, you can use both sites to achieve different goals. That said, let’s break down the areas where these sites overlap so you can figure out which one is best for your particular situation.

Costs and Fees

The amount you pay for each site depends on what you are trying to achieve. Here’s a quick breakdown of the different fees you’ll have to pay for specific features, such as:

• Business Formation – LegalZoom charges $79 to file your business paperwork. This fee is on top of any state fees you may have to pay, which vary from one state to the next. Incfile does not charge anything above the state fee.
• Registered Agent Services – When forming an LLC, you need something called a registered agent to act for your business. LegalZoom charges $299 per year for these services, while it’s free for the first year through Incfile. After the first year, you pay just $119 per year.
• Employer ID Number (EIN) Registration Services. – If you want to get your EIN for free, you can contact the IRS directly. However, if you want to avoid the hassle of that, you can pay LegalZoom $79 for their efforts or Incfile $70 for the same service.
• Operating Agreement – LLCs and corporations need operating agreements that outline the business structure. Incfile provides an operating agreement free of charge with your formation documents. LegalZoom, however, charges $99 for this document.

As you can see, Incfile costs significantly less across the board. So, if you are looking to save some money to start your business, choose Incfile.

Ease of Use

Both sites are very user-friendly and easy​​​​to navigate. Also, each site offers comprehensive customer support, even if you have to submit your question within a few hours. Email is usually the best way to get help, but both sites have customer service agents available by phone as well.

If you’re strictly trying to start a business, Incfile’s layout is a bit more streamlined because the entire website is dedicated to helping you succeed. In comparison, many of LegalZoom’s pages have nothing to do with starting a new company, so it’s easy to get lost.

Breakdown of Features Available at Each Site

Instead of scrolling through each site to see what they offer, here’s a breakdown of the different services you’ll find at LegalZoom and Incfile.

LegalZoom Features

Incfile Features

• Business Formation Services – As we mentioned, you can start an LLC, corporation, or nonprofit with Incfile. Forming these businesses is also cheaper if you choose the basic membership package.
• Registered Agent Services – Incfile acts as your registered agent, and since the first year is free, you can take advantage. You can also use the first year to determine if you want to use someone as a registered agent, such as yourself.
• Trademark Filing – While Incfile doesn’t offer as many intellectual property protections as LegalZoom, you can file a trademark and get legal help when doing so. Incfile can also search past trademarks to see if yours infringes on any existing entities.
• EIN Registration – If you don’t want to deal with the IRS, Incfile costs less to register and receive an employer ID number.
• Document Templates – Like LegalZoom, you can find templates for various business-related documents, such as operating agreements and bank resolutions. There are fewer options here than LegalZoom.
• Business Resource Center – This resource center offers valuable information on everything from managing your business finances to getting help with taxes. You can also download eBooks and white papers that outline how to start and manage a business from scratch.
• Online Business Dashboard – With so many things to keep track of, it’s easy to get overwhelmed and disorganized. Incfile keeps everything in one place with an easy-to-use dashboard system.
• Website and Email Setup – All modern businesses need a website to reach new customers. Incfile also acts as a domain host and website builder so you can get started right away. However, if you want to build something more comprehensive, we recommend working with a dedicated web builder platform like Wix or WordPress.

Who is the Best Incfile?

If you’re just trying to start a business from scratch and want to make it as easy as possible, Incfile is one of the most valuable resources out there. Not only can you take care of filing and registration, but you can also access tons of useful information to help your new company grow.

Who’s Best at LegalZoom?

If you need additional legal services or want to handle personal legal documents (ie, wills and trusts), it makes sense to start a LegalZoom account. Also, if you know you will need help from an actual lawyer, it is cheaper and easier to use this site than to contact a law office directly.

Bottom Line: Is LegalZoom Better Than Incfile, or Vice Versa?

When it comes to forming a business, both sites offer similar features and benefits. However, Incfile has a slight advantage because its sole purpose is to help entrepreneurs build their companies from the ground up. That said, LegalZoom is an excellent online resource for a variety of legal documents and advice, meaning you can use both sites simultaneously.

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