When launching a business, is it really possible to get everything — from formation services to logo design — in one seamless platform? Enter ...
Inc Authority vs LegalZoom Comparison
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on September 5, 2022
Establishing a business entity is a vital step in starting a business, and due to its often intricate and time-consuming nature, numerous business owners opt to employ a professional to ensure it’s correctly handled.
These business setup services also provide supplemental services which can be beneficial to those just starting in the business world. Among the top online platforms to consider are Inc Authority and LegalZoom.
To assist you in discerning the superior option and identifying the one that could best serve you and your business, we have conducted comprehensive reviews of their offerings by adopting the perspective of an entrepreneur.
Services Overview
Business Formation Service
Inc Authority
LegalZoom
Plans and Pricing
Free Formation, Starter and Fast Track Business Bundle + state filing fees
3 plans: Basic, Pro, and Premium; $0 – $299 + state filing fees
Registered Agent Service
Included for one year, then $179 annually
Not included, $249 annually
Operating Agreement
Not included, $89
Included in Pro and Premium plans
Registered Agent Service
Annual compliance notifications
Not included; Starts at $99 + filing fees
Processing Time
Standard state times, $0 express processing
Around seven to 10 days
Customer Support
Chat, email, phone; Mon – Fri 6am – 5pm PT
Chat, email, phone;; Mon – Fri 5am – 7pm PT; Weekends: 7am – 4pm PT
Business Documents Online Library
No
No
Other Services Offered
Ownership or Stock Certificates, Professional Tax Consultation, Web Domain + 5 Email Addresses
Taxes, Licenses, and Permits, Legal Forms and Agreements, Trademark, Patent, and Copyright, Business Changes and Filings
Number of Business Served
250,000
Over 3.5 million
Money Back Guarantee
60 days
60 days
Our Verdict
Although the Inc Authority Entry package is a great value at the cost of state fees only, LegalZoom offers a free plan as well, and their higher tier packages are less expensive, making LegalZoom our choice.
LegalZoom’s service is easy to use and offers a great customer experience, which we learned from testing their support services and reading countless customer reviews.
LegalZoom also has the advantage of its name and reputation— if you expect your business to need legal guidance, it’s probably the right choice for you.
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 3.4/5
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 4.2/5
While Inc Authority’s Entry package is a great value at the cost of only state fees, LegalZoom offers the same option, a better overall experience, and more affordable higher-tier packages, making LegalZoom our choice.
Pros and Cons
Pros
- Free plan is a good value
- Free 1-year registered agent service and EIN
- Quick and easy purchase process
- Good rating with Trustpilot
Cons
- Pricing not disclosed on site; the information is hard to find on the site
- Expensive service packages
- Aggressive sales tactics
- Poor customer service
Pros
- Reputable and reliable services
- Local attorneys available in all 50 states
- Great customer support
- Quick and easy purchase process
- Variety of legal services and documents available to business owners
Cons
- Registered agent service cost is higher compared to competitors
- Too many upsells when signing up
- Slow turnaround time
Plans and Pricing – Winner: Inc Authority
Inc Authority
Inc Authority’s free business formation plan includes free LLC formation, one year of free registered agent services, and an employer identification number (EIN). The prices of their premium bundles aren’t clearly displayed, but they offer services like the INC Success Advisor Package, Private Banking, Personalized Business Advice, and expedited filings.
LegalZoom
LegalZoom offers an initial $0 LLC package, but the continual upselling may become costly and cumbersome. Moreover, none of their formation packages come with a registered agent service, which is an add-on service priced at $249 annually.
Experience – Winner: LegalZoom
Inc Authority
Inc Authority, established in 1989, has formed over 250,000 LLCs and corporations.
LegalZoom
Having served more than 3.5 million customers since 2001, with approximately half being business clients, LegalZoom has extensive experience in this field.
Customer Support – Winner: LegalZoom
Inc Authority
Inc Authority offers support via phone, email, or chat but does not provide customer service over the weekends. We also observed that the chat option was not consistently available.
LegalZoom
They provide support via phone, chat, and email. Overall all three channels have quick responses with polite and professional customer service representatives. Customer support is available on weekends as well, from 7am to 4pm PT.
Turnaround Times – Winner: LegalZoom
Inc Authority
For Inc Authority, processing times hinge on each state’s requirements, varying from a few business days up to several weeks.
LegalZoom
LegalZoom’s processing times depend on the package chosen, not the state of formation. For their premium package, finalized business formation documents could be received within 7–10 business days. Still, more economical packages could take up to 30 business days (or six weeks).
Customer Reviews – Winner: Inc Authority
Inc Authority
Inc Authority enjoys an excellent customer satisfaction rating, with over 26,000 reviews that are predominantly positive. Their clients particularly praise their free LLC formation service and swift processing times.
LegalZoom
We found over 9,000 reviews on BBB and Trustpilot, with a significant portion being positive. Happy customers frequently mentioned LegalZoom’s services’ convenience and user-friendliness.
Ease of Use – Winner: LegalZoom
Inc Authority
Inc Authority effectively simplifies the LLC formation process compared to the do-it-yourself approach. Their platform is user-friendly, with intuitive guides assisting users through each step, thus making business entity setup more accessible for entrepreneurs. There are upsells during the formation process that can lead to increased LLC costs.
LegalZoom
LegalZoom provides a streamlined approach to LLC formation, reducing the complexity of the DIY route. Their platform is well-designed, with intuitive steps, making it easier for business owners to navigate through the process and set up their operations effectively. Similar to Inc Authority, LegalZoom also has upsells during the formation process, so make sure you choose only what you need.
Additional Services – It’s a tie between the two
While Inc Authority and LegalZoom provide many similar services, each has unique offerings. Specifically, Inc Authority provides a business funding service and a business credit package that LegalZoom doesn’t.
On the other hand, LegalZoom offers more services for intellectual property issues and has a wider range of legal services that you can rely on if needed.
FAQs
Why should I use a business formation service to start my LLC?
Using a business formation service to start your LLC frees you up to focus on growing your business. These services handle the filing process for you and offer additional services that can make life easier for a new business owner.
What should I take into consideration when choosing the right business formation service for my LLC?
When assessing whether or not a business formation service is right for you, it’s important to dive into the following four categories: included features, customer service, pricing, and turnaround time.
Is the Inc Authority free plan really free?
You’ll still have to pay state fees, and after the first year, you’ll be charged $99 annually for registered agent services unless you cancel.
What do I get with the Inc Authority free business formation option?
The entry-level plan is free except for state fees and includes a business name availability search through your state and the business formation service, with full customer support. It also offers a few extras, including an S Election form and a tax consultation. You’ll also have access to your formation documents online.
Is Inc Authority a good business formation service?
Overall, Inc Authority’s robust suite of formation packages provides several valuable services. However, they are significantly more expensive compared to other companies. All three of LegalZoom’s business formation plans have cheaper starting prices than Inc Authority’s Starter Business Bundle.
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