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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.
Updated on March 6, 2023
Business entity formation is a crucial element of launching a business, and because it’s often complex and tedious many entrepreneurs hire a professional to do the job right.
Two of the leading online services to consider are Inc Authority and LegalZoom. To help you determine which is best, and which might be best for you and your business, we have thoroughly reviewed their services by putting ourselves in the shoes of an entrepreneur.
Read on to make the choice that will put your business on the highway to success.
While Inc Authority’s Entry Package is a great value at a cost of only state fees, LegalZoom offers the same option, a better overall experience, and more affordable higher tier packages, making LegalZoom our choice.
Visit LegalZoomInc Authority sets itself apart from competitors by offering four different business formation packages, and their Entry Package only costs state filing fees and includes a free year of registered agent services.
Inc Authority’s subsequent formation plans offer several different services, many of which are also available for purchase a la carte. Inc Authority further supplies all business formation customers with one complimentary hour for tax consultations.
LegalZoom is an industry leader when it comes to LLC formation services. They offer three business plans, with one-time fees ranging from $0 to $299, plus state fees. Their Basic Plan is great value for what’s included and they have great customer service.
Their site is also easy to use, and the purchase process is quick.
Inc Authority’s “base” business formation package is free except for state fees. It includes a business name availability search, an S Election tax form, a tax consultation, and a business credit and funding analysis, which helps you identify funding solutions.
The “base” plan also provides customers with free registered agent services for one year, online access to documents, and full customer support.
Inc Authority’s “middle” plan costs $399 plus state fees, and consists of everything within the “base” package, with the following added benefits:
For $499 plus state fees, Inc Authority’s “pro” plan contains all the services listed above with the additional advantages of a business license report, and a business credit evaluation service, which helps you get pre-approved for loans and funding.
Inc Authority offers a “top-tier” plan for a fee of $799 plus state fees. This business formation package includes everything detailed in their three other plans, but customers also benefit from express filing and Business Credit Express services.
The latter service helps businesses quickly establish credit, enhancing and streamlining application processes like bank loans or a company credit card.
The LegalZoom “base” Basic Plan costs state fees only and provides a business name availability search through the state database, your business’s formation, and full customer support. It also offers a few extras, including a digital welcome packet and a customizable business website. You’ll also have access to your formation documents online at any time.
LegalZoom’s Pro Plan costs $249 and includes all the services in the Basic Plan plus plus an operating agreement, an EIN, a business license guide, and a tax and insurance consultation..
The LegalZoom Premium Plan, at $299 offers all of the services listed above plus expedited filing.
Inc Authority’s Entry Package is free except for state fees, while LegalZoom’s Basic Package is also free in addition to state fees. LegalZoom’s “base” plan offers significantly fewer services than Inc Authority’s free “base” plan, and Inc Authority will also form your business faster.
| Inc Authority | Legal Zoom | |
|---|---|---|
| Price | State fees only | State fees only |
| Turnaround time | Processing: standard Filing: 10-14 days* *times are state-dependent | Processing: standard Filing: 20 days* *times are state-dependent |
| Registered agent | Included- 1 year free, then $99 annually | Not included |
| Operating agreement | Not included | Not included |
| Worry Free compliance | Not included | Not included |
| EIN | Not included | Not included |
| Website | Not included | Included |
| Legal Advice | Not included | Not included |
| Customer Support | Included | Included |
| Business Name Search | Included | Included |
| S-Corp Tax Election Form | Included | Not included |
| Tax Consultation | Included | Not included |
| Business Credit and Funding Analysis | Included | Not included |
| Online Document Access | Included | Included |
| Peace of Mind Review | Not included | Included |
| Digital LLC Welcome Packet | Not included | Included |
| Digital Tracker (of business formation) | Not included | Included |
Inc Authority’s Starter Business Bundle is more expensive than LegalZoom’s Standard “middle” plan while offering similar features.
| Inc Authority | Legal Zoom | |
|---|---|---|
| Price | $399 plus state fees | $249 plus state fees |
| Turnaround time | Processing: standard Filing: 10-14 days* *times are state-dependent | Processing: standards Filing: 20 days* *times are state-dependent |
| Registered agent | Included-1 year free, then $99 annually | Not included |
| Operating agreement | Included | Included |
| Worry Free compliance | Included- notifications only | Not included |
| EIN | Included | Included |
| Website | Included- with 5 email addresses | Included |
| Legal Advice | Not included | Not included |
| Customer Support | Included- unlimited via INC Success Advisor services | Included |
| Business Name Search | Included | Included |
| S-Corp Tax Election Form | Included | Not included |
| Tax Consultation | Included | Included |
| Business Credit and Funding Analysis | Included | Not included |
| Online Document Access | Included | Included |
| Peace of Mind Review | Not included | Included |
| Digital LLC Welcome Packet | Not included | Included |
| Digital Tracker (of business formation) | Not included | Included |
| Business license guide | Not included | Included |
| Record Book and Company Seal | Included | Not included |
| Meeting Minutes and Resolution | Included | Not included |
| Ownership Certificate | Included | Not included |
Inc Authority’s “top-tier” plan offers additional support for your business, but we think a $100 price jump is excessive for customers. LegalZoom’s Premium Plan presents advantageous expedited processing and filing, while Inc Authority’s Business Executive package does not.
| Inc Authority | Legal Zoom | |
|---|---|---|
| Price | $499 plus state fees | $299 plus state fees |
| Turnaround time | Processing: standard Filing: 10-14 days* *times are state-dependent | Processing: expedited, 24-hours Filing: expedited, 2-5 days* *times are state-dependent |
| Registered agent | Included- 1 year free, then $99 annually | Not included |
| Operating agreement | Included | Included |
| Worry Free compliance | Included- notifications only | Not included |
| EIN | Included | Included |
| Website | Included- with 5 email addresses | Included |
| Legal Advice | Not included | Not included |
| Customer Support | Included- unlimited via INC Success Advisor services | Included |
| Business Name Search | Included | Included |
| S-Corp Tax Election Form | Included | Not included |
| Tax Consultation | Included | Included |
| Business Credit and Funding Analysis | Included (identifies solutions) | Not included |
| Business Credit and Funding Evaluation | Included (pre-approvals for business capital) | Not included |
| Online Document Access | Included | Included |
| Peace of Mind Review | Not included | Included |
| Digital LLC Welcome Packet | Not included | Included |
| Digital Tracker (of business formation) | Not included | Included |
| Business license guide | Included | Included |
| Record Book and Company Seal | Included | Not included |
| Meeting Minutes and Resolution | Included | Not included |
| Ownership Certificate | Included | Not included |
Inc Authority offers customers four different business formation plans to choose from, yet LegalZoom only offers three. Below, we’ve compared Inc Authority’s top-level package to LegalZoom’s most robust package, their Premium Plan.
Inc Authority’s Tycoon Business Bundle is startlingly expensive for only offering customers expedited business formation and access to their Business Credit Express services.
| Inc Authority | Legal Zoom | |
|---|---|---|
| Price | $799 plus state fees | $299 plus state fees |
| Turnaround time | Processing: expedited, 24-hours Filing: expedited, 2-3 days* *times are state-dependent | Processing: expedited, 24-hours Filing: expedited, 2-5 days* *times are state-dependent |
| Registered agent | Included-1 year free, then $99 annually | Not included- $249 for first year when added to a plan, then $299/annually or $299 annually a la carte |
| Operating agreement | Included | Included |
| Worry Free compliance | Included- notifications only | Not included- Total Compliance Service: $280 annually or Compliance Calendar: $69 annually |
| EIN | Included | Included |
| Website | Included- with 5 email addresses | Included |
| Legal Advice | Not included | Not included- Legal Protection Plan: $49/month |
| Customer Support | Included- unlimited via INC Success Advisor services | Included |
| Business Name Search | Included | Included |
| S-Corp Tax Election Form | Included | Not included |
| Tax Consultation | Included | Included |
| Business Credit and Funding Analysis | Included (identifies solutions) | Not included |
| Business Credit and Funding Evaluation | Included (pre-approvals for business capital) | Not included |
| Online Document Access | Included | Included |
| Peace of Mind Review | Not included | Included |
| Digital LLC Welcome Packet | Not included | Included |
| Digital Tracker (of business formation) | Not included | Included |
| Record Book and Company Seal | Included | Not included |
| Meeting Minutes and Resolution | Included | Not included |
| Ownership Certificate | Included | Not included |
| Business License Report | Included | Included |
| BizCredit Express | Included | Not included |
We tested the customer experience of both services from every angle. Here’s what we found.
The Inc Authority site offers very little product information. On their homepage, they emphasize that their business formation service is free, and tell you what’s included with their free entry-level option. No other product information can be found.
You’re prompted to go ahead and get started by entering your business name.
Once you enter your business name, you’re prompted to enter all your business information.
The questions were simple and quick, but most people might find it preferable to be able to see the service packages and products before going through the process.
After you enter your business information, you’re offered all of the a la carte products as add-ons to your free business formation. You can choose or reject any of the products.
Then you’re taken to the page with your total cost including state fees and are prompted to complete the payment process.
Note that the bundles of services that we’ve described are NEVER offered, which seemed odd. We only found their package information in other reviews of Inc Authority. We could not even get the information through their customer support channels.
Overall, the site is easy to use if you’re ready to go and just want to complete the process. Otherwise, information can be very hard to find on the website. It seems that they really want you to call them with questions so they can upsell you products.
We tested all three forms of Inc Authority customer support, and here’s what we found.
The chat option seems to be available only sporadically. When we tested the customer service response time through the online chat option, we received a response immediately.
We asked for information about their various service packages and were told that our best bet was to call for information so they could help us choose the right option for us.
It seemed odd that we were not given the requested information.
Support Rating:
Response time:
Reasonable
We called the customer support line to ask what the registered agent services fee is after the first year. The customer support person would not answer the question and said they had to transfer us to a sales representative. Very disappointing!
Support Rating:
Response time:
Reasonable
There are two different email options on the Inc Authority site. There is a direct email address and an information request form. Through the direct email, we asked about the annual cost of registered agent services after the free first year. Through the form, we asked for detailed information about their service packages.
After five days, we received no response to either request. We were, however, bombarded with sales emails.
Support Rating:
Response time:
Fairly Slow
When you first go to the LegalZoom site, you’ll be able to explore products and pricing from the menu at the top, or you can just click “start my business” and select the business entity type you want to form.
When you start the formation process by selecting LLC as your entity type, you’re asked a series of questions about your business. Then the site automatically offers you products, such as registered agent services and the operating agreement. You can accept or decline any of the services.
One of the products offered is a total compliance service, which does not appear in their products menu. This service helps you meet all your LLC’s requirements, such as annual report filings.
You’re also offered tax services, including “tax prep essentials” for $99 a month and a “full-service tax and accounting plan” for $159 per month. Then you’re offered a legal protection plan, which includes legal guidance and documents, for $49 per month.
Then you’re finally presented with their packages, so you can choose the Basic, Pro, or Premium. Once you make your selection, you get offers for special deals from Bank of America and Earth Class Mail.
Lastly, you get to your total cost. Note that anything that has an annual fee, such as registered agent services, is not included in this initial total, so you’ll need to be prepared to incur those charges later.
You can pay your initial total all at once, or you can choose to make three monthly payments. Note that if you do choose to make payments, you’ll pay a bit more due to the $2 monthly installment fee.
Overall, the process was very smooth. Yet it was also very much a sales process, as they attempted again and again to get you to spend more money.
Still, everything was made clear during the formation process and it only took a few minutes.
We tested all three forms of LegalZoom’s customer support, as detailed below.
When we tested the customer service response time through the online chat option, we received a response almost immediately.
We asked about the price of operating agreements, and what determines the final price since it’s listed as “from $99”. The answer was that it’s $99 for standard processing and $199 for rush processing.
The customer service agent was quick and polite, and after the chat, we received a follow-up email almost immediately.
Support Rating:
Response time:
Immediate
We called LegalZoom to ask a question about registered agent services. Our call was answered in two minutes and the question was answered promptly. The question was whether registered agent services are included in any of the plans, and the answer was no.
The customer service representative was professional and polite and made no sales pitches.
Support Rating:
Response time:
Immediate
We asked email support about the standard filing time vs. expedited filing. Our email was sent on a Saturday, and we received a response on Monday at about 11 a.m. The answer was polite and clear.
Support Rating:
Response time:
Very quick
We wanted to know how real customers feel about both services, so we thoroughly explored customer reviews at the Better Business Bureau and Trust Pilot. Below we’ve summarized our findings.
We were not able to locate Inc Authority on the BBB website.
Inc Authority has a high trust score rating on Trustpilot.
The Trustpilot score for Inc Authority is 4.8/5 stars based on 14,036 reviews.
Inc Authority reviews at Trustpilot break down as follows:
Many positive Trustpilot reviews revolve around great customer service and mention their INC Authority representative by name.
“Super happy with the smooth service I am receiving from INC Authority, my account manager Mia gave me all the advice I needed and I am looking forward to learn more about the full service advice I’ll get for the next year.”
Some of the less favorable reviews revolve around their aggressive sales tactics, both by email and phone.
“My experience online was quick and easy. What dropped the rating was how they tried to sell me on additional optional items. First by sending me an email and leaving a voicemail that there were ‘red flags’ and need to discuss ASAP. I set a phone call for 315 and TJ promptly called. I have to say, no one has bombed a sales call like TJ did.”
Many of the reviews mentioned that Inc Authority made the “red flag” comment as well and wanted to have a phone call to discuss. Then on the call the representative tried to sell them additional services.
Other customers complained of being double charged.
You can read reviews on the TrustPilot website.
LegalZoom does not have a current rating on BBB.
LegalZoom has no rating from the BBB, but they are an accredited business, with 4.55/5 stars and 5,521 reviews. They have been an accredited BBB business since 2011. They have received 903 complaints in three years, all of which have a closed status.
Many of the positive reviews for LegalZoom revolved around their exceptional customer service, such as this one: “I had an issue and was able to call the company and have it resolved within a matter of minutes.”
“LegalZoom has been our trusted agent for several years now,” said another review. “The care and coordination we’ve received allows us to run a challenging business successfully and ensure compliance remains consistent each quarter.”
Some of the negative reviews were about not receiving services as expected:
“I ordered an expedited filing mid-May. It sat, and sat, and sat while nothing was filed with the state. I had to call every day to try to move the needle on this filing and this ‘expedited filing’ is still not completed. I still do not have an EIN number and it is almost July.”
Others complained about not being able to get through to customer service by phone. Many of the negative reviews were about difficulties with cancellation.
You can read reviews on the BBB website.
Trustpilot
LegalZoom has a high trust score rating on Trustpilot.
The Trustpilot score for LegalZoom is 4.5/5 stars, with 1,629 customer reviews
The LegalZoom reviews from Trustpilot have the following range:
Many positive reviews were again about the great customer service and the ease of use.
“Easy and affordable. Things got a bit chaotic on my end (auto-correct made changes I didn’t authorize & then there were licensing questions on my part) but all was handled with ease, patience and in a timely manner. I highly recommend, as this is the second time I’ve used LegalZoom and both times went very smoothly for usually stressful events (divorce, new business owner).”
“LegalZoom has helped me with several legal processes and they have always been highly professional and helpful.”
Some negative reviews were about not getting the services paid for and not being able to get a refund. One person said LegalZoom failed to form her business and she ended up going to the state herself to make the filing.
Another complained: “I paid for the most expensive package (Express Gold) for my LLC. I am beyond disappointed with LegalZoom. Not only did they register the wrong name for my LLC – causing me more time and money – for months they have refused to send me the physical items that were included in that package. I literally have sent over 20 emails and have been on hold and called several times explaining my situation. They just send me a link to my digital documents. That is not what I’m missing and requesting. I have sent pictures and explained ad nauseam with no avail.”
You can read reviews on the TrustPilot website.
Recommended
If you’re looking for a reliable legal guidance, then LegalZoom is the right choice for you.
Visit LegalZoomInc Authority’s Entry Package and Starter Business Bundle offer the good value to form your business.
Visit Inc AuthorityAlthough the Inc Authority Entry Package is a great value at a cost of state fees only, LegalZoom’s 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.
As an entrepreneurial advisory site, we take our responsibilities seriously. We understand that countless entrepreneurs, and potential entrepreneurs, rely on our judgments and insights, particularly when it comes to creating their business.
As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In this case, we:
Thanks to this full immersion in the actual customer experience, our reviewer and team are able to provide the most complete and insightful comparison of Inc Authority and LegalZoom LLC formation services.
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.
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.
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.
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.
Overall, Inc Authority’s robust suite of formation packages provide 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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