Incfile vs LegalZoom Comparison

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 Incfile and LegalZoom. And 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. 

Features and Services Overview

IncFile offers three business formation packages: Silver, Gold, and Platinum. The Silver Package is free, plus state fees, and includes free registered agent services for one year. Customers that purchase the Gold or Platinum plans gain online access to their documents and unlimited phone and email support.

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.

Legal Zoom also offers a host of other legal documents, so you’ll have access to more ongoing business support resources after your business formation.

Plans Pricing

Incfile’s “base” package includes the preparation and filing of the articles of organization and unlimited name searches. It also includes free registered agent services for a year, making it a great value at no additional cost other than state fees.

The IncFile $149 “middle” package provides the added services of an operating agreement, business tax consultation, and lifetime company alerts. It has a few other benefits as well, so it’s an overall good value.

The IncFile $299 “top-tier” package offers the additional benefit of expedited filing as well as a domain name and business formation. You’ll also receive access to business contract templates. However, if you have either the “base” or “middle” package, you can gain access to the entire document library for $150.

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.

Silver Plan vs Economy Plan 

Incfile’s Silver Plan and LegalZoom’s Basic Plan cost state fees only. Though LegalZoom’s “base” package includes a few extras that Incfile’s Silver package does not, IncFile’s plan offers registered agent services for one year.

	IncFile	LegalZoom
Price	State fees only	State fees only
Turnaround time	Processing: next-day Filing: 3-6 weeks* *times are state-dependent	Processing: standard Filing: 20 days* *times are state-dependent
Registered agent	Included- 1 year free, then $119 annually	Not included- $299/annually
Operating agreement	Not included	Not included
Worry Free compliance	Not included	Not included
EIN	Not included	Not included
Website	Not included	Not included
Legal Advice	Not included	Not included
Customer Support	Included	Included
Business Name Search	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 Newsletter	Not included	Included
Online Document Access	Not included	Included

Gold Plan vs Standard Plan

Incfile has the advantage over LegalZoom when it comes to “middle” plans– especially since Incfile’s Gold Plan includes a free year of registered agent services. The Gold Plan offers a couple of other extra forms and services, which we feel delivers more value to customers than the added extras in LegalZoom’s Standard Plan.

	IncFile	LegalZoom
Price	$149 + state fees	$249 plus state fees
Turnaround time	Processing: next-day Filing: 3-6 weeks* *times are state-dependent	Processing: standard Filing: 20 days* *times are state-dependent
Registered agent	Included- 1 year free, then $119 annually	Not included- $299/annually
Operating agreement	Included	Included
Worry Free compliance	Lifetime Company Alerts (total compliance is not offered)	Not included- Total Compliance Service: $280 annually or Compliance Calendar: $69 annually
EIN	Included	Included
Website	Not included	Not included
Legal Advice	Not included	Not included
Customer Support	Included- unlimited	Included
Business Name Search	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 Newsletter	Not included	Included
Online Document Access	Included	Included
S-Corp Tax Election Form	Included	Not included
Business Tax Consultation	Included	Included
Banking Resolution	Included	Not included
Business Banking Account	Included	Not included

Platinum Plan vs Express Gold Plan

We think that Incfile has the upper hand over LegalZoom when comparing their “top-tier” plans. The “top-tier” plans are the only packages offered by both Incfile and LegalZoom that provide expedited filing. This is the primary advantage of LegalZoom’s Premium Plan, while Incfile’s Platinum Plan also includes additional business contract templates. 

	IncFile	LegalZoom
Price	$299 + state fees	$299 + state fees
Turnaround time	Processing: next-day Filing: expedited* *times are state-dependent	Processing: expedited, 24-hours Filing: expedited, 2-5 days* *times are state-dependent
Registered agent	Included- 1 year free, then $119 annually	Not included- $299/annually
Operating agreement	Included	Included
Worry Free compliance	Lifetime Company Alerts (total compliance is not offered)	Not included- Total Compliance Service: $280 annually or Compliance Calendar: $69 annually
EIN	Included	Included
Website	Included- Domain Name & Business Filing	Included
Legal Advice	Not included	Not included
Customer Support	Included- unlimited	Included
Business Name Search	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
Online Document Access	Included	Included
S-Corp Tax Election Form	Included	Not included
Business Tax Consultation	Included	Included
Banking Resolution	Included	Not included
Business Banking Account	Included	Not included
Business Contract Templates	Included	Not included

Customer Service

We tested the customer experience of both services from every angle. Here’s what we found. 

Incfile

User Experience – What to Expect 

When you first go to the Incfile site, clicking on the “Start My Business” button will open up a new window. You’ll then see a couple of drop down menus: one for your business type (choose LLC) and one for the state in which you are filing. Once you choose your state, you’ll see specific pricing.

Each of the three available plans will appear, along with an outline of what’s included in each. The price displayed will include both the package fee and the fees for your particular state. Once you’ve made your decision, click the “Get the Silver/Gold/Platinum Package”. You will then be prompted to enter your contact information and mailing address.

Next, you’ll be asked to choose standard or expedited filing. Incfile also includes the typical processing time in your chosen state so you can make a more informed decision. 

You’ll enter your company information, including information on your members or owners, business purpose, industry, and address. After entering these details, you’ll be offered a chance to upgrade to a higher level package before continuing. 

The next series of screens prompt you to enter the information that will appear on your articles of organization document. Then you’ll be asked if you’d like to use Incfile as your registered agent or act as your own (if allowed in that state). If you choose the Silver Package, the service is free for a year and $119 annually afterwards. The service is included in the price of both the Gold and Platinum packages.

From this point onward, depending which package you choose, you’ll be prompted to provide all the applicable information for each included service. If you choose Silver or Gold, you’ll have opportunities to add various a la carte services. Once you’re finished making your choices, you’ll have a chance to review before you submit payment.

How is the formation process?

The formation process was quick and easy, making for a nearly seamless user experience. Opportunities to upgrade were more informative than intrusive, and it was made clear what you were getting with each package. 

One downside is that there’s no way to save your progress if you have to leave the page and come back later. However, if you click the back button and move back to the homepage, you will be prompted to either start over or resume.

In Summary

Overall, the site is easy to use if you’re ready to go and just want to complete the process. Otherwise, information can be difficult to find to form an LLC on your own. 

Incfile is great for entrepreneurs on a budget, as their Silver Package covers the basics and includes a free year of their registered agent service. Competitors like LegalZoom and ZenBusiness have a more robust suite of services, but are also more expensive.

Customer Support

We tested all three forms of Incfile customer support. 

Chat support

Phone support

Email support

LegalZoom

User Experience – What to Expect 

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.

How is the formation process?

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. 

In Summary

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. 

Customer Support

We tested all three forms of LegalZoom’s customer support, as detailed below. 

Chat support

Phone support

Email support

Customer Reviews

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. 

Incfile

Better Business Bureau

Incfile is not currently accredited with the BBB. They have 4.67/5 stars derived from 1509 customer reviews, and have received 260 complaints in three years. A total of 30 complaints have been resolved over the last 12 months.

Many positive reviews at BBB revolve around exceptional customer service. Customers mentioned phone support being very helpful and cordial, as well as proactive in identifying potential problems. Customers also mentioned chat support being excellent at resolving issues. 

One customer highlighted the responsiveness of the representative they were working with and that their issue was resolved quickly. Another had a difficult problem to solve and the representative that was handling the case “took care of the problem immediately”.

Most of the negative reviews were categorized as a “problem with product or service”. A common issue seemed to be a lack of communication between Incfile and customers, especially when it came to expectations regarding turnaround time and refunds. 

But it’s worth noting that at the time of this review, the most recent complaint was several months old. You can read reviews on the BBB website. 

Trustpilot 

The Trustpilot score for Incfile is 4.7/5 stars, with 3,247 customer reviews. 

Incfile reviews at TrustPilot break down as follows:

• Excellent 82%
• Great 9%
• Average 2%
• Poor <1%
• Bad 6%

Positive reviews mostly involved how easy it was to form an LLC. Some commented on the user-friendliness of the website and appreciated the transparency in pricing and the added features. Some reviews mentioned customer service representatives by name and praised them for being highly responsive and helpful.

Reviews in the “bad” category included confusion over state filing fees, a lack of communication from representatives, and poor customer service over the phone. Other customers complained about long turnaround times and a lack of transparency in terms of how long things would take to process, especially when it came to state filings. 

It does seem like a representative from Incfile is monitoring the negative reviews and the company makes an attempt to resolve issues. 

You can read reviews on the TrustPilot website. 

LegalZoom

Better Business Bureau

LegalZoom has no rating from the BBB, but they are an accredited business, with 4.55/5 stars derived from 5,521 customer 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.

Several reviews for LegalZoom highlighted superb 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 

The Trustpilot score for LegalZoom is 4.5/5 stars, averaged from 1,629 customer reviews.

The LegalZoom reviews from Trustpilot have the following range:

• Excellent 77%
• Great 3%
• Average 2%
• Poor 1%
• Bad 17%

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.

Pros and Cons

Incfile

LegalZoom

Verdict

After a thorough assessment, we have determined that Incfile offers the better value as their Silver Package carries no additional cost other than state filing fees. With Incfile you’ll save money forming your LLC and get at least one free year of registered agent services. 

The main advantage of LegalZoom is in its name — if you expect your business to need considerable legal guidance, that’s probably the right choice for you.

Our approach

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:

• Examined every single page of both the Incfile and LegalZoom websites
• Reviewed all of their offerings, from a la carte products to packages
• Put ourselves in the customer’s shoes, creating accounts
• Communicated with customer service via chat, email and phone
• Gained a full understanding of the customer experience and service value

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 Incfile and LegalZoom LLC formation services.