Trying to figure out the process of LLC formation can be a bit daunting, particularly if you’re someone who is just launching their first business and has no prior experience. Businesses will always end up requiring legal advice at some point. That doesn't faze established businesses that either has an in-house legal department or the resources to hire a law firm. For small business owners, the potential legal costs would make them think twice about hiring a lawyer, something that can easily cost from hundreds to even thousands of dollars per hour.
Many routine legal matters that can now be addressed without having an in-house lawyer or a law firm on retainer. This is where online legal services like IncFile and LegalZoom come in. They can help with matters like business formation, prepare and file the annual report for a business and form an LLC generally with very quick turnaround times.
Despite the many similarities in the services they provide, it's not a simple IncFile vs. LegalZoom comparison. Both have particular areas where they hold the edge. Both of these online legal services are backed by thousands of customer reviews. They have been around for a long time and have served tens of thousands of clients. They also have dedicated customer service departments that can provide you with assistance as and when required. This comparison will thus make it easier for you to decide which is better suited to the needs of your business.
The Fundamental Difference Between IncFile and LegalZoom
Both of these companies provide online legal services but IncFile is better suited for those who just require assistance to start a business. It can take care of all of the initial filings to get the business up and running while also dealing with compliance matters. The setup cost includes the registered agent service for one year and a free 30-minute no-obligation consultation with a certified business tax consultation professional.
LegalZoom can also help you get your company up and running but it provides a wide range of other legal services as well. They include and are not limited to, filing for patents and trademarks, drafting contracts and even giving you the option to speak with an experienced attorney. LegalZoom doesn't include the registered agent service in the setup cost and doesn't provide a free consultation with a tax professional as well.
This is a simple explanation of the core difference between the value propositions of these services, allowing you to decide at a glance which is better suited to your needs. IncFile is the obvious choice for those who just require assistance when setting up their business while LegalZoom is an option for those who need more than just help with getting their business off the ground.
Pricing
This is one area that would decide the IncFile vs. LegalZoom question for many business owners. Both services are significantly cheaper than what it would cost to get a full-fledged law firm to handle tasks such as incorporating a business, drafting an operating agreement, providing tax consultation, and more.
IncFile offers three packages - Silver, Gold and Platinum - for $0, $149 and $299 respectively with state fees. All three packages include customer service, a full year of registered agent service and next business day processing. Services like employer identification number, corporation bylaws, organizational meeting minutes, banking resolution and more are included in the Gold and Platinum packages. They can be individually paid for on the Silver package.
LegalZoom also offers three tiers of service which range from $149, $239 and $259 for Economy, Standard, and Express Gold respectively with state fees. The main difference between the tiers is the processing time. It can range from 7 to 35 business days based on the tier selected. Registered agent services are not included but can be acquired for an additional $159 per year.
How to Decide Between IncFile vs. LegalZoom
The decision is going to be an easy one for you if you're absolutely clear in your mind about the kind of assistance that you require. It’s hard to beat IncFile if you’re only looking for assistance with forming an LLC, corporation, non-profit or a partnership. It will assist with preparing and filing tax returns. It’s also the more affordable option of the two, not to mention the fact that it also provides registered agent service for one year with the setup cost. IncFile is thus a better option for those who don't feel that they will require regular legal help and just want someone to help them with business formation and compliance.
LegalZoom can handle all incorporation-related matters as well but it doesn’t offer any tax filing services. It does offer a lot more flexibility in terms of what you can get, though. It provides you with the ability to customize legal forms as well as the option to speak with an actual attorney. That one-on-one experience is something that does set this service apart from the competition. It's better suited to business owners who feel that they would require legal help regularly going forward.
It's very important to realize what you're getting with these services. While they can handle most of the basic stuff for business formation, they're not a substitute for actual legal representation. If your business finds itself in a bind where legal representation is required, say if it's faced with a lawsuit or is required to appear in court for any reason, these services won't be of any help. Both services have different upsells, no surprises there, so that's something to be mindful of. It’s always best to do your research and know beforehand whether or not the additional service being offered to you is really needed in your particular case. The costs can run up pretty quickly otherwise.
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[author] [author_image timthumb='on']https://capitalcollab.com/wp-content/uploads/2019/11/Adnans-Headshot.jpg\[/author\_image\] [author_info][author_info]Adnan Farooqui | New York-based Adnan Farooqui has considerable experience of working with both small brick-and-mortar and online businesses to help them grow. His expertise includes content marketing, affiliate marketing and online lead generation. He has a bachelor's in English from Rutgers University.[/author_info] [/author]