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Starting your own business is awesome! But before you get stuck in selling your amazing product or service, there's one important step: making your business legal. This might seem complicated, with lots of forms and rules depending on your state. But don't worry!
Companies like LegalZoom and Incfile (Bizee) can help you with this. They'll handle the paperwork and make things easier, so you can focus on making your business a success. This guide will help you pick the best company for you.
What do these companies provide in common?
LLC Formation:
Both will handle filing your LLC paperwork with your state, ensuring your business is legally recognized.
Name Availability Check
No business name clashes here! They'll verify your desired name is available within your chosen state.
Operating Agreement
A crucial document outlining ownership, management, and profit-sharing structures within your LLC. Both services will provide a template or guide you through creating one.
EIN Acquisition
An Employer Identification Number is essential for filing taxes and opening business bank accounts. Both companies will help you obtain one.
Incfile (Bizee) vs LegalZoom (Side by side comparison)
| Feature | LegalZoom | Incfile (Bizee) |
|---|---|---|
| Core Service | LLC Formation, Name Availability Check, Operating Agreement Template, EIN Acquisition | LLC Formation, Name Availability Check, Operating Agreement Template, EIN Acquisition |
| Registered Agent Service | Add-on (typically extra cost) | Included in basic package (free for 1 year) |
| Pricing (Basic Package) | $0 + state fees (excludes Registered Agent) | $0 + state fees (includes Registered Agent for 1 year) |
| Speed | Standard processing (5-14 days), Expedited options available (extra cost) | Standard processing, Next-day filing available (extra cost) |
| Features (beyond core service) | Basic website, compliance tools, business document templates (often extra cost) | Limited additional features (annual report filing, business compliance tools) |
| Upsells | Yes, be prepared for prompts during checkout | No |
| Customer Support | Mixed reviews, some users report difficulty reaching support | Generally praised for readily available and helpful support |
| Additional Legal Services | Wide range available (trademark registration, contract drafting, etc.) | Limited offerings |
| Experience | Longer track record, handles high volume of clients | Streamlined focus, may have less experience with complex scenarios |
Now, let's get into the nitty-gritty and compare them across various factors, highlighting the strengths and weaknesses of each contender:
Cost
The price tag is often a key deciding factor. Let's break down the cost structures of both Incfile (Bizee) and LegalZoom:
Incfile (Bizee):
Takes the initial lead with their enticing $0 + state fees basic package for LLC formation. This might seem like a clear winner, but remember, there's more to the story.
LegalZoom:
Matches Incfile's $0 + state fees for basic LLC formation. However, a crucial detail emerges: This excludes registered agent service. We'll discuss the importance of registered agent service shortly, but for now, understand that LegalZoom's base price might not be the full picture.
Cost Considerations Beyond the Basic Package:
While the headline price is important, consider these additional cost factors:
Registered Agent Service: As mentioned earlier, registered agent service is essential. Incfile (Bizee) includes it for free in their basic package for the first year. LegalZoom offers it as an add-on, typically at an extra cost.
Expedited Processing: Need your LLC formed in a hurry? Both companies offer expedited processing options, but they come at an additional fee.
Additional Features: LegalZoom boasts a wider range of features beyond core LLC formation, like a basic business website, compliance tools, and business document templates. Be prepared for these features to often incur extra charges.
Remember: The seemingly lower initial cost might not be the most economical choice in the long run. Carefully consider the features you need and factor in potential add-on costs before making your decision.
Speed
Time is of the essence for some entrepreneurs. Here's a breakdown of how fast each company can get your LLC formed:
Incfile (Bizee):
They boast an impressive next-day filing option for an additional fee. This is unmatched speed if you need your LLC formed ASAP. Their standard processing times are still commendable, though not quite as lightning-fast.
LegalZoom:
Standard processing for LLC formation with LegalZoom takes 5-14 business days. They also offer expedited options for an extra cost, but these might not be as fast as Incfile's next-day filing.
Features
Both companies offer LLC formation, but what additional features do they provide? Let's explore:
Incfile (Bizee):
Keeps it simple with their core LLC formation package. They offer some additional services like annual report filing and business compliance tools, but the selection is not as extensive as LegalZoom's.
LegalZoom:
Provides a wider feature set beyond core LLC formation. This includes a basic business website, compliance tools, and a variety of business document templates. However, be prepared for these features to often come at an additional cost during checkout.
If you just need the core LLC formation service, Incfile (Bizee) might be sufficient.
However, if you need a basic website, compliance tools, or a wider range of document templates, LegalZoom offers these features (but be mindful of potential upsells).
Registered Agent Service
Registered agent service is a vital aspect of LLC formation. It designates a physical address to receive legal documents on your business's behalf.
Incfile (Bizee):
Shines in this category. Their basic package includes a year of registered agent service, a major advantage.
LegalZoom:
Offers registered agent service as an add-on, typically at an extra cost.
Why does Registered Agent Service Matter?
Failing to maintain a registered agent can lead to legal complications and missed deadlines. Since Incfile (Bizee) includes this service for free in the first year, it offers significant cost savings in this regard.
LegalZoom: More than just business formation
Here are some additional factors to help you choose the right provider for your startup:
Experience:
LegalZoom boasts a longer track record and handles a higher volume of clients. This translates to a more refined process and potentially a wider range of experience in dealing with various business formation complexities.
However, some users report feeling like a number in a large system with LegalZoom.
Upsells:
LegalZoom is known for its aggressive upselling tactics. While their basic package offers core functionalities, additional features like compliance tools, business document templates, and ongoing legal consultations often come at an extra cost.
Be prepared to navigate through upsell prompts during the checkout process.
Beyond Business Formation:
LegalZoom goes beyond just LLC formation. They offer a wide range of additional legal services for businesses and individuals, including:
- Trademark registration
- Contract drafting and review
- Business licenses and permits
- Estate planning documents (wills, trusts)
- Personal legal consultations
If you anticipate needing these additional services down the line, LegalZoom might be a one-stop shop for your legal needs. However, these services come at an additional cost, so factor that into your decision.
Incfile (Bizee): The Streamlined Option
Incfile (Bizee) positions itself as the more streamlined and user-friendly option. Here's a closer look at their strengths and weaknesses:
Focus on Core Functionalities:
Incfile (Bizee) keeps its core offering focused on LLC formation and registered agent service. This translates to a simpler user experience and potentially less confusion during the signup process.
Customer Focus
User reviews generally praise Incfile (Bizee)'s customer support for being readily available, helpful, and friendly. This can be a major advantage, especially for first-time business owners who might have questions throughout the process.
Limited Additional Services:
While Incfile (Bizee) offers some add-on services like annual report filing and business compliance tools, their selection pales in comparison to LegalZoom's extensive offerings. This might be a drawback if you anticipate needing additional legal services in the future.
What's the best for you?
The Verdict: It Depends on Your Priorities
It depends on your specific needs and priorities and of your business.
You should choose Incfile (Bizee) if:
- You're on a tight budget and prioritize affordability.
- You need a super-fast turnaround on LLC formation (with the next-day filing option).
- You value a user-friendly interface and readily available customer support.
- You only require basic LLC formation and registered agent service.
You should choose LegalZoom if:
- You have a larger budget and are willing to pay extra for additional features like a website and compliance tools.
- You anticipate needing a broader range of legal services beyond just business formation.
- You prioritize a longer company track record and experience with handling a high volume of clients.
Alternatives to LegalZoom and Incfile (Bizee)
While LegalZoom and Incfile (Bizee) are popular choices, there are strong contenders to consider:
Rocket Lawyer: Combines LLC formation with access to on-demand lawyers, ideal for those needing ongoing legal guidance (monthly subscriptions).
Swyft Filings: Specializes in fast, affordable LLC formation with a user-friendly experience, perfect for budget-conscious entrepreneurs.
ZenBusiness: A one-stop shop offering LLC formation, registered agent service, website builder, and compliance tools (tiered pricing plans).
Northwest Registered Agent: Renowned for exceptional customer service in registered agent services, also offers LLC formation packages.
MyCorporation: Established player with various business formation services, including LLC formation, incorporation, and registered agent service (competitive pricing for basic LLC packages).
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