What are LegalZoom, Incfile, and Zenbusiness?
LegalZoom, Incfile, and ZenBusiness are three top providers of business formation and management services designed to assist entrepreneurs with their ventures. Each platform simplifies tasks such as LLC formation, business compliance management, and more to help you build and manage your business. Though they’re all similar at their core, their features, pricing, and additional offerings vary greatly.
LegalZoom
LegalZoom is one of the most well-known online legal service providers, offering LLC formation services, business documents, and ongoing legal guidance. Their platform provides a comprehensive suite of business formation services, including operating agreement templates, compliance services, and professional legal assistance. However, LegalZoom’s LLC formation process is often considered confusing due to numerous upsells. Since its inception in 2001, LegalZoom has served more than 2 million business customers, showcasing its extensive experience and reliability. The service can connect you with your own registered agent.
Incfile
Incfile, now rebranded as Bizee, specializes in affordable business formation services. They provide free LLC formation services (excluding state fees) and a free registered agent service for the first year. Their platform is designed for entrepreneurs seeking cost-effective solutions for forming their LLCs and managing state filing fees. Incfile also offers additional services such as trademark registration, DBA filing, and compliance monitoring, making it a versatile choice for business owners. Additionally, Incfile provides a free guide that can answer questions about forming an LLC, along with an informative blog.
Zenbusiness
Zenbusiness is another popular LLC formation company emphasizing ease of use and worry-free compliance services. They offer LLC formation packages that include registered agent services, an online dashboard, and additional services such as a business website builder and a business email address. Their worry-free compliance service audits documents and files annual reports, ensuring businesses remain in good standing with state regulations.
This feature is included in their higher-tier plans, providing added convenience for business owners. Registered agent services are available for $199 per year after the first year. ZenBusiness’s website also offers automated chat for guiding users through the business formation steps.
How do LegalZoom, Incfile, and Zenbusiness work?
All three of these services make starting a business simple, though they each take unique approaches. LegalZoom offers a robust paid package featuring attorney-reviewed documents, making it an attractive option for businesses seeking in-depth legal support.
LegalZoom’s track record, with over 2 million customers since 2001, speaks to its quality. Unlike IncFile (now Bizee) and ZenBusiness, it doesn’t offer a free package, and its registered agent service costs more, ranging from $159 to $299 per year.
What makes IncFile more impressive is its fantastic free plan. That price includes all state filing fees and a free year of registered agent service. Its processing times – recently at an average of 3-4 weeks – are well-suited for users prioritizing efficiency. ZenBusiness, slightly faster at 1-2 weeks, includes a free registered agent service for the first year and expert guidance, making it ideal for personalized support needs. Incfile has also helped form more than 1 million businesses since its inception in 2004, showcasing its reliability and popularity among entrepreneurs. Additionally, Incfile’s Standard package costs $199 plus state filing fees, while the Premium package costs $299 plus state fees, offering flexibility for different budgets. Incfile has earned outstanding reviews, with a 4.8 out of 5-star rating on Shopper Approved, despite some customer support issues.
How do LegalZoom, Incfile, and Zenbusiness compare?
These platforms offer many of the same services but also key differences. Here’s how these three platforms compare on key considerations.
LLC Formation
All three services offer LLC formation, but there are notable differences in pricing and package structures. Incfile provides a free LLC formation package, covering only the state fees, making it one of the most budget-friendly options for new business owners.
Zenbusiness and LegalZoom have paid tiers that bundle additional services such as compliance monitoring, operating agreements, and expedited processing. LegalZoom is known for its legal document services, making it a preferred choice for businesses needing more comprehensive legal support beyond LLC formation.
Order Processing Time
Order processing time varies between the three services and depends on the service package selected. Zenbusiness offers expedited processing in its higher-tier plans, ensuring faster turnaround times for business owners who need to get started quickly. Incfile provides standard and expedited processing, with premium options allowing for same-day filing in some states. LegalZoom, being a larger company, often has longer processing times unless customers opt for an express package, which can significantly increase the overall cost of LLC formation.
Costs
- LegalZoom: LegalZoom’s LLC formation packages start at a higher price point, focusing on providing legal support and compliance services. Their fees can add up quickly when selecting additional services. The cheapest LLC incorporation package costs $149 and does not include a registered agent service.
- Incfile: Incfile is the most affordable option, offering free basic LLC formation (excluding state fees). However, add-ons such as operating agreements, EIN registration, and expedited processing may increase costs. Additionally, their annual report service is available for $99.
- Zenbusiness: Zenbusiness provides competitive pricing with structured tiers that offer varying service levels. Their worry-free compliance packages and add-ons make them a well-rounded option for entrepreneurs seeking simplicity and reliability. They offer a Pro package for $199 and a Premium package for $349 plus state fees, catering to different business needs.
Ease of Use
Both Zenbusiness and Incfile prioritize ease of use with their intuitive online dashboards. Zenbusiness is particularly user-friendly, offering a guided process that simplifies LLC formation for beginners. However, the order form process for Zenbusiness is simple but includes upsells that may be distracting.
Incfile also provides an easy-to-navigate platform, though some users find that customer support is required for more complex filing situations. LegalZoom, while comprehensive, has a more traditional interface that may feel overwhelming for first-time business owners.
Customer Service & Satisfaction
Customer service quality is a key differentiator among these three providers. Zenbusiness is frequently praised for its excellent customer support, with responsive representatives who assist users throughout the LLC formation process.
Incfile offers strong customer service but has received mixed reviews regarding response times, particularly during peak business seasons. Their phone support is responsive and helpful, but their email support is less responsive, often providing generic answers. As a larger company, LegalZoom sometimes struggles with slower response times and a more corporate approach to customer support. However, LegalZoom’s extensive legal resources provide value to businesses requiring long-term legal assistance. LegalZoom’s email support can take a long time to receive responses, and they are not always personalized, while their phone support is helpful and informative.
Additional Services
Each of these providers offers additional services beyond LLC formation:
- LegalZoom: Provides extensive legal document services, attorney consultations, tax guidance, and trademark registration, making it an excellent option for businesses needing ongoing legal support.
- Incfile: Includes free business name searches, tax filing assistance, and a business bank account setup. However, some services come with additional fees. They also provide EIN acquisition services, which are essential for tax purposes. Additionally, Incfile and ZenBusiness offer business license search services to help determine necessary permits.
- Zenbusiness: Offers compliance monitoring, annual report filing, a business website builder, and business email services making it a good choice for businesses looking for a well-rounded package with ongoing support.
What are the benefits and drawbacks of LegalZoom vs. Incfile vs. Zenbusiness?
Each of these three services has unique benefits and drawbacks.
LegalZoom has unparalleled name recognition and brand strength among online legal service providers. IncfileIncfile steals the show with entirely free LLC formation and a year of free registered agent service included. ZenBusinessZenBusiness focuses on customers’ budgets and satisfaction with a 4.7 Trustpilot score based on more than 13,000 reviews.
Below is a breakdown of each:
LegalZoom Pros & Cons
Pros:
- Established reputation.
- Ongoing legal guidance.
- Wide range of legal documents.
Cons:
- Higher fees.
- Slower processing times.
Incfile Pros & Cons
Pros:
- Free LLC formation (excluding state fees).
- Free registered agent service for one year.
- Simple online dashboard.
Cons:
- Some additional services cost extra
- Customer support can be inconsistent
Zenbusiness Pros & Cons
Pros:
- Affordable and transparent pricing.
- Compliance-focused services.
- Excellent customer support.
Cons
- Higher-tier plans required for premium features.
- No business attorney services.
How do I choose between LegalZoom vs. Incfile vs. Zenbusiness?
Choosing between these platforms depends on your business needs, budget, and long-term goals. Consider the following factors:
- Legal Guidance: If your business requires ongoing legal support, such as contracts, trademarks, or business disputes, LegalZoom is the best option due to its extensive legal services.
- Affordability: If cost is your primary concern, Incfile (Bizee) provides the most budget-friendly LLC formation package, covering state fees only and including a free registered agent service for the first year.
- Compliance & Customer Support: Zenbusiness is ideal if you prioritize compliance monitoring and excellent customer service, ensuring your business stays in good standing with state regulations.
- Processing Speed: If you need your LLC formed quickly, Zenbusiness and Incfile offer faster processing times compared to LegalZoom, especially with higher-tier plans.
- Additional Services: If you need extra features such as a business website, email, or a business bank account, Zenbusiness, and Incfile provide useful add-ons that LegalZoom may not include.
Ultimately, your choice should align with your business structure, operational needs, and growth plans. Evaluating these key aspects will help you make an informed decision that supports your long-term business success.
Frequently Asked Questions
Here are the most common questions LegalZoom vs. Incfile. vs. Zenbusiness.
What are the cost comparisons of LegalZoom vs. Incfile vs. Zenbusiness?
When comparing costs, IncFile (now Bizee) stands out with its free LLC formation service—you only cover the state filing fee. Their registered agent service comes out to $119 per year, and their annual report service is $99 per year, the same as LegalZoom.
LegalZoom is the most recognizable name in online business formation, and it has over 15 years of experience. Their $199/year for registered agent service is at the high end, but they do offer a 60-day money-back satisfaction guarantee.
ZenBusiness has a fantastic overall 4.7-star rating on Trustpilot and more than 13,000 reviews. They have one premium yearly package for $299 plus state fees that come with benefits such as a free tax consultation. IncFile sweetens the deal even further with 25+ customizable legal templates, making it far more affordable and valuable for small businesses.
- LegalZoom: Basic LLC formation starts at $79 plus state fees.
- Incfile: Free LLC formation (excluding state fees), with paid add-ons.
- Zenbusiness: Affordable tiered pricing, starting at around $49 plus state fees.
Filing fees for LLC formation can range from $0 to $500, depending on the state.
Which service makes it easiest to form an LLC?
Ease of use and cost are extremely important when forming your LLC. IncFile, now known as Bizee, has a unique edge with its free LLC plan (you just pay the state filing fees). This value is known in other benefits, including unlimited use of 25+ customizable legal document templates. With a 4.7-star Trustpilot score and more than 13,000 reviews, Bizee shines as the new 2023 record holder for customer satisfaction.
ZenBusiness, on the other hand, offers incorporation costs starting at $39, which includes a registered agent service, making it an affordable and comprehensive option for new business owners. Their Starter package is free but has annual compliance service subscriptions that auto-renew at $119 annually. Incfile also provides hyperlinks throughout the application to learn more about specific questions or entries, enhancing the user experience.
ZenBusiness provides entrepreneurs with a reliable business partner, offering a convenient Premium package at $299 per year (in addition to state fees). This includes a free year of registered agent service. They ensure all documents are delivered to the proper state within two business days and include a 60-day satisfaction guarantee for added peace of mind.
While LegalZoom does offer a free LLC option, it requires you to sign up for a $119/year compliance service plan.
Choose LegalZoom If:
- You need ongoing legal guidance and document preparation.
- Your business requires trademark registration or intellectual property protection.
- You want access to a network of business attorneys.
- Compliance services with legal oversight are a priority.
Choose Incfile If:
- You are looking for the most budget-friendly LLC formation service.
- A free registered agent service for the first year is appealing.
- You want fast processing times with an easy-to-use platform.
- Unlimited access to business document templates is beneficial.
Choose Zenbusiness If:
- Compliance monitoring and worry-free filing are essential to you.
- You want fast LLC processing and customer support.
- Business website and email services are useful for your company.
- You prefer a structured pricing model with fewer upsells.
Do LegalZoom, Incfile, or Zenbusiness offer a refund policy?
Refund policies differ widely among these services. ZenBusiness has a 60-day money-back guarantee for its business formation services. If you’re unhappy, no questions asked, just request a refund right within this window. This policy allows for a reasonable time frame to test out their products.
LegalZoom, for example, offers an industry-leading 100% satisfaction guarantee and allows customers to request a refund within 60 days of purchase. However, some exclusions will apply based on the service you selected. Incfile has a no-nonsense refund policy.
Refunds are only available if you request one before we file your application with the state. That’s why timing is essential when working with Incfile. Each policy shows how the three companies approach customer satisfaction differently.
What are the alternatives to LegalZoom, Incfile, and Zenbusiness?
While LegalZoom, Incfile, and Zenbusiness are among the most popular business formation services, other providers are worth considering. These alternatives offer unique advantages that may better align with your business needs.
- Northwest Registered Agent: Known for strong privacy protections and premium registered agent services. Unlike many competitors, they emphasize keeping business owners’ personal information off public records.
- Rocket Lawyer: Provides subscription-based legal services, making it an excellent choice for businesses needing ongoing legal assistance, document creation, and attorney consultations.
- Bizee vs. Other Services: Incfile (now Bizee) stands out among budget-friendly options, offering free LLC formation while still providing essential business services like compliance reminders and tax assistance.
These alternatives provide viable options depending on whether you prioritize affordability, legal support, or privacy protection.
LegalZoom vs. Incfile vs. Zenbusiness – Final Thoughts
Choosing the right LLC formation service depends on your business needs. LegalZoom is ideal for those needing legal assistance. Incfile offers budget-friendly formation services, and Zenbusiness provides comprehensive compliance support. Compare their services, costs, and customer reviews to determine the best option for your business formation journey.
Contact us if you have more questions about business legal services or to apply for a small business loan. Our alternative financing experts can help you find the best funding options for your business goals.
