The main difference between Inc Authority and LegalZoom is that Inc Authority offers more affordable solutions for both basic and complete business formation services.

This Inc Authority vs LegalZoom review covers all the key elements you need to know before using one of these LLC formations services.

incfile vs Inc Authority reviews

Inc Authority


$0 + State Fees

Service Time: Varies By State & Package

Legalzoom

LegalZoom


$0 + State Fees

Service Time: Varies By State & Package

Inc Authority Vs LegalZoom: Which Is The Best?

Are you in the process of forming an LLC but do not want to deal with the hassles and complexities of forming one? Well, the good thing is that there are plenty of online companies such as LegalZoom and Inc Authority that offer high-quality and professional LLC formation solutions. However, with so many options to choose from, it can be difficult to figure out which provider to hire for your LLC formation needs.

In this LegalZoom vs Inc Authority comparison guide, we’ll be providing useful information concerning these service providers in an organized and practical manner. To find out which of these two LLC formation companies is the perfect fit for you, read on.

Since both companies are among the top-rated LLC formation companies in the industry, we are quite optimistic about their abilities to effectively form compliant business entities. With that being said, it is worth noting that both companies have their advantages and disadvantages. However, we, in general, prefer Inc Authority.

We’d like to start by saying that Inc Authority’s pricing is far more affordable than LegalZoom’s as they are one of two companies that we know that form LLCs for free. Moreover, Inc Authority offers one year of free registered agent service with each LLC formation whereas LegalZoom doesn’t.

If you’d like to learn more about some of the things that set these companies apart as well as some of the characteristics they share, then you’ve come to the right place. In this comparison, we will be looking at what you need to know about both Inc Authority and LegalZoom so you have an easier time deciding on which company you’ll hire for your LLC formation needs.

Inc Authority vs LegalZoom

Are There Better Alternatives?

While both companies offer plenty of benefits, neither makes it to our list of top companies in the LLC formation industry. When it comes to LLC formation solutions, our top pick is ZenBusiness.

In our books, ZenBusiness is the industry’s most well-rounded company as they offer outstanding pricing models that help ensure all entrepreneurs can afford the cost of forming an LLC. Apart from that, their customer feedback and reviews are overwhelmingly positive. We also cannot forget to mention that they are a socially-conscious business that gives back.

While LegalZoom and Inc Authority has their benefits over ZenBusiness in some areas – for instance, Inc Authority’s entry-level price is much lower while LegalZoom is more experienced – ZenBusiness still comes on top of both service providers, in our opinion.

What Do LegalZoom and Inc Authority Have in Common?

  1.  Trustworthy: Both companies are entirely legitimate organizations with strong and proven track records. These are not fly-by-night businesses, but rather well-respected companies with the expertise and knowledge needed to get the job done.
  2. Efficiency: Both companies work quickly and can get your LLC formation processed with the state within weeks or days.
  3. Affordability: Whether you choose to work with Inc Authority or LegalZoom, you can rest assured that you will save a significant amount of cash on the LLC formation process compared to hiring the services of a professional business attorney.
  4. Customer Support: Both companies have well-established customer support networks that are capable of providing the assistance you need. Why struggle with the lengthy and complicated process of forming an LLC alone when you can have LLC formation experts from Inc Authority or LegalZoom handle everything fast and efficiently for you?
  5. Experience: Both LegalZoom and Inc Authority have, over the years, helped thousands of entrepreneurs form their LLCs, which means they have the experience needed to help you form your LLC and get up and running.
  6. Informative: LegalZoom has a Knowledge Center on its website that offers plenty of information regarding legalities in business and other issues that entrepreneurs face today. Inc Authority, on the other hand, has a blog where they share information about different types of entities, business tips, etc.
  7. Extra Services: Other than LLC formation, both Inc Authority, and LegalZoom offer a host of services – from annual reports to registered agent services – to businesses that need them. Can you be your own registered agent for an LLC?

A Side-by-Side Comparison of the Two Companies

Pricing

It is hard to beat what Inc Authority has to offer especially when it comes to their pricing. That is because the company is one of two companies in the LLC industry that offer free LLC formation, provided you pay the state fee. However, when it comes to LegalZoom, their base rate for business formation solutions starts at a whopping $79.

Paying $0 to have your LLC formed is way better than $79. But that’s just one of the benefits you get to enjoy with Inc Authority. Apart from forming your LLC for free, the service provider also offers more valuable and useful features in their free-of-charge LLC formation package than what LegalZoom offers in their $79 formation package.

Features

In their package, Inc Authority also includes S-corporation tax election filing (something that most LLCs do not need) and one whole year of registered agent service at no cost. By contrast, LegalZoom’s package, which costs $79 mind you, only offers you a banking resolution, which is only meant to help you open a bank account for your business.

In our view, the banking resolution and tax election filing are, to some extent, equivalent in value. However, nothing LegalZoom does can beat Inc Authority’s one year of free registered agent service. To add one year of registered agent service to the LLC package LegalZoom offers, that’d cost you an extra $249 to $299.

Experience

This is one area where LegalZoom has a clear advantage over Inc Authority. While Inc Authority was created in 1989, the company has only managed to form about 140,000 corporations (c corporation meaning) and LLCs whereas LegalZoom, which was established in 2001, has formed well over 2 million entities.

Customer Support

LegalZoom’s customer support is available via phone, email, or chat. Their extended customer support hours are a great help considering that their reps are available to answer your questions from 10 am to 8 pm (Eastern Time) on weekdays, and from 10 am to 7 pm (Eastern Time) on the weekends.

Inc Authority, on the other hand, provides customer support through the same channels, i.e., through chat, phone, or email. However, their hours are a lot short than what LegalZoom has to offer since they aren’t available on weekends. Inc Authority’s representatives are only available to help from 11 am to 8 pm (Eastern Time) on weekdays.

In our opinion, both companies tie in this category since each has a major advantage over their competitor. While LegalZoom is the obvious winner here considering that their customer support operates for longer, Inc Authority’s response time is a lot quicker.

Additional Services

While most of the services they offer are similar, there are some that one offers and the other doesn’t. For instance, Inc Authority has a business credit package and business funding package that LegalZoom does not provide. However, it’s worth noting that LegalZoom offers more business solutions for issues involving intellectual property and also provides a wide range of personal services such as estate planning.

Turnaround Times

Inc Authority’s turnaround times are determined by each state’s requirements. As a result, the time it takes them to process an LLC formation may vary from a few business days to several weeks.

LegalZoom, on the other hand, uses a different approach. The company’s processing times are based on which LLC formation package level you buy, and in some instances, the requirements of the state a client resides. It’s worth noting that the cheaper the package, the longer it will take – their cheapest package, the Economy Package, takes up to 30 business days while their top-if-the-line package, the Express Gold Package, takes anywhere between 7 to 10 business days to process.

In this category, we recommend using Inc Authority as they base their turnaround time on the capabilities of different states rather than arbitrarily decreasing or increasing the processing speed based on how much you spend.

Order Tracking

Both companies have order tracking tools on their websites. To know your order status, all you need to do is log into your account and check your profile for details.

Registered Agent Service

All Limited Liability Companies in America are required by law to have a registered agent. A registered agent can either be an online service or person and their main purpose is to receive crucial state government documents, inform the LLC owner that they’ve received said documents, and forward the documents to the LLC owner. A registered agent plays a vital role for both the state and LLCs as they serve as a means through which the state can contact a business when need be.

Inc Authority includes one year of free registered agent service with all of its LLC formation packages and charges $99 for the service from the second year onwards. However, that’s not the case with LegalZoom as they don’t include the service in their business formation packages. To add the registered agent service to your LLC formation package, you will have to pay $299/year for the service (or $249 for the first year if you request to have it in the LLC formation package.)

Customer Reviews

Inc Authority has a great customer satisfaction reputation. From our research, we found that the company has over 6,600 online reviews with an overwhelming majority being positive. It’s clear to see that the company’s customers love their free limited liability company formation service and quick turnaround times.

As you’d expect, LegalZoom has more customer feedback considering that they are a bigger operation. However, while that’s the case, we only found 4,700 positive reviews for the company. And while their reviews are a bit mixed up, the majority of the feedback they’ve received is positive.

Ease of Use

When it comes to ease of use, Inc Authority and LegalZoom are somewhat equal since they both make the limited liability company formation process simpler compared to handling the process yourself. While that’s the case, we recommend using LegalZoom over Inc Authority since their website is more user-friendly and streamlined.

Which LLC Formation Website is Best for You?

Both Inc Authority and LegalZoom are great options to work with when it comes to LLC formation solutions; however, they also have differences that help define each company. But when it comes to choosing one company between the two, we recommend working with Inc Authority as it has more to offer than LegalZoom. From fast turnaround times to free LLC formation to one year of free registered agent service and other unique features, it’s easy to see why Inc Authority is the way to go.