2024 LLC Provider Comparison
Inc Authority vs LegalZoom
Are you ready to start your own LLC but want help filing the paperwork and understanding your state’s documentation requirements? Many reputable online companies, including Inc Authority and LegalZoom, offer affordable LLC formation services. However, it is challenging to know which service is best for you. In this LegalZoom vs Inc Authority comparison guide, you’ll learn everything you need to know, including information about pricing, features, and customer support.
Inc Authority vs LegalZoom Features
While most LLC formation services provide the same services, there are differences between the two. Find out more about these companies’ package features, company experience, fees, and refund policies.
Pricing
Inc Authority is one of the only companies that offers a free LLC formation package. The company’s basic package is free; you only have to pay your state’s filing fees. While the basic package is free, numerous upgrades are offered if you want more a more customized experience. You can add services like a personalized operating agreement and a domain name for an extra cost. Inc Authority also offers other packages that cost from $399 to $799, depending on the services you need.
LegalZoom’s standard bundle, called the economy package, costs $79 plus your state’s filing fees. For this cost, LegalZoom files your formation documents, generates your Articles of Organization, and returns your approved documents within six weeks. LegalZoom offers two upgraded packages for $329 and $349 respectively.
Package Features
Inc Authority includes registered agent service at no cost for a year and an S corporation tax election filing service in its basic package. On the other hand, LegalZoom’s basic package does not include free registered agent service. Still, it does come with a banking resolution document if you want to open a business checking account.
The year of free registered agent service Inc Authority offers is a significant benefit. All LLCs must elect a registered agent to accept legal documents on their behalf. Adding a year of registered agent service to any LegalZoom package costs approximately $250.
Industry Expertise
When filing your LLC formation paperwork with an online provider, choosing a company with experience and expertise in the industry is crucial. Inc Authority started in 1989 and has helped form about 150,000 LLCs and corporations. On the other hand, LegalZoom has helped more than 2 million business entities file formation documents since it started in 2001. LegalZoom has more experience than Inc Authority based on the number of customers.
Customer Service
Both LegalZoom and Inc Authority offers comprehensive customer support options. LegalZoom offers customer support through numerous modalities, including email, phone, and chat. The company’s extended customer support hours on weeknights and weekends are advantageous.
Inc Authority also offers customer service through chat, email, and phone. However, its hours are shorter than LegalZoom due to a lack of weekend availability. Inc Authority representatives are only available on weekdays from 11 a.m. to 8 p.m.
LegalZoom has the edge over Inc Authority when it comes to customer support due to its weekend hours. However, both companies offer simpler response times and usually answer customer calls within a few minutes.
Document Turnaround Times
If you choose Inc Authority vs LegalZoom, the time it takes for your LLC approval depends on your state’s requirements. Inc Authority processing times typically vary from three business days to several weeks. You should check with your state for average processing times.
With LegalZoom, document approval times depend on the formation service package you choose. The basic package takes about a month to process, while the top-tier package processes documents in about a week. In other words, the more expensive packages are typically processed before the more basic packages.
Inc Authority is likely the better choice when it comes to document turnaround times as it bases processing times on the state’s requirements. LegalZoom prioritizes certain documents based on package level, which you may see as a disadvantage.
Registered Agent Service
LLCs in every U.S. state must elect a registered agent, a person or entity that agrees to receive deliveries and documents on behalf of your business. A registered agent accepts documents on your behalf and forwards them to you. Some states allow an LLC manager to serve as the company’s registered agent, while other states require an outside person or entity.
Every Inc Authority package comes with a free registered agent service for a year. If you choose to keep the service after a year, the fee is $99 annually. On the other hand, LegalZoom does not offer free registered agent service with any package. Depending on the package, you can add the service for a fee between $249 and $299.
Order Tracking
Both Inc Authority and LegalZoom offer complete order tracking tools on their websites. You can view the status of your orders and download your approved documents by logging into your account. Both companies offer this service for no cost.
Customer Satisfaction
Overall, Inc Authority’s customers are satisfied with the level of service they receive from the company. The company has thousands of online reviews, and most are overwhelmingly positive. Most customers are happy with its fast processing times and it’s free LLC formation service.
LegalZoom has thousands of online customer reviews, which is not surprising considering its large customer base. LegalZoom’s reviews are more mixed, but the majority are positive. Some customers are not happy the company does not offer a free basic package.
Convenience
Both LegalZoom and Inc Authority make it convenient for you to file your LLC formation documents. Both companies offer step-by-step guidance and live agents to answer questions. However, LegalZoom’s website is more convenient to use, offering a more streamlined sign-up process.
Optional Services
Both Inc Authority and Legal Zoom offer optional services for an additional cost. Many of these optional services are the same. However, Inc Authority provides two unique services that LegalZoom does not: a business funding service and a credit package.
On the other hand, LegalZoom offers various intellectual property and estate planning services that Inc Authority does not provide. It is essential to look over the benefits of both companies if you want specific things before choosing.
LegalZoom vs Inc Authority
Frequently Asked Questions
When it comes to an Inc Authority vs LegalZoom comparison, you likely have questions. Here are answers to some frequently asked questions about these companies:
Inc Authority’s free entry-level package is the best value. You only have to pay your state’s filing fees when you choose this package, and you get a year of free registered agent service. This free basic package is the best option for many LLC owners. However, you may be better off choosing a premium package if you want a more customized experience.
Most LLC formation companies offer upsell services as part of the registration process. LegalZoom representatives try to get customers to add additional services at almost every step of the process. Inc Authority does not upsell services as much as LegalZoom, but additional offers are still part of the process. Inc Authority offers one page of extra features at the end of the sign-up process, while LegalZoom encourages other services at nearly every step.
Inc Authority’s processing times depend on the state in which you reside. Some states may approve your paperwork in a few days, while others may take a few weeks. The processing times do not vary depending on the package you choose.
LegalZoom takes a different approach when it comes to turnaround times. Processing times vary depending on how much money you spent on your package, not your state’s formation requirements. Based on recent indications, the basic package takes 30 days to process documents, while the top tier package takes about 10 business days. The standard package takes approximately 15 business days.
Unfortunately, Inc Authority does not have a refund policy. The website indicates the company does not offer refunds for any reason. However, LegalZoom does have a refund policy, a significant advantage for those worried about customer satisfaction. You have two months from the date of your initial order to request a complete refund. There are no questions asked when it comes to refunds.
Every U.S. state requires LLCs to designate a registered agent. Certain states refer to registered agents as representatives of process or statutory agents. Some states allow an LLC manager to serve as the company’s registered agent. Keep in mind that you need an agent in each state if you have multiple locations in different states.
Many owners may wonder if they should use an LLC formation service or file their paperwork independently. Forming an LLC is a complex process, especially if you have never started a business before. Using a professional service such as Inc Authority or LegalZoom is the best way to ensure you start your LLC correctly the first time. You can choose a basic package if you are worried about the cost of using a professional service.
All of Inc Authority’s packages come with tax services in the form of a free hour of tax consulting services with a certified accountant. During this hour, you can ask questions and purchase additional tax services if desired. However, keep in mind that your accountant will likely try to upsell services during these meetings. You may want to decline this feature if you do not wish to purchase any tax services.