Inc Authority vs LegalZoom (2024 Comparison & Verdict)

Jon Morgan
Published by Jon Morgan | Co-Founder & Chief Editor
Last updated: January 20, 2024
FACT CHECKED by Lou Viveros, Growth & Transition Advisor
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If you are deciding to start a business, the amount of options for LLC service can be overwhelming. However, Inc Authority and LegalZoom are among the top business formation companies in the industry.

As a business consultant with over a decade of experience using LLC services, I have evaluated Inc Authority and LegalZoom based on their features, price, and performance.

Read on and find out which business formation service is best suited to your business.

At a Glance: Inc Authority and LegalZoom

Inc Authority has been in the industry for 32 years and has assisted over 250,000 individuals and businesses. The company provides LLC formation services, as well as other features to help you promote and maintain  your business.

Founded in 2001, LegalZoom provides business formation, as well as legal services, and helped over 2 million individuals form their businesses.

1. Inc Authority LLC Highlights

  • Formation service
  • Tax planning consultation
  • Extended support hours
  • Business financing

WE RECOMMEND ZENBUSINESS

IncAuthority CTA

IncAuthority

Features
4.8
Security
4.7
Support
4.5
Pricing
4.6
Overall
4.7

2. LegalZoom LLC Highlights

  • Business Formation
  • Registered Agent
  • Digital welcome packet
  • Legal service
  • Business funding analysis

WE RECOMMEND ZENBUSINESS

LegalZoom CTA

LegalZoom

Features
4.8
Security
4.8
Support
4.7
Pricing
4.5
Overall
4.7

3. How Inc Authority and LegalZoom Stack Together

Both companies offer $0 basic plans which greatly benefit new business owners.

LegalZoom offers a more diverse choice of packages that range from LLC formation to legal services.

What distinguishes Inc Authority are their business financing and accounting services. However, the company does not feature transparent pricing.

Side-by-Side LLC Plan Comparisons

Top view of money and calculator

Both Inc Authority and LegalZoom offer everything you need in their LLC formation packages.

1. Basic Plan Comparison: Inc Authority Basic vs LegalZoom Basic

  • Inc Authority’s Basic Package ($0 + state fees): The plan includes a business name check, formation document filing, free registered agent service for a year, EIN registration, digital document storage, tax consultation and planning, as well as business funding analysis [1].
  • LegalZoom's Basic Package ($0 + state fees): The package includes filing of the formation documents, name search, a digital welcome packet, and a customizable website. A client of mine found it helpful that the digital welcome packet includes a guide on maintaining an LLC after the business has been approved and registered.

2. Mid-Level Plan Comparison: Inc Authority Starter vs LegalZoom Pro

  • Inc Authority’s Starter Business Bundle: The plan includes a custom state-filed articles, an operating agreement, name availability search, meeting minutes and resolution, ownership certificates, EIN services, website domain and email, tax and accounting support, lawsuit defense, as well as state and local business licenses [2].

To determine pricing information on two packages, you may call the company during regular business hours and speak to a representative.

  • LegalZoom's Pro ($249 + state fees): The plan features all services from the basic package plus an operating agreement, customizable document templates, EIN, and phone consultation. When we availed of the plan, accounting professionals provided us with insurance and tax consultation.

3. Top-Level Plan Comparison: Inc Authority Fast Track vs LegalZoom Premium

  • Inc Authority’s Fast Track/Executive Business Bundle: The plan includes the features from the previous package plus a private banking specialist, personalized business advice, expedited filing, and an INC success advisor [3].
  • LegalZoom's Premium ($299 + state fees): The package features everything from the Pro plan, including legal counsel, direct attorney guidance, and document amendments for the first 30 days [4].

Registered Agent Services

Inc Authority provides a free registered agent service for a year with their basic formation package. After the first year, they charge $179 annually for this service. Their top register agent service can help file your LLC, annual compliance reminders, forward mail, and more.

You can avail of LegalZoom's registered agent service as an additional feature for $249 a year. The package includes mail alerts, tax and annual report deadline notifications, and unlimited cloud storage.

Additional Services

Apart from the features included in their packages, Inc Authority and LegalZoom offer the following additional services:

1. Business Financing

Inc Authority provides financing to qualified businesses and individuals in two forms.

Business Credit features a multi-tier credit building system, as well as access to loans and a capital, while Business Funding includes a loan funding analysis, unsecured personal loans, and high credit limits.

LegalZoom does not offer a business financing service.

2. Trademark Registration

With Inc Authority, you can get a trademark through their Trademark Registration Program. The company will apply on your behalf and provide reports regarding the status of your application.

To get a quote, we had to contact the company since the price is not disclosed in their website.

LegalZoom offers a trademark registration for $599 plus state fees. The package features legal counsel and guidelines to ensure the application is approved.

3. Business License Report

To receive comprehensive permits and licensing information, a client of mine availed of the business license report package from LegalZoom for $99.

The business license report is already included on Inc Authority's Starter Bundle package.

4. Annual Report Filing

To stay compliant with state business laws and remain in good standing, you have to file annual reports on time.

With LegalZoom, you can avail of an annual report plan for $99 plus state fees. It features the creation and filing of the document to the state.

Inc Authority does not offer annual report filing service.

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Customer Service

Inc Authority offers responsive customer support by phone and live call, Monday to Friday 6 am to 5 pm PST, with no weekend availability.

We tried contacting them through live call and the customer representative was very receptive and accommodating.

LegalZoom offers responsive customer support by phone and live chat. Their extended hours are very useful, and they are available weekdays from 5 am to 7 pm PST and weekends from 7 am to 4 pm PST.

The support is very responsive, but I would recommend contacting them through the website, as they respond fastest this way.

Customer Reviews

Customer reviews for IncAuth and LegalZoom

FAQs

Which is Rated Higher as a Business Formation Service, Inc Authority or LegalZoom?

LegalZoom is rated higher as a business formation service, placing among the top 3 companies based on reviews and rankings.

Which Company has Served Longer in the LLC Formation Industry, Inc Authority or LegalZoom?

Inc Authority has served longer in the LLC formation industry having existed for 32 years while LegalZoom was established in 2001.

Inc Authority vs. LegalZoom: Our Recommendation

LegalZoom and Inc Authority are both exceptional LLC formation services.

Throughout our interaction with both companies, it was apparent that LegalZoom focuses more on overall business services, while Inc Authority offers some extras such as tax planning consultation and caters more on formation.

While both LegalZoom and Inc Authority feature comprehensive packages, you may consider ZenBusiness as an alternative company.

ZenBusiness offers additional business services with LLC formation starting at $0. They offer a business website, longer customer service hours, worry-free compliance, business financial planning, and more.

If you want to begin your new business with ease, hassle-free, you should try ZenBusiness.

Our #1 Recommendation

ZenBusiness

Logo of ZenBusiness with a hardworking business woman in the background
Features
4.9
Security
5.0
Support
4.9
Pricing
5.0
Overall
5.0
Pros
  • Worry free compliance
  • Base plan at $0
  • Great value
  • Expedited filing options
  • User-friendly platform
  • Get the BEST PRICE until the end of February
Cons
  • Have to pay additionally for a registered agent service.

References:

  1. https://www.incauthority.com/free-llc
  2. https://www.incauthority.com/downloads/Inc_Authority-Starter_Business_Bundle.pdf
  3. https://www.incauthority.com/downloads/Inc_Authority-Fast_Track_Business_Bundle_2022.pdf?sscid=11k8_pe6mr&
  4. https://www.legalzoom.com/business/business-formation/llc-overview

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