Inc Authority vs LegalZoom (2024 Comparison & Verdict)
If you decide to start a business, the LLC service you use can determine how long it takes to maintain.
In a review published by Investopedia, roughly 20% of new businesses fail within the first two years of being open, 45% during the first five years, and 65% during the first ten years.
Inc Authority and LegalZoom are among the top business formation companies in the industry, and Venture Smarter believes they can help you get started on the right foot.
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
2. LegalZoom LLC Highlights
- Business Formation
- Registered Agent
- Digital welcome packet
- Legal service
- Business funding analysis
WE RECOMMEND ZENBUSINESS
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.
Inc Authority's business financing and accounting services distinguish it from LegalZoom. However, Venture Smarter has found that the company does not feature transparent pricing, which can be a red flag to potential clients.
According to Salsify survey, consumers may be willing to pay more if they trust a brand, with 46% citing this reason [1].
Side-by-Side LLC Plan Comparisons
From Venture Smarter's perspective, 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.
- 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 (varies by state): 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.
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 (varies by state): The plan includes the features from the previous package plus a private banking specialist, personalized business advice, expedited filing, and an INC success advisor.
- 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.
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, Venture Smarter 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.
"Inc Authority has a pretty easy-to-use website, and their upsell pricing isn't crazy. Plus, they offer a 24-hour turnaround time ."
- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions
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
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 Venture Smarter's 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 to formation.
While LegalZoom and Inc Authority feature comprehensive packages, you may consider ZenBusiness as an alternative company to begin your new business effortlessly.
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.
Our #1 Recommendation
ZenBusiness
- Worry free compliance
- Base plan at $0
- Great value
- Expedited filing options
- User-friendly platform
- Get the BEST PRICE until the end of October
- Have to pay additionally for a registered agent service.
References:
- https://www.salsify.com/resources/report/content-2022-salsify-consumer-research-the-value-of-building-brand-trust
