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Incfile vs LegalZoom: What Formation Company Tech Startups Prefer

The BBC has reported that the number of self-employed workers in the United States has risen by over 500,000 since the global pandemic. The article spoke about The Great Resignation in which “nearly 3% of the US workforce resigned in October”. Whilst there are multiple factors that influence people wanting to resign, the overall takeaway was that employees are looking for a change.

People are now looking for innovative ways to create and supplement their income. When starting up your new tech venture, it is important to first establish what technology product or service you are bringing to the market. Your tech startup can either deliver new technology products or services or deliver something that is preexisting in an innovative new way.

Once this is established then you are able to proceed with setting up your LLC. Whereas it is not impossible to start up your business on your own, many people do not have sufficient knowledge of the process. This can result in delays and difficulties which lead to immense frustration.

When looking for an online business formation service that will aid in starting an LLC, chances are LegalZoom and Incfile would have come up as popular recommendations. In this article, we will compare the two platforms to help you decide on which is the best fit for your Tech startup.

Copyright: BestLLCServices.com

Incfile vs LegalZoom


Incfile is significantly more cost-effective than LegalZoom. Incfile outranks in this department because not only are their rates lower than LegalZoom, but the company also provides clients with a free registered agent service. Both companies do provide their clients with various packages to suit their needs and budget which is extremely helpful, especially for new startups that may not have a lot of starting capital.

Customer Service

In the customer service department, LegalZoom takes the win. The company provides longer service hours and superior assistance. Incfile however has been noted to have some issues with their customer service being unresponsive and their phone support is somewhat inconsistent. However, with regards to service delivery, Incfile processes customer orders the following business day as an all-around package feature.


Both of these LLC services keep the customer in mind and provide an easy-to-use service. But Incfile’s platform does have an edge on that of LegalZoom. Incfile provides clients with a continuous dashboard once they have their business running. This means that their clients have access to all important documentation at any point in time after they form their LLC.


When it comes to Operating Agreement and Employer Identification Number (EIN) services both companies provide excellent service, however, Legalzoom does not provide the service in all of their packages and it can work out rather expensive when you add it on. Incfile will cost you less for the same service and therefore they take the top place.

Customer Ratings

Customer ratings are one of the most helpful indicators when deciding on whether or not you can trust a company. Whilst LegalZoom has been around longer and is the more established of the two, both companies have a large number of favorable reviews. However, Incfile reviews outranked Legalzoom with their overall customer ratings.

Overall Summary

Both Incfile and LegalZoom are excellent choices when looking to start up your LLC. Before you can decide on which company is best for you, you will have to make a list of your individual requirements. First, establish what factors are a necessity and which can be compromised. Since there is a significant price difference, your budget will also play a big factor when deciding between the two.

Whilst the overall decision will depend entirely on your needs analysis, the above comparison has shown Incfile as the overall winner. The company stands out as one of the best LLC services for new startups with their only significant downfall being the lack of customer support.

If you are looking for superior customer support and a more experienced LLC service then LegalZoom could be the better option for you, provided that you do not mind spending a significantly larger amount for the same features. It is always advised that you conduct further research as there are numerous other companies out there as well that might be a better fit than LegalZoom or Incfile.

Jacob Maslow is a Columnist at Disrupt Magazine. Based in the Middle East, he specializes in Journalism. He is the founder and editor of several news sites including Legal Scoops and Streetwise Journal.

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