Legalzoom vs IncFile [Read This Before and Choose Right]

Establishing a company can be a relatively long and complex process. Or at least it was before sites like Incfile and LegalZoom came along. Whether you’re starting a brick-and-mortar business or running your operation entirely online, you need to get all your paperwork in order before you sell a single product.

But which is better, LegalZoom or Incfile? Unfortunately, it is impossible to answer without first reviewing several variables and situational elements. However, by the end of this comparison guide, you should be armed with enough information to make the right choice for you and your business. Here’s everything you need to know about LegalZoom and Incfile.

What is LegalZoom?

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LegalZoom is a website designed to help businesses and individuals access a variety of legal documents and assistance. While many of these services are focused on setting up companies like LLCs, LegalZoom covers many other topics as well. The site was founded in 2001 and has helped millions of businesses and families get the legal help they need in a variety of situations.

In addition to business formation, LegalZoom helps with trusts, wills, copyrights and trademarks, and more. Users can also get legal advice from a real lawyer, if they need it. Overall, this site is like a one-stop shop for all kinds of legal documents and help, allowing users to get access to these items without paying a fee.

What is Incfile?


Incfile is a site dedicated to helping entrepreneurs get their business off the ground. Since 2004, the site has helped more than 800,000 businesses file the correct documents for all types of businesses, including C corporations, LLCs, S corporations, and even nonprofits. Incfile offers access to a variety of documents and tools, including employer tax numbers, virtual addresses, registered agents and even tax consultations.

Another valuable component of Incfile is that it offers a wealth of useful information for new businesses. The site’s resource center can help entrepreneurs learn more about how to file for a DBA, different state requirements for starting a business, and even a business name generator.

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Which is better LegalZoom or Incfile?

As you can see, while there is some overlap, both sites serve slightly different audiences. LegalZoom focuses on the legal side of running a business or setting up a will, while Incfile is solely dedicated to helping entrepreneurs. So it’s hard to say if one is “better” than the other. Realistically, you can use both sites to achieve different goals. However, let’s break down the areas where these sites overlap so you can determine which would work best for your particular situation.

Costs and fees

Meeting of business people.

The amount you pay for each page depends on what you’re trying to get. Here’s a quick overview of the different fees you have to pay for certain features, such as:

  • Establishment of a company – LegalZoom charges $79 to file your business documents. This fee is in addition to any government fees you may have to pay, which vary from state to state. Incfile does not charge anything on top of government fees.
  • Registered agent services – When you form an LLC, you need something called a registered agent to act on behalf of your company. LegalZoom charges $299 per year for these services, while the first years are free through Incfile. After the first year, you pay just $119 per year.
  • Employer ID Number (EIN) registration services. – If you want to get your EIN for free, you can contact the IRS directly. However, if you want to avoid messing around with it, you can pay LegalZoom $79 for their effort or Incfile $70 for the same service.
  • Contract of employment – LLCs and corporations need operating agreements that outline the structure of the operation. Incfile offers a free work contract with your formation documentation. LegalZoom, however, charges $99 for this document.

As you can see, Incfile costs a lot less overall. So if you want to save some money when starting a business, choose Incfile.

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Ease of use

A smiling Indian woman is typing on a laptop

Both sites are very user-friendly and easy to navigate. Also, each site offers comprehensive customer support, although you must submit your inquiry within certain hours. Email is often the best way to get help, but both sites have customer service agents available by phone.

If you’re purely trying to start a business, Incfile’s layout is a little more streamlined, as the entire website is dedicated to helping you succeed. In comparison, many of the pages on LegalZoom aren’t related to starting a new business, so it’s a little easier to get lost.

A breakdown of the features available on each page

a woman sits on a table with her laptop and holds reading glasses on her hand

Instead of scrolling through each page to see what they have to offer, here’s an overview of the different services you can find on LegalZoom and Incfile.

Features of LegalZoom

screenshot of the legalzoom website

Features of Incfile

A screenshot of the Incfile website page
  • Company establishment services – As we mentioned, with Incfile you can start an LLC, a corporation or a non-profit organization. Starting these companies is also cheaper if you choose the basic membership package.
  • Registered agent services – Incfile acts as your registered agent, and since the first year is free, you might as well take advantage of that. You can also use that first year to determine whether you want to use someone else as your registered agent, like yourself.
  • Trademark application – Although Incfile does not offer as much intellectual property protection as LegalZoom, you can file a trademark and get legal help in the process. Incfile can also search for prior trademarks to see if yours will infringe on existing entities.
  • EIN registration – If you don’t want to deal with the tax administration, Incfile costs a little less to register and get an employer ID number.
  • Document templates – Like LegalZoom, you can find templates for various business documents, such as business and bank contracts. There are fewer options here than on LegalZoom.
  • Business resource center – This resource center offers valuable information on everything from managing your business finances to getting help with your taxes. You can also download eBooks and white papers that describe how to start and run a business from scratch.
  • Online Business Dashboard – With so many items to keep track of, it’s easy to become overwhelmed and disorganized. Incfile keeps everything in one place with an easy-to-use dashboard system.
  • Website and email setup – All modern businesses need websites to reach new customers. Incfile also acts as a domain host and website builder so you can get started right away. However, if you want to build something more extensive, we recommend working with a dedicated website building platform like Wix or WordPress.
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Who is Incfile best for?

IncFile Reviews Website Screenshot

If you’re just trying to start a business from scratch and want to do it as cheaply as possible, Incfile is one of the most valuable resources. Not only can you take care of filing and registration, but you can also access a wealth of useful information to help your new business thrive.

Who is LegalZoom best for?

A screenshot of the LegalZoom home page

If you need additional legal services or want to take care of personal legal documents (ie wills and trusts), it makes sense to open a LegalZoom account. Also, if you know you will need the help of a real lawyer, it is much cheaper and more accessible to use this site than to contact a law firm directly.

Conclusion: Is LegalZoom better than Incfile or vice versa?

When it comes to starting a company, both sites offer very similar features and benefits. However, Incfile has a slight advantage because its sole purpose is to help entrepreneurs build their businesses from the ground up. Still, LegalZoom is a great online source for a variety of legal documents and advice, which means you could end up using both sites at the same time.

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The answers below are not provided, commissioned, reviewed, approved or otherwise endorsed by any financial institution or advertiser. The advertiser is not responsible for providing answers to all posts and/or questions.


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