If you are currently in the process of formulating plans to go into business by starting your very own limited liability company, then it’s very likely that you are looking to open an LLC online and are weighing up your options regarding which online LLC formation service to use.
Creating an LLC is more popular than ever and any quick Google search will show you the volume of llc registered agent formation businesses currently operating to assist soon-to-be small business owners with the start-up and ongoing maintenance of their new enterprise.
Here, we will look at two of these popular business formation companies with an InCorp vs IncFile comparison and see how they fare next to each other to help you decide if either of these companies seems like the right fit for your business start-up needs.
The costs to register an LLC can vary considerably, which is why it always pays to shop around first. That said, LLC formation these days is – generally – surprisingly affordable. However, even though the prices between some companies may be very competitive, what you actually get for your money can vary wildly. This is why a fair amount of homework needs to be done before selecting whose service you will pay for and why, as you will see here. Weighing up between IncFile or InCorps, the first stark difference is that IncFile offers services (and required ones at that) for free! Arguably the most significant of these is the registered agent service, a legal requirement for LLCs in all 50 states. IncFile will provide you with an entire year of registered agent services, no matter which of their small business formation packages you go for. Compare this with InCorps – whose base price tag for their llc formation service is $117 – with the registered agent service for 12 months coming at an additional cost.
This is not to say that InCorps are bad. They are not. There is plenty to support the fact that they are very good – they just have a different approach in how they deal with the llc formation services that they provide.
Let’s have a deeper look at both companies and also stack some key factors alongside each other and see how IncFile and InCorps compare.
IncFile vs InCorp: What Sets Them Apart?
Both companies are well experienced. IncFile, founded in 2004, have now been in business for 17 years and have half a million business formations to their name. Customer feedback is heavy in their favor, with reviews across the Internet, which are generally positive – and there are thousands of them, with any negative quibbles being the exception and not the norm.
The Las Vegas-based IncCorp have even more experience. They have been registered since 1998 and have a wealth of business formations under their own belts. What they lack, surprisingly, considering how much longer they have been established for, is a high review volume when compared to IncFile. The reviews they do have though are again mostly positive with more than enough testimonials to put a new entrepreneur’s mind at rest.
One of the first things anyone will look at when it comes to pay-for-hire is of course the price. Here, there is a vast difference, as was mentioned in the introduction.
IncFile offers a start-up package that is absolutely free. $0.00 – and it includes the annual recruitment for the required registered agent who will handle all your business legal documents, which takes the weight off your mind in regards to the timely filing of state requirements for your business to be legally operational.
This is at huge odds with InCorp, whose lowest price tag on a start-up bundle is $99 – and that is minus the inclusion of a registered agent. They will provide one if requested (and remember, you will need one) but it will come at an additional cost.
As well as a new business venture coming with its intrinsic risks, most people will have a budget for their new enterprise that isn’t going to break the bank before they begin – so at first glance, the immediate difference to the start-up costs could itself be the deciding factor. But it should be kept in mind, that even with the InCorp base price tag – before you even get to additional service necessities, that it is a fraction of the cost should you opt to bypass all llc formation services and do it yourself with a lawyer.
Here’s a breakdown of bundle costs and features:
Something else to consider when forming an llc is the ongoing maintenance of it, not just the initial steps to be able to declare your business legitimate. Once it is, dependent on the service or services your LLC will provide, will you require additional business services as things move along? What ongoing tools will be needed for compliance with the state legislature? In these instances, both IncFile and InCorps have multiple additional options available, and in this regard, they are fairly evenly matched.
Another crucial element often in the mix of the decision-making when selecting a company to open a new LLC with, is the efficiency of the services offered: does the LLC formation company have a fast turnaround rate or are they not in as much of a hurry as their clients? For those deciding between IncFile vs InCorps, wanting to get things done and have their new business up and running sooner rather than later, this isn’t a problem with either company. It comes with an additional cost, but both companies provide expedited processing services, should you request them, which has the benefit of shortening the turnaround time from weeks to just a matter of days – though this can be dependent on which state your LLC is being registered in. IncFile also offer an order tracking service, which enables you to stay updated with alerts for your documentation as it makes its way through the system.
Finally, to continue with the subject of efficiency, how do IncFile and InCorps hold their own when it comes to customer service? It’s inevitable that during the formation process of your business, you will have more questions and will be making phone calls and/or sending emails. You’ll be pleased to know that both of these llc formation service businesses have a reassuringly wide-ranging customer service support that is both knowledgeable and professional. They are available for all your llc help and answer any question. IncFile are very popular due to their low base rates and this does mean that you may not necessarily get through the first time you call them – but – if you leave them a voice message, they will return your call the same day.
Year one with IncFile includes a registered agent service. The registered agent will guide you along the way and ensure your documents are filed correctly and in a timely manner with the state, and make sure that you and your llc remain in compliance throughout the year. After these free 12 months are up, a registered agent service for any subsequent years will cost $119 annually. This is more than fairly priced and is in fact one of the lower price tags: for almost all registered agent subscriptions, you can expect to be paying around $150.
For online customer reviews, IncFile has a low average on Trustpilot, with a Trust review score of just 2.4 out of 5. They don’t fare much better on Yelp either, though the actual review count is low at 73, but from that number, IncFile only managed to gain a 2-star average. That said, the more recent reviews tend to be more positive. The general complaints are directed at issues relating to the amount of time being taken to process documents (some claim months) while the most common are in regards to dissatisfaction at the customer service – or lack of it. But… Reviews on Better Business Bureau and Shopper Approved rank them much, much higher – the latter giving them an average of 4.8 from 5, and that from a much more of a huge total of almost 27,000 reviews – a statistic which is a lot more encouraging all round. It’s also worth noting that with the number of years IncFile have been operating for plus the number of LLCs under their belts, they are clearly doing something right.
InCorp do better at a glance on Trustpilot with a rating of 4.2 out of 5 – however, a second look will tell you that this average comes from just 6 reviews. Elsewhere, they do just as well if not better, averaging 4 to 5 out of 5 stars. Feedback in relation to customer service is positive, the general consensus being that any questions asked were answered and problems solved quickly with customer support representatives.
Though they have different approaches toward the same goal to form a new business, the llc formation processes of both companies are on pretty equal footing. Some online services for new business start-ups can be off-putting with a cluttered website and lack of intuitive interaction for potential clients. But although InCorp’s llc website is not the best or as conveniently laid out as IncFile’s, both companies do well in this regard compared to some of their other competition.
As for the hands-on services once registered, both of these companies do most of the work for you, making your llc enterprise come to life as simply as possible – the exact reason they are there.
Ultimately, only you can decide which formation service will be the best to set up an llc with. If your budget and the cost to start an llc is the key contributing factor, then IncFile will be hard to pass by. Although the end goal is the same, llc formation services operate their own way and structure the creation processes to their own bundles. Regardless of costs, the InCorp vs IncFile evens out fairly in regards to professionalism, customer support, and efficiency. Both entities are more than capable of helping you get your own business on its feet. However, IncFile’s biggest advantage is that even its lowest-priced packages come with superior features, ones which are either missing entirely or only available at extra costs with some competitors. It’s possible to save hundreds and hundreds of dollars right from the word go with IncFile and is why they are tough competition for their business peers and impossible to be ignored by new entrepreneurs.