Are you looking for the best online incorporation service, but you’re not sure which one is the right choice for you? LegalZoom and MyCompanyWorks are both services that can form an LLC or corporation on your behalf.
In this comparison, we’ll walk through the five main factors you need to consider when choosing between these services. Which one is the better overall option?
Comparison Based on the Five Key Points
In our review of each online incorporation service, we performed a “stress test” on each based on five key factors:
- Compared pricing and features to determine the overall value of each service.
- Researched their track record based on how many businesses they’ve formed.
- Assessed the quality of customer service based on customer reviews, as well as our own personal experience.
- Walked through the ordering process to determine each service’s ease of use.
- Reviewed the turnaround times for LLC and corporation formations.
Overall Pricing and Value
LegalZoom: LegalZoom is one of the most popular LLC and incorporation services available, but we found that does not translate into better value for their customers. While LegalZoom does offer an affordable $79 starting package to form an LLC and a $149 package to form a corporation, the number of upsells can get overwhelming — and expensive. Furthermore, they do not include registered agent service with any of their formation packages, and it costs $159 per year to add on.
MyCompanyWorks: Their basic package is $79, which isn’t a bad price considering the business documents included, but they do not include registered agent service. Also, with the higher-level packages costing $199 and $279, we would expect to see a bit more by way of added value. On the plus side, their registered agent service only costs $99 per year, which is a great rate.
Winner = MyCompanyWorks
While LegalZoom is priced competitively for LLC formations, their corporation formation packages are quite expensive. Furthermore, MyCompanyWorks offers much more affordable registered agent service, so ultimately we think they earned a close win in this category.
Company Track Record & Experience
LegalZoom: LegalZoom was founded in 1999, and they’ve served 3.6 million customers since then. While their focus isn’t solely on business formation services, they have helped form over one million businesses to date. If you look through LegalZoom customer reviews on any third-party site, you will almost always find a large number of one-star ratings and equally as many five-star reviews, resulting in a decidedly more mixed bag of feedback than many competitors have.
MyCompanyWorks: Founded as MyNewCompany in 2001, they recently changed their name to MyCompanyWorks. Since they opened for business, they’ve helped form more than 50,000 companies. When it comes to customer feedback, MyCompanyWorks truly shines. They have about 2,500 reviews available online, and over 97% of them are either 4- or 5-star ratings.
Winner = Tie
LegalZoom certainly has the edge when it comes to experience, and it’s not even close. However, MyCompanyWorks has an equally significant advantage in the realm of customer feedback. Depending on your preferences, you may prefer one over the other in this area, but in general we’ll call it a tie.
Customer Service Comparison
LegalZoom: LegalZoom offers phone and email support. We reached out twice via the email form on their site, but it took them a full week to respond. The response we received was generic – thanking us for reaching out, but not answering our question.
When we contacted them via phone, our question was answered very thoroughly. The representative went into detail about our different options, and then sent us an email with their direct extension so that we could reach out directly with questions. Overall, while their in-person customer service is great, their online support could be improved.
MyCompanyWorks: MyCompanyWorks provides customers with phone and email support. We reached out via the form on their website and received a response back in less than 24 hours, and we were also able to quickly reach an employee on the phone. Their reps were courteous and professional, and they elaborated a bit on their responses as well.
Winner = MyCompanyWorks
We were almost impressed enough by LegalZoom’s phone support to call this category a tie, but their poor response times to email inquiries tipped the scales in MyCompanyWorks’ favor.
Ease of Use
LegalZoom: Unlike most competitors, LegalZoom doesn’t give you your package options to begin the application. Instead, you enter your personal info first, then navigate through a series of rather costly upsells before you select your formation package. It’s a bit convoluted, and it can result in some surprisingly high price points by the time you work your way through the order form to the package select screen.
MyCompanyWorks: Once you’ve selected a package and any add-ons you need for your business, the application process is quick and easy. As long as you have all of the information you need, it shouldn’t take longer than 10-15 minutes. If you’re not sure where to begin with forming your business, they have a list of helpful articles covering topics like where to form your LLC or corporation, and which of those entities is the right choice for you.
Winner = MyCompanyWorks
The application process is simple and streamlined with MyCompanyWorks, and they can even help you figure out whether an LLC or corporation is the right choice. LegalZoom’s order form is strangely laid out, as they make you select your add-on features before you even get to decide what package you’re adding them onto. This category is another relatively easy win for MyCompanyWorks.
Speed of Formation
LegalZoom: LegalZoom doesn’t specifically explain their own turnaround time for processing and filing your paperwork with the state, but they do offer an estimated total turnaround time. Unlike most competitors, their turnarounds are based on which package you order, rather than which state you’re forming in. With their most expensive package, you could receive your finalized business formation documents in seven business days, but their cheaper packages take as long as 30 business days (six weeks).
MyCompanyWorks: MyCompanyWorks guarantees that they’ll process your formation paperwork the same day you submit your order if it’s before 3pm ET, or the next business day if you submit your order after 3pm ET. They also offer an upgrade to expedite service with the state once paperwork is filed, and they have detailed estimates for both standard and expedited service on the order form.
Winner = MyCompanyWorks
First off, they guarantee same-day or next-day processing for every order they receive, which is a guarantee LegalZoom can’t replicate. Furthermore, MyCompanyWorks bases their turnarounds on the actual requirements of your state, whereas LegalZoom merely pledges to work faster if you buy one of their premium packages as opposed to their entry-level package. Big win for MyCompanyWorks.
We weren’t really expecting this battle to be so one-sided, but MyCompanyWorks is a better option than LegalZoom in nearly every way. They have better prices, customer feedback, customer support, and ease of use, as well as superior turnaround times.
If your priority is to use the company that has the biggest advertising budget and the largest customer volume, by all means go with LegalZoom. However, we think MyCompanyWorks is the superior choice for the vast majority of our readers.