Are you looking for the best online incorporation service, but you’re not sure which one is the right choice for you? LegalZoom and MyCorporation 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.
MyCorporation: Their prices look better on the surface than they really are, because they charge an additional $34 for shipping and handling, a fee we’ve added to their package prices to make them easier to compare.
While their $123 Basic package is tremendously overpriced for such a barebones formation package, their $133 Standard package adds a year of annual report service, which is a valuable feature that very few competitors offer in LLC or corporation formation packages. They only include registered agent with their $233 Deluxe and $333 Premium packages ― other than that, their registered agent service costs $169 per year.
Winner = Tie
This one comes down to which type of business you’re looking to form. If you’re in the market for an LLC formation, LegalZoom is the better deal, but for corporations, we recommend MyCorporation instead.
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.
MyCorporation: MyCorporation opened for business back in 1998, and they’ve helped over one million clients form and manage their businesses since then. This impressive level of experience is supplemented by a couple hundred customer reviews which are available online, and these indicate that most of those clients are quite pleased with the service they receive.
Winner = MyCorporation
This category was extremely close, because LegalZoom has a bit of an edge in the area of customer volume, but MyCorporation soundly beats them when it comes to customer reviews. We’ll give this category to MyCorporation.
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.
MyCorporation: MyCorporation offers customer service via phone and email. We submitted a question by email, and received a response by mid-afternoon the next day. Our question was answered, but not greatly elaborated upon. We also called, and our response was slightly more detailed. We did not wait on hold for long, and it was easy to navigate through to a customer service representative.
Winner = Tie
In our experience, LegalZoom has the advantage for phone support, but MyCorporation has them beat if you’d rather email them. Depending on your preferences, you may weigh one option more strongly than the other when you’re making your decision, but for the most part we think they’re roughly equal in this area.
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.
MyCorporation: The application was easy to fill out, and we made it from the first page of the order form to the last screen within about ten minutes. You select your add-on options from the package select screen before entering the application, but there are a series of upsells right before you pay. The additional services at this stage of the application are offered based on choices you made earlier, and your price adds up on the screen as you go, including state-specific fees.
Winner = MyCorporation
There’s not a ton of difference in this area, but in general, if we’re going to experience upsells during the application process, we’d much rather see them at the end of the order form. That way, we know what we’re already working with, and we aren’t just taking shots in the dark like with LegalZoom.
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).
MyCorporation: MyCorporation isn’t very clear regarding turnaround times for forming a corporation or LLC. Depending on your state it could take a few days or it could take six weeks. Near the end of the application process, they invite you to pay an extra $100 to expedite processing “up to 85%” compared to standard filing, but if we’re spending that much extra money, we would like to know specifics.
Winner = LegalZoom
This category is pretty simple. If we’re presented with the option of having turnaround times estimated based on which package we purchase, or to not receive an estimate at all, we’ll take the first option. LegalZoom wins this round.
LegalZoom likely has more name recognition and brand power than any competitor in this industry, thanks to their hefty advertising budget. However, name recognition and brand power don’t always translate into a good deal for consumers. While LegalZoom does have an edge over MyCorporation in the area of turnaround time estimates, that’s the only category where we think they have a notable advantage.
These two companies are quite close competitors in most important areas of analysis, but MyCorporation truly pulled ahead based on their superior customer reviews, as well as their ease of use.