Do you want to form a new corporation, but you need some help with the formation process?
There are many online incorporation services available, but it can be tricky to figure out which one is the right fit for your business. ZenBusiness and MyCompanyWorks are both reputable services in this industry that can form your new business entity accurately and efficiently.
In this comparison guide, you’ll find all the relevant details about how these companies fare according to our five key points for business incorporation services. Is ZenBusiness or MyCompanyWorks the better option for you?
Key Comparison Points
In our review and comparison of each online incorporation service, we performed a “stress test” on each based on 5 key factors:
- Compared pricing and features to determine overall value.
- Researched their track record.
- Assessed the quality of customer service.
- Tested their ordering process and service’s ease of use.
- Reviewed the turnaround times for incorporating online.
As you’ll see in this comparison review of ZenBusiness and MyCompanyWorks, they are both good incorporation services. However, we think ZenBusiness is the better option because of their $40 lower prices and their year of included registered agent service.
Overall Pricing and Value
ZenBusiness: Does the idea of receiving your corporation formation for just $39 (plus state fee) appeal to you? ZenBusiness is the only company in this industry that offers a formation package that offers an incorporation package for such an affordable rate, and it includes registered agent service, corporate bylaws, and a risk-free CPA assessment. We also appreciate their $149 plan, which adds annual report service, compliance monitoring, a banking resolution, and a federal tax ID number (EIN).
MyCompanyWorks: Their basic formation package has a price point of $79, which is pretty reasonable as this package does include some business documents, but on the other hand it does not have registered agent service. Their more expensive packages don’t really include enough added value to make them good values though. However, they do offer registered agent service for the low rate of $99 per year.
Winner = ZenBusiness
ZenBusiness not only has a $39 incorporation package, but their $149 plan that includes a bunch of advanced features is also a better deal than anything MyCompanyWorks has to offer. ZenBusiness wins this category by quite a bit.
Company Track Record & Experience
ZenBusiness: They’ve only been open for a few years, as ZenBusiness was just founded in 2015. In those few short years, they’ve already formed thousands of LLCs and corporations, and their stated goal is to complete one million more business formations in the next five years. When it comes to customer reviews, ZenBusiness really stands out from the pack, as they have hundreds of reviews across the internet, and almost all of them are perfect five-star scores.
MyCompanyWorks: This company formed in 2001 under the name MyNewCompany, and they changed their name to MyCompanyWorks a couple of years ago. To date, they’ve formed over 60,000 business entities. Their customer feedback is arguably even better than ZenBusiness’, because they have 2,600+ reviews online, and over 97% of them are either four or five stars.
Winner = MyCompanyWorks
This category is a pretty close one, but MyCompanyWorks pulls out the win. They have more experience than ZenBusiness, and they have a massive volume of positive customer reviews as well.
ZenBusiness: ZenBusiness offers three options to access their customer support team — you can call them, email them, or chat with them through the portal on their website. We have experience with all three choices, and we’ve found that they consistently provide high-quality support. Their reps are friendly, and they respond quickly as well.
MyCompanyWorks: With MyCompanyWorks, clients can access their support network via phone or email. They typically respond to phone calls and emails within 20 minutes during business hours, which is a great benefit. Their reps are professional and courteous, and they have always provided thorough responses to our questions.
It’s a tie!
These companies are pretty similar in this regard, especially when it comes to their response times, which are much quicker than most competitors. All told, we’ll call this category a draw.
Ease of Use
ZenBusiness: ZenBusiness simplifies the business formation process to the point where you’ll only invest a few minutes filling out their order form. All you need to do is choose your formation package, and provide them with basic information about yourself and your business.
MyCompanyWorks: Their formation process is similarly streamlined, as it only took us about 10-15 minutes to provide them with all the information they needed to form our business entity. They can also help you figure out which kind of company to form, thanks to their helpful collection of business articles. MyCompanyWorks doesn’t push many upsells at all, but there are a handful of third-party offers to navigate past when placing your order.
It’s a tie!
Both of these companies do a good job of simplifying the entire process of forming an LLC or corporation, and while they both have some issues with third-party partnerships, neither of them sticks out in this area. All that said, we consider this category to be a tie.
Speed of Formation
ZenBusiness: The vast majority of their competitors have formation speeds that are based on each state’s ability to process business formations, but ZenBusiness handles this aspect differently. Their turnaround times are instead based on which formation package you purchase. Their Starter package has a 3-4 week turnaround, their Pro package can be completed in 1-2 weeks, and their top-tier Premium plan takes 3-5 days.
MyCompanyWorks: MyCompanyWorks guarantees to prepare and file your articles of organization/incorporation the same day if you make your purchase before 3pm ET, or the next day if you place your order after that. They provide estimates for each state on their order form, including turnaround times for both standard and expedited processing, where available.
Winner = MyCompanyWorks
In our opinion, it’s always preferable when a company bases their turnaround times on actual state processing speeds, rather than speeding up or slowing down your formation process based on how much you paid them. In addition, MyCompanyWorks is impressive in this category, with their same-day processing.
If you add up the total number of categories that each company won in this comparison, you would find that MyCompanyWorks wins two categories, compared to one category for ZenBusiness, along with two ties. So, MyCompanyWorks is our overall winner, right? Not so fast.
While we do think MyCompanyWorks has a couple noteworthy advantages over ZenBusiness, the one category ZenBusiness won is also easily the most important one ― overall pricing and value.
Their value proposition is so much better than MyCompanyWorks’ that we feel it outweighs the categories where MyCompanyWorks has an advantage. That said, if you value experience or formation speeds more than we do, MyCompanyWorks is also a good company that’s easy to recommend.
What Is the Biggest Advantage of Each Service?
ZenBusiness has a huge advantage over every other company in this industry, in the form of their $39 business formation package ― there are no other companies that offer business formations for such an affordable rate.
As for MyCompanyWorks, we think their biggest advantage over ZenBusiness is their experience and longevity, as some people simply prefer to use a company that’s been around since 2001, instead of one that just formed a few years ago.
Which Is the Best Package Available From These Services?
In our opinion, it’s usually a good bet to find the least expensive formation package that includes registered agent service.
With this in mind, we’re big fans of the Starter package from ZenBusiness, which isn’t just our favorite package from these two providers, but it’s also one of our favorite business formation packages overall. The Starter only costs $39 for your first year ($119 after that), and it includes your incorporation, registered agent service, corporate bylaws, and a CPA consultation.
Which Company Offers More Help With Ongoing Compliance Requirements?
With either one of these companies, you’ll have access to a wide variety of tools and features that can help your business stay in good standing with the state. With ZenBusiness, registered agent costs $119/year, and they also offer annual report service for the reasonable rate of $75.
MyCompanyWorks offers registered agent service for an annual rate of $99, and their annual reports cost $99 as well.
Can I Get a Refund if I Need One?
Both of these services have refund policies that are best described as confusing. MyCompanyWorks has tiers of processing fees that range from $25 to $75 that are assessed depending on when you request your refund. In addition, they do not offer refunds at all once they’ve submitted your business formation paperwork to your state.
As for ZenBusiness, we’re honestly not sure if they ever grant refund requests, or what the conditions might be for acquiring one. Take a look at how they explain it in their own words: “Once ZenBusiness has submitted your business for filing with the State under no circumstances can you charge-back or dispute the fees associated with forming your business. If you contact ZenBusiness before your business has been submitted for filing with the State, ZenBusiness may refund the charge, less a $50 cancellation fee, if certain conditions are met.”
Which Is the Better Option if I Need Publication Service?
In some states, you need to publish your company’s formation in a regional newspaper. For example, Arizona and Nebraska require publication for LLCs and corporations, New York requires it for LLCs only, and Pennsylvania and Georgia have this requirement for corporations only.
MyCompanyWorks provides clients forming businesses in these states with a set of detailed instructions outlining how to complete this requirement, but ZenBusiness actually offers to handle this entire process for you.
Do Either of These Services Go Overboard With Upsells or Third-Party Partnerships?
ZenBusiness attempts a couple hundred dollars in upsells as you fill out their order form, and they also have two third-party partnership offers in their upper-tier formation package. MyCompanyWorks lays off the upsells for the most part, but they do have several third-party offers to navigate through as you place your order.
Am I Required to Use a Formation Service?
There is nothing that legally requires you to use a professional service when forming a new business entity. If the DIY option is something that appeals to you, you can find a how-to guide for forming a corporation right here on this website. We would like to mention though that the corporation is a complex business structure in general, and we only advise forming your own if you are entirely comfortable with the incorporation process.