Starting a business is an exciting but complex journey. Whether you’re launching a small startup, a side hustle, or a large-scale corporation, the process often involves navigating a maze of legal requirements. One of the first steps in this journey is forming a legal entity, such as a Limited Liability Company (LLC) or corporation.
While this process might seem daunting, there are services available that can simplify it for you. Two of the most well-known and widely used platforms for business formation are LegalZoom and Bizee (formerly Incfile).
Both services offer a range of tools and features to help entrepreneurs get their businesses off the ground with minimal hassle. However, they cater to different needs and offer distinct pricing structures, support, and services. LegalZoom, founded in 2001, is one of the most recognizable names in the legal services industry.
It provides a wide range of legal services, from business formation to trademark registration and legal consultations. LegalZoom’s reputation for comprehensive service makes it a top choice for businesses seeking ongoing legal support, although it often comes with a higher price tag.
On the other hand, Bizee (formerly Incfile) has been a key player in the online business formation space for over 15 years. Bizee focuses primarily on LLC formation, offering an incredibly affordable and straightforward solution for entrepreneurs. Their pricing structure is designed to make it easy for entrepreneurs to get started without breaking the bank. One of the key perks of Bizee is its free year of registered agent service, which is included with most plans—a significant advantage for many small businesses.
The choice between LegalZoom and Bizee can be a tough one, as both platforms offer high-quality services. The right decision ultimately depends on the complexity of your business needs and your budget. In this detailed comparison, we will break down the key features, pricing, customer support, and reputation of both services to help you determine which is the better choice for your business.
Bizee (Formerly Incfile)
Bizee, formerly known as Incfile, is an online service that helps entrepreneurs form and manage their businesses. With over 15 years of experience, it has built a solid reputation among small business owners. It offers a variety of services ranging from LLC formation to ongoing business support. While the platform initially catered mainly to LLC formation, it now also provides services such as registered agent assistance, EIN (Employer Identification Number) acquisition, operating agreements, and annual report filing.
Bizee’s focus is on simplicity and cost-efficiency. It is well-regarded for offering affordable plans and clear, easy-to-understand pricing. Most importantly, Bizee’s service comes with a free year of registered agent services—a major perk for many business owners.
LegalZoom
LegalZoom, founded in 2001, is one of the oldest and most well-known names in the online legal services industry. Unlike Bizee, which primarily focuses on business formation, LegalZoom provides a comprehensive range of legal services, from trademark registration to estate planning. LegalZoom is well-established, with millions of customers across the globe. While it does offer LLC formation, it is not limited to that service—its suite of offerings extends to business consulting, intellectual property protections, legal document services, and more.
One of LegalZoom’s major selling points is its wide variety of services that go beyond business formation, making it a go-to solution for businesses that might need ongoing legal assistance. However, this also means that its pricing is typically higher compared to Bizee, especially for ongoing services like registered agent management.
How Bizee and LegalZoom Compare
Let’s break down the two platforms based on various criteria that matter to business owners.
Business Formation Services
When it comes to business formation, both Bizee and LegalZoom provide the essentials needed to get your LLC or corporation off the ground.
- Bizee: Bizee’s primary focus is on business formation. It offers a basic plan that allows you to register your LLC with just the state filing fees. You can also add additional services such as an EIN (which is necessary for tax purposes), an operating agreement (a requirement for some states), and more.
- LegalZoom: LegalZoom also offers LLC formation services. However, LegalZoom’s focus isn’t just on LLC formation—it offers a range of services that include registered agent services, legal document creation, and even ongoing legal consultations. While LegalZoom offers a similar basic package to Bizee, its higher service fees make it a pricier option for basic LLC registration.
Cost
Cost is often one of the most important factors when choosing a service to help you form your business. Both platforms provide affordable initial pricing, but their ongoing costs differ substantially.
- Bizee: Bizee offers a “free” LLC formation package, where you only pay state filing fees (typically between $50 and $500, depending on your state). If you choose their “Silver” package, which includes the basics like an EIN and operating agreement, it’s a reasonably low-cost option. Additionally, Bizee includes a year of registered agent service for free with its plans, making it an especially attractive option for those looking to keep costs low.
- LegalZoom: LegalZoom’s pricing structure is a bit different. Its basic LLC formation package starts at $79 plus state fees. However, when you opt for add-ons like registered agent services (which cost $249 per year), the overall price can increase significantly. LegalZoom offers more customization in its services, which adds to the overall cost. For example, if you choose to have a legal consultation or other business-related legal services, these can add to the price.
In terms of pure affordability, Bizee stands out due to its free initial offering and the inclusion of essential services in its pricing. LegalZoom, on the other hand, tends to be more expensive, especially if you need ongoing legal services or more advanced features.
Customer Support
Customer support is crucial for new business owners who might run into issues during the formation process. Both Bizee and LegalZoom offer customer support, but there are some differences.
- Bizee: Bizee has a strong reputation for its customer support. Many users praise the platform for its responsive phone and email support. The company provides easy access to representatives who can guide you through any questions you may have about the business formation process. This is particularly beneficial for first-time entrepreneurs who may need assistance understanding the requirements for their business.
- LegalZoom: LegalZoom’s customer support is generally reliable, with phone and email options available. However, some customers have expressed frustration with longer wait times, especially via email. LegalZoom also offers access to legal consultations, which can be helpful if you need more in-depth advice. While it’s generally good, it doesn’t always provide the same quick turnaround that Bizee users report.
Customer Reviews and Reputation
Customer reviews are an important indicator of the quality of service a platform provides. Both Bizee and LegalZoom have garnered attention in the industry, but their reputations vary.
- Bizee: Bizee has earned over 75,000 positive customer reviews, making it one of the more well-liked services for business formation. Many users have praised Bizee for its simplicity, affordability, and excellent customer service. The free year of registered agent services is particularly popular among users looking for low-cost solutions. Bizee has been commended for offering a straightforward and easy process, especially for those forming their first business.
- LegalZoom: LegalZoom also has a good reputation but has received more mixed reviews. With over 6,000 customer reviews, many users commend its broad range of services and the ease of forming an LLC through its platform. However, some customers feel that LegalZoom is too expensive for basic services and that the quality of customer support could be improved. The reviews often highlight the platform’s strengths in legal document preparation and trademark services but also point out the lack of responsiveness in some customer service situations.
Bottom Line
Both Bizee and LegalZoom are reliable options for business formation, but they serve slightly different needs.
- Bizee: If you are a first-time entrepreneur looking for an affordable and simple way to form your business, Bizee is an excellent choice. With free LLC formation (aside from state filing fees) and a year of free registered agent services, Bizee provides an attractive package for businesses that don’t need extensive legal services beyond formation.
- LegalZoom: On the other hand, if your business requires ongoing legal support or you anticipate needing additional services, such as trademark registration, legal consultations, or estate planning, LegalZoom may be more suitable. Although it’s more expensive than Bizee, the breadth of its offerings could justify the extra cost if you need legal services beyond business formation.
Top LegalZoom and Bizee Alternatives
While Bizee and LegalZoom are solid options for many entrepreneurs, you may want to consider some alternatives before making your final decision. Here are a few that might be worth exploring:
- ZenBusiness: A cost-effective business formation service with a strong reputation for customer service. It provides LLC formation starting at $0, plus state fees, and includes features like registered agent service and annual compliance management.
- Inc Authority: Offers free LLC formation (state fees apply) with a year of free registered agent service. Inc Authority is great for entrepreneurs looking to get their LLC off the ground without spending a lot of money upfront.
- Northwest Registered Agent: Known for exceptional customer support and privacy protections, Northwest Registered Agent is a bit more expensive than Bizee or LegalZoom but is worth considering if you prioritize customer service and privacy.
Conclusion
In conclusion, both LegalZoom and Bizee (formerly Incfile) are reliable and well-established platforms for business formation, each with its own set of strengths. Your choice between the two should be guided by your specific needs and the level of service you’re looking for.
If you’re a first-time entrepreneur looking for an affordable, straightforward solution to form your LLC, Bizee is an excellent choice. With a free LLC formation plan (aside from state filing fees) and a free year of registered agent services, Bizee provides a cost-effective option for those just starting their business journey. Its focus on simplicity and low-cost offerings makes it a strong contender for businesses that don’t require extensive ongoing legal support.
However, if you’re seeking a more comprehensive range of legal services beyond just business formation, LegalZoom may be more suited to your needs. With services such as trademark registration, legal consultations, and access to a broad array of business law tools, LegalZoom is ideal for entrepreneurs who foresee ongoing legal needs as their business grows. While its pricing is higher, particularly for ongoing services like registered agent management, the wide array of options and extensive support can make it a valuable resource for long-term business success.
Ultimately, Bizee is the better choice for entrepreneurs focused on affordability and simplicity, while LegalZoom offers the depth of legal services necessary for those who require more comprehensive support. The decision comes down to the level of service you need and your business’s long-term goals. Whichever service you choose, both platforms will help ensure that your business gets off to the right start.
FAQ’s
Is Bizee really free?
Yes, Bizee’s LLC formation is free, but you will still need to pay state filing fees. They also include a free year of registered agent service, which can save you money in the first year.
Does LegalZoom offer a free plan?
LegalZoom doesn’t offer a completely free plan, but their basic LLC formation starts at $79, plus state filing fees. However, additional services like registered agent service come at an extra cost.
Can I upgrade my plan with Bizee?
Yes, you can upgrade your plan with Bizee. They offer different tiers, including Silver and Gold packages, which provide additional services like EIN acquisition and operating agreements.
Does LegalZoom provide ongoing legal support?
Yes, LegalZoom offers ongoing legal support, including consultations with lawyers, which is useful for businesses needing advice on various legal matters beyond formation.
Which service is better for first-time entrepreneurs?
Bizee is better for first-time entrepreneurs due to its straightforward and affordable approach to business formation. LegalZoom may be more suitable for those who need more comprehensive legal support as they grow their business.