Why Compare Mycorporation vs Legalzoom?
Thousands of new LLCs are created every day in America, indicating that the limited liability company is becoming a more popular corporate structure. The LLC is a hybrid company structure that falls between the formalities of a corporation and the informality of a general partnership or sole proprietorship.
You must choose a registered agent service if you wish to create an LLC in the United States. The registered agent’s job includes using their location as your official business address, meaning they’ll receive essential document deliveries on your behalf, such as court summons and other official letters from your state government.
If you own a business, you must be aware of the dangers as well as the potential for profit. Sure, you can make more money than you spend, which is the whole idea of running a business. However, if your business assets are insufficient to offset your losses, you risk losing your personal assets.
Creditors may step in to collect their debts, but your company’s assets may not be sufficient. Alternatively, customers and even workers may file claims for losses that your company is unable to compensate. These circumstances jeopardise your personal possessions. You might lose everything you own, including your house, vehicle, and bank account.
There are numerous firms that provide LLC registration and registered agent service online, and it can be difficult to know which one is looking out for your best interests. In this comparison, we’ll look at LegalZoom and MyCorporation in detail.
MyCorporation and LegalZoom are two of the most popular LLC formation services in the United States, and both are excellent options for forming your new business. Both are simple to suggest, but we believe LegalZoom is the better option for the majority of our readers.
Most crucially, even for very identical services, LegalZoom’s cost is far lower than MyCorporation’s. In addition, LegalZoom offers weekend customer assistance, whereas MyCorporation does not.
When it comes to online incorporation services, LegalZoom is almost always the first name that springs to mind. This is due to the fact that they have serviced millions of consumers and promote aggressively across a variety of media. LegalZoom’s pricing models are more expensive than those of several of their rivals, and none of their LLC formation packages include registered agent service.
MyCorporation has excellent customer reviews and provides excellent service. The problems with MyCorporation, on the other hand, begin with the $34 delivery cost, which is not included in the quoted price of their goods. Given that all it covers is sending a few pieces of paper, this is a pretty hefty cost. In addition, for $100 or more, they offer “rush processing,” although they don’t specify how much this reduces your turnaround time.
Things LegalZoom have in common with MyCorporation
Both of these LLC formation services options are far less expensive than employing an attorney to write and file your paperwork. It’s a good compromise between the formality of a lawyer and the bother of doing it yourself.
MyCorporation and LegalZoom both have excellent customer service systems that may help you out in a situation. All you have to do is pick up the phone if you have a query or run into an unforeseen issue.
Both of these businesses deal with a large number of clients. LegalZoom and MyCorporation are two well-oiled LLC service machines, both serving millions of consumers.
MyCorporation and LegalZoom both provide money-back guarantees. If you’re dissatisfied with your LLC service for any reason, all you have to do is ask for a refund. No further inquiries.
Both LegalZoom and MyCorporation provide online learning centres chock-full of information on business formation services, continuing compliance concerns, payroll services, and more.
Side by side comparison
Overall pricing and value
LegalZoom is one of the most widely used LLC and incorporation services, however we discovered that this does not convert into greater value for its clients. While LegalZoom does provide a $149 incorporation package, the amount of upsells may quickly become bewildering – and costly.
Furthermore, none of their creation packages include registered agent service, which may be added for a charge ranging from $159 to $299 each year.
On the other hand, MyCorporation’s pricing appears to be lower on the surface since they charge an extra $34 for shipping and handling, which we’ve included in their package prices to make them simpler to compare.
While their $133 Basic package is expensive for such a basic formation package, their $158 Standard plan includes a year of annual report service, which is a useful feature that few rivals in LLC or company formation packages provide.
For a total of $224, the MyCorporation Deluxe package also includes registered agent services. This service is an add-on that costs $120 a year, but you can get it for just $100 more. They will also add one year of managed annual report service for an extra $25.
In conclusion, MyCorporation’s Standard plan is pretty tempting if you’re incorporating online and receiving yearly report service is a priority for you.
Company track record and experience
It’s critical to remain with trustworthy online incorporation services, regardless of which brand you choose from the two alternatives above, or any brand for that matter. What you don’t want to do is take a chance on a novice who could mess up the job or even take your money without performing any work for you. This can also be seen via evaluation of customer reviews.
Since its founding in 1999, LegalZoom has serviced 3.6 million consumers. While their primary focus isn’t on business development, they have assisted in the formation of over one million firms to date.
If you go to LegalZoom customer reviews on any third-party site, you’ll almost always discover a high number of one-star ratings and just as many five-star customer reviews, resulting in a far more mixed bag of comments than many of its competitors.
Since its founding in 1998, MyCorporation has assisted over one million clients in forming and managing their businesses. This outstanding level of experience is backed up by a couple hundred online customer evaluations, which show that the vast majority of clients are happy with the service they receive.
MyCorporation is older than LegalZoom, which is a rare occurrence in the sector. They’ve also assisted over a million clients, which isn’t unexpected given how long they’ve been in business. Instead of thousands of online consumer evaluations, they just have a few hundred.
Nonetheless, the majority of these evaluations are quite complimentary of MyCorporation. It appears that using MyCorporation will give you a higher chance of exceeding your goals.
Although LegalZoom has a little advantage in terms of client numbers, MyCorporation easily outperforms them when it comes to user ratings. Therefore, MyCorporation wins this category.
LegalZoom provides phone and email customer service. We contacted them twice using their website’s email form, but it took them a week to answer. We received a boilerplate response, thanking us for contacting them but without resolving our question.
Our question was properly handled when we contacted them by phone. The person went through our options in great detail and then provided us an email with their direct line so we could contact them directly if we had any issues. Overall, while their phone assistance is excellent, they might enhance their online support.
If you send customer support an email, you’ll almost certainly have to wait a week for a response. This response will likewise be useless, as it will not answer your queries in any way. In reality, it will appear to be an automated message. It will also offer their customer service phone number, which is something you should have done in the first place.
You’ll have a lot better experience if you call them. They respond to your call much quicker, and you will be assisted by a competent representative. Because this agent will be based in the United States, there will be no issues with unintelligible accents.
The customer support agent will respond to your queries in a detailed manner. They can also assist you with any incorporation-related considerations you are considering. They’ll inquire about the specifics of your circumstance before outlining your different alternatives. Their customer support is really beneficial.
MyCorporation, on the other hand, provides phone and email customer care. We emailed a query and received a response by the next day’s mid-afternoon. Our query was answered, but not in great detail. We also contacted, and we provided a somewhat more thorough response. We didn’t have to wait long on hold, and getting through to a customer care agent was simple.
LegalZoom has the edge when it comes to phone help, but MyCorporation has them beat when it comes to email support. Depending on your tastes, you may favour one option over the other when making your selection, but we believe they are approximately comparable in this regard.
Ease of use
With so many individuals working from home these days, it’s critical that the service website be simple to use. On the overall, both websites are simple to use. They provide detailed directions on what you should do at each step of the procedure, as well as detailed explanations for each service.
Unlike most of its rivals, LegalZoom does not allow you to choose your package before starting the application. Instead, you fill up your personal information first, then go to a series of expensive upsells before choosing your formation package.
It’s a little confusing, and it may lead to some shockingly expensive prices by the time you get to the package selection screen after working your way through the order form.
For MyCorporation, the application was simple to complete, and we completed it in about 10 minutes from the first page of the order form to the last screen. Before opening the programme, you choose your add-on choices from the package pick screen, however there are a series of upsells immediately before you pay.
Additional services are provided at this step of the application depending on your previous choices, and your price is calculated on the screen as you go, including state-specific costs.
There isn’t much of a difference here, but we’d much prefer see upsells towards the conclusion of the order form if we’re going to see them during the application process. That way, we know exactly what we’re working with and aren’t guessing like we were with LegalZoom.
Speed of formation
Unlike most rivals, LegalZoom’s turnaround times are determined on the package you buy rather than the state in where you’re forming. Your finished business formation paperwork might arrive in 7-10 business days with their most costly plan, while their less expensive options can take up to 30 business days, which is equivalent to six weeks.
MyCorporation isn’t very clear about how long it takes to create a company or an LLC. It might take a few days or six weeks, depending on your location. They urge you to pay an additional $100 (plus state charge) at the conclusion of the application process to expedite processing “up to 85 percent” faster than regular filing, but if we’re going to spend that much money, we’d want to know what we’re getting for it.
This is a straightforward category. If given the choice between receiving a turnaround time estimate based on the package we purchase or not receiving one at all, we’ll choose the first option. We also don’t appreciate how MyCorporation charges such a hefty expedited cost in-house. This round goes to LegalZoom.
LegalZoom and MyCorporation both provide status websites where you can see the most up-to-date information regarding your purchase. They aren’t the most opulent order tracking systems available, but they do the job.
Both MyCorporation and LegalZoom provide a number of other business services that may make your life as an entrepreneur much easier, and they provide many of the same services. LegalZoom or MyCorporation, for example, offer registered agent services, international qualifications, EIN acquisition, yearly reports, and more.
However, each of these businesses offers certain unique services that you won’t be able to get from the other. Promotional items and apparel, retail packaging, and print marketing are some of the branding services provided by MyCorporation.
Meanwhile, LegalZoom offers a number of unique services, most of which revolve on the fact that they offer personal services in addition to commercial services, allowing them to assist you with things like wills, divorce documents, and powers of authority.
Conclusion – Which LLC service should you choose?
Both LegalZoom and MyCorporation are reputable and skilled organisations that are worthy of consideration for LLC services. We understand that some of you may still be uncertain about which one to use, so let’s have a look at some instances in which you might choose one over the other.
MyCorporation is the way to go if you want to take advantage of the 50 percent discount LLC formation service voucher MyCorporation gives on Yelp, or if you want yearly report service included in with your LLC formation, since these are two of the most frequent reasons people pick MyCorporation over LegalZoom.
If you value experience above all else, as well as brand power or client volume, and the ability to work with a firm at a reduced cost, then LegalZoom should be a good choice for you.
MyCorporation is still a feasible choice because it has the same level of experience as LegalZoom and offers more cost-effective solutions. MyCorporation’s Deluxe bundle is arguably superior to any LegalZoom plan because it already includes registered agent service.
While both LLC services in our comparison provide good overall value and have helped thousands of people start businesses, we believe LegalZoom is the best choice. However, none of these LLC services is our top choice in the long run. We strongly advise you to review our list of the finest LLC services to determine which is the best alternative.
Frequently asked questions – LegalZoom vs MyCorporation
Which is the best package available from these services?
We typically recommend that our readers select a package that covers both business entity creation and a year of registered agent service.
With this in mind, the MyCorporation Deluxe package, which costs $258, is the best option from LegalZoom or MyCorporation (plus state fee). This package includes a year of registered agent service and a year of managed annual report service. If you want to save money, Incfile offers packages that include both business creation and registered agent services.
If I want to use LegalZoom, which package should I choose?
Our favourite LegalZoom LLC formation option is the Economy package, which costs $79 and includes everything you need to get started (plus state fee). This package contains the fundamentals of formation as well as a banking resolution to assist you in opening a company bank account.
However, we do not suggest their $329 Standard or $349 Express Gold packages because they are considerably expensive for the services you receive.
Does LegalZoom handle extra state requirements such as New York Publication?
LegalZoom does not handle state-specific regulations like as publishing, as do some of its rivals.
While you’ll have to handle your own publishing requirements if you’re creating an LLC in a state that demands it, LegalZoom can handle some of the more straightforward state requirements, such as Alabama’s name reservation. MyCorporation, for the record, does not provide publication services.
What is the biggest advantage of each service?
LegalZoom’s main benefit over MyCorporation is their turnaround times. MyCorporation does not provide anticipated processing timeframes on its website and charges a hefty cost for expedited service, whereas LegalZoom explicitly states their response times.
MyCorporation also offers advantages over LegalZoom, such as superior customer reviews; MyCorporation consistently provides positive customer reviews, whereas LegalZoom receives a mixed bag.
Which company offers more aiding with ongoing compliance requirements?
You may get continuing compliance help from any of these businesses, albeit the costs are different. Annual report service with LegalZoom is $55 (plus state charge), however their packages that include registered agent service are priced differently, ranging from $159 to $299 each year.
The annual report service from MyCorporation costs $99, but it is completely managed (meaning they track your due dates and send you reminders), whereas LegalZoom’s annual report service is not. MyCorporation charges a fixed yearly cost of $120 for registered agent services.
Am I allowed to get a refund?
LegalZoom offers one of the finest refund policies in the business, allowing you to get a full refund of your service fees if you request it within 60 days of the purchase date. MyCorporation has a refund policy that is comparable to MyCorporation’s, with the same 60-day request timeframe.
One notable distinction is that if you bought any tangible items or require them to make changes to your formation paperwork, MyCorporation charges a $25 reprocessing fee.
Which service is better if I need a publication service?
In certain states, you must publicise the creation of your business in a local newspaper. Arizona and Nebraska, for example, demand publishing for both LLCs and corporations, whereas New York only needs it for LLCs, and Pennsylvania and Georgia only require it for corporations.
Unfortunately, neither LegalZoom nor MyCorporation can help you with publishing requirements, so if you’re starting a business in one of these five states, you’ll have to do it on your own.
If you’d want to use a service that includes both publication and business formation, check out ZenBusiness. See our comparison of Incfile, one of the most well-known incorporation services, to get a sense of how their services compare to other choices.
Which service has fewer upsells?
MyCorporation doesn’t have many upsells, but they do offer a list of optional services on their order form that isn’t presented in an aggressive way. However, LegalZoom’s upsells are out of control.
They try $1,080 worth of upsells before you even get to the package selection screen while filling out their purchase form for LLC service.
Will my information be shared with third parties via these services?
Unlike many of its rivals, LegalZoom does not pitch clients with third-party partnership offers that are merely disguised attempts to exchange or sell your personal information.
One of the major reasons we include this topic in our FAQs is because of MyCorporation. MyCorporation has so many third-party partner offers that if you accepted all of them, your information would be shared with at least six different organisations.
On the LLC formation service package selection screen, they push “special offers” for credit cards, business insurance, startup company financing, free domain names, bespoke logo design, and payroll processing.
Which LLC Formation website is faster?
These firms use completely different techniques for estimating turnaround times, and depending on which state you’re forming in, one of them may be much faster.
MyCorporation’s processing periods are determined by each state’s ability to handle forms, which means that in certain states, your LLC formation may be finished in a matter of days, while in others, it may take several weeks.
LegalZoom’s processing timeframes aren’t as affected by your state because they base their estimations on the amount of LLC service you choose. Their Economy plan takes 30 business days to complete, while the Standard package takes 15 business days and the Express Gold package takes only 7-10 business days to complete.
Can I form an LLC on my own without a service?
You certainly can form an LLC on your own without any incorporation services involved, and a large number of enterprises do so in every state without the aid of professional services.
While you always have this choice, we’d just want to point out that we don’t usually advocate the act to form an LLC without a service because each state has its own laws and regulations when it comes to LLC formation, and learning the specifics of your state’s requirements may be a nuisance.
Furthermore, choosing a service like MyCorporation or LegalZoom provides us with the important piece of mind that comes with trusting their experience to get the job done correctly.
Starting a business correctly doesn’t have to be difficult. With over 15 years of experience consulting new businesses and start ups, Matthew is probably the best person to help you set a strong foundation for your business.