Starting a business involves a lot of legal and administrative tasks, one of the most important being business formation.
Whether you’re setting up an LLC, corporation, or nonprofit, the process can be time-consuming and complicated without professional help.
Fortunately, there are online services that simplify the formation process and help entrepreneurs get their business up and running efficiently.
ZenBusiness and Incfile are two of the most popular online business formation services, offering a range of packages to help new businesses launch without the headaches of dealing with complex legal paperwork.
Both ZenBusiness and Incfile provide affordable solutions to help entrepreneurs navigate the business formation process, but they cater to different needs. In this detailed comparison, we will explore the differences between ZenBusiness and Incfile, looking at their features, pricing, customer support, and overall value for entrepreneurs.
By the end of this post, you’ll be able to decide which platform is the best fit for your business.
Overview of ZenBusiness and Incfile
Overview of ZenBusiness
Founded in 2015, ZenBusiness has quickly become one of the leading business formation services in the United States.
The platform’s mission is to make business formation and management simple, affordable, and accessible for small business owners and entrepreneurs.
ZenBusiness offers an all-in-one platform that not only helps with forming a business but also provides tools for ongoing compliance and business growth.
ZenBusiness is particularly known for its low-cost packages, user-friendly interface, and exceptional customer support. From business formation to registered agent services and compliance monitoring, ZenBusiness covers all the essential aspects of setting up and maintaining a business.
Overview of Incfile
Incfile, founded in 2004, is another popular business formation service with over 500,000 businesses formed since its inception.
Like ZenBusiness, Incfile focuses on providing affordable business formation services, but it stands out for its free LLC formation package, where users only pay state filing fees. Incfile is known for its simplicity and speed in helping entrepreneurs launch their businesses.
While Incfile offers fewer additional services compared to ZenBusiness, it is highly rated for its straightforward pricing and fast processing times. For entrepreneurs looking for basic business formation services without the frills, Incfile is a great option.
Features of ZenBusiness and Incfile
Features of ZenBusiness
Business Formation:
ZenBusiness offers comprehensive business formation services for LLCs, corporations, and nonprofits. The platform guides users through every step of the formation process, from selecting a business structure to submitting the required paperwork to state agencies.
ZenBusiness ensures that all necessary forms are completed accurately and submitted promptly, reducing the risk of delays or legal issues.
Registered Agent Service:
Every business is legally required to have a registered agent, who is responsible for receiving important legal and tax documents.
ZenBusiness includes registered agent services in all of its packages for the first year, ensuring that you never miss an important notice from the state or federal government. After the first year, this service is available for a competitive fee.
Worry-Free Compliance:
One of the standout features of ZenBusiness is its Worry-Free Compliance service, which helps businesses stay compliant with state regulations.
This includes tracking filing deadlines, submitting annual reports, and providing two free amendments per year to update your business information. This feature is especially useful for busy entrepreneurs who want peace of mind knowing their business remains in good standing.
Operating Agreement Templates:
For LLCs, having an operating agreement is essential. ZenBusiness provides customizable templates that make it easy for users to create their own operating agreements without needing legal expertise.
This helps ensure your LLC is set up correctly and avoids potential disputes among business owners.
EIN Application:
ZenBusiness assists with obtaining an EIN (Employer Identification Number) from the IRS, which is required for hiring employees, opening a business bank account, and filing taxes.
The EIN application process can be daunting for first-time business owners, but ZenBusiness makes it easy by handling it on your behalf.
Business Website:
In its higher-tier plans, ZenBusiness offers website creation services, including domain registration and hosting.
This is a great option for entrepreneurs who need to establish an online presence quickly. With ZenBusiness’s website service, even users with no design experience can set up a professional-looking website in no time.
Customer Support:
ZenBusiness prides itself on its responsive and knowledgeable customer support team. Whether you have questions about the business formation process or need help with compliance, ZenBusiness’s support staff is available via phone, email, or live chat.
Features of Incfile
Free Business Formation:
Incfile’s biggest draw is its free business formation service. Users only need to pay state filing fees to form an LLC, corporation, or nonprofit.
This makes Incfile an extremely affordable option for entrepreneurs on a budget. Despite being free, Incfile’s business formation service is comprehensive, guiding users through the formation process with ease.
Registered Agent Service:
Like ZenBusiness, Incfile includes registered agent services in all its packages for the first year. This ensures that your business remains compliant with state regulations and that all important documents are received and processed in a timely manner.
After the first year, users can choose to continue the service for a fee.
Order Tracking:
Incfile offers a convenient order tracking feature that allows users to monitor the status of their business formation in real-time.
This is particularly useful for entrepreneurs who need to know exactly when their business will be legally formed and operational.
Compliance Alerts:
To help businesses stay compliant with state requirements, Incfile provides compliance alerts for upcoming filing deadlines, such as annual reports or biennial filings.
This helps users avoid penalties or administrative dissolution due to missed deadlines.
Tax Consultation:
As part of its free package, Incfile offers a complimentary 30-minute tax consultation with a certified professional.
This feature is invaluable for new business owners who may not be familiar with their tax obligations and want to ensure they are on the right track from the start.
EIN Registration:
Incfile offers an EIN registration service as an add-on for businesses that need a tax identification number for opening bank accounts, hiring employees, or filing taxes.
This service is available for a small fee, although some entrepreneurs may prefer to apply for an EIN themselves for free through the IRS.
Customer Support:
Incfile has a solid reputation for providing helpful and responsive customer support. Users can contact support via phone or email for assistance with any questions they may have about the business formation process or ongoing compliance requirements.
Pricing Comparison :- A Detailed Pricing Comparison for Every Budget
ZenBusiness Pricing:
ZenBusiness offers three primary pricing tiers, designed to fit a variety of needs and budgets:
Starter Plan ($0 + state fees):
ZenBusiness’s Starter Plan is free (users pay only state filing fees), and it includes basic business formation services, a registered agent for the first year, and a customizable operating agreement template.
This plan is ideal for budget-conscious entrepreneurs who need a simple formation service but are comfortable managing compliance tasks on their own.
Pro Plan ($199 + state fees):
The Pro Plan includes everything in the Starter Plan, plus worry-free compliance, EIN registration, and expedited filing. This plan is perfect for businesses that want to ensure they stay compliant with state regulations without handling the paperwork themselves.
Premium Plan ($299 + state fees):
The Premium Plan includes all the services in the Pro Plan, along with website creation, domain registration, and business email services. This is an excellent option for entrepreneurs who want to establish an online presence immediately after forming their business.
Incfile Pricing:
Incfile’s pricing is simple and transparent, with three tiers:
Silver Plan (Free + state fees):
Incfile’s Silver Plan is completely free, with users only paying state filing fees. This plan includes business formation services, registered agent service for the first year, and compliance alerts. It’s an excellent option for budget-conscious entrepreneurs looking for basic formation services.
Gold Plan ($149 + state fees):
The Gold Plan offers additional features, including EIN registration, an operating agreement, banking resolution, and access to contract templates. This plan is ideal for businesses that need a little more help with legal documents and tax setup.
Platinum Plan ($299 + state fees):
The Platinum Plan includes everything in the Gold Plan, plus expedited filing, a domain name, and business website creation. This is a great choice for entrepreneurs who want a fast formation process and need an online presence.
FAQs
Which is better for business formation, ZenBusiness or Incfile?
Both ZenBusiness and Incfile are excellent for business formation, but ZenBusiness offers more robust features, especially for compliance support. Incfile is better for those looking for a free formation option.
Does ZenBusiness offer registered agent services?
Yes, ZenBusiness includes registered agent services in all of its plans for the first year. After that, the service is available for an additional fee.
Does Incfile provide ongoing compliance support?
Yes, Incfile offers compliance alerts to help businesses meet state filing deadlines, but ZenBusiness offers more comprehensive compliance services with its Worry-Free Compliance feature.
Which service is more affordable?
Incfile is more affordable due to its free Silver Plan, where users only pay state filing fees. However, ZenBusiness offers more features at higher price points.
Can I get an EIN through ZenBusiness or Incfile?
Yes, both ZenBusiness and Incfile offer EIN registration services as part of their higher-tier plans.
Which service is better for ongoing business management?
ZenBusiness is better for ongoing business management because it offers worry-free compliance, annual report filing, and additional tools like website creation.
Can I cancel my service with ZenBusiness or Incfile?
Yes, both platforms allow you to cancel your services, but it’s best to contact their customer support to understand the cancellation process and any fees involved.
Conclusion
When choosing between ZenBusiness and Incfile, the right option depends on your specific needs and budget. ZenBusiness excels in providing a full-service experience, offering not only business formation but also compliance support, registered agent services, and additional features like website creation.
If you’re an entrepreneur who needs ongoing support and compliance monitoring, ZenBusiness’s Pro and Premium Plans are excellent options.
Incfile, on the other hand, is the clear winner for budget-conscious entrepreneurs looking for a free business formation service.
With its Silver Plan, users only need to pay state filing fees, making it one of the most affordable options on the market. Incfile is also known for its fast processing times, making it a great choice if you need to form a business quickly.
In conclusion, if you’re looking for an affordable, all-in-one platform with strong customer support and compliance tools, ZenBusiness is the better option.
However, if you’re mainly concerned with cost and need a simple business formation service without ongoing support, Incfile may be the best choice for your business.
Both platforms offer reliable business formation services, so your decision should be based on the level of ongoing support and additional features you need for your business’s long-term success.
