Starting a business may not be easy at the onset. There are these obvious uncertainties that come up from every step you make. What’s more, most new small business owners have the fear that comes from thinking about what the future holds. On the other hand, they wonder about which business formation service provider is best for you.
I was in such a dilemma when starting my business. I had to do extensive research on most of the incorporation service providers. My research revolved around Swyft Filings, ZenBusiness, Corpnet, MyCorporation, LegalZoom, LegalNature, among others. What I learned about these companies helped me settle on the best incorporation service provider that would work for my business.
In this article, I take you through a comparison between IncFile and Inc Authority. It is about helping a small business owner make a proper decision while getting value for the services provided.
Overview
IncFile Review
IncFile has helped over 500,000 business owners form and manage their businesses. The journey of this incorporation service provider started in 2004 in Houston, Texas. At the time, business registration meant unavoidable paperwork and expensive local attorneys who charge per hour rates. IncFile aims at motivating you to chase your business dream.
The company offers services that involve filing your paperwork, taxes, banking, and bookkeeping. They have a team of experts that will cultivate your business idea into a healthy business that everyone will love to be associated with. Below are the business registration process and the services that the company offers.
Business Formation Process
The IncFile registration process is similar to that of its competitor, Swyft Filing. To begin, you need to choose the business structure. IncFile offers the formation of limited liability companies (LLCs), S-Corp, C-Corp, and Non-Profit types of business entities. What’s more, the company provides LLC formation services in all 50 states.
The step that follows is choosing the state in which you want your business formed.
IncFile has three plans; silver, gold, and platinum. You can select any plan and customize it according to your business needs. The first step after you have customized your package is providing your contact information, that is, the details of the contact person and their mailing address.
Secondly, enter the company formation name and the address. In the third step, you will need to fill in the company management and the structure, either member-managed or manager-managed. The last step before check out is more customization of your package. In this step, you can opt into their registered agent service, let them obtain your employer identification number, and do a license and permit search.
Business Services
The services have four categories; standard, premium, and additional services. Let’s check them deeply.
Standard Services
These features are free to every customer no matter the package that you purchase.
Set up Business Banking Account
IncFile has partnered with Bank of America to give small new businesses exclusive offers once they open their business bank account with them. Having a business bank account helps you separate the business and personal expenses.
Next Business Day Processing
IncFile will ensure that every order they receive is prepared fast and forwarded to the state within one business day. It is a vital move for your business because the registration process can be very frustrating at times.
Online Access to Incorporation
Using this service, you can access all your incorporation documents whenever you want. Additionally, you can download the documents and track your order, thereby getting more control over your business documents.
1-year Registered Agent Service
IncFile offers every new business one year of free registered agent service. They will receive legal documents on behalf of your business from the state. After one year, IncFile will charge $199 for the service, and you cancel it anytime. This service is essential in removing junk in your mail and keeping your business address private.
Certified Copy- Articles of Organization
Articles of organization that the Maryland secretary of state fully signs acts as supporting documentation. IncFile will provide every business with an electronically signed document.
Lifetime Company Alerts
Humans are prone to forgetting, and missing essential filing dates may mess up your business. With IncFile, you will receive lifetime company alerts in your email and SMS. The package keeps your business in good standing with the law.
Online Order Status Tracking
The package will ensure that you can monitor the progress of the incorporation process. As a result, you can plan effectively and efficiently.
Statement and Resignation of the Organizer
This document shows the point at which the organizer resigns all his power. The document also shows the initial members and the ongoing management team. IncFile will give you the document.
Electronic Delivery
IncFile will avail all your documents through your dashboard, and you can interact and use them. As a result, it is easy and faster than shipping.
Standard Filing Time
Every package enjoys standard filing time except the Platinum formation package. The filing time might be slow for you, but you can also enjoy express filing time, which is more popular if you subscribe to it.
Tax Strategy/ Free Consultation
IncFile offers free tax planning consultation to keep you informed on the new trends in business. this service can be very vital in the success of your business as it explains everything you want to know in the tax sector
Premium Services
Employer Identification Number/ Tax ID
EIN is an important number that every employer must-have. Your business will use this number when filing returns and when employing people. IncFile offers to obtain for you this 9-digit number from the Internal Revenue Authority for $70.
Operating Agreement
This document is like the constitution in a business because it explains the rights of owners and managers. Additionally, this document stipulates which member owns what share. IncFile will create and customize the LLC operating agreement according to your company for $40.
Banking Resolution
When opening a bank account, it is a vital requirement to have a banking resolution. This document indicates that the members agreed to open a bank account with a specific bank and documents the members authorized to transact. IncFile will customize a banking resolution to match your business requirements for $35.
Business Contract Template
IncFile offers 25+ legal document templates that a business lawyer has compiled. These templates protect your company when engaging in contracts. The templates will cost you $150.
Free Domain Name and Email Service
The customer who buys the Platinum formation package is eligible for a 1-year free domain name and email service. The service is vital because it officiates your business email instead of using google mail and Hotmail. After the free one year expires, you can cancel the service.
Expedited State Filing Time
The filing process can be time disappointing sometimes. Expedited filing time aims to hasten the LLC formation process of your business. This service can reduce the filing time up to one day and will cost you $50.
Additional Services
Business License Package
Every business requires licenses to keep it running. Researching the proper licenses and permits can be tiresome and disturbing sometimes. IncFile will do the research and prepare recommendation reports for you at the cost of $99.
Corporate/ LLC Kit
Should you purchase this service, IncFile will deliver your official documents in a high-quality professional kit. The corporate will have a binder and slipcase, 20-member stock certificates, corporate forms/ documents, and index tabs. This service will cost you $99.
S Corporation Tax Election with Form 2553
Form 2553 treats your LLC as an S Corporation for taxation. Election guarantees your business of paying lesser tax. Filing the form informs the Internal Revenue Authority to treat your Limited Liability Company as an S Corporation. As a result, the IRS will lift some of the taxes that an LLC pays. IncFile will help you fill this legal form for 50
Articles of Amendment
The state should always have the current details of your company. In case you want to make any amendment in the details of formation, you should do it officially by filing the articles of amendment. IncFile will help you file the articles for $99.
Corporate Annual Reports
As previously mentioned, the state needs to stay up with the date of the company details. Therefore, the state directs that companies must file annual reports once or several times a year. IncFile will notify and help you prepare yearly reports for $99
Certificate of Good Standing
The certificate of good standing helps verify that your business is compliant with the state and is authorized to operate in a particular state. This certificate, also known as a certificate of existence, is required when obtaining a loan, renewing your business certificate, or filing your business returns. IncFile will help your business get the license for $49
DBA or Fictitious Business Name Filing
Some businesses operate under a different name from their legal business name. Companies do this for obvious reasons like change of products and services. For this to be legal, a business must file for a fictitious business name. In cases where a company operates in multiple states, it must do so in all the states. IncFile handles the paperwork process for $99.
Foreign Qualification
Business grows with time, and you may need to operate in a different state from that of formation. IncFile will help you file for foreign qualification for 149 + state filing fees.
Articles of Dissolution
People close businesses for different reasons, and should you be interested in doing so, it must be official. To officiate dissolution, you must file for dissolution articles to avoid the accumulation of taxes and fines-IncFile charges $149to file for dissolution articles.
Now, you have an idea of how IncFile operates. Before comparing the two services, wisdom dictates the evaluation of Inc Authority.
Inc Authority Review
Inc Authority journey began in 1989 and therefore have been in existence for 32 years helping entrepreneurs form business. Over the three decades, they have helped over 130,000 businesses. This incorporation service came into existence when the business formation process was a pain in the back. When forming a company, you had to do it the long way, hire an attorney and start the process, which takes forever.
Inc Authority formation was aimed at helping small business owners have an easy time creating companies. As a result of this, now business owners can create a company in the comfort of their home. IncFile offers business; planning, funding, credit, website and marketing packages, and legal services. But what is their formation process?
Business Formation Process
The first process in the registration step is similar to that of other incorporation services; selecting a business entity and the state of formation. Inc Authority offers two business formation entities; Limited Liability Company and Corporation. You don’t need to worry about the state in which the company is being formed because Inc Authority offers services in all 50 states.
The second step is providing both personal and company contact details. Before completing the process, you will pass through some upsells like obtaining EIN, creating an operating agreement, and the Legal Documents package. The whole process takes a little over 15 minutes.
Services
Standard Services
The services are free with your formation package.
Business Name Check
Inc Authority will check if your company name exists within your state. Therefore, this saves you time wasted when checking from the state.
1-year Free Registered Agent
Inc Authority offers new business free one-year registered agents. They will ensure that your business never misses any state notice. After the one-year expires, you have an option to cancel or opt-in for their registered agent service.
Digital Delivery and Storage
All the electronic versions of your incorporation documents will be available in your online dashboard, where you can access them whenever you want.
Preparation and Filing
Inc File will prepare all your necessary documents and submit them to the state for filing.
S Election Form
Inc Authority will fill the legal form 2553, which notifies the Internal Revenue Authority to treat your Limited Liability Company as an S Corporation for taxation purposes. With an S election, your LLC pays fewer taxes. However, this service is optional to all their customers.
INC Care Support
This service offers access to all the customer support systems by either calling or email. Their response rate is typically instant.
Business Credit and Funding Analysis
Inc Authority will designate your business with an expert in business credit and funding to analyze it and propose possible solutions.
Tax Planning Consultations
When using this service, your business will receive tax consultations to ensure more business savings.
Premium Services
These are the services you can use to customize your free package.
Employer Identification Number
By law, every operating business must have a Tax ID. The states require this because you will use this number when filing your business tax returns and opening a bank account. Your business is assigned this number by the Internal Revenue Authority (IRS). Inc Authority helps obtain EIN for $49.
Operating Agreement
This document structures your business. It is like the constitution in your business that stipulates managerial and ownership rights. Additionally, the document shows who the shareholders are and by what percentage do they own the company. Inc Authority will help you create and customize this document for $89.
Legal Documents Package
This document is vital to your business and protects you from a lawsuit. This service provides you with a custom embossed certificate, ownership certificates, seal, and other essential documents. Inc Authority offers all this for $99.
Express Processing
The filing process may at times take forever before your complete business formation. Inc Authority will reduce your business’s filing time by moving your filing documents forward in the line at the cost of $49.
Website Registration (Domain Registration) + Business Email
In some instances, if you fail to register a domain name using your business name, someone else might do so. As a result, it will cost you dearly, or that other person might even steal your brand.
To ensure you protect that from happening, Inc Authority will give you an online presence and one free year of domain registration. What’s more, you will receive up to 5 professional emails associated with the domain. Inc Authority offers all this for $10
INC Success Advisor
Inc Authority offers experts to guide you with the business startup. You will be able to access this consultation unlimited via phone or email. Using this service, Inc Authority assures that you will have peace of mind knowing that you have the necessary support. This service will cost you $197 annually or $27 monthly.
Additional Services
You can only access this legal service offered by Inc Authority through contacting their experts via a phone call.
Federal Trademark
Trademarks are special tools, especially in marketing your brand. They give you instant recognition, whether on social media or print media. You can give Inc Authority a call to understand more about their Federal Trademark services.
Revocable Living Trust
This legal service ensures a long-term plan for you and your family through your wishes. This product includes legal services like last will, power of attorney, etc.
Business Credit
Inc Authority will help you build your business credit within 90 days so that you can have easy access to business loans and starting capital. Additionally, they will create and set up your business profile.
Business Funding
Using this service, Inc Authority will help your business get funding. They will get you pre-qualified so that you can access several lending options to either start or boost your business.
Business Plan
Inc Authority will help you with a personalized business plan. Their dedicated business plan expert will research, write, edit, analyze, and predict the projections.
Startup Bundles
Inc Authority offers three packages that you can only order by contacting their startup experts. The bundles are a starter, executive, and tycoon Business Bundle.
Similarities
- IncFile and Inc Authority offer registered agent freely for one year
- Both have learning guides to help you understand every service.
- Inc File and Inc Authority have excellent customer ratings.
- They offer business formation services.
- They have free LLC formation.
Differences
- Inc File charges $199 for the registered agent service renewal, whereas Inc Authority charges $99.
- IncFile formation packages offer great value for money, while Inc Authority makes you pay for every service separately.
- IncFile lets you know the prize from the start of the subscription process, but Inc Authority will provide the pricing when you’re half of the registration process.
IncFile vs. Inc Authority Comparison
Both have many standard features; this segment is a comparison of those features.
Pricing
Pricing is a vital feature when choosing the exemplary LLC formation service for you. What’s more, checking the value for money is even more critical. The trick in pricing is getting more for less. IncFile and Inc Authority have much in common based on the pricing, but which one is the best?
IncFile.
IncFile offers among the cheapest LLC formation services. They have pocket-friendly services that do not compromise the quality of the services. IncFile has three plans; Silver, Gold, and Platinum.
Silver
Silver is the cheapest service that IncFile offers and costs $0 + state fee. Using the package, you will enjoy the following benefits;
- Setup Business Banking Account
- Next Business Day Processing
- Online Access of Incorporation Documents
- Registered Agent Service For 1 Full Year
- Lifetime Company Alerts
- Certified Copy- Articles of Organization
- Online Order Status Tracking
- Statement and Resignation of The Organizer
- Electronic Delivery
Gold
This package costs $149 + state filing fee and is the most popular service IncFile offers. Using this service, you will get the Silver plan services and;
- Employer Identification Number/Tax Id
- Operating Agreement
- Banking Resolution
Platinum
IncFile offers a Platinum package at the cost of $299 + state fees. Through the package, you will get the silver and gold package services plus the following;
- Business Contract Templates
- Expedite State Filing Time
- Free Domain Name and Email Service
Inc Authority.
Inc Authority uses a different approach for business registration. They help you form your business starting at $0 + state fees and then buy the services individually. However, they have startup bundles that are premium services. You can only know the Inc Authority fee by calling their experts. Below is what you get from every service.
Starter business package
- Verify Business Name Availability
- IRS Tax ID Number (EIN)
- Record Book & Company Seal
- Tax Consultation
- Initial Meeting Minutes & Resolution
- Ownership Certificate
- Business Credit & Funding Evaluation
- Complete Operating Agreement/Bylaws
- 1 Year INC Success Advisor.
Executive business package
This premium package assures you of the starter package services plus the following;
- Business License Report
- Website Domain
Tycoon business package
Tycoon is the highest premium service Inc Authority offers. This package assures you of the starter and executive package services plus the following;
- Express Processing
- BizCredit Express
- Business Credit Coach
- Multi-Tiered Credit Building System
- Business Credit LaunchPad
- D&B Credit Bureau Registration
Comparing both services, IncFile pricing and the packages are more friendly. On the other hand, to subscribe to Inc Authority packages, you have to call their experts.
Winner: IncFile
Registered Agent Service
This service is vital to the proper running of your business. It is a legal requirement by the state that companies have an agent who acts as the bridge between the state and the business. They receive the legal documents on behalf of the business from the state. Here are how both incorporation services offer;
IncFile
IncFile offers registered agent service free for one year, and then the service renews at the cost of $119 annually. Their service is available nationally. IncFile forwards you a text message and emails to notify you when a new document arrives. Additionally, the dashboard will display the documents where you can access them.
Inc Authority
Inc Authority acts as your registered agent for one year, and after that, you will pay $99 annually. Inc Authority ensures that you will never miss essential documents. Additionally, you will avoid the embarrassment that happens when a state official comes to your business.
Comparing both of the incorporation services, Inc Authority offers less for the same service and, therefore, more affordable. If you are on a budget, Inc Authority is the way to go.
Winner: Inc Authority.
Customer Support and Reviews
Customer support defines when and how you can access help when you land into a problem. On the other hand, a customer review gives you an idea of the service you expect from the company. The higher the customer rating, the better.
IncFile
You can contact IncFile through Phone call or email. Their customer support is available from Monday through Friday. The working time is from 9 am to 6 pm. On the other hand, IncFile customer reviews are 22,371 as seen on Shopper Approved and a rating of 4.8. Out of the overall number, 95.4% of customers rated IncFile 4-stars and above.
Inc Authority
Contacting Inc Authority is via phone and email. Their customer support works from Monday through Friday. The working hours are from 8 am to 5 pm. Inc Authority has 5066 customer reviews on Trust Pilot and a rating of 4.8. Out of the total reviews, 96% of customers love the services.
Comparing both IncFile and Inc Authority, they offer the same customer support hours and channels. Additionally, they have excellent customer reviews and ratings.
Winner: Tie
Experience
Experience is a determining factor when you consider hiring an incorporation service. It gives you an expectation of the level of expertise to expect your order to be handled with. You can only quantify experience depending on the number of years the incorporation service has been operating.
IncFile
They were launched in 2004, offering LLC formation services. They help you form a business using four entities; Limited Liability Company, S-Corp, C-Corp, and Non-Profit corporation. Over the past seven years, IncFile has served over 500,000 customers.
Inc Authority
Inc Authority began business formation services in 1989. The main aim was to help in business formation, planning, funding, credit, and legal services. Inc Authority has the following entities; corporations and LLC. They have served over 130,000 customers in 30+ years of experience.
Comparing both services, Inc Authority was established longer but has served fewer customers. On the other hand, IncFile establishment was over a decade after Inc Authority but has served almost four times the number of customers.
Winner: IncFile.
IncFile vs. Inc Authority; Pros and Cons
Both services excel in independent spheres. Let’s look at the pros and cons.
IncFile
Pros
- They have a 4.8/5 customer rating on Shopper Approved
- IncFile offers a free one-year registered agent service.
- They offer lifetime company alerts on important deadlines
- Has online access to documents
- The pricing of the LLC formation package starts at $0.
Cons
- Offers expensive registered agent renewal compared to Inc Authority
Inc Authority
Pros
- They have an excellent customer rating of 4.8/5 on TrustPilot
- Offers online access to incorporation documents
- Offers free one-year registered agent service
- Has free LLC formation package
- They have a lot of additional services
Cons
- They do not clearly state the pricing at the start.
FAQs
- Does either IncFile or Inc Authority offer New York Publication service?
No. Both IncFile or Inc Authority do not offer New York Publication service. However, reading our ZenBusiness review would be an ideal recommendation for you if you’re interested in the service.
2. Do the two incorporation services offer a refund policy?
Inc Authority offers no refund policy. On the other hand, IncFile refunds if you request within 24 hours; before submitting the order to the state for filing.
3. Are there better alternatives?
If the two incorporation services do not fancy you, you can check out other incorporations like Swyft filing, LegalZoom, LegalNature, ZenBusiness, etc. What’s more, we have compiled a review on each.
4. Can you form an LLC on your own without needing an incorporation service?
Yes, you can. A lot of small business owners do that every year. However, doing so does not guarantee the professionalism that business formation services have. Using formation services assures you peace of mind throughout the process.
5. Which Incorporation service offers ongoing legal service?
None of the two incorporation services has ongoing legal plans. However, other online LLC service providers like LegalZoom and LegalNature offer legal advice and assistance.
Conclusion
To sum up, IncFile has served over half a million customers since its inception in 2004. Most reviews have rated it 4.8/5. On the other hand, Inc Authority has served 130,000 customers since 1989 who rate it 4.8/5. If you are looking for the best incorporation, either of the two will do you good. They have competitive pricing, free one-year registered agent service, and offer free incorporation. What else could a small new business owner ask for?