You are tired of your day job and want to do something different. Be your own boss, make and implement decisions, issue instructions to employees, and so on. In your mind, you want a financial breakthrough by starting a business.
But then you are in a dilemma on the steps to take to start that business. As a new business owner, you face challenges filing documents, licensing, hiring employees, and everything else that comes with starting a new business.
That is not all. You don’t even have a clue on the type of business entity you want. It is a good idea to go out and study the patterns in your locality with that in mind.
There are many companies on the web that provide new business formation services. They all have their unique offers and packages, which might not make sense to you. It is a confusing and overwhelming process.
Thus, this article compares the services offered by two online incorporation services providers. That is MyCorporation vs IncFile Review. I shall compare their LLC formation service in terms of pricing, the packages offered, customer service, ease of use, turnaround time, and how customers rate them. However, you can have a look at the independent review on both IncFile Review and MyCorporation Review. You can also check out LegalZoom, Swyft Filing and IncFile vs LegalZoom and see how it compares with IncFile.
The limited liability company is a business structure that is increasingly becoming popular in the USA. With this type of business entity, rigid formalities required for a corporation or the casual approach of a general partnership or sole proprietorship are taken care of.
The emergence of online LLC formation service has helped a great deal in the growth of LLCs. Most of them provide company formation services only but you can as well get online legal service where you can file your legal forms, trademark application, and other services related to business entities.
What is Special about LLCs?
- Limited Liability
Sole proprietorships and general partnerships are business forms where the owner and the company are the same people in the law’s eyes. As such, the business debts are also your debts.
An LLC takes care of this personal liability by separating the business and the business owner. Thus, LLCs take charge of their debts and obligations. The only money you can lose is what you invested in the company, and no one can touch your assets.
- Reduced Paperwork
Both LLCs and corporations offer limited liability, but corporations must hold annual shareholders meetings, prepare annual reports and pay yearly fees to the state. They also need to maintain an excellent record-keeping procedure.
On the other hand, LLCs don’t hold annual meetings, are not required to maintain records, and hence their paperwork is significantly reduced.
- Tax Advantage
The Internal Revenue Service puts LLCs in the group of partnerships and sole proprietorships. That depends on the number of owners. Thus, they can enjoy the advantage of “pass through” taxation in which they do not pay any LLC taxes or corporate taxes.
In this case, the LLC’s earnings are submitted through the owners’ tax returns, and the owners pay personal income tax on any realized profits.
- Flexibility in ownership
Apart from pass-through taxation, LLCs don’t have restrictions on the type and number of owners.
- Flexibility in management
Unlike corporations with a fixed management structure, LLCs don’t have to follow a formal management method. The owners are at liberty to choose what best suits them to run the business and make decisions.
- Flexibility in profit distribution
LLCs are not bound by sharing profits based on the number of shares per shareholder. They can agree that one member gets a more significant share since they have contributed more or participate more actively.
MyCorporation in Brief
MyCorporation was founded in 1997 with its headquarters in California. It was one of the companies to offer online incorporation services to small and medium-sized business entities.
MyCorporation will help you start the following business entities
- Limited Liability Company
- Nonprofit corporation
Apart from making it easy to form a new business, they offer ongoing services that help your business thrive.
MyCorporation provides intellectual property protection services. These include copyrights and trademark registration. They provide other add-ons and additional services at a separate price though you can opt for the MaintainMyBiz package.
- Customer support – This is unlimited in my view
- Business name search
- Name availability check
- Corporation and LLC formation
- Employer Identification Number (EIN)
- Articles of Incorporation preparation and filing
- Copyright and trademark filings
- Annual report service
- Registered agent services
- Operating agreement
Pros and Cons of Using MyCorporation
- They have business experience of over 20 years and have helped over a million businesses.
- You get an annual report service for your first year.
- They have four packages from which to choose, which gives them an edge over the other business formation companies.
- They have excellent customer reviews across most sites.
- You get additional services such as income tax assistance or unemployment insurance.
- The basic and standard package does not include a registered agent. IncFile has a free registered agent in its basic package.
- Their formation service is much more expensive as compared to others. For example, the Employer Identification Number application costs $79.
- The basic package goes for $99 but doesn’t have many features.
MyCorporation has four LLC formation packages. There is nothing that works more than having different options to choose from. This gives MyCorporation a great advantage over the others.
IncFile in Brief
Incfile was formed in 2004 in Texas. Since its formation, it has helped in starting more than 250,000 businesses. Incfile will help you create new:
- Corporation ( C-Corp and S-Corp)
Incfile helps new business owners meet their filing needs for starting new businesses. They offer their services in all 50 states, and their focus is mainly on business formation.
Incfile is best known for its silver package, which goes for $0+state fees. Remember, the state fees go directly to the state. This deal is made possible through Incfile’s financial relationship with partners such as banking providers.
Incfile recommends various products and services such as web hosting and a business bank account.
Pros and Cons
Pros of using IncFile
- They have the best value for business entity formation
- They provide a one-year free registered agent service
- Provide tax filing services
- You receive lifetime online notification that alerts you on compliance deadlines approach
- Digital filing that allows easy access
- Customer access from Monday to Friday 9 am to 6 pm.
Cons of using IncFile
- Limited intellectual property service
- No option to consult or retain a lawyer
- No legal form builder to legal documents
What do they have in common?
Let us have a quick look at the services offered by these two online incorporation service providers.
Hiring an attorney to draft and file your articles of organization can be costly. Thus, MyCorporation and IncFile will save you a great deal in filing the articles with the state. They have several company formation packages to choose from and since the price points are indicated simplifies the whole process of formation.
They have been in existence for a while and have helped in forming thousands of business entities. Thus, they can effectively and efficiently handle your business formation. Their presence in all 50 states is a significant advantage to business owners.
Using an online incorporation company is not just about saving time and money. There is the business jargon that you might want help with. MyCorporation and IncFile have able and ready customer service representatives to help you through the difficult questions you may have.
When your customer volume is high, you are bound to make mistakes here and there. Despite this being the case, both MyCorporation and IncFile have maintained a good rating from customers through online feedback. Most of the reviews are positive.
Time is money, and MyCorporation and IncFile understand that. They have the expedited processing that speeds up your formation. The rush filing cost an extra dime, though.
Both will assist you with registered agent service, federal tax ID number, and name availability check to help you choose your business name, among other compliance requirements. They also provide ongoing compliance filing services such as annual reports filing. In addition to the formation, it is vital to get everything you need from one place.
How different are they?
IncFile asks for $0 plus the state filing fee for LLC formation with their Silver formation package, which includes preparing and filing the organization’s articles. It also has a one-year free registered agent service, a company alert system for a lifetime, and a statement and resignation of the organizer form for business account opening purposes. So far, this is the lowest LLC formation package we have seen from all the incorporation service providers. The other two packages have reasonable prices as well. The Gold Package goes for $149, while the Platinum package goes for $299. The price point is a bit higher, but the packages are packed with valuable features suitable for a small business.
On the other hand, MyCorporatin LLC formation starts at $133. The basic formation package only has the primary features of forming an LLC like name availability check and preparation and filing of articles of organization. An additional payment of $25 will give you a one-year managed annual report service. In this case, there is no free registered agent.
The other packages add some value. For example, the Standard package, which costs $158, has a year of annual report service added. This a feature that is not seen from other competitors that offer LLC or corporation formation services.
My Corporation charges $120 per year for the registered agent service. Note that there are no special additional features included.
With IncFile, you get a free first-year registered agent service. After the free year service, you pay $119 annually for the service. Again, no additional features are included apart from just being your basic registered agent.
The above information makes Incfile a cheaper LLC service provider compared to MyCorporation. IncFile will cost you $0 plus state fees for LLC formation with a registered agent included, while MyCorporation will cost you $253 plus the state fee.
Based in Texas, IncFile opened its doors for business in 2004 and has helped more than 250,000 customers with LLC and corporation formation. They have many positive customer reviews, with a handful of them being negative.
Having started in 1997, MyCorporation has helped more than a million customers. Their services are available in all 50 states. The transparency level is so good that you can reach the CEO directly on Twitter.
With more than 11800 customer reviews on Shopper Approved and 99% of them being positive, then Incfile is doing great in customer satisfaction. Most customers are satisfied and say how quick and easy the services are. On top of that, the customer service reps work well in answering your questions and following up on issues raised. Incfile is reputed to be one of the best online business formation services.
MyCorporation doesn’t have a lot of online customer feedback though what they have is mostly positive. The customer service department is superb, and customers are pleased by that. They appreciate how the formation process has been made easy.
Ease of Use
IncFile has personalized steps to follow during the process of online incorporation. The steps depend on the type of business entity and the state you live in. The dashboard has question marks popping up to aid you in filling in the correct information. Upsells and third-party offers are few. As you fill in your information, the total price gets updated on the screen, which helps you know exactly how much you are being charged.
MyCorporation application takes about 10 minutes from the beginning to the end. The add-on options from the packages are selected before entering the application. There are upsells and third-party offers at the end just before payment.
Additional services are offered based on what was selected earlier, and your price reflects as you proceed and includes the specific state fees.
Speed of Formation
IncFile guarantees to process and forward your LLC formation within one business day. Competitors ask for an extra fee for next-day processing. With IncFile, you can expedite your order by paying an additional fee or buy their Platinum package, which includes the expedited service.
My Corporation isn’t apparent on their turnaround time estimates for their LLC formation. Turnaround time depends on the state you filed in and might take a few days or up to six weeks. MyCorporation asks for $100 to expedite the registration process up to 85% instead of standard filing.d is not worth it since they aren’t still specific on what it entails.
- MaintainMyBiz Package
This package is an optional add-on for ongoing compliance. It is a subscription service that helps your business remain in good standing and includes four filings every year from the following product and services list.
- Initial Report
- Annual Report
- Corporate Seal
- S-Corp Election
- Stock certificates
- Membership certificates
- Corporate Minutes and Bylaws
- LLC Operating Agreement
- Fictitious Business Name (DBA)
- Foreign Qualification
- Certified copies of Documents
- Certificate of Good Standing
Businesses are unique, and thus, this package’s flexibility works for almost all corporations and limited liability companies.
- MyIncGuard Package
For a company to remain in good standing, many filings need to be done regularly. MyIncGuard package gives you that peace of mind by reminding you of the important filing dates. The services cost $79 per year.
Remember, if you fail to do the required filing, your business may fall out of compliance and lose the business entity formation’s liability protection.
MyCorporation enjoys a 4.4-star rating on TrustPilot, which is an excellent review based on 209 reviews.
IncFile has a 2.8-star rating on Trustpilot, which is an average review based on 88 customers.
The most recent reviews show dissatisfied customers with complaints of various nature. They include:
- Turnaround time
- Poor customer service
- Misleading advertising
IncFile accreditation on Better Business Bureau was revoked after they failed to meet the required standards.
Customer review has the power to influence a business owner’s decision while at the same time strengthening a company’s credibility. The company gains customer trust, thus encouraging better interaction which leads to improved profits.
Most of MyCorporation customers are happy with the services they receive; a conclusion made from the tons of positive customer reviews left.
IncFile seems to miss the point with regards to how they handle the customers. Most of them don’t recommend it, and they feel IncFile is a scam in itself.
- What is MaintainMyBiz?
New LLCs need additional filing after they start. Thus, this package helps to maintain existing businesses with ongoing filing requirements.
2. How does IncFile compare to other formation companies?
IncFile provides the lowest price of business formation as compared to other LLC formation services. Thus, it is a good service provider for small businesses on a budget.
3. Can I form an LLC alone without the help of online incorporation services?
Yes, you can! The problem is here is the hassle involved, which takes a lot of time. You might miss something too during the process that will be costly for you in the long run.
Thus, it is advisable to seek help from online formation companies to be sure that your business registration is handled professionally.
4. What is MyCorporation refund policy?
MyCorporation will try and resolve your issues if you are dissatisfied with their service. If you remain dissatisfied, they will refund you for requests made within 60 days. They will not accept requests over 60 days old.
5. Which is the best LLC of the two?
IncFile is a winner in its pricing but has issues when it comes to customer satisfaction. If you are looking for a cheaper LLC formation company, the IncFile it is. On the other hand, MyCorporation offers competitive prices and has a solid foundation.
Are you for low-cost service or good customer support with modest pricing? MyCorporation wins.
The decision to choose between MyCorporation and IncFile rests in your hands as a business owner. Throughout the article, I have highlighted the features, advantages, and benefits of using either of the two online business formation companies.
Your decision to choose a certain business formation service should be based on who does things right, has the best package offer, and will meet all your business needs at the most affordable price. Other factors include how experienced they are in the field and the way you receive customer support.
A key takeaway point to note about LLC is that it is a simple and adaptable business structure that is most suitable for small businesses. Both corporations and LLCs provide limited liability to the owners, but LLC owners enjoy LLC tax benefits, flexibility in management, and reduced record-keeping and reporting requirements.