As a small business owner, you wouldn’t want to make mistakes. I mean, you can make mistakes any other time but not in the first step of your business formation. The worst thing you can do when forming your business is choosing the wrong business formation service.
Before selecting a specific LLC formation service, you should look for vital information about its services. You should compare the one-time services offered with the annual services. It would help if you had all the services under one incorporation service.
When I was starting, I researched every bit on LLC service because I wanted a smooth incorporation process. Honestly, what works for me may not necessarily work for you, but there is no harm in doing what successful business people have done. Thus, in this MyCorporation vs. LegalZoom Review, I will guide you through what they offer, how different they are and if they have any similarities. Get the most out of it.
Similarities
- Both MyCorporation and LegalZoom reduce the paperwork that comes with starting up a new business.
- They offer registered agent service, which is a compulsory necessity for any business.
- Both provide educational content on their online learning center to guide and help you understand their services.
- They both offer legal help on intellectual property protection like trademark registration and copyright services.
- MyCorporation and LegalZoom have reputable experience and have served millions of customers.
- They have a reliable customer support system that will come to your help if you experience difficulties.
MyCorporation Review
MyCorporation’s aim remains the same since 1998; to help small business owners form and maintain their business. Over the years, MyCorporation has started over 1 million businesses. MyCorporation offers corporation and business formation services across the 50 states. Apart from that, they provide additional benefits to maintain your business if you have formed already. These maintenance services include preparing annual reports and maintainingMyBiz to boost your business.
Company Formation
The LLC formation process begins with two steps; choosing a business entity and state of formation. A business entity gives the structure that best fits your company’s idea. MyCorporation offers several business formation entities; Corporation, Limited Liability Company (LLC), Non-Profit Corporation, Doing Business As (DBA), and Canada Corporation.
Selecting the right business entity determines how taxation is carried out, management, change of management, and dissolution if it comes to that. Also, the state in which you want to form the company is critical because that determines the state filing fees.
Registration Process
The registration process in MyCorporation has six steps;
- Provide your personal contact information.
- Provide the business details.
- Add the names of the business members and the management team.
- Choose some services like a registered agent, obtain the Federal Tax ID and prepare the S-Corp election form.
- Select some optional additional services.
- Check out payment.
Services
Starting your business
Below are the services MyCorporation offers to help you start your business.
Annual report
The state requires an update with the current business activities your company is involved in, location, and the current contact information. MyCorporation will do an annual report service for your business and let you focus on growing your business at the cost of $99 annually.
Registered Agent Service
By law, every business in all 50 states must have an agent to accept your business’s legal documents. MyCorporation promises compliance and timely receipt of relevant business documents. They will be your registered agent at the cost of $120.
MaintainingMyBiz
When your business is up and running, there is a need to keep it compliant. MyCorporation offers a MaintainingMyBiz package to help you remain in good standing. With this package that costs $250, MyCorporation will keep your business on the right side of the law.
Employer Identification Number
For taxation purposes, the federal government mandates the Internal Revenue Service (IRS) to assign your company a unique number known as Employer Identification Number (EIN) or Federal Tax ID. You need EIN when hiring employees and opening a business bank account. MyCorporation can obtain it for you at the cost of $79.
Customized Operating Agreement
An LLC operating agreement is an important document that explains the structure and the rights of managers and owners in a company. MyCorporation will create and customize your operating agreement at the cost of $59.
S Corporation Election
S-Corp election enables the shareholders to pay tax like in partnerships or sole proprietorship. An LLC or corporation needs to file an application form to the IRS to enjoy the S-Corp election. MyCorporation will do the LLC filing and obtain for your company the S-Corp Election at the cost of $49.
Business License Compliance Package
Your business needs licenses and permits from the authorities and the government to make it legit. MyCorporation offers to do the tiresome research and prepare the necessary documents for you for $149.
Do It Yourself Online Logo Maker
Your company needs to create an identity by having a logo. Do It Yourself Online Logo Maker has easy-to-use design tools to help you come up with a creative logo. You will access the logo maker for $39.95.
State Unemployment Insurance (SUI)
By law, it is a requirement for your company to file SUI in the states where you have an employee. To do this filing, you must have an SUI ID. MyCorporation will obtain the SUI ID for your company at an annual cost of $150 +state fees.
Sales and Use Tax (SUT)
You should have sales and use a tax ID to help you file tax for the sales you make and what you use in the company. MyCorporation will obtain for you the SUI at an annual cost of $150+ state fees.
State Income Tax (SIT) Withholding
Annually, your business must do the SIT withholding filings. The tax is dependable on the payroll of your employees. For this filing, you must have the SIT withholding ID. MyCorporation offers to obtain the SIT ID for you at an annual cost of $150+ state fees.
Elite Kit
The elite kit helps you bind and retain all the vital corporate documents. This kit costs a one-time fee of $100.
Seal Embosser
MyCorporation offers a customized seal for signing documents in your business at the cost of $40.
Rush Filings
Rush filings services enable you to save up to 85% of the standard processing time. LegalZoom will hastily process your documents for a cost of $100+ state fees.
Additional Services
Foreign Qualification
Before doing business across all states, your company needs to obtain authority or file for a foreign qualification. MyCorporation will assist you in registering a foreign entity for $199.
Articles of Amendment
If you, for whatever reason want to change the formation documents like the physical address, the business name, etc., you should file articles of amendment. Filing this article with the states formalizes them. MyCorporation will help you throughout the process for $129+ state fees.
Filing
When you have fully set up your non-profit corporation, you need to file form 501(c)(3) to exempt certain taxes. You should apply through the Internal Revenue Authority. MyCorporation will help you in filing at the cost of $650.
Intellectual Property Protection
This service helps you in trademark filing and easy protection of the business name and the logo. On the other hand, copyright filings give you the power to claim your original work.
LegalZoom Review
LegalZoom founders saw the internet as a tool to easily offer online legal help. In 2001, the company launched its online products, which focused on business formation services and legal services. To date, LegalZoom’s efforts to reduce paperwork in business formation and legal service still counts.
Company Formation
The state of formation and the business entity that your company should have are the two most important LLC formation aspects. LegalZoom will help you choose the best business entity for you by asking several questions if you have difficulties. They offer business entities at different start-up costs;
- Limited Liability Company (LLC)- starts at $79 + state fees.
- Doing Business As (DBA)- starts at $99 + state fees.
- Nonprofit corporation- starts at $99 + state fees
- Corporations- starts at $149 + state fees.
LegalZoom offers business formation services in all 50 states, and the state fees vary depending on the state of formation.
Registration Process
The process of registering a business through LegalZoom is fast and takes 10 to 15 minutes utmost. The green bar at the top shows you the progress through the process. Additionally, if something comes up when you’re in the process of registering your company, you can save the progress by simply creating an account with them. You may need to click several upsells, but the website loads fast and is easy to use.
Services
LegalZoom offers several services to keep your business running and compliant. Additionally, they have legal assistance.
Business Services
- Registered Agent Service
According to state laws, any business must have a registered agent. The state serves Registered agents with the legal documents on behalf of your company. LegalZoom offers you this service at the cost of $249 annually.
- Operating Agreement
The operating agreement is like a constitution in your business that guides its operation. The document has stipulated the managerial rights and those of the owners. LegalZoom will make and customize this document for your company for $99.
- Employer Identification Number
Employer Identification Number (EIN) is a number that the government uses to uniquely identify your company for taxation purposes. LegalZoom will help your company obtain EIN from the IRS for $99, the standard time, or $199 for the rush creation time. However, if you’re forming a new business, LegalZoom offers both the operating agreement and the EIN for $159.
- Business Licenses
Depending on your company’s type of business, you will need to obtain business licenses and permits from the local authorities, state and federal governments. LegalZoom offers to research for you at the cost of $99.99. However, LegalZoom offers operating agreement, Ein, and business licenses for $199.
- Smart Employer
Smart employer helps you in hiring and managing employees. Legal or employment disputes may drag your business’ success. LegalZoom offers unlimited 30 minutes of attorney advice and HR documents with customizable employment agreements for $39.99/month.
- Total Compliance
Failing to be compliant with the state could expose your assets by removing your LLC protection. You should, therefore, file your annual reports and the formalities to avoid penalties. LegalZoom offers you peace of mind by ensuring you are compliant. They offer this service at a yearly cost of $280.
- Minutes Manager
Every company is supposed to hold several minutes every year involving either the shareholder and board members. Minutes show that your business has been having meetings and, therefore, maintain your business’s limited liability protection. LegalZoom will be your minutes’ manager for an annual cost of $99.
- Annual Report
It’s a legal requirement for a business to file reports several times or once within a year. LegalZoom offers these annual report services at an affordable cost of $55 + state fee every year. If you want the reports done first, you can get started with Rush for $75 +state fees annually.
- Application
If you form a non-profit corporation, filling application form 501(c)(3) will exempt you from the deductible federal income taxes. LegalZoom will help you apply for this 501(c)(3) legal form using the standard plan at the cost of $595 or the expedited plan for $795.
Personal Services
LegalZoom has a network of lawyers who you can consult or hire if you need legal help. Below are the services they offer.
- Wills and Trust
This package enables you to get attorney advice at affordable prices. It will help you decide what happens when you are not there. This package has legal services on estate planning, will & testament, trusts, etc.
- Family
This package will guide you step by step as you do a name change or divorce. LegalZoom has proficient lawyers who will offer step-by-step guidance on when doing either of the two.
- Real Estate
A real estate package helps you manage and protect your property. The package offers help in acquiring residential leases and property deeds. LegalZoom independent lawyers will guide you through the paperwork involved.
MyCorporation Vs. LegalZoom- Comparison
Below, I have compared the two incorporation services head-to-head. Let’s see who beats who, where, and why.
Pricing
With the current shifts in the world economy, pricing is the most sensitive topic you can discuss. Additionally, as a business person, you are probably working with a specific budget. Therefore, comparing the pricing of the LLC formation package is essential.
MyCorporation
MyCorporation offers four LLC formation packages;
Basic package- $99 + state filing fee
Standard package- $124 + state fees
Deluxe package- $224 + state fees
Premium package- $334 + state fees.
LegalZoom
LegalZoom offers three LLC formation packages;
Economy package- $79 + state fees
Standard package- $329 + state fees
Express Gold package- $349 + state fees
When comparing both LLC formation services, MyCorporation packages are more affordable for several reasons. The services that MyCorporation offers are far off cheap compared to what LegalZoom offers. With the Deluxe package, which costs $224, you get more benefits than you get with a standard package that goes for $329. What’s more, MyCorporation services are easily customizable as compared to LegalZoom.
Winner: MyCorporation.
Registered Agent Service
By law, every company should have a registered agent. The agents act as the middle man who receives the legal documents from the state. Registered agent is, among others, an essential service, and therefore there is a need to compare how both LLC formation companies offer it.
MyCorporation
MyCorporation will accept any legal document for your business, organize it and pass it to you as the business owner. They also promise prompt communication on any urgent communication from the state. They will be your company’s registered agent at the cost of $120 annually.
LegalZoom
LegalZoom assures you professional handling of your legal documents. As your registered agent service, they promise that they won’t charge you until they file and submit your documents. To be your agent, you will pay a fee of $249 annually.
Comparing both LLC services, MyCorporation offers registered agent services at a lower price than LegalZoom, which is twice expensive. Would you pay that expensive when you’ve got an alternative service provider?
Winner: MyCorporation.
Experience
Experience shows professionalism in how a company handles its tasks. Unfortunately, there is no formula to calculate the level of expertise. However, the number of years of operation and the number of customers a company has served is a perfect measure of experience. Why would people continue buying your services if you aren’t professional?
MyCorporation
MyCorporation started offering LLC formation services in 1995, and over the years, they have helped over 1 million businesses form and grow.
LegalZoom
LegalZoom started offering incorporation and legal services in 2001. Since then, they have helped over 2 million businesses start-up and grow. Apart from being an online LLC formation service, they take care of your legal needs.
LegalZoom and MyCorporation are amongst the most reputable online LLC formation companies today. they have both served millions of customers; however, LegalZoom’s reputation and experience exceed MyCorporation.
Winner: LegalZoom.
Customer Support and Customer Review
It is always wise to check customer reviews because they give insights into experiences customers have with a particular company and its services. This insight will help you make a more informed decision when selecting the best company for you. On the other hand, customer support assures you that you can easily reach out if you experience difficulties during the process.
MyCorporation
MyCorporation has hundreds of reviews on google and trust pilot and with over 90% four stars rating. Additionally, they have responsive customer support that you can call or email. You can call from Monday through Friday between 7.30 am to 4.30 pm.
LegalZoom
LegalZoom has thousands of customer reviews online but with a slightly low rating, especially of TrustPilot. They have about 62% of the customer rating above four stars and 32% rating one star. They have many satisfied customers, but a good number feel they have a lot of work to do, especially on customer support and billing. Their customer support is available from Monday to Friday between 5 am and 7 pm and weekends between 7 am and 4 pm.
Despite having a few customer reviews, MyCorporation has a very high rating compared to LegalZoom. Proving that the services of the former are more reliable than those of the latter.
Turnaround Time
Many are times when we want something done fast, probably because we are working with deadlines. Besides, no one likes working with the vagueness of time. Let’s compare the MyCorporation and LegalZoom on the processing time.
MyCorporation
MyCorporation is very vague on turnaround time. They only mention that their service will be saving you 85% of the standard filing time. What’s more, they haven’t even mentioned the standard incorporation filing time.
LegalZoom
LegalZoom is precise on turnaround time, and in fact, the basis of the package’s organization is turnaround time. The economy estimated time is 30 days, standard package 15 days, and Express Gold 10 days. What’s more, they provide two turnaround times on every package you buy; standard and Rush, which is the fastest.
MyCorporation is not precise on the issue of time as compared to LegalZoom. LegalZoom even provides two turnaround times on almost every service.
Winner: LegalZoom.
Pros and Cons
MyCorporation
Pros
- Has very cheap registered agent service
- Has affordable packages
- It is highly customizable.
- Has a high favorable rating
Cons
- Offers vague turnaround time
- Has few additional services
LegalZoom
Pros
- Offers payment plans
- It has an unbeatable experience.
- Provides a comprehensive customer support time window
- Gives discounts on the services
- Offers legal services
Cons
- It has expensive packages and Registered agent service.
- Has a very poor rating
Is There a Better Alternative?
Well, that depends on you. If MyCorporation and LegalZoom LLC formation services don’t thrill you, there are other alternatives available in the market. Here’s the best part; we have done a review on them too. Some of the best options you might have interests in include Zenbusiness, Swyft Filings, LegalNature, Corpnet, IncFile,. Check them out too.
Conclusion
Despite the imperfections, LegalZoom has helped create and maintain over 2 million businesses. On the other hand, MyCorporation has assisted in forming and run more than one million businesses. Therefore, depending on the needs and the budget, each LLC formation service is perfect in its way. Therefore;
Choose MyCorporation if you:
- Are on a tight budget
- Want an affordable registered agent
- Want a highly customizable package
- Are looking for the company with the best positive ratings
Choose LegalZoom if you are
- Budget is not an issue.
- Looking for an experienced company
- Willing to pay more for faster service
- Interested in a payment plan