Now and then, people come up with fantastic business ideas to generate millions of dollars and hope to solve real-world problems. But once they find out that coming up with these ideas is the easy part and the hard part involves getting the business up and running, they give up.
There are many LLC business formation service providers that provide a wide range of services for startup companies. One of such companies is Incfile. Incfile aims to support small business owners form an LLC. With its headquarters in Houston, Texas, Incfile claims to have helped more than 500,000 businesses get started since its inception in 2004.
How is Incfile Different From Other LLC Service Providers
Incfile is different from other LLC service providers because of its low-cost services. In the first year, Incfile offers free business formation services. These free services cover one year of registered agent services and free LLC formation.
However, it does not cover the state fee for the business and email reminders for notifying business owners of compliance requirements for LLC. It also does not cover the LLC formation documents, which will be saved securely online.
- Customer service support for life
- Zero hidden charges and no automatic renewals
- One hour of business tax consultation with a tax professional for free
- Placing an order is fast and stress-free.
- Registered service agent that give offer as much as one full year of free service
- Turnaround time for LLC documents is typically within 1 business day.
- Customer support isn’t available 24/7, and it requires much patience.
- Business owners cannot form a professional limited liability company using Incfile.
- Add-ons for legal services are limited.
Who Would Best Benefit From Using Incfile?
Incfile makes starting up a business very easy while offering super affordable services and lifetime support. Before deciding to form an LLC with Incfile, the individual needs to check if their company fits into one of these categories:
- Primary focus on saving money
- Do not foresee the need for legal advice or help
- Keep the businesses in good standing
- Entrepreneurs who want to confirm the name availability for their company
Types of Businesses That Would Not Benefit from Using Incfile LLC Services
As much as Incfile tries to take care of all the crucial aspects of starting a business, it still lacks a few essential services. If these services are necessary, the person should consider going for an alternative to Incfile like Legal Zoom. Here are some services that are either too costly on Incfile or not just available:
- Not suitable for CEOs who wish to file a lawsuit against other companies for intellectual property infringement.
- Not for business owners that want to form a PLLC.
- Not for businesses with pressing legal needs, like filling legal forms or connecting entrepreneurs with online attorneys.
The Incfile Pricing Structure
Incfile pricing comes in several packages that are called ‘tiers’. Several of these tiers also come with additional add-ons, which will have to be paid for separately. Here are the three tiers available from Incfile.
The Silver Package – ($0 plus state fees)
The Incfile’s silver package costs $0. Business owners need only pay the state fee for their state. Also, Incfile will provide every detail needed to form, register, and run an LLC. Additionally, the business will have access to a free registered agent.
This silver package is for people just starting a business who want to file an LLC at the lowest cost available and also do not mind doing some of the business formation process themselves. Many competitors offer the same tier for as much as $50-$100.
Services available in the Silver package:
- Access to free registered agent services
- Order processing within one working day
- Lifetime company Compliance alerts
- Business tax consultation services
- A business website
This section covers services that are available on Incfile. However, they need to be paid for separately if the Incfile member is on the silver package. Some of these services are available on the Gold and platinum packages. Think of these packages as Incfile’s silver plus add-ons. Here is a list of these add-ons and their cost.
- Employer identification number EIN – $70
- IRS form 2553 – $50
- Business contract template – $150
- Banking Resolution – $35
- Operating agreement – $40
- Expedited state filing – $50
- Express shipping – $25
- The Gold kit: A personalized binder that costs $99. This binder consists of formation documents, transfer ledgers, a kit with a customized business name, and 20 stock certificates.
When put together, these add-ons accrue to about $519, but the good thing is if a business doesn’t need all of them, the owner can select the essential ones. If the company needs more than one of these add-ons, they can calculate the cost of purchasing the add-ons they need and compare it to either the gold package or platinum package.
The Gold Package – ($149 plus state fees)
The gold package plus state fee is for those who do not know their way around preparing and filing LLC papers. People in this category will prefer not to make a mistake on their Employer Identification Number (EIN) registration, so they choose to pay the extra fees. The cost of the full gold package costs $149 plus the state fee. It includes all the features available on the silver package, plus a few other added services.
Benefits of the Gold Package
- All the benefits enjoyed on the Silver Package
- Lifetime company alerts
- EIN registration
- IRS 2553 form
- Operating Agreement
- Banking resolution and all the features listed in the Gold kit above.
The Platinum Package – ($299 plus state fees)
Incfile’s premium package costs $299 and gives users access to all the services Incfile offers on the Silver and Gold packages, with some other premium benefits. The package comes with a Platinum LLC kit that includes
- A customized business website and domain design by Snapweb.
- FedEx 2-3 Day express Shipping – This covers LLC formation paperwork and other documents that are incredibly urgent.
- Platinum LLC Kit- Like the Gold kit, only that here there is the addition of a die-cast corporate embossing seal.
- Business contract templates
- Expedited state filing
How to Get an Incfile Profile Up and Running
Once a business owner chooses Incfile LLC formation service, the next step is to set up an Incfile profile.
Once logged into the Incfile official website, click on a red header tagged “Incorporate Now” to start the registration process. Alternatively, by clicking on the tab labeled “Review entity,” users can select the type of business they intend on creating from the drop-down list.
Once the user clicks on “Incorporate Now,” the next step is to select the type of LLC they intend on forming. After that, choose the state of formation from the drop-down list.
The review entity tab is also available to give new users a rough idea of the pricing plans, and captures brief information on each plan and provides details like the amount the user will save on each premium plan instead of opting for an add-on a la carte.
The LLC formation process is next, and here, users need to provide information like their name, phone number, email address, and mailing address.
The new user can choose to speed up the form filling from 5 days to 1 day, but this will cost an additional $50, although the five business days option is free.
Information about the company is next on the list; this will include the company name, the business type, the name of the business owners, the business address, and the purpose of the business. If the chosen name isn’t available, Incfile will contact the user to select another name since Incfile conducts free name checks.
The next stage is a page that showcases the premium services on Incfile. These premium services cover EIN, operating agreement, banking resolution, express shipping, and contract templates.
In this step, the user will need to provide information about every member of the company. If there is only one owner with no employees, leave the employee’s column blank.
Cross-check the information provided and enter a preferred payment method.
Additional Services Available on Incfile
Incfile doesn’t only provide LLC formation services. Here are a few other services that Incfile offers
Certificate of Good Standing
Usually issued by the secretary of state, this document shows that the company is in good standing. It not only helps prove that the company exists and is legal, but it also makes accessing loans easier.
Amendments ($99 + state fees)
With this service, Incfile allows businesses to change the business name, add or remove members, change or update their business address and change the objectives of the business.
Dissolution ($149 + state fees)
For any reason, if there comes a time when they need to close the limited liability company, this service from Incfile will take care of the process.
All LLCs and corporations are mandated by law to submit an annual report that lists out the year’s activities. This report includes information like the updated addresses of key personnel in the organization. Allowing Incfile to file these reports has additional benefits like compliance reminders and reminder emails when the report is due.
Personal and Business Tax Return Filling
When it comes to filing taxes, for the fee of $299 to $599, Incfile will have it done. The person also gets the chance to save 15% if Incfile performs personal and business tax returns.
Foreign Qualification ($149 + state fees)
This service is for those who intend on expanding their business outside their state or local area. This feature is only limited to the United States.
Fictitious Business Name
For people who want to conduct business transactions under pseudonyms, Incfile has a dedicated way it takes care of this process even though it is not accepted in some states.
Business License Research Package
This package’s purchase encourages Incfile to send users a detailed list of all federal and state business licenses that apply to the business.
Trademarks are important. Incfile will help to file a trademark. With this trademark, the name, logo, and tagline for the business is protected. This package also covers trademark research to ensure users do not use any existing trademark. It also covers legal counsel and registering of trademarks.
S-Corporation Tax Elections
Incfile will help businesses fill Form 2553 from the IRS, which will help reduce the tax income charged on the limited liability company.
Change of Service Agent
Incfile is ready to do all the paperwork involved with changing a registered service agent Since the state has to be notified when there is a change in service agent.
Incfile VS Legal Zoom
Legal zoom like Incfile is an online business service that provides legal and LLC formation services. Legal Zoom is a full legal service provider is the principal feature that distinguishes it from Incfile. However, Incfile helps with the Business formation and Compliance services.
When it comes to pricing, Incfile provides cheaper services. This is seen in the Incfile pricing to form a new business, getting a registered agent, operating agreement, EIN, and more.
Head-to-Head Comparison, Incfile VS Legal Zoom
|Prepare and File Tax returns||$599 for business and $299 for personal||Service Unavailable|
|Create customized legal forms||Service Unavailable||$7.95 per month or $59 per form|
|Annual Report||$88 plus state fee||$55 plus state fee|
|EIN||Available||$60 extra, and it must be combined with Operating Agreement for a total of $159|
|Operating Agreement||Available||$99 extra|
|Web domain Hosting||Free domain + $20/month hosting fees via Snapweb||Service Unavailable|
|Form a new Business||$0-$299 plus state fee||$149-$369 plus state fee|
|Patent Application||$199 plus government fee|
|Registered Agent||Free for one year, then $119 per year||$159 extra per year|
|Monthly Legal Plan||Service Unavailable||$31.25 per month|
|Order processing time||Next Business day||15 days|
|Annual Compliance||Free lifetime company alerts||One month free, $320/year after|
|Advisory Services||Tax: Free 30-minute consultation||Service Unavailable|
From the pricing structure and the table outlining both these online services, Legal zoom is the right choice if the owner foresees that the company will require much legal representation.
As we end this Incfile review, it’s safe to say that Incfile’s LLC formation service is guaranteed to give new companies the customer support and help every growing business requires. The ease of use of the available services and affordable service options is nearly impossible to beat.
Coupled with the many LLC formation packages available on Incfile, the customer reviews online also affirm that Incfile is worth trying out and lives up to its reputation.