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LegalZoom vs. MyCorporation: When you’re willing to start an LLC, LLC formation services like LegalZoom and MyCorporation are the first things you look for. They are competent, offer diverse deals in business formation, are affordable, and help you go through a hassle-free process of LLC formation. However, not all services are the same, like MyCorporation offers different services and prices than LegalZoom.
As we share our take on LegalZoom and MyCorporation, we pointed out the pros and cons of both services for you to decide which one is suitable for your business. LLCBuddy editors dug up a lot and brought a detailed comparative guide on LegalZoom vs. MyCorporation for the budding entrepreneur.
LegalZoom vs. MyCorporation: Quick Review
| Services | LegalZoom | MyCorporation |
|---|---|---|
| LLC Formation | Available | Available |
| Starting Price | $0 + State filing fee | $99 + State filing fee |
| Registered Agent Service | Available at $299 a year | Available at $120 per year |
| Legal Advice | Available at an additional fee | Not Available |
| EIN | Available at $79 | Available at $79 |
| Operating Agreement | $99 | $59 |
| Annual Report | $99 + state filing fee | $99 + state filing fee |
| Attorney Service | Depends on services | Not available |
| Website | LegalZoom | MyCorporation |
| Review | LegalZoom Review | – |
Before we make a purchase, we always look for affordability and quality rather than the name or brand. Of course, brand matters, however, depending on your requirements, sometimes we have to choose unpopular names over a big brand. When it comes to deciding on which service we are going to choose or purchase, we look for a few general points.
- Reliable
- Reasonable
- Meet requirements
Our main goal is to share the insights of features and prices both these services offer. We researched the details of LegalZoom and MyCorporation to bring the comparison study for you.
LegalZoom vs. MyCorporation: Our Take
It is a bit difficult for us to say what you should choose. It depends on what services you’re looking for. Both services offer LLC formation, however, LegalZoom is more focused on legal assistance and attorney services. On the other side, MyCorporation offers not only business formation but also it offers compliance services and other business management services. Compared to LegalZoom, their basic LLC formation package is expensive. Hence, choosing LegalZoom over MyCorporation might be better. .
LegalZoom vs. MyCorporation: Price and Packaging
LegalZoom offers LLC formation at $0; however, the required state filing fee must be paid. On the other hand, MyCorporation offers the LLC formation at $99 plus state filing fee. . When forming your LLC with LegalZoom or MyCorporation, there are many more things than the formation fees. With MyCorporation, a registered agent costs $120 per year. However, with LegalZoom, it is $299 a year. Hence, it is obviously wise to choose LegalZoom as it offers basic LLC formation for almost free. However, the registered agent cost is much highter in LegalZoom compared to MyCorporation. Not only that, if you choose a better package in MyCorporation, you will get Registered Agent service free. But, MyCorporation charges shipping fee of $34. LegalZoom does not offer such price. So, choose carefully before you make any purchase.
LegalZoom Price & Package
LegalZoom offers three packages for LLC formation. Basic ($0 + state fees), Pro ($249 + state fees), and Premium ($299 + state fees).
- Business Formation Packages start at $0 + state fees and go up to $299 + state fees. Additional services can be added with a la carte options.
- Registered agent services cost $299 per year.
- Legal document review services start at $39 and can go up to $219, depending on the complexity of the document.
- Business compliance services start at $69 a year.
- Intellectual property services start at $199 and go up to $499, depending on the requirements.
Add-ons by LegalZoom
- Trademark registration: Assisting with the US trademark application process
- Copyright registration: Guidance on registering copyrights for creative works
- Patent services: Support in obtaining utility, design, and plant patents
- Estate planning: Offering personalized wills, trusts, and power of attorney documents
- Legal advice: Access to a network of lawyers for consultations and legal guidance
- Expedited Filing: With an additional $99, you can speed up your filing process.
MyCorporation Price & Package
- LLC formation basic package starts from $99 and go up to $324.
- Registered Agent is available at $120 per year.
- Annual Report is available at $99.
- EIN can be obtained hasslefree at $79.
- Operating Agreement is available at $59.
- Business compliance package is available at $149.
- Annual Auto Renew cost is $250.
- Rush or Expedited filing costs $100 + state filing fee.
Add-ons By MyCorporation
- Rush filing – $100 + state fee
- Employer Identification Number (EIN) – $79
- Customized Operating Agreement – $59
- S Corporation Election – $49
- Business License Compliance Package – $149
- State Unemployment Insurance – $200 (+state fees)
- State Income Tax Withholding – $200 (+State fees)
- Sales & Use Tax – $200 (+State fees)
- Elite Kit – $100
- Seal & Embosser – $40
- Federal & State Labor Law Posters – $99
Starter/Basic Package: Comparison
| Services | LegalZoom | MyCorporation |
|---|---|---|
| LLC formation | $0 + state filing fee | $99 + State filing fee |
| Processing time | 30 days | Standard processing time as per the state |
| Business Name Search | Unlimited | Unlimited |
| EIN | $79 | Available at $79 |
| Operating Agreement | $99 | $59 |
| Business Compliance | $280 per year | $149 a year |
| Web domain & web hosting | Not Available (website building through WIX) | Available through third party |
Pro/Mid-Level Package:
| Services | LegalZoom | MyCorporation |
|---|---|---|
| LLC formation | $249 + state filing fees | $124 + State filing fee (Standard), $224 + State filing fee (Delux) |
| Processing Time | 15 days | Standard State processing time (Rush filing is available at $100) |
| Business Name Search | Unlimited | Unlimited |
| EIN | Yes | $79 |
| Operating Agreement | Yes | $59 |
| Business Compliance | $280 per year | $149 |
| Web domain & web hosting | Not Available (website building through WIX) | Not Available |
| Domain Name Registration | Not Available | Available through third party |
| Business Email | Not Available | Available through third party |
Premium/Top Level Package:
| Services | LegalZoom | MyCorporation |
|---|---|---|
| LLC Formation | $299 + state filing fee | $324 + State filing fee |
| Processing Time | 15 days | Rush filing available at $100 |
| Business Name Search | Unlimited | Unlimited |
| EIN | Yes | $79 |
| Operating Agreement | Yes | $59 |
| Business Compliance | $280 per year | $149 |
| Web domain & web hosting | Not Available (website building through WIX) | Available through third party |
LegalZoom vs. MyCorporation: How They Are Different or Similar
LegalZoom and MyCorporation offer similar services. Both companies have many things in common, while some things are different. Let’s look at the similarities and differences MyCorporation and LegalZoom have with each other.
Business Formation
LegalZoom provides a complete business formation service that helps customers create their legal entity. They offer various business entity types, including LLC, Corporation, and Non-profit. LegalZoom offers different packages for each business entity type, including a basic package that offers the basic requirements for business formation, such as legal document filing and registered agents. With LegalZoom, you can get access to attorneys and other legal services.
MyCorporation, started in 1998, offers 4 LLC formation services. The basic package starts from $99 plus the required state filing fee. Along with the LLC formation, MyCorporation offers services like annual compliances, annual reports, state sales tax filing, customized operating agreement, and much more. However, it does not offer any legal service such as attorney, etc.
Legal Support & Attorney Services
LegalZoom, as per its name, provides in-and-out legal support to entrepreneurs. The company also offers attorney consultation services. LegalZoom is your solution if you want to hire an attorney to form your business. Not only the professional purpose but LegalZoom offers personal legal help as well. Property lawyers, Will, Power of Attorney, and other personal legal services are available in LegalZoom.
MyCorporation does not offer any legal support to the users. If you’re looking for attorney consultation, or any type of legal help for your newly set up LLC then MyCorporation will not be an ideal choice.
Overall Cost
LegalZoom offers LLC formation at $0. However, other services, like a registered agent, cost $299 a year, making the overall cost more than other close competitors. It is a bit expensive compared to MyCorporation.
MyCorporation offers LLC formation at $99 (minimum price) which is more than LegalZoom’s basic price ($0). But, MyCorporation offers Registered Agent at a very low price ($120 per year) which is more than LegalZoom ($299 per year). Hence, it might look like MyCorporation is cheaper if you buy both services. But, overall, the cost is not so less as it seems. MyCorporation adds a shipping charge of $34 (flat) above package price and state filing fee. Many users think this cost is unnecessary. Also, it does not offer any legal service like attorney consultaion, any type of legal documentation. The basic package does not include website services (MyCorporation uses third party to provide websites).
Customer Support
Regarding customer support, LegalZoom has the best in the industry. The company is old, and the team is much more experienced than MyCorporation. LegalZoom’s customer service is swift and available during working hours. One can contact them by asking questions and by phone. The LegalZoom official site has many business-related articles that help you understand their services.
MyCorporation offers three types of contact. First one is to visit their office. The next and easiest point of contact is to connect via calls from Monday to Friday during business hours. Another way to contact them is to land on their website, and fill up the customer form available and submit. They will get back to the user within the shortest time.
MyCorporation Additional Services
There are some services that LegalZoom does not provide, but MyCorporation does. The following services are offered by MyCorporation, but LegalZoom has no such services.
State Unemployment Insurance: It is required when you hire any employee to your company.
State Income Tax Withholding: It is required for payroll of the employees in your company.
Sales & Use Tax ID: It is required for specific types of business.
Embosser & Seal: Seal is used in corporate document signing. There is an Elite Kit available where you will get a kit for embossed binder for corporate documentation.
Federal & State Labor Compliance: It is required to maintain the employer compliances in companies with employees.
LegalZoom vs. MyCorporation: Pros & Cons
Before you choose either of these options, you must specify what requirements you have. If you’re establishing an LLC and looking for a basic business formation package, then both these companies, LegalZoom and MyCorporation, can be considered. Both companies offer LC formation at a reasonable price.
LegalZoom: Pros & Cons:
| Pros of LegalZoom | Cons of LegalZoom |
|---|---|
| Comprehensive legal services: LegalZoom offers a vast range of legal services that can help entrepreneurs meet all their legal obligations. | Higher prices: LegalZoom has higher prices than other competitors in the business formation industry, especially for add-on services. |
| Established brand: LegalZoom has been around since 1999 and has helped over four million businesses. Thus, it has a reputation and tracks records of forming businesses. | Limited customer support: LegalZoom offers customer support, but it may not be as extensive as expected. Some customers have mentioned they had difficulty getting support from LegalZoom. |
| 100% satisfaction guarantee: LegalZoom offers a 60-day money-back guarantee, and if you are not satisfied with their services, you will get a full refund. |
MyCorporation: Pros & Cons:
| Pros of MyCorporation | Cons of MyCorporation |
|---|---|
| Vast services related to business are available. | Basic LLC formation is expensive |
| Diverse packages to choose from. Starting from $99 and go up to $324 for LLC formation. | Additional shipping charge is to be paid for all the packages you order. |
| Registered Agent is available at $120 per year. |
FAQs
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Conclusion
LegalZoom and MyCorporation are reputable companies offering quality services at competitive rates. However, which one you choose depends on your specific business needs. LegalZoom is an excellent choice if you are looking for a more straightforward pricing model and a wide range of legal support services. If you are looking for a more affordable option and an excellent business formation package, MyCorporation is the perfect choice.
It is worth noting that both companies offer a satisfaction guarantee, so if you are not satisfied with their services, you might get a refund.
To summarize the comparison, LegalZoom is suitable for entrepreneurs who want a one-stop shop for all business-related and legal services. It has higher prices, but it is worth the investment for entrepreneurs who want personalized advice from legal professionals. On the other hand, MyCorporation is better for budget-conscious entrepreneurs who want a more streamlined and efficient business formation process.
Finally, before making your final decision, it is crucial to research other business formation companies and determine which one is the best fit for your business needs. By doing so, you can make an informed decision that will help you build a strong legal foundation for your business.