Should You Choose Incfile Vs Incorporate
Trying to decide between Incfile vs Incorporate? Incorporating a business is a very important process. You may not realize how necessary it is to have an LLC until your company begins to get larger. When you are making a substantial amount of revenue, you want to protect it, and also protect yourself. When you establish the limited liability company, this can provide you with a buffer against litigious people that may try to come after your personal assets.
These can be set up in every state, but the process for doing so is different in each one, which is why you need to use a business that can help you accomplish this. There are two that are very well known including Incfile and Incorporate. Here is a quick overview of these two companies, the services that they offer, and an assessment of which one you may want to choose to create your LLC.
Understanding Why You Need An LLC
A limited liability company is simply a legal entity, one that stands apart from yourself. It is used when you are forming a business, and they are very popular, due to the way they can limit your liability similar to a corporation. The differences these are easier to run and have fewer rules that you need to abide by. Setting one up, however, does require certain types of paperwork that must be filed in a particular way.
Why Should You Form An LLC?
The primary reason that this should be done is to limit your personal legal liability. For example, if someone is upset with a product or service that you have offered, and they file a lawsuit against your company, they would also want to pursue your personal assets. However, when a legal liability company is set up in association with your business, it will block the litigious activity of someone suing you, preventing them from getting to your assets. It also adds a bit of notoriety to your company as those that have the LLC designation tend to be considered more professional.
Other Benefits Associated With Having An LLC
There are several other benefits, other than personal asset protection, provided by an LLC. For example, there is something called pass-through taxation. This means that any profit that you make with your company is going to be taxed via your personal tax rates. It literally passes through a corporation, since it cannot be personally taxed, making this very similar to a sole proprietorship or partnership that you can set up.
Another benefit is how simple they are to create, particularly when you are working with a company that does this in all of the states for companies large and small. They are flexible, allowing you to manage taxation, ownership, and the number of owners that will be part of your LLC. Finally, as mentioned before, there is quite a bit of credibility attributed to those that have formed limited liability companies.
Are There Any Disadvantages To Having One?
There are a couple of obvious disadvantages to having an LLC, especially if you are a small or new company. The cost of filing for one can be hundreds of dollars, and maintaining one several hundred dollars more, depending upon the state in which your limited liability company is set up.
There are going to be annual fees and taxes that are due. You can pay as much as $800 a year. Therefore, it’s important to consider whether or not this is an important decision to make if you do not have a lot of capital.
There are also investment disadvantages, particularly when looking for venture capitalists that may provide you with money. They are more willing to invest in corporations where they can be issued stock, whereas an LLC is more like a sole proprietorship.
How To Begin The Process
Initially, you will want to look at the laws, forms, and requirements for an LLC in your particular state. You will want to assess how much it will cost to form one, with the annual fees will be, how much you will be taxed, and all of this can come from either an attorney or a company that can form one for you.
You could do the legwork on your own, but even if you gather this information, it’s going to be problematic. You need to not only fill out the paperwork properly but also submit the forms to the proper locations within the context of your state.
Why You Should Use A Separate Company To Help You
If you use a company that does this all the time, they can make the process very easy. You really don’t have to worry about the cost of doing this as there are many affordable solutions. Two of the best companies on the market today are called Incfile and Incorporate. Let’s take a look at each one of these businesses to see which one will likely be the best choice for you.
What Both Of Them Do
Incfile and Incorporate both allow you to create an LLC. They can even help you form a corporation. There are several factors to consider when choosing between each of these businesses. In fact, there are comparison points, or key points, that you should take note of before you decide on one company or the other.
You will first want to look at their pricing structure. Next, consider all of the features that they offer for their services. Look at their track record for providing these services which can be ascertained by looking at feedback that is publicly available.
Consider what people are saying about their customer service. Next, you will want to see how long it will take to complete the process of forming your LLC. Finally, look at the total overall cost now, and in the future, when using these businesses.
How Much Do They Charge To Form A Corporation?
Incfile does not have an actual fee for forming your LLC. This is rare in the industry. From the standpoint, they will certainly be considered affordable, at least when it comes to doing the paperwork and filing those documents to form your LLC. Incorporate charges $99.
Therefore, just based upon how much they charge, Incfile is certainly ahead when looking at the total initial cost. Next, you will want to look at the value of the services that they offer.
Which Services More Valuable
If you want to look at the value of their services, you will then want to consider the other packages that they have available. Keep in mind that filing your LLC is only the beginning of the process. You will also need to have what is called a registered agent. This is an individual, or a business, that has a physical location in your state.
Specifically, they need to have a location, whether their home or office, where they can receive direct physical mail. The purpose of doing so is to receive documentation that will be sent to you legally. Without them there, you will not be able to receive this information.
The cost of using these services can range from $100 a year to several hundred dollars a year depending upon the company that you are working with. Incfile gives you a full year of services from a registered agent, and subsequently, it will cost $119 a year.
They also have other packages including a gold package which is $149 and a platinum package which is $299. Each one of these has a variety of features that can help you with your LLC. On the other hand, you have Incorporate which charges the initial $99 for the formation package.
However, they do not provide you with a registered agent for the first year for free. They have other packages which cost between $600 and $800, thus eclipsing the total cost of even the highest packages available from Incfile. All of these packages are similar, which means that Incfile is the clear winner.
What About The Track Record Of The Company
The track record of the business is always important to consider. For example, Incfile has been around since 2004. They have helped 1/4 million businesses file LLCs. On the other hand, Incorporate is a company that has been around since before the turn of the 20th century. During this time, they have helped 750,000 businesses form LLCs and corporations.
Therefore, you might think that this business is likely the best one due to its level of experience and time in the industry. However, when looking at the reviews and feedback that they have received, you will clearly see that they are not favored at all.
Incfile has nearly the opposite. They have lots of positive feedback, which means that customers are very happy with the services that they have been provided with. So now that you know more about their fees, and the reputation of each business from the perspective of their customer base, you now need to look at their customer service reputation.
What Type Of Customer Service Do They Offer?
The customer service offered by these companies is virtually a time. People will say exactly the same things about each business. This is interesting because of the vast volume of negative feedback that Incorporate has received. Apparently, it’s about the process itself, and not the way that they treat their customers, that seems to be the problem.
When you look at the different websites that you offer these services, some of them have very easy-to-understand platforms that are also easy to navigate once you can log in. Therefore, if you do decide to use either of these companies if you have a problem, the customer service portion of these businesses is going to be very helpful.
Getting back to why customers are either happy or not satisfied with the services rendered, it often comes down to how easy they are to use.
Which Company Is The Easiest To Use?
When referring to ease of use, this pertains to several factors. First of all, you must be able to quickly understand what they are asking for on their main website. Second, when you are going through this process, it needs to be easy to understand as well. You need to know what information you need to provide, and then they will do their part in forming your LLC.
In regard to the higher packages that they offer, though should also be easy to understand so that you know exactly what you are paying for. Incorporate is actually quite difficult, especially when looking at the CSC navigator compliance tool. The name itself is somewhat daunting and is even more confusing when trying to use it.
Therefore, when considering the overall package regarding ease of use, the winner is again Incfile. They make it simple for everyone, regardless of their business experience, to understand this process. They also make it very clear what their packages are, what you are paying for, and will provide you with any help that you need if you have any questions.
How Fast Can They Form Your Corporation?
For many people that are in a rush, forming an LLC quickly is really the key to doing this the right way. For example, Incfile offers to complete the paperwork for you in a single day.
This includes business days only, but the fact that they can do this in 24 hours is quite astounding. Incorporate also offers fast turnaround time, but they are not going to be definitive in terms of overnight or same-day turnaround as Incfile and others are. That being said, both of them have been shown to adhere to their word and will file your LLC in a single business day. From this perspective, both of them will be advantageous to use because of the speed at which your LLC will be formed.
How To Assess These Companies
Once you have decided to assess all of these businesses, you will then want to consider a few factors. You need to know which one is offering you the most benefits. This will include how much it will cost, what the turnaround time is for forming your LLC, and how easy each company is to work with.
You need to consider the customer service value of each business, and the advanced packages that both of them are offering. After assessing all of this, the clear winner is Incfile in terms of cost, speed, and ease of use. Also, remember that Incfile does provide you with a registered agent for an entire year at no charge which is of great benefit.
Other Factors To Consider When Choosing These Companies
There are several other factors to consider when using these businesses. Most of the factors that you will need to consider have already been presented. However, there are other fees that you may be liable for. For example, there is the cost of filing the state fee which, with Incfile, is zero dollars.
You must also consider the experience level of each business in all of the states. For example, Incfile not only allows you to have a registered agent for free for an entire year, but it will also greatly discount by comparison to other businesses the use of the registered agent services. Finally, if you are concerned about the prospect of getting a refund, both of them state that refunds are available, yet not for the cost of filing fees which are demanded by the state you are in.
There is also the matter of publication services. In this case, both of them are tied. Neither one of them is going to offer publication services. This simply means that they will take a preformatted document to a local newspaper and publish it for you. If this is required in your state, this is something you will have to do on your own. The cost of doing so will be based upon whatever that newspaper charges for this type of service.
What About Upsells And Other Packages
There are other packages that each of the companies will offer. However, the way they present them is completely different. Incfile is not going to push any of their advanced packages that you may or may not need. On the other hand, Incorporate certainly will.
Therefore, if your objective is to simply incorporate, and not take advantage of any of the other services, you will not be pressured in any way by Incfile. This is one of the other reasons that this company is more popular. There are objective is to simply provide you with the services that you want and to help you if you desire any of the others that they offer.
In conclusion, Incfile is the clear winner when comparing both of these businesses. Although Incorporate is much older, they make it much more difficult to complete the process of forming your LLC.
If you are looking for the least expensive company, as well as one that will not pressure you into getting any additional services, Incfile is the one you will want to use. Finally, if the cost of forming your limited liability company is of great concern to you, Incorporate is going to charge you far more money. If you want to get this done in 24 hours and do so for the lowest cost, contact Incfile today.