When it comes to starting a business, choosing the right LLC formation service is crucial. LLC formation companies like Inc Authority and ZenBusiness have become key players in helping entrepreneurs navigate the process of forming a legal entity. With their wide range of services, they aim to simplify the incorporation process.
But when it comes to choosing one, which is the best choice? In this detailed comparison, we’ll break down both services, covering their features, pricing, customer support, additional services, pros and cons, and more, to determine which stands out.
Inc Authority
Inc Authority was founded in 1989, making it one of the oldest LLC formation companies in the industry. With over 30 years of experience, it’s a trusted choice for many new business owners. Inc Authority has formed more than 250,000 businesses and boasts an extensive network of clients. The company offers a solid array of services, which includes not only LLC formation but also a range of business-related services like tax consultations, business credit, and funding assistance.
ZenBusiness
ZenBusiness is a much younger company, founded in 2015. Despite being relatively new, ZenBusiness has quickly gained a strong following among entrepreneurs due to its simple interface, transparent pricing, and excellent customer service. They have formed over 500,000 businesses to date and have earned high ratings from users across platforms such as Trustpilot and Google Reviews.
While Inc Authority has decades of experience, ZenBusiness has carved out a niche by combining modern technology with a strong focus on customer satisfaction. Both companies offer similar core services, but the customer experience and additional features they offer set them apart.
Quick Summary
| Feature | Inc Authority | ZenBusiness |
|---|---|---|
| Free LLC Formation | Yes (state fees apply) | Yes (state fees apply) |
| Registered Agent | Free for 1 year; $99/year thereafter | $199/year (add-on) |
| Operating Agreement | Add-on service | Included in Pro and Premium plans |
| EIN Registration | Included | Add-on service |
| Annual Compliance | Not included | Included in Pro and Premium plans |
| Website & Domain | Not included | Included in Premium plan |
| Customer Support | Phone, email, live chat (Mon–Fri, 6 AM–5 PM PT) | Phone, email, live chat (Mon–Fri, 8 AM–8 PM CT; Sat–Sun, 9 AM–6 PM CT) |
| Processing Time | Standard: 1–3 weeks; expedited options available | Starter: 2–3 weeks; Pro and Premium: 1–5 business days |
| Pricing Transparency | Limited; some add-ons require contacting sales | Clear pricing with detailed package breakdowns |
| User Interface | Functional but may include upsells | Clean, user-friendly interface |
| Additional Services | Business credit and funding analysis, tax planning | Business website builder, domain registration, compliance tools |
Registered Agent Services
Both Inc Authority and ZenBusiness offer Registered Agent services, but they differ in pricing and additional features.
Inc Authority provides a one-year free Registered Agent service with all its plans, including the free LLC formation plan. After the first year, the service costs $99 annually, which is relatively affordable compared to most competitors. This service includes receiving legal documents on behalf of your LLC, scanning and emailing them to you, and providing a physical address for government correspondence.
Additionally, Inc Authority sends compliance reminders to help ensure your business stays up to date with state requirements. With over 30 years of experience, Inc Authority is a reliable, budget-friendly choice.
ZenBusiness also offers one year of free Registered Agent service with its Starter Plan. However, after the first year, the service costs $199 annually, making it more expensive than Inc Authority. ZenBusiness provides similar services, including receiving and forwarding legal documents, offering a physical address, and sending compliance alerts. The higher price point is justified by additional business tools available in higher-tier plans, such as website creation, domain registration, and VIP customer support. If you need more than just basic registered agent services, ZenBusiness might be a better option for you.
In summary, Inc Authority is the better choice for those looking for a cost-effective registered agent service, while ZenBusiness is ideal for those seeking more comprehensive business solutions alongside the registered agent service.
Pricing and Packages
One of the biggest factors when choosing an LLC formation service is cost. Both Inc Authority and ZenBusiness offer different pricing tiers based on the level of service required.
Inc Authority Pricing
Inc Authority is one of the few LLC formation services that offer a free LLC formation plan. For entrepreneurs looking to minimize costs, this is a significant advantage. The free plan includes:
- LLC Formation: Inc Authority will file the necessary paperwork with your state to form your LLC.
- EIN (Employer Identification Number): The free plan includes getting your EIN, which is necessary for opening a business bank account, hiring employees, and paying taxes.
- One-Year Free Registered Agent Service: They will act as your business’s registered agent for the first year at no additional cost. After that, it costs $99 per year.
- Personalized Dashboard: You will receive a dedicated dashboard to track your LLC formation process.
However, the free plan is limited, and Inc Authority will encourage you to purchase additional services like an Operating Agreement or Business License Reports, which are available in their Starter Plan and Fast Track Plan. The Starter Plan is priced at $399, and the Fast Track Plan is priced at $499.
ZenBusiness Pricing
ZenBusiness offers three pricing tiers:
1. Starter Plan: This plan is priced at $0 + state filing fees, making it one of the most affordable options in the market. It includes:
- LLC Formation
- Free Registered Agent Service for the First Year
2. Pro Plan: The Pro Plan is priced at $199 and includes:
- Everything in the Starter Plan
- Operating Agreement Template
- EIN (Employer Identification Number)
3. Premium Plan: The Premium Plan costs $349 and offers:
- Everything in the Pro Plan
- Domain Name Registration
- Business Website Builder
- VIP Support
While the Starter Plan is free, the other plans offer additional tools for business owners who want more assistance with their LLC formation and business operations. ZenBusiness also has a straightforward pricing structure with no hidden fees.
Inc Authority wins in pricing primarily because they offer free LLC formation, requiring only the state filing fees. This makes them an ideal choice for entrepreneurs looking to save on initial business costs. Additionally, Inc Authority includes a year of free registered agent service, which typically costs $179 annually after the first year. ZenBusiness charges $199 per year for their registered agent service, which adds up quickly. Furthermore, Inc Authority provides free EIN registration with their LLC package, whereas ZenBusiness charges an extra $99 for EIN services, even in their Pro plan.
Overall, Inc Authority’s straightforward and transparent pricing, with no hidden fees for basic services, positions it as the more affordable option compared to ZenBusiness, where many services require add-ons, leading to higher total costs. This makes Inc Authority the clear winner for entrepreneurs looking to minimize upfront expenses.
Ease of Use
A user-friendly interface is essential when choosing a service for LLC formation. It should be easy to navigate, with clear instructions and minimal confusion.
Inc Authority offers a simple and straightforward process for LLC formation. However, many users have complained about the upsell tactics they encounter when signing up. While the basic formation process is smooth, some customers find the aggressive attempts to upsell additional services somewhat annoying.
ZenBusiness, on the other hand, is known for its clean, intuitive interface. From the moment you land on their website, you can see exactly what steps you need to take to form your LLC. Their process is designed to be as hassle-free as possible, with minimal upselling. For entrepreneurs who prefer a more transparent and simple process, ZenBusiness is a better option.
Customer Support
When you’re running a business, having access to quality customer support is crucial. Both Inc Authority and ZenBusiness offer good customer service, but the availability and quality differ.
Inc Authority provides customer support through phone, email, and live chat. However, the live chat and phone support are only available during business hours (Monday through Friday, 6:00 AM to 5:00 PM Pacific Time). This limited support window can be a hassle for business owners who may need help outside these hours.
ZenBusiness, on the other hand, provides customer support seven days a week. Their support is available Monday to Friday from 8:00 AM to 8:00 PM Central Time, and they even offer Sunday support from 10:00 AM to 7:00 PM Central Time. This extended support makes ZenBusiness a more accessible option for entrepreneurs who may need assistance outside of regular business hours.
Turnaround Times
The speed at which your LLC is formed can be a critical factor, especially if you need to get started quickly.
Inc Authority offers standard processing times of about 1-3 weeks, depending on the state you’re filing in. They also provide expedited services for an additional fee, which can cut down the processing time significantly.
ZenBusiness offers varying turnaround times based on the plan you choose. With the Starter Plan, it takes about 2-3 weeks for your LLC formation to be completed. If you opt for the Pro Plan, processing time is reduced to 4-6 days, while the Premium Plan can complete your LLC formation in 1-2 days.
Additional Services
Both Inc Authority and ZenBusiness offer additional services that help entrepreneurs maintain compliance and grow their businesses.
Inc Authority Additional Services
- Business Credit: Inc Authority offers tools to help businesses build their credit, which can be crucial for securing loans and attracting investors.
- Tax Consultation: Their plans come with tax consultation services to help you make sure your business is structured in the most tax-efficient way.
- Trademark Registration: Protect your brand with trademark registration services.
- DBA Registration: If you want to register a “Doing Business As” (DBA) name, Inc Authority offers this service.
ZenBusiness Additional Services
- Business Banking: ZenBusiness helps you set up business banking accounts.
- Accounting Services: ZenBusiness offers accounting and bookkeeping services to ensure your finances stay in order.
- Compliance Alerts: ZenBusiness will send you compliance reminders to help you stay on top of annual reports and other important filings.
Both companies offer a range of valuable additional services, but Inc Authority shines with its focus on business credit and tax consultation, which can be especially useful for those looking to grow their business quickly.
Why Inc Authority is the Clear Winner
While both Inc Authority and ZenBusiness are excellent choices for LLC formation services, Inc Authority has a few key advantages that make it stand out as the clear winner:
- Free LLC Formation: Inc Authority’s free LLC formation plan is a huge advantage for entrepreneurs who are just getting started and want to minimize their initial costs.
- Business Credit and Funding: Inc Authority’s focus on helping businesses build credit and secure funding is a valuable feature, especially for new entrepreneurs looking to establish financial credibility.
- Experience: With over 30 years in business, Inc Authority has a proven track record. They’ve helped over 250,000 businesses form, making them one of the most trusted names in the industry.
- Customer Support: While ZenBusiness offers more extended hours, Inc Authority’s customer support is still highly rated, with knowledgeable representatives who can provide assistance during business hours.
- Registered Agent Service: Inc Authority offers a one-year free registered agent service, which is a great added bonus.
Conclusion
Choosing between Inc Authority and ZenBusiness comes down to your specific business needs. If you’re looking for a budget-friendly, reliable option with decades of experience, Inc Authority is the clear winner. Their free LLC formation plan, along with their focus on business credit and funding, makes them an excellent choice for entrepreneurs starting on a budget.
However, if you prefer a more modern, user-friendly experience with a slightly more expensive pricing structure, ZenBusiness offers great value with additional tools like website builders and domain registration.
Ultimately, both services can help you start your business. Your decision will depend on the additional features you want and the level of support you need as you grow your LLC.
FAQs
Is LLC formation free with Inc Authority?
Yes, Inc Authority offers free LLC formation, but you only pay for the state filing fees. Additional services like operating agreements or expedited processing may come with extra charges.
What does ZenBusiness include in its free plan?
ZenBusiness provides free LLC formation, which includes business name verification and preparation of articles of organization. However, services like registered agent and EIN registration are available as paid add-ons.
How does the registered agent service compare between Inc Authority and ZenBusiness?
Inc Authority offers a free registered agent service for the first year, and it costs $179 per year after that. ZenBusiness charges $199 annually for registered agent service.
Does Inc Authority offer EIN registration?
Yes, Inc Authority includes free EIN registration as part of their LLC formation service, while ZenBusiness charges an additional fee for EIN registration.
Which company is better for someone on a budget?
Inc Authority is the better choice for those on a budget since it offers free LLC formation and a free registered agent service for the first year, while ZenBusiness has more additional fees