When you're setting up a new business, you have enough to worry about without considering the legal process of business formation, which is why professional formation services exist. But it can be challenging to know which is best for you. You may have come across two big names: MyCompanyWorks and LegalZoom; let's take an in-depth side-by-side look at both companies to see what they can offer you.
MyCompanyWorks vs. LegalZoom: The Verdict
You can consider LegalZoom and MyCompanyWorks to be two great options to help you form a compliant LLC efficiently. MyCompanyWorks has better customer feedback, excellent customer support, and faster formation services.
LegalZoom can act as a source of legal advice for small businesses that can't yet afford to hire an in-house attorney. Still, they shouldn't be considered as comprehensive as a fully qualified attorney service. While they're great for legal advice, it's unfortunate that they seem to upsell so much. You could easily fall into paying over $1000 for your services if you accepted every upsell on their website. LegalZoom also offers valuable tax assistance. Overall, while LegalZoom may appear to provide superior value, it can be considered one of the more expensive providers when considering these upsells.
Choose LegalZoom if:
- You want legal services but can't afford an in-house attorney
- You need tax assistance
Choose MyCompanyWorks if:
- You need efficient filing services
- You want superior customer support
- You want a satisfaction guarantee
Services Offered & Pricing
LegalZoom and MyCompanyWorks have a lot of overlays but some significant differences. Both can help you set up an LLC, corporation, non-profit, and DBA (doing business as) partnership; MyCompanyWorks offers additional compliance services, including annual report services. LegalZoom has different tax offerings and legal services. MyCompanyWorks offers a brilliant moneyback guarantee, 100% satisfaction, or your money back.
Key Similarities
- You can start an LLC, corporation, non-profit, or partnership
- Packages are affordable and transparent
Key Differences
- MyCompanyWorks offers filing within one business day
- LegalZoom offers additional services like tax assistance
- MyCompanyWorks offers a moneyback guarantee
LegalZoom Packages & Pricing
LegalZoom offers three different packages for you to use. You can select a basic package covering only business registration or a comprehensive service with expedited filings. State filing fees aren't included.
Economy Package - $79
With this package, you'll be given clear guides to assist you and document reviews. You'll also get a personal assessment of your documents included for free. You can also get a financial account authorization letter, allowing you to open a business bank account.
Standard Package - $329
You'll receive everything from the basic package and extras such as an organizer, company membership certificates, and expedited processing times in the standard package.
Express Gold Package - $349
With this package, you'll receive everything from the above two packages and rush processing with the state and express shipping, too. It'll take less time to process anything you file with this package. You'll receive everything faster, saving critical time and sometimes making the difference between getting what you need in time to open your business doors.
MyCompanyWorks Packages & Pricing
Similar to competitors, MyCompanyWorks offers three separate packages. Each package costs a little more and offers more than its predecessors. Let's see how they compare to LegalZoom's packages.
Basic Package - $79
Starting at just $79, this package is an affordable way to create your LLC or corporation. You'll get everything you need to launch your company, including an LLC operating agreement, preparation and filing of your articles of organization, company alert, startup wizard and checklist, and more. Custom operating agreements are offered for LLC's while custom bylaws are provided for corporations.
Entrepreneur Package - $199
The Entrepreneur package has yet more features, including what the basic package offers, including add-ons like a Federal Tax ID number, business kit (a custom compliance binder), and MyCompanyForms (lifetime access to 200+ professional forms).
This package is excellent for business owners to open business bank accounts or hire employees.
Complete Package - $279
This package offers the most and will help you hit the ground running, and you'll receive everything in the above packages and benefit from the registered agent service. MyCompanyWorks can offer you everything and handle everything for you at every step of the way.
Responsibilities include redirecting, receiving, and organizing documents.
After your first year, you can continue the registered agent service for $99/year.
Document Management & Online Experience
Both LegalZoom and MyCompanyWorks offer a great online experience. You're able to download and manage your documents easily, but the latter provides a better service. LegalZoom's website is negatively impacted by constant upselling attempts and confusing options that seem to trap you into spending more money.
Key Similarities
- You can take care of all of your business needs online
Key Differences
- LegalZoom is more focused on upselling and can be challenging to use
Processing Time
LegalZoom has pretty fast turnaround times, and you can register your new LLC within 10-30 business days. However, you can't beat MyCompanyWorks. Their online form takes only 15 minutes to complete, and they can offer next-day processing in most states for just $20. LegalZoom also offers expedited processing for a fee, but it's not as fast, and the pricing seems to vary. If timing is important to you, you'll want to buy a higher-priced package in the first place.
Key Similarities
- You can expedite your processing for a fee
Key Differences
- MyCompanyWorks is faster, and their application process is smoother
Compliance & Track Record
MyCompanyWorks and LegalZoom offer stellar compliance records, with no major issues or scandals. They can also assist you in remaining personally compliant. LegalZoom can help you create legal documents, and you should always expect full legal compliance from LegalZoom, in addition to their tax services. MyCompanyWorks will help you maintain compliance, too. You'll be asked which state you want to incorporate in when you sign up. Then, MyCompanyWorks will automatically deduce which procedures to follow for the applicable licenses and policies.
Key Similarities
- MyCompanyWorks and LegalZoom were both founded in 2001
- Neither has any compliance issues
- Both can help you remain legally compliant
Key Differences
- MyCompanyWorks offers more dedicated compliance services
- LegalZoom can help you maintain tax compliance
Customer Service
MyCompanyWorks and LegalZoom offer email and phone support. MyCompanyWorks' customer support team is among the best in the industry, in addition to their generous refund policy. It's clear that they genuinely care about their customers. LegalZoom is rated well with the BBB, but many customer reviews report that they're challenging to get in touch with. It seems easier to get in touch with their sales team, which isn't a great sign.
Key Similarities
- Phone and email support are available from both
Key Differences
- LegalZoom seems more concerned with money than customer service
- MyCompanyWorks provides stellar incorporation services, including customer support
Structure Breakdown
Once you've seen all that each company offers, you should look at how their formation packages perform with each business entity.
Limited liability companies are ideal for small business owners. When it comes to LLC formation services, MyCompanyWorks offers excellent customer services; however, with LegalZoom being able to provide excellent legal advice and an equally affordable package, you'd be remiss not to consider them too.
The primary concern with LegalZoom is avoiding their persistent upselling attempts. Still, their professional experience and 20+ years in the business, in addition to their comprehensive LLC kits, make it worth the effort.
The corporation is a widespread but complex business set up with various legislative requirements and legal documents requiring processing before you can set up your S-corp or C-corp. MyCompanyWorks enhanced compliance offering makes them the winner in this category, but their excellent customer service doesn't go unnoticed either.
A partnership will involve two or more people running a business together, and it's a simple agreement representing a popular way to do business. But it can require some joint and separate tax filings that can be a bit complex to understand. LegalZoom's enhanced tax assistance could go the extra mile for you.
LegalZoom can help you set up a non-profit for just $99, but this doesn't seem to be an area they have much experience in. When you're setting up your new non-profit, it's a good idea to engage MyCompanyWorks, as they're a top service provider and will offer you excellent customer service even on their basic plan.
The Last Word
When looking at business formation services, you have a lot to consider. LegalZoom and MyCompanyWorks are great service providers, with LegalZoom being superior in terms of business tax consultations and MyCompanyWorks offering even better customer service. They are both priced similarly and can help you set up any new company; on balance, you could choose either and expect excellent, professional formation services.
Filed under: Head-to-Head
