If you're setting up a new business, one of the easiest ways to cut down on bureaucracy is to turn to a business formation service. Professionals can help you start up your business and handle all of the legwork so you can dedicate time to more critical areas. Two popular companies are MyCorporation and ZenBusiness.
MyCorporation vs. ZenBusiness: The Verdict
There are dozens of excellent LLC formation services, but ZenBusiness and MyCorporation stand out. ZenBusiness is usually considered the best option for entrepreneurs. Their pricing is lower and includes more features; ZenBusiness is one of the cheapest in the business. MyCorporation has been in the business since 1998 and has helped start over 1 million businesses in that time. MyCorporation charges a lot for this privilege, though. You can get everything MyCorporation offers in their most expensive package for around half of the price if you choose ZenBusiness.
Choose ZenBusiness if:
- A lower price is crucial for you
- You prize reviews over their years in business
- You want to have domain support
- You're looking to form an LLC or partnership
Choose MyCorporation if:
- You want a provider with a more substantial reputation
- You don't mind spending extra for better service
- You're forming a corporation or non-profit
Services Offered & Pricing
ZenBusiness is one of the cheapest in the business, they'll save you around $50 on the basic package, but it gets better. The registered agent service is a necessity if you're forming a new company; however, to get this with MyCorporation, you'll need to purchase a deluxe package which is over $200.
With ZenBusiness, their cheapest package offers this service. MyCorporation has a long-running reputation and more pricing tiers. ZenBusiness offers additional accounting services, too.
Key Similarities
- Excellent customer support and excellent customer reviews
- Fast filing times
- Annual report services
Key Differences
- ZenBusiness offers free registered agent services (for the first year)
- ZenBusiness will provide you with a free accountancy consultation
- ZenBusiness is much cheaper
- MyCorporation has a long-running reputation
ZenBusiness Packages & Pricing
You can choose from three different pricing tiers, depending on the level of service you want. The pricing excludes state fees.
Starter Package - $49/year
This is ZenBusiness's cheapest package and includes only registered agent services, and basic incorporation features. You'll need a registered agent to help you maintain compliance.
You'll also get a corporate operating agreement (also known as corporate bylaws) if you need to define your corporation's structure.
If you choose this package, you'll need to be comfortable applying for your own EIN and other documents that you may require.
Key features of the package include:
- Free operating agreement
- Customer support through phone and email
- Business name check
- Filing articles for your company
- Unlimited access to necessary paperwork and documents for your LLC
- A whole year of registered agent service
- CPA assessment with an in-house accountant
Pro Package - $199/year
The Pro package offers you more features, including support with acquiring a Federal Tax ID (EIN) and a banking resolution.
The ID number is like an SSN for business entities and will be required for you to hire employees, pay taxes and open a bank account. With this package, you'll get a worry-free guarantee, including compliance service and annual reporting management.
Key features of the package include:
- Acquiring the EIN
- Domain name support
- Formation documents will be expedited
- Worry-free compliance guarantee
Premium Package - $299/year
You'll get everything in the above packages plus some extra perks.
Key features of the package include:
- Business email address
- Faster expedited filing
- Online web services to help you establish an online presence
MyCorporation Packages & Pricing
MyCorporation has a transparent 4-tier system. Each level offers progressively more as the price increases.
Basic Package - $99
You'll get everything you need for an LLC or general for-profit company in this package.
- Operating agreements
- Articles of Incorporation and business documents
- Business name check
- Unlimited customer service
The online storage service, MyCorp Vault, will also be at your disposal. You'll be able to store all of your documents online for customer service representatives (or yourself) to access with just a few clicks at any time.
Standard Package - $129
The annual reporting service is a welcome addition to this package. You'll get everything in the basic package, but you'll also get access to the yearly reporting service, which helps you remain compliant with the IRS.
Deluxe Package - $229
In addition to the above, the Deluxe package will give you access to the registered agent service. Having a registered agent service is considered best practice.
Premium Package - $324
The premium package lets business owners gain access to MaintainMyBiz; with this, you can access 1-1 communication with employees designed to supervise and assist your business to help it grow.
Document Management & Online Experience
MyCorporation has established an intuitive and easy-to-navigate online interface. On top of this, you'll also be presented with a Q&A to help you set up the best entity for you, including intellectual property issues and questions about your investment portfolio. You'll be guided to make significant business decisions with their help. In the 'Run My Business' tab, you'll find everything you could need to run your business. ZenBusiness offers a smooth, straightforward experience.
You can request physical copies of documents with fast shipping or just rely on online records. The system is totally secure, and they'll monitor your business to ensure you maintain compliance and good standing.
Key Similarities
- You can do everything you need online
- Both websites are secure and easy to use
Key Differences
- MyCorporation goes the extra mile by offering an intuitive and easy-to-navigate interface that walks you through your options
Processing Time
ZenBusiness's processing times vary based on the package you choose. The Pro package takes around a week, and the Premium package can be as little as three business days. MyCorporation receives good customer feedback for their turnaround times; however, despite offering expedited processing, it's not always clear how fast it is.
Key Similarities
- Expedited shipping is offered
Key Differences
- ZenBusiness has more transparent processing times, including its premium services
Compliance & Track Record
MyCorporation has a record of more than 1 million customers since 1998, making them one of the most impressive service providers in this category. However, ZenBusiness shouldn't be discounted either, with big plans to serve more than 1 million businesses by 2025 despite only being formed five years ago. They also have more than 4,000 excellent reviews on Trustpilot and other review websites.
Key Similarities
- No compliance issues
- Overall positive reviews
Key Differences
- ZenBusiness has more positive reviews
- MyCorporation has been in the business longer
Customer Service
MyCorporation's online incorporation service is challenging to beat in terms of customer experience, and their 3-step signup process is brilliant.
You can get up and running in just 5 minutes. ZenBusiness also offers a simple signup process, but it's not as fast as this. MyCorporation undoubtedly has the quickest, no-nonsense business formation process.
ZenBusiness has more reviews regarding their customer service, though. With live-chat, phone, and email support options, live chat proves most popular for a speedy answer. MyCorporation offers email and phone support, and its representatives are often praised for their swift and personable services.
Key Similarities
- Customer support is excellent
- Phone and email support are available
Key Differences
- MyCorporation offers the most personable service
- ZenBusiness has a livechat
- MyCorporation provides a 3-step signup process
Structure Breakdown
While the overall offerings of a business can tell you a lot, only a full structure breakdown can tell you if they'll meet your business needs or not. Let's take a look at what they have to offer.
You should consider ZenBusiness for their excellent reputation and very low costs. You could easily spend over $200 to get the same level of service with MyCorporation that ZenBusiness offers for just $49 a year.
As their name suggests, the majority of MyCorporation's clients are S-corp or C-corp clients. MyCorporation's excellent support team and 3-step signup process make them a perfect choice for this more complex business structure.
MyCorporation doesn't offer dedicated support for partnerships, though you can set up an LLC with multiple owners to achieve a similar dynamic. ZenBusiness can help you set up a partnership with a DBA (doing business as) or dedicated partnership agreement.
MyCorporation can help you set up a corporation and apply for non-profit status. Their customer reviews indicate that they have succeeded, though they're not mainly geared towards non-profits. They have the professionalism to help you withstand the scrutiny that comes with setting up a non-profit entity.
The Last Word
If you're looking for an excellent formation package, you can trust MyCorporation or ZenBusiness to provide that for you. ZenBusiness is best if you're setting up a partnership or limited liability company, but you could take a chance on them if you were looking to save some money, too. MyCorporation offers stellar service, but it comes at a much higher price.
Filed under: Head-to-Head
