If you're setting up your new business, it can seem like you've entered a new world of confusing jargon and legal documents. One way to streamline the process is to rely on a professional business formation service, but it can be challenging to know which one is right for you. Each has its unique pros and cons. Let's take a look at Incfile and Rocket Lawyer to see which could be best for you.

Incfile vs. Rocket Lawyer: The Verdict

Rocket Lawyer's unique benefits include legal services and an excellent track record, with current Better Business Bureau (BBB) accreditation and great customer reviews. Attorney services can cost you upwards of $300 an hour, but with Rocket Lawyer's subscription-based pricing model, you get access to this for just $39 per month. They have helped more than 20 million customers so far.

Incfile's benefits are mainly in pricing. Incfile is substantially cheaper, with a free package available. But they don't have the same reputation. Not only has Rocket Lawyer completed more formations, but Incfile lost its accreditation with the Better Business Bureau.

Choose Rocket Lawyer if:

  • You want access to an attorney
  • You want better customer service

Choose Incfile if:

  • You want cheaper services

Services Offered & Pricing

Rocket Lawyer has a unique pricing model with its most popular package consisting of a monthly subscription, you'll receive the same LLC formation package whether you choose a one-off fee or the monthly subscription, but you won't get the additional services such as legal advice.

Incfile doesn't offer legal help but could be a good choice for small business owners seeking cheaper formation services. One of the critical benefits to Incfile is the free package (you only pay state filing fees) and the free registered agent service. Incfile doesn't offer support for partnerships.

Key Similarities

  • You can form a corporation, LLC, or nonprofit

Key Differences

  • Incfile doesn't support partnerships
  • Rocket Lawyer charges more for registered agent services
  • Incfile has a free package

Rocket Lawyer Packages & Pricing

Unlike Incfile, Rocket Lawyer only offers two pricing options, and they are for the same basic package, aside from the additional add-ons with the monthly subscription.

Monthly Subscription - $39.99/month

The monthly subscription includes a free LLC service; you can also try the subscription for free for seven days. While the monthly subscription and one-time service are the same core LLC formation service, the subscription package differs in the other features you'll receive. For example, the monthly membership includes unlimited questions with an in-house attorney and a 30-minute consultation for any new legal projects.

You'll receive the following in the monthly subscription:

  • Assistance with document creation
  • Ask an attorney if you have legal questions
  • 30-minute consultation on new projects
  • Free assistance with filing
  • Attorney reviewal of all documents

One-Time Incorporation Service - $99.99 + state fees

This one-time purchase is only for LLC formation. You will have to purchase a la carte for any other services needed.

  • Preparation of your articles of organization or operating agreement
  • Business name availability check
  • Cloud storage and unlimited access to your legal documents
  • Hard copies of your legal documents

Registered Agent Service - $149.99

A whole year of registered agent services with Rocket Lawyer will cost you $149.99. If you're a member using this service, you'll get a discount.

Incfile Packages & Pricing

Incfile can help new and existing businesses, depending on your package. You may be able to access accounting services in addition to formation services; if you need a detailed quote for this, consider contacting Incfile directly. However, for basic formation packages, please see below:

Silver package - $0 (not including state fees)

The Silver package is the bare-bones package that costs $0 (not including state filing fees). It includes:

  • A free year of registered agent services
  • A statement of organization
  • Assistance with company formation

Gold package - $149 (not including state fees)

The Gold package is a cheap, mid-range package that offers slightly more assistance. Incfile charges a fee for this package, but it'll still keep costs low. The Gold package includes the above, plus:

  • Tax ID number/Employer Identification Number
  • IRS form 2553
  • Preparation of your operating agreement
  • Banking resolution
  • Compliance alerts
  • Online dashboard access
  • Business tax consultation

Platinum package - $299 (not including state fees)

The Platinum package includes additional services that may not be necessary, but it's worth considering if you think you'll need a lot of expedited processing:

  • Domain name + email
  • Expedited processing
  • Business contract templates

Document Management & Online Experience

Incfile and Rocket Lawyer offer similar online management services. All of your legal documents will be stored securely in online cloud storage, and the dashboards are easy to navigate, but there are key differences. Firstly, if you have the one-off package with Rocket Lawyer, you won't have complete features included. Incfile also has a unique electronic signature feature allowing for smoother online document creation.

Key Similarities

  • The websites are easy to use
  • You can store all of your documents with cloud storage

Key Differences

  • Incfile accepts electronic signatures
  • Rocket Lawyer doesn't always offer full functionality

Processing Time

Turnaround times aren't apparent with either service provider. However, rush processing is available for a fee. With Incfile, you can have expedited processing from $50+, and this will bring down the total turnaround time to around 28 business days. Rocket Lawyer isn't as clear, and the turnaround time can be about five weeks, but expedited processing is available starting from $60.

Key Similarities

  • Expedited processing is available

Key Differences

  • Incfile is slightly faster and has cheaper expedited fees

Compliance & Track Record

Rocket Lawyer has formed more than 20 million business entities in their years, with no significant compliance issues and up-to-date accreditation with the Better Business Bureau. Incfile enjoyed a few good years but had its BBB accreditation revoked a couple of years ago. Customer reviews are slowly improving, but there are still a few negative ones. Most negative customer reviews cite communication issues and problems receiving documents on time.

Key Similarities

  • Customer reviews are overall positive

Key Differences

  • Incfile lost BBB accreditation and has a worse reputation than Rocket Lawyer

Customer Service

Customer support is a strong point for Rocket Lawyer; not only do they have excellent customer support, but you also have access to an attorney with a free 30-minute consultation before you begin any new legal projects. Perhaps to address its compliance issues, Incfile has doubled its customer support team. Incfile now offers customer support via email, phone, and live chat, but Rocket Lawyer still provides better customer support.

Key Similarities

  • You can access customer support via multiple channels

Key Differences

  • Incfile has substantially expanded its customer support team and may improve exponentially

Structure Breakdown

Your exact service provider experience will vary depending on the structure that you're setting up, so we'll closely analyze what these providers offer to each business entity.

LLCs: Toss Up

Setting up a limited liability company doesn't have to be costly. Incfile proves it, with a free package (state fees only) being their main selling point; however, if Incfile's poor reputation for customer service puts you off, you should consider Rocket Lawyer. An additional benefit to using Rocket Lawyer is their all-inclusive online legal services if you subscribe.

Corporations: Choose Rocket Lawyer

Rocket Lawyer can help you set up an S-corporation or C-corporation and obtain all relevant business licenses; managing a corporation can be complex legally, and it's worth the additional expense to have this attorney-powered provider on your side.

Partnerships: Choose Rocket Lawyer

Since Incfile doesn't support partnerships, Rocket Lawyer wins this category by proxy, but that doesn't mean they don't provide excellent services. Years of experience, additional features, and excellent customer service outweighed the service costs.

Non-Profits: Toss Up

Rocket Lawyer also offers excellent benefits to nonprofits, but you'll require a monthly subscription to get the best advantage, which may be an unjustifiable expense for nonprofits. This is where Incfile comes in - as they are one of the cheapest providers available. If you're willing to overlook Incfile's past compliance issues, you could save substantial money.

The Last Word

If you're looking for a reliable provider with many add-ons such as legal services, you should consider Rocket Lawyer. But if you're looking for a more basic service without a high price tag, you should take a chance on Incfile. This attorney-powered formation service offers nearly unlimited access to attorneys and inclusive document review and consultations whenever you begin a new project.

Filed under: Head-to-Head

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