If you're setting up your own business, one of the best things you can do to save yourself time relies on a business formation service. But it can be hard to know which service is best for you - and choosing the wrong service can give you even more work. Let's look at two popular business formation services - ZenBusiness and MyCompanyWorks.
ZenBusiness vs. MyCompanyWorks: The Verdict
ZenBusiness was launched in 2015 and aims to reach more than 1 million companies formed by 2025. So far, they seem to be on track to achieve this goal as they are considered one of the best LLC formation services, with competitive formation packages and excellent customer reviews. ZenBusiness offers some free accountancy services.
MyCompanyWorks has been in business since 2001, and while they don't have the same volume of customers, they do have excellent customer feedback, including an A+ Better Business Bureau (BBB) rating. They offer cheaper, standalone services for rush filing, including expedited filing for $20. They are more expensive than ZenBusiness, though.
Choose ZenBusiness if:
- You want to save money
- You want more online reviews
- You want additional accountancy services
Choose MyCompanyWorks if:
- You want a company with a longer-running reputation
- You want expedited filing for $20
Services Offered & Pricing
ZenBusiness and MyCompanyWorks offer several packages, but one of the most significant differences is in pricing. ZenBusiness' cheapest package is $30 more affordable than MyCompanyWorks', and MyCompanyWorks will require you to pay extra for registered agent services ($99 per year).
The services offered are similar, with annual report services, federal tax ID assistance, and other additional services available to business owners.
- You can choose from multiple packages
- You can use them for additional compliance services
- ZenBusiness is much cheaper
ZenBusiness Packages & Pricing
ZenBusiness offers several packages to select from, depending on the incorporation services you need. Let's take a look at a detailed breakdown of each package:
Starter package - $49/year
This is ZenBusiness' cheapest package and includes:
- An operating agreement
- Customer support via phone, live chat, and email
- Filing articles
- One-year registered agent services
- Free CPA assessment
Pro package - $199/year
The Pro package is designed for business owners looking for extras, not just the basics. It includes a worry-free satisfaction guarantee and Federal Tax ID services. This package includes:
- Acquisition of Employer Identification Number (EIN) needed to file your LLC taxes and open a bank account (the service costs $70 extra if purchased separately)
- Domain name registration ($25)
- Excellent filing speed (formation documents completed within one week)
- Worry-free guarantee, which includes insurance on document filings to keep them in good standing if they're not submitted in time
Premium package - $299/year
The ZenBusiness Premium package includes all the Starter and Pro package features and extra perks.
- Expedited filing speed
- Business email address
- Domain name registration and name privacy
- 100% accuracy guarantee
- Business website to allow customers to establish an online presence at a very reasonable price
MyCompanyWorks Packages & Pricing
Like ZenBusiness, MyCompanyWorks offers three different packages; let's take a look at each package to help you understand which might be best for you.
Basic package - $79
Starting at $79, the Basic package is one of the most affordable available. But it's not as inexpensive as ZenBusiness' cheapest packages.
For $79 (plus filing fees).
- Name availability search
- LLC operating agreement
- Prep and filing of your articles of organization
- Organizational meeting minutes
- Unlimited support
- Company alerts
- Startup wizard and checklist
Entrepreneur package - $199
The Entrepreneur package includes all of the above plus extras such as a compliance binder and EIN (Federal Tax ID).
The package includes:
- Federal Tax ID Number (EIN)
- Business kit/seal/certifications: Customized compliance binder
- MyCompanyForms: Lifetime access to 200+ professional forms
You'll need to pay an extra $99 for registered agent services.
In other words, MyCompanyWorks will serve as your agent and handle everything that needs to be done from start to finish for $279.
These responsibilities include receiving and organizing documents and ultimately sending them your way.
The features available in this package are great for anyone who plans on hiring employees, opening business bank accounts, and maintaining business compliance with the help of paperwork.
Complete package - $279
The Complete package offers the most and allows a business owner to hit the ground running with minimal effort. It includes everything from both the Basic and the Entrepreneur packages, but it also gives you access to MyCompanyWorks Premium, which is a service that includes:
- Priority support
- Annual report filing
- Compliance lock alerts
- Minutes and resolutions
- Business entity monitoring
- 5 GB of cloud storage
Document Management & Online Experience
ZenBusiness, being so new, is an online business and comfortable doing business online. The online process is easy. MyCompanyWorks is also comfortable doing business online, with multiple extras available if you purchase a more expensive package. You'll also have access to business document templates for your use.
- You can do everything you need online
- The service providers offer excellent online experiences
- MyCompanyWorks has templates for your use
The application process with these providers is extremely well-streamlined, taking just a few minutes to sign up. MyCompanyWorks offers rush processing for just $20, taking your processing time down to just a few business days. ZenBusiness doesn't provide standalone expedited processing, but you can purchase a more expensive package to expedite your new business formation.
- The turnaround times are usually praised in positive reviews online
- ZenBusiness doesn't offer standalone rush processing
Compliance & Track Record
MyCompanyWorks has an A+ BBB rating and has provided business services to more than 60,000 businesses. ZenBusiness intends to offer more than 1 million LLC formation packages by 2025 and is already making progress with this, with more than 5,000 reviews online praising their LLC formation services.
- These providers have top-tier compliance records
- While MyCompanyWorks has a longer-running history, ZenBusiness may have formed more businesses
ZenBusiness and MyCompanyWorks offers excellent, upsell-free customer support. Both customer support teams provide reliable assistance via phone and email during the formation process. You can expect a reply to your email within 24 hours. ZenBusiness does offer a live chat, and MyCompanyWorks offers extensive online FAQs.
- You receive reliable, fast customer support within regular business hours
- MyCompanyWorks offers more FAQs
A small business owner setting up a limited liability company will have a different experience from a bootstrapped non-profit. Let's look at a detailed breakdown of both service providers and see how they perform.
With a free tax consultation and free registered agent service (for the first year), all for just $49, it's hard to argue against ZenBusiness. MyCompanyWorks will cost at least double once you factor in registered agent services.
While ZenBusiness has many benefits, it's hard to pick a clear winner in this section as MyCompanyWorks business forms and templates are incredibly valuable.
ZenBusiness can help you set up a partnership agreement or a DBA for just $49, making them the best for this category. They have a streamlined ordering process and excellent customer service.
ZenBusiness and MyCompanyWorks provide excellent services for non-profits, MyCompanyWorks isn't as cheap as ZenBusiness, but they are experienced in helping non-profits achieve tax-free status with the IRS.
The Last Word
While they have many similarities, including BBB accreditation and excellent customer service, ZenBusiness is usually considered the best, being a good all-rounder with excellent LLC services. Still, if you're looking for a business with suitable business forms and templates, or a longer-running reputation, you should consider MyCompanyWorks.