When starting a business, one of the first steps is deciding how to incorporate your company. Business owners today have many options for handling this process, with online platforms that simplify what was once a complex task.
Two of the most popular options are LegalZoom and Swyft Filings. These services aim to make starting a business more accessible, but they offer different levels of service, pricing, and support.
In this comparison, we’ll dive into the key differences between LegalZoom and Swyft Filings, analyzing factors such as pricing, services, ease of use, customer support, and reputation. This will help you make an informed decision based on your specific business needs.
Background and Reputation
Before diving into the details of pricing and features, it’s important to understand the backgrounds of these two companies and how their reputations shape their services.
LegalZoom
LegalZoom is one of the oldest and most established names in the online legal service industry. Founded in 2001, LegalZoom has built a strong reputation for providing a broad range of legal services beyond business formation.
It was created with the goal of making legal services more affordable and accessible to individuals and small businesses.
With its extensive history and wide range of offerings, LegalZoom has helped millions of customers, earning a reputation for trustworthiness and reliability.
However, its larger customer base and wider service offerings can sometimes lead to mixed reviews. Some customers appreciate the comprehensive legal support available, while others find it more expensive and harder to navigate due to the upselling of additional services.
Swyft Filings
Swyft Filings, founded in 2015, is a newer company that specializes primarily in business formation. While it doesn’t offer as many additional legal services as LegalZoom, it aims to streamline the process of setting up a business entity.
Its mission is to simplify the business formation process and offer affordable solutions with a focus on speed.
Given its shorter time in the market, Swyft Filings doesn’t have the same extensive track record as LegalZoom.
However, it has earned positive reviews for its focus on making the incorporation process fast and straightforward, without overwhelming users with upsell offers.
Features Comparison
While both LegalZoom and Swyft Filings offer business formation services, the range and depth of their features differ significantly.
LegalZoom Features
LegalZoom is a one-stop-shop for all things legal. In addition to business formation, it offers the following features:
- Business Formation: LegalZoom’s business formation services include LLC formation, corporation formation, and nonprofit setup. The higher-tier plans also offer an operating agreement, EIN, and membership certificates.
- Registered Agent Services: LegalZoom offers registered agent services as an add-on for $249 per year.
- Trademark and Copyright Services: LegalZoom is one of the best-known platforms for trademark registration. This can be a big advantage for business owners who want to protect their brand right from the start.
- Legal Consultation: LegalZoom’s higher-tier plans come with access to legal consultations from licensed attorneys. This is a valuable feature if you anticipate needing legal advice in the future.
- Ongoing Compliance Tools: LegalZoom offers compliance reminders to help businesses stay on top of things like annual reports, filings, and tax deadlines.
- Additional Legal Services: LegalZoom provides a range of other services, including wills and trusts, business contracts, and more, all of which are available for an extra cost.
Swyft Filings Features
Swyft Filings, in contrast, is more focused on business formation and related services:
- Business Formation: Swyft Filings provides the basic services to form an LLC or corporation, including filing articles of incorporation and preparing operating agreements.
- Registered Agent Services: Swyft Filings offers registered agent services for $149 per year.
- Document Storage: Swyft Filings offers secure document storage for your business documents, which can be handy for keeping everything organized.
- Expedited Processing: Swyft Filings offers expedited processing in its higher-tier plans, which speeds up the filing process.
- Compliance Tools: Swyft Filings provides basic compliance reminders, but it does not offer as comprehensive tools as LegalZoom.
Which Service Offers More?
LegalZoom offers a much wider range of legal services beyond business formation. If you’re looking for additional services like trademark registration, ongoing legal consultations, and compliance management, LegalZoom is the clear winner.
However, if you only need basic business formation services, Swyft Filings is a simpler, more affordable option that gets the job done without the extra complexity.
Ease of Use
Both platforms are designed to be user-friendly, but their approaches to ease of use are different.
LegalZoom
LegalZoom’s website is relatively easy to navigate, but because it offers so many services, the process can feel a bit overwhelming.
The platform tends to promote additional services during the sign-up process, which can sometimes make the experience feel like an upsell.
Swyft Filings
Swyft Filings offers a more streamlined and straightforward process. The website is clean and easy to navigate, and the business formation process is relatively simple.
Swyft Filings doesn’t bombard users with upsell offers, making it a more user-friendly experience for those who just want to get their business formed quickly and efficiently.
Pricing Comparison
Pricing is one of the most critical factors when deciding between LegalZoom and Swyft Filings. Let’s break down how their pricing structures compare for business formation.
LegalZoom Pricing
LegalZoom offers three main pricing tiers for business formation:
- Basic Plan: This plan costs $79 plus the state filing fees. It includes the essential filing of articles of incorporation and the creation of your business entity. However, it does not come with additional services like an operating agreement, EIN (Employer Identification Number), or membership certificates, which are available for an additional fee.
- Pro Plan: Priced at $249, the Pro Plan includes everything in the Basic Plan, plus an operating agreement, EIN, and membership certificates (for LLCs). These are essential for most businesses, making the Pro Plan a popular choice for entrepreneurs looking for a bit more support.
- Premium Plan: The Premium Plan costs $349 and includes everything in the Pro Plan plus extra features like a corporate kit (for corporations), an LLC kit (for LLCs), a business seal, and expedited processing. This plan is ideal for businesses that want the complete package and are willing to pay extra for faster service.
In addition to the business formation packages, LegalZoom offers various add-ons, such as registered agent services (priced at around $249 per year) and ongoing legal services like consultations and compliance reminders, which come with additional fees.
Swyft Filings Pricing
Swyft Filings offers three main plans, with a focus on simplicity and affordability:
- Basic Plan: The Basic Plan costs $0 upfront, plus the state filing fees. This plan includes the filing of your articles of incorporation, which is the minimum requirement for setting up a business entity. However, this plan does not include additional services such as an operating agreement or EIN. These can be added for extra costs.
- Standard Plan: The Standard Plan costs $199, plus the state filing fees. This plan includes the basic formation services, an EIN, and an operating agreement. The Standard Plan is a great middle-ground for entrepreneurs who need more than just the basic filing but don’t want to pay for premium features.
- Premium Plan: Priced at $299, the Premium Plan includes everything in the Standard Plan plus features like an official corporate or LLC kit, expedited processing, and document storage. The Premium Plan is ideal for those who want the full suite of services with quicker processing times.
Swyft Filings also charges for registered agent services, which cost around $149 per year. While this is still a significant additional cost, it is generally cheaper than LegalZoom’s registered agent services.
Key Pricing Differences
- Upfront Costs: Swyft Filings is more affordable upfront, especially with its $0 Basic Plan. LegalZoom’s Basic Plan starts at $79, but it’s important to note that the minimum services provided in both Basic plans are quite similar. LegalZoom’s extra charges for an operating agreement and EIN make the total cost higher for similar services.
- Add-Ons: Both services offer add-ons such as registered agent services, compliance tools, and ongoing legal services. However, LegalZoom tends to charge more for these additional services, especially for things like legal consultations.
- Value for Money: Swyft Filings is typically a more budget-friendly option for those who only need basic business formation services, while LegalZoom offers more comprehensive options for those seeking additional legal tools and services.
Customer Support
Customer support is an important factor when choosing an incorporation service. Both LegalZoom and Swyft Filings offer a range of support options, but their quality and availability can differ.
LegalZoom
LegalZoom offers customer support via email, phone, and live chat. While many customers have had positive experiences, others report long wait times and less personalized support.
Additionally, because LegalZoom handles a wide range of legal services, the support team may not always be as knowledgeable or specialized in business formation.
Swyft Filings
Swyft Filings generally receives positive reviews for its customer support. Users appreciate the quick response times and the helpfulness of the support team.
Whether you reach out by phone, email, or live chat, the team at Swyft Filings is known for being accessible and responsive.
Turnaround Time
Turnaround time refers to how long it takes for your business formation to be processed and completed. Both LegalZoom and Swyft Filings offer expedited processing options.
LegalZoom
LegalZoom’s processing time can vary depending on the plan you select. For basic packages, the process may take several weeks.
If you need faster service, you’ll need to opt for one of their higher-tier plans, which provide expedited processing for an additional fee.
Swyft Filings
Swyft Filings generally offers faster processing, especially with its Standard and Premium plans, which include expedited processing.
For basic services, Swyft Filings tends to be quicker than LegalZoom, making it a better choice for entrepreneurs who need their business formed as quickly as possible.
Pros and Cons
Swyft Filings
Pros:
- More affordable pricing, especially for basic services.
- Fast and straightforward business formation process.
- Lower-priced registered agent services.
- Excellent customer support.
Cons:
- Limited range of legal services beyond formation.
- Fewer compliance tools compared to LegalZoom.
- No access to ongoing legal consultations.
LegalZoom
Pros:
- A comprehensive range of legal services, including trademark registration and legal consultations.
- Excellent for businesses that need long-term legal support.
- Strong reputation with a long history in the industry.
Cons:
- Higher upfront costs, especially for basic packages.
- Upselling of additional services can be overwhelming.
- Expensive registered agent services.
Conclusion: Which One Should You Choose?
Choosing between LegalZoom and Swyft Filings depends largely on your specific needs as a business owner.
Choose Swyft Filings if you’re looking for a straightforward, budget-friendly solution to get your business off the ground quickly.
It’s perfect for entrepreneurs who want to keep things simple without being overwhelmed by additional upsells or unnecessary services.
Swyft Filings offers affordable pricing, especially with its $0 Basic Plan, and it provides a user-friendly experience that makes business formation quick and easy. It’s ideal for those who don’t need the extra legal services right away but still want a professional setup for their business entity.
If your priority is forming your business efficiently without the added complexity, Swyft Filings is a great choice.
On the other hand, choose LegalZoom if you anticipate needing ongoing legal support or a broader range of services.
LegalZoom stands out for offering a comprehensive array of legal tools beyond business formation, such as trademark registration, legal consultations, and more.
It’s a solid option for businesses that may need ongoing legal advice, compliance reminders, or intellectual property protection.
While LegalZoom’s pricing is higher, especially for its mid- and premium-tier plans, it provides a more well-rounded service suite for long-term business needs.
In essence, if you’re looking for an affordable, no-frills service, Swyft Filings is the way to go. If you require more comprehensive legal support and resources, LegalZoom is the better fit.
FAQs
What is the difference between LegalZoom and Swyft Filings?
LegalZoom offers a wider range of legal services, including trademarks and legal consultations. Swyft Filings focuses mainly on business formation and is more affordable.
Which service is cheaper?
Swyft Filings is generally cheaper, especially with its $0 Basic Plan, compared to LegalZoom, which starts at $79 for the Basic Plan.
Do both services provide registered agent services?
Yes, both offer registered agent services, but Swyft Filings charges $149 per year, while LegalZoom charges $249 annually.
Which service offers faster processing?
Swyft Filings typically offers quicker processing, especially with its expedited options, compared to LegalZoom’s longer processing times on lower-tier plans.
Which one should I choose for ongoing legal support?
If you need ongoing legal support, LegalZoom is a better choice, as it provides access to legal consultations and a broader range of services.