💰 "Free" Has a Price

Incfile's $0 LLC formation is genuinely free - they make money on the upsells. The "free" registered agent year converts to $119/year auto-renewal. Operating agreements cost $35. EIN filing (free from IRS) costs $70. By the time you're done checking out, your "free" LLC might cost $300+.

Score Breakdown by Category

How Incfile's terms rate across our evaluation categories.

💰 Service & Fee Transparency (30%) 45/100

Why this score: The $0 formation is genuinely free - you only pay state fees. However, the checkout process uses aggressive upselling tactics. Pre-selected add-ons, confusing package tiers, and "recommended" services inflate the final cost.

Industry comparison: LegalZoom: 40/100 (higher base price, similar upsells) | Rocket Lawyer: 35/100 (subscription model) | DoNotPay: 32/100 (unclear scope) | Category avg: 38/100

⚖ Liability & Disclaimers (25%) 40/100

Why this score: Standard "not a law firm" disclaimers but Incfile's scope is narrower (formation only), which actually reduces risk. They're not pretending to provide legal advice - they file paperwork. Clear limitation of liability to fees paid.

Industry comparison: LegalZoom: 35/100 (broader services, more risk) | Rocket Lawyer: 38/100 (attorney network complexity) | DoNotPay: 30/100 (AI liability issues) | Category avg: 36/100

🔄 Subscription & Cancellation (20%) 48/100

Why this score: Annual renewal for registered agent service (not monthly traps). Cancellation process is documented but requires advance notice. No refunds for partial-year registered agent service.

Industry comparison: LegalZoom: 45/100 (similar annual model) | Rocket Lawyer: 32/100 (monthly trap) | DoNotPay: 40/100 (simple monthly) | Category avg: 42/100

📄 Service Scope & Limitations (15%) 50/100

Why this score: Focused on formation - they do one thing well. This clarity is actually helpful. No pretense of ongoing legal support. Operating agreements are templates (same limitations as competitors).

Industry comparison: LegalZoom: 48/100 (broader but diluted) | Rocket Lawyer: 42/100 (too broad) | DoNotPay: 30/100 (overreaching) | Category avg: 41/100

👥 Dispute Resolution (10%) 45/100

Why this score: Mandatory arbitration with class action waiver (industry standard). Texas law governs. Because services are transactional, disputes are typically about filing errors - limited but clear recourse.

Industry comparison: LegalZoom: 45/100 (California law) | Rocket Lawyer: 40/100 (complex multi-party) | DoNotPay: 38/100 (jurisdiction issues) | Category avg: 42/100

Compare With Other Platforms

⚠ Key Clauses to Watch

These provisions in Incfile's terms create the most risk for consumers.

Registered Agent Auto-Renewal

High Risk

The "free year" of registered agent service auto-renews at $119/year. Many customers don't realize this until they see the charge. Canceling requires advance notice and a replacement agent.

"Registered agent services automatically renew annually. You authorize us to charge your payment method on file for the renewal fee unless you cancel prior to the renewal date." Incfile Service Agreement

Aggressive Upselling at Checkout

High Risk

The checkout process includes multiple upsells, some pre-selected. EIN filing ($70) is free from the IRS. Operating agreements ($35) are available free elsewhere. "Rush" processing adds $50+ for minimal time savings.

"Additional services are available to enhance your business formation. Recommended services have been pre-selected for your convenience." Incfile Checkout Process

Not a Law Firm Disclaimer

High Risk

Like all legal tech, Incfile explicitly states they're not providing legal advice. If you need guidance on entity selection, operating agreement terms, or tax implications, you're on your own.

"Incfile is not a law firm and does not provide legal, tax, or financial advice. We are a document filing service only." Incfile Terms of Use

Registered Agent Cancellation Complexity

High Risk

Canceling registered agent service requires appointing a replacement and filing state paperwork. If you don't do this correctly, your business could fall out of compliance.

"Upon cancellation of registered agent services, you are responsible for designating a new registered agent and updating your records with the state. Failure to do so may result in loss of good standing." Incfile Service Terms

Processing Time Variability

Medium Risk

Free processing can take weeks depending on state. "Rush" options cost extra but processing time depends heavily on state filing offices, not Incfile.

"Processing times vary by state and are subject to change. Expedited options may reduce our processing time but state filing times are beyond our control." Incfile FAQ

Template Documents Are Generic

Medium Risk

Operating agreements and other documents are templates that may not fit your situation. Multi-member LLCs with complex arrangements need customized documents.

"Template documents are provided for general use. We do not guarantee they are suitable for your specific situation or compliant with all applicable laws." Incfile Terms of Use

Analysis

"Incfile is the most honest of the legal tech platforms, in a backhanded way. They're clear that they just file paperwork - no pretense of legal advice, no attorney network confusion. This narrow focus actually works in consumers' favor.

The registered agent service is where they make their money. That free first year is a customer acquisition cost, and the $119/year renewal is their profit center. It's transparent once you understand the model, but many customers don't think about it until they see the charge a year later.

My recommendation: Incfile is actually reasonable for simple LLC formations. Use the free tier, skip the upsells (get your EIN directly from the IRS for free), and either accept the registered agent renewal cost or plan to switch providers after the free year. For anything more complex than a simple single-member LLC, hire an actual attorney."

Incfile Terms of Service Review

💰 "Free" Has a Price

Score Breakdown by Category

Compare With Other Platforms

💰 Incfile Issues?

⚠ Key Clauses to Watch

Registered Agent Auto-Renewal

Aggressive Upselling at Checkout

Not a Law Firm Disclaimer

Registered Agent Cancellation Complexity

Processing Time Variability

Template Documents Are Generic

Analysis

Need Help With Your LLC?

Schedule a Consultation

Incfile Terms of Service Review

💰 "Free" Has a Price

Score Breakdown by Category

Compare With Other Platforms

💰 Incfile Issues?

Related Resources

⚠ Key Clauses to Watch

Registered Agent Auto-Renewal

Aggressive Upselling at Checkout

Not a Law Firm Disclaimer

Registered Agent Cancellation Complexity

Processing Time Variability

Template Documents Are Generic

Analysis

Need Help With Your LLC?

Schedule a Consultation