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LegalZoom Pros and Cons

What is legalzoom, legalzoom features and services, legalzoom pricing and plans, how to start a business with legalzoom.

• LegalZoom’s LLC Formation Process

LegalZoom Alternatives and How They Compare

Frequently asked questions about legalzoom, legalzoom review (2023): services, pricing, pros and cons.

Coralee Bechteler has experience writing articles for new and small businesses, including topics such as state-specific LLC requirements and processes, service reviews and digital marketing trends.

LegalZoom offers comprehensive services and support for both emerging and established businesses. Customers of LegalZoom benefit from a positive user experience and strong customer support services.

LegalZoom also offers professional consultations with licensed attorneys. While most LLCs probably won’t need this service, some companies may have complicated circumstances and would benefit from working closely with an experienced attorney as their guide. Similarly, some businesses may prefer the reassurance of knowing they have access to an attorney’s advice as needed.

LegalZoom Reputation

Over the last 22 years, LegalZoom has established itself as a well-known legal services provider. If you look at customer reviews posted by users on the Better Business Bureau (BBB), Trustpilot and Consumer Affairs platforms, you’ll notice a common theme: praise of LegalZoom’s high-quality customer support experiences.

With an average star rating of 4.5 out of 5 on ConsumerAffairs (from 2,500 reviews), 4.6 stars out of 5 on Trustpilot (from 3,071 reviews) and 4.64 stars out of 5 on the BBB (from 6,712 reviews), it’s clear that LegalZoom is a recognized and reputable leader in the industry.

LegalZoom offers comprehensive and customizable legal services to assist people who want to create their own LLC. For those thinking about working with a professional LLC formation company like LegalZoom to start a business, we’ve included four of LegalZoom’s key pros and cons for you to review below.

• Offers LLC formation packages all including a customizable website 
• Provides high-quality customer service 
• Staffed by a diverse network of legal experts with industry experience
• Difficult-to-locate pricing for some of the extra services LegalZoom offers 
• Slow chat support on the website 
• Free package includes fewer business services in comparison to some competitors’ free packages

LegalZoom was founded in 2001 by a team of professionals committed to making legal services available and accessible to everyone. Over the past two decades, LegalZoom has grown and expanded its services.

LegalZoom has assisted entrepreneurs in starting more than two million businesses. As a result, LegalZoom customers leverage and benefit from its extensive industry experience and refined expertise.

For those looking to start a new business, LegalZoom provides a wide array of services – and not just for emerging LLCs. For instance, LegalZoom offers services to help you start a sole proprietorship, a limited partnership, a limited liability partnership, a C-corporation, an S-corporation and even a nonprofit.

But what if you’ve already started your small business? LegalZoom also offers additional legal services for existing companies that support their ongoing operation and growth. For example, LegalZoom offers registered agent services, assistance acquiring business licenses and permits, annual report services, trademark registrations and more. By partnering with LegalZoom, customers can rest assured that their business is and will continue to maintain compliance with both local and federal laws and regulations.

How LegalZoom Works

LegalZoom helps simplify the process of legally forming your own LLC by doing the bulk of the heavy lifting. LegalZoom will help identify which forms and documents you need to fill out, identify where to file your business documents and file everything for you. Depending on which LLC formation package you purchase from LegalZoom, the company will also provide further services to help you successfully set up and run your business.

LegalZoom’s user-friendly platform provides a straightforward business formation process that will save you time (and confusion). Even if you haven’t decided what organizational structure is best for your new business, LegalZoom can help you determine which option suits your needs and goals best by answering just 10 simple questions .

Alternatively, if you’ve already created your company, LegalZoom’s platform provides a comprehensive list of the legal services available to support existing businesses.

LegalZoom doesn’t require users to create an account to purchase any of its individual services or to order one of its LLC formation packages. However, customers will need to create an account eventually to access various information and their business documents later. Creating an account with your information before making any purchases will make subsequent orders easier to fill out.

After a customer has completed an order, LegalZoom will proceed to file the information with the appropriate legal body or bodies. Once the filing process is concluded, copies of the associated forms will be provided to the customer for their records via posted mail. Depending on the services provided and the nature of the associated documents, these copies will also be made available online.

If you’re ready to start your own company, LegalZoom is your one-stop shop for all your business and legal service needs. Not only does LegalZoom offer customers three tiers of customizable LLC formation packages, but it also offers a wide spread of legal services that empower business owners to get just the level of support they need.

From LLC formation services to day-to-day business operations, LegalZoom’s team of industry experts is ready to help both new and existing businesses. We’ve outlined some of  LegalZoom’s most popular services for you below.

Online Document Preparation

Starting your own LLC involves a lot of paperwork – both before filing your business with the Secretary of State and after. LegalZoom’s online document preparation services help simplify and streamline the process so you don’t have to struggle through nuanced language or worry about missing any crucial forms.

Customers of LegalZoom’s documentation services benefit from access to a repository of more than 150 attorney-drafted legal forms. Moreover, users can easily edit and customize legal documents to meet their business needs without leaving LegalZoom’s platform. 

For instance, LegalZoom’s legal document library includes articles of organization forms for LLCs, operating agreements, EIN applications, DBA forms, employee non-disclosure agreements (NDAs), amendment of agreement forms, product supply agreements and more.

Business Formation

From start to finish, LegalZoom provides legal services and guidance that will help you start your new business. For example, you need to decide on a name for your new business before you can officially file your articles of organization. LegalZoom’s name check service enables customers to determine if their preferred name meets legal requirements or if an existing business has already claimed it.

Not only does LegalZoom provide business formation services for LLCs, but it also offers formation services for additional business structures. LegalZoom can help you form a sole proprietorship, a limited partnership, a limited liability partnership, a C-corporation and an S-corporation, and a nonprofit.

Operating Agreement

Since an operating agreement is an internal document private to the company, whether your business is legally required to establish an operating agreement depends on the state where your company is registered. However, even though operating agreements are not filed on a state or federal level, it’s always considered best practice to draw one up.

While LegalZoom’s upper-tiered LLC formation packages include an operating agreement, business owners can also purchase this customizable service a la carte. So whether you’re starting an LLC or a corporation, LegalZoom’s operating agreement services will help you set up parameters for how you run your business and also help you protect your assets.

Digital Welcome Packet

Customers partnering with LegalZoom to start a new business receive a special service feature particular to LegalZoom: a digital welcome packet.

Once your LLC is officially registered, the welcome packet includes a step-by-step checklist to help guide you through the subsequent stages of creating and running your business.

Articles of Organization

The articles of organization document is the very root of your new business’s existence. This form is typically filed with your Secretary of State and asks you to fill in key information about your company.

For example, articles of organization forms often require you to specify your business’s name and mailing address, as well as identify a registered agent and their contact information.

LegalZoom will help you with the necessary documentation and ensure you correctly fill out the form. Once the articles of organization are complete, LegalZoom then takes care of correctly filing your paperwork with the appropriate Secretary of State.

Customizable Website

As necessary as it is, creating a website can be a time-consuming and daunting challenge. By partnering with Wix, LegalZoom makes setting up a business website simple and painless. Customers receive a fully functional website generated by Wix that users can easily customize and tailor to their business needs.

LegalZoom provides customers of all three LLC formation package tiers with a professional business website powered by Wix.

Document Storage

LegalZoom utilizes multiple layers of encryption to enforce the secure storage of sensitive information. Customers can rest assured that all the personal and business information provided to LegalZoom is securely stored in the cloud.

In light of LegalZoom’s extensive legal services, not all documents are accessible online. In this case, your documents will be mailed to you. However, the website indicates that LegalZoom’s team may expand this feature in the future.

Legal Document Templates

Customers who purchase access to LegalZoom’s repository of more than 150 legal forms and documents can save valuable time and energy adjusting them to fit their business needs.

LegalZoom simplifies the documentation process by asking various questions relevant to the specific business form at hand. LegalZoom then plugs in the user-provided information to generate the legal document for customers to download as a PDF and print.

LegalZoom’s platform also provides a text editor that enables users to go in, edit and customize their legal documents themselves, as needed.

Some popular document templates include mutual nondisclosure agreements, independent contractor agreements, sale of goods agreements and consulting service agreements.

Legal Advice

Unlike several LLC formation service competitors, LegalZoom offers its customers legal support and advice. For those who lack a strong grasp of the legal aspects of starting a new business, this service is a key benefit of partnering with LegalZoom.

LegalZoom’s Basic LLC formation package doesn’t include legal advice services, but the Pro and Premium offer different levels of legal support.

The Pro package provides customers with small business and insurance guidance services. This includes discussing asset coverage options and discussions on taxes, legal compliance and other topics to help set your business up for success.

The Premium package includes the above legal support services and a subscription to LegalZoom’s Business Attorney Plan. This plan provides customers with an unlimited number of 30-minute consultations with professional attorneys. The Business Attorney Plan also provides customers with a professional legal review of business forms and documents.

It’s important to note that LegalZoom’s Premium LLC formation package only includes a free 30-day subscription to its Business Attorney Plan. After the free trial, the subscription will renew automatically every month for a fee of $49.

Registered Agent Services

To officially file and register a new LLC, you must identify a registered agent for your business on the articles of organization form. Although many companies that provide LLC formation assistance include registered agent services in their packages, it’s important to note that LegalZoom does not.

Customers purchasing any of LegalZoom’s three LLC formation packages can add registered agent services to their orders for $199 annually.

For those who have already created their LLC, you can purchase their registered agent services a la carte. However, the price differs when only ordering LegalZoom’s registered agent services. Instead of $199, this will cost you $249 a year.

Basic Package

LegalZoom’s Basic LLC formation package is perfect for those who are interested in starting their own business and are confident in their abilities to handle most of the legwork themselves. Costing only the fees necessary to file your LLC with the state, LegalZoom’s Basic package helps customers complete their articles of organization, access their business name check service and create a customizable business website powered by Wix.

The Basic package also provides customers with a digital welcome packet and email and chat support. The digital welcome packet includes a checklist of what to do after officially filing your LLC with the Secretary of State.

The key advantage of LegalZoom’s Basic package is its low price. However, the Basic package only provides the bare minimum to help customers legally register their new LLC. Compared with other free business formation services, LegalZoom’s package isn’t as robust.

Since the Basic LLC formation package is so limited in the business services it provides, LegalZoom pushes a lot of its add-on features and services during the ordering process.

Pro Package

LegalZoom’s Pro package carries a fee of $249 plus state filing fees. This package includes everything from the Basic LLC formation package in addition to an operating agreement, a federal tax ID number (EIN) and a financial account authorization letter. The Pro package also provides small business and insurance guidance services, including a personalized consultation with a licensed insurance agent and a consultation with a small business specialist. Lastly, the Pro package includes one year of access to LegalZoom’s library of more than 150 customizable legal forms and documents, an unlimited number of eSignatures for one year and access to customer service and support via email, website chat and over the phone.

The main advantage of LegalZoom’s pro package is that it includes essential business documents necessary for legally operating a business. However, the change in price between LegalZoom’s Basic LLC formation package and its Pro formation package is notably substantial. Furthermore, like the Basic package, the Pro package doesn’t include registered agent services, a legal requirement for LLCs.

Premium Package

LegalZoom’s final tier of LLC formation packages is its Premium package, which costs customers $299 plus state filing fees. The Premium package includes all of the services provided in LegalZoom’s Basic and Pro packages, along with a handful of other features beneficial for those starting a new business that need more legal support and guidance.

Specifically, the Premium package enables customers to make an entity amendment within the first 30 days of purchasing this LLC formation package. Not only does LegalZoom take care of the amendment paperwork, but it will also expedite the filing process and subsequent delivery of customer document copies. However, customers may still be subject to state filing fees (if applicable).

The Premium package also supplies customers with a free 30-day trial subscription to LegalZoom’s Business Attorney Plan, which will automatically renew for a monthly fee of $49. This feature of LegalZoom’s Premium LLC formation package provides customers with unlimited access to 30-minute attorney consultation sessions concerning legal business topics. The Business Attorney Plan also enables customers to have all their legal documents and contracts reviewed by an experienced attorney from LegalZoom’s network in addition to monthly copyright registration services.

Lastly, customers can receive support by sending LegalZoom an email, using their website’s chat feature or by giving them a phone call.

Overall, LegalZoom’s Premium package offers the best value for its price. From a financial perspective, the jump in price from the Pro LLC formation package to LegalZoom’s Premium package is minimal compared to the extra features and services included. The Premium package is a solid choice for those who would feel more at ease knowing that they’ll have access to robust legal services and support throughout the whole LLC formation process.

However, even this upper-most tier of LegalZoom’s LLC formation packages lacks registered agent services.

Starting a new business is easy with LegalZoom’s help. No matter which formation package you choose, using LegalZoom to form a new LLC is a quick and relatively straightforward process that anyone can do.

Prepare Before You Start

From start to finish, LegalZoom provides contextual information and helpful suggestions as it guides you through each step of the business formation process. Of course, you can still take steps to make the filing process go even faster and more smoothly. For example, deciding on the name of your new business is a significant first step. Each state has its own rules and legal parameters regarding the naming of LLCs. As such, it’s wise to take the time to review the regulations of the state you’re going to register your business in before settling on a name for your new business.

For good measure, we also suggest coming up with a few backup ideas in case LegalZoom determines that your first choice is already taken. However, you can reduce the chances of this occurring: 

• At a federal level, you can look up your name ideas using the United States Patent and Trademark Office’s Trademark Electronic Search System (TESS).
• Find out if your name ideas have already been registered in your state. For example, if you’re creating an LLC in New York, you can look up your business name ideas on the Department of State’s Corporation and Business Entity Database .

Here are some additional components of your LLC checklist:

• The state your business will be registered in and your business’s physical address
• The purpose or nature of your LLC and associated industry
• Registered agent information (if you wish to appoint a person or another entity other than LegalZoom)
• The names of the other LLC members (if applicable)
• The official start date of your LLC

Generally, a new business’s start date is when the articles of organization are filed with the Secretary of State. However, you may be able to specify a later date instead. Be sure to check your state’s associated rules and regulations.

LegalZoom’s LLC Formation Process

To help you understand what to expect, we went through LegalZoom’s formation process. You can get a feel for the process and the different add-ons in our outline below.

• Choose your LLC formation package.

To start the formation process, you’ll need to select a pricing package. For the purposes of our review, we choose LegalZoom’s free Basic package. However, we go over the different LLC formation packages in more detail later in this review.

• Enter your business name.

In the first official step of forming your new LLC, LegalZoom asks for you to identify the name of your business. For those who haven’t quite settled on a name for their new company, LegalZoom allows users to skip this step and continue with the process.

• Choose the state to register your LLC.

Next, you’ll be asked to identify the state where you want to register your new business.

• Provide contact information.

You’ll then be asked to fill out some contact information, including your email address and phone number. While this step is optional, we suggest filling in your information so LegalZoom can quickly and easily contact you about your new LLC.

• Identify your business’s industry type.

The following step will ask you to classify the industry that best describes your new business. 

• Click on the Next button.

This page identifies some documents and legal requirements necessary to form and operate your new LLC.

• Select and identify your registered agent.

This step asks you to appoint the registered agent for your new company. While you can identify yourself as your LLC’s registered agent, LegalZoom tries to upsell its annual registered agent services on this page.

• Add business documents to your order.

This next step is similar to the registered agent services offered on the previous page. However, in this step, LegalZoom allows users to add legally required documentation to their LLC formation package order.

However, LegalZoom promotes three different business documentation packages for customers. In other (and maybe a little confusing) words, this step provides the option to add a package to your package.

• Add compliance services to your order.

The following step on the next page once again tries to upsell LegalZoom’s compliance services to customers forming a new LLC.

• Add a business license report to your order.

In the next step, LegalZoom offers customers the option to add a service to their LLC formation package: a business license report. This report essentially tells you what permits and licenses are legally required to create and run your business. Between industry, state and federal regulations and requirements, determining what licenses your new business needs can be complex and confusing.

• Add bookkeeping services to your order.

In the next step, customers can add bookkeeping services to their LLC formation package order.

Similar to the business documentation upsell options in Step 8, this step presents users with two of LegalZoom’s bookkeeping service plans.

• Open a business bank account.

One of the final steps of the LLC formation process offers customers the opportunity to set up a new bank account just for their new business.

• Enhance your order.

The next step of LegalZoom’s free LLC formation process gives customers two more upsell opportunities to enhance their orders. Users can opt for expedited processing of their new business for a fee of $99 or can select standard processing for no extra cost.

Finally, customers of LegalZoom’s Basic LLC formation package can add a Founder’s Kit to their order for an additional $99.

• Review your order.

The last thing you need to do is to carefully review your order before continuing to the checkout page and paying LegalZoom for your customized LLC formation package.

After completing your order, LegalZoom will file your business’s information with the Secretary of State. Depending on if you opted for expedited processing, the turnaround time will take somewhere between one business day and two weeks. However, this service only applies to LegalZoom’s processing and doesn’t reflect state turnaround time for state processing.

Once the LLC filing process is complete, your business documents will be made available online in your account and mailed to you.

LegalZoom Customer Service and Support

One of LegalZoom’s key strengths is its high-quality customer service and support experiences. You can quickly and easily contact LegalZoom over the phone, through their website chat or via email.

LegalZoom Phone Support:

• General support: (855) 787-1221
• Customer support: (888) 379-0854
• Order support: (800) 773-0888
• Subscription support: (888) 310-0151
• Sales support: (855) 787-1922
• eSignature support: (833) 563-1603

LegalZoom Chat Support:

• Users can click on the chat button in the lower right-hand corner of the website to connect with a LegalZoom agent and ask their questions in real-time.

LegalZoom Email Support:

• You can send your email to [email protected] or [email protected]

LegalZoom Additional Services Worth Noting

Not only does LegalZoom provide LLC formation services, but they also offer additional services that can be beneficial for someone starting their own business. You can check out some of them in our list below:

• Entity name reservation: If you’ve come up with the perfect name for your new business, LegalZoom will help you ensure someone else doesn’t take the name before you’re ready to file your LLC’s articles of organization. LegalZoom’s entity name reservation service is available for $49 plus state filing fees.
• Doing business as (DBA): If the name registered to your new business is long or clunky, LegalZoom can help you apply for a DBA name that’s shorter or more catchy. You can register your business’s DBA name with LegalZoom for $99 in addition to state filing fees.
• Compliance calendar: LegalZoom understands that there are a lot of different dates and documents to keep track of when running a business to remain legally compliant. LegalZoom’s compliance calendar service is available for an annual fee of $69.
• Business advisory plan: For those who have already officially formed their new businesses but would benefit from more legal support, LegalZoom offers two different business legal plan services. Both plans include the same robust set of features but differ in their subscription options. Customers can purchase LegalZoom’s six-month business advisory plan for a monthly fee of $43.17 or its 12-month plan for $39.09.
• Business licenses: Depending on the industry, your business will require various licenses and permits to operate legally. Starting at $99, LegalZoom takes care of this legal hassle for you.
• Certified copies of business documents: LegalZoom can also help companies get certified copies of all business documents that have been filed with the secretary of state. LegalZoom offers a Standard Package for $45 plus state filing fees and an expedited Rush Package for $75 plus state filing fees.
• Certificate of good standing: LegalZoom can help existing businesses obtain a certificate of good standing, a document that verifies your business has complied with all legally required reports and state fees.
• EIN: This service is only included in LegalZoom’s Pro and Premium packages. However, the EIN service can be purchased a la carte for $79.
• Annual reports: LegalZoom’s annual report service can be purchased a la carte for $99 plus state filing fees (standard processing and shipping) or $119 plus state filing fees (expedited processing and shipping).

Starting your own business is an exciting decision – but it’s also a big one. As such, it’s essential to carefully consider all of your LLC formation service options before making decisions.

LegalZoom vs. Swyft Filings

Right out of the gate, LegalZoom has 14 years of business formation experience over Swyft Filings. LegalZoom has helped create a substantially larger number of businesses than Swyft Filings. For people who are apprehensive about the LLC formation process, this is a significant advantage of LegalZoom.

However, Swyft Filings offers more competitive processing times than LegalZoom, including same-day LLC filing. Swyft Filings also includes expedited shipping services within its two upper-tiered LLC formation packages.

LegalZoom vs. Incfile

Unlike LegalZoom and several other LLC formation competitors, all three of Incfile’s packages provide customers with one free year of registered agent services. On top of that, Incfile’s annual renewal rate of $119 is significantly lower than LegalZoom’s yearly fee of $199.

Incfile’s free LLC formation package also offers more customer support than LegalZoom’s free package does. While customers of LegalZoom’s Basic package have access to email and chat support, customers of Incfile’s correlating package have access to unlimited phone and email support.

LegalZoom vs. ZenBusiness

Comparing the companies side by side, LegalZoom offers access to attorneys and legal expertise that ZenBusiness lacks. Legal expertise aside, ZenBusiness’s prices are more competitive than many of LegalZoom’s. All three of ZenBusiness’s LLC formation package options include more business services when compared to LegalZoom’s packages.

For example, ZenBusiness’s lowest-tiered package includes one free year of compliance support, whereas LegalZoom customers will have to add that service to their order for a fee. ZenBusiness also includes a faster turnaround time for customers of their Pro and Premium LLC formation packages, whereas LegalZoom doesn’t offer expedited processing in any of their packages. Instead, LegalZoom customers must add this service to their order for $99.

However, ZenBusiness’s Pro and Premium packages are an annually billed service, while LegalZoom’s packages are priced as a one-time fee.

Who Is LegalZoom Best For?

LegalZoom offers a plethora of legal services that provide support for both new and existing small businesses. Customers have the option to select one of LegalZoom’s three LLC formation packages that provide their preferred level of business support. On top of that, LegalZoom also offers various business and legal services that can be purchased online a la carte via its easy-to-use platform. While other companies offer more competitively priced LLC formation packages, LegalZoom’s attorney services set it apart from the competition.

With over 20 years of industry experience, LegalZoom’s team of experts has helped customers start more than two million businesses. While admittedly on the more expensive side, LegalZoom’s refined legal expertise makes it a strong choice for entrepreneurs seeking assistance to form their own LLC.

Start a Limited Liability Company Online Today with LegalZoom

Ready to start your own small business? Partner with LegalZoom today to easily and quickly form your LLC in less than 10 minutes.

How hard is it to set up an LLC with LegalZoom?

It’s easy to form an LLC with LegalZoom. Several reviews praise the simple formation process, which is bolstered by prompt and patient customer service and support.

Is LegalZoom a good way to start an LLC?

Yes. LegalZoom is a user-friendly platform offering comprehensive solutions for starting an LLC.

Can I form an LLC without physically being in the United States?

Yes, it’s possible to form an LLC in the U.S. without being physically presen t in the U.S. Whether you are a U.S. citizen or not will determine how you are taxed . 

What are the best LLC services for small businesses?

The best LLC services for small businesses are LegalZoom, ZenBusiness, Incfile and Swyft Filings.

What is the LegalZoom customer support phone number and email?

You can quickly and easily get in touch with LegalZoom over the phone, through their website chat or via email. Contact general support at (855) 787-1221 or [email protected] . 

Is LegalZoom legitimate?

Yes, LegalZoom is a legitimate and reputable business accredited by the BBB since 2001.

What does an LLC service help with?

An LLC formation service helps guide and support you through the entire process of starting your own LLC .

What other legal classifications are there for my business?

In addition to an LLC, the other legal classification options for your business include a sole proprietorship, a limited partnership, a limited liability partnership, a C-corporation or an S-corporation.

Related Articles

ZenBusiness Review 2023: Features, Pros And Cons

How to Start an LLC in New York: 7 Steps

How to Start an LLC in California in 7 Easy Steps

How to Start an LLC: A Step-By-Step Guide

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LegalZoom LLC review 2024: Cost, plans, features and more

Sarah Brady

Bryce Colburn

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 12:52 p.m. UTC Jan. 24, 2024

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LegalZoom can help you form your LLC for just $0, plus state fees. But if your formation needs are more complex or you need legal advice, LegalZoom can get expensive.

BEST FOR BUSINESS ATTORNEY GUIDANCE

Free version available

Lowest published package price

• Offers a free LLC service.
• Free package includes a Wix website.
• 60-day 100% satisfaction guarantee.
• Free package has limited services.
• Add-ons are costly.
• Pricing can be confusing.

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Featured LLC service offers

Zenbusiness.

Via ZenBusiness’ website

Via LegalZoom’s website

Northwest Registered Agent

Via Northwest’s website

LegalZoom (LZ) can be a good service for someone with a do-it-yourself approach to business formation. 

If you’re shopping around for a low-cost LLC formation package with articles of organization and name check services included, LZ’s Basic Plan will do the trick. But you’ll have to take care of your operating agreement and EIN on your own, and LZ’s registered agent services will cost you an extra $249 per year.

LegalZoom stands out amongst the competition for its unlimited 30-minute legal consultations, included with the Premium Plan for the first three months. LZ also has a 60-day, 100% satisfaction guarantee and Wix websites to build your business’s online presence are complimentary with every plan.

LegalZoom LLC overview and facts

LegalZoom was established as a tech company in 2001. Since then, LZ has added business formation services, tax filing/advising and other business and personal services to its roster. The company now has corporate offices in Los Angeles, Austin and the San Francisco Bay Area.

While LegalZoom offers a $0 LLC formation package, the price tag isn’t the only thing to look for when deciding whether or not to sign up. According to William Fry, CEO of Beacon, a company that assists with buying and selling small businesses, you should also focus on customer reviews.

“Some providers have terrible customer service,” warned Fry, “so you’ll regret going with a service that appeared cheaper on the front end but cost you more in time and headaches on the back end.”

Most customers have positive things to say about LegalZoom. On Trustpilot, over 80% of LegalZoom reviews are five stars. Most customers comment on how easy it is to use LegalZoom and their positive experiences with customer service.

LegalZoom LLC plans and pricing

LegalZoom is one of many LLC formation services that has packages starting at $0, plus state filing fees. But you should be prepared to pay state filing fees of $50 to $500 or more, and depending on your needs, the $0 package may not include everything it takes to form your business. 

“Feature-wise, you definitely want filing of your articles of organization and registered agent services, but the EIN is so easy to D.I.Y. it’s not worth paying for,” said Fry. 

With LegalZoom, registered agent services aren’t included in any package, so you’ll have to pay $249 per year to get the services on top of your plan’s fee. By comparison, Bizee includes complimentary registered agent services in its $0 package for the first year and charges $119 annually afterward.

While registered agent services may be cheaper through some competitors, most business formation companies charge fees for EINs and operating agreements, just like LegalZoom. However, unlike some competitors, LegalZoom’s offers live chat support, a free app and a website, regardless of which plan you sign up for. 

LegalZoom’s Basic plan costs $0, plus state fees. According to LegalZoom, this plan is for someone who can do most of the work themselves and who only wants the necessities for making their business official. (Namely, filing of your articles of organization.)

For just the cost of your state filing fees, LegalZoom’s Basic plan comes with the following:

• Articles of organization filing.
• Name check service.
• Wix website.

If you go directly through Wix, you’ll pay a minimum of $16 per month for a website.

The mid-tier plan from LZ costs $249 plus state fees. LegalZoom recommends the Pro Plan for customers who need the essentials for compliant operations but who can do most of the work themselves.

For the $249 Pro plan, LegalZoom customers get these additional features that don’t come with the Basic plan:

• Operating agreement.
• Tax consultation with a small business specialist.
• Consultation with a business insurance agent.

If purchased separately, you’ll pay $79 for LegalZoom’s EIN filing.

The Premium plan from LegalZoom costs $299, plus state fees. This top-tier plan is recommended for customers who want upfront advice from attorneys to help ensure they properly form their business.

When you opt for the Premium plan — which is $50 more than the Pro plan — you get all of the features listed above, plus a three-month subscription to the following services:

• Unlimited 30-minute attorney consultations.
• Attorney review of your legal contracts and documents.
• Monthly copyright registration.
• Access to a library of legal forms.

Note that attorney consultations are limited to one call per business topic, and you’ll be charged $49 per month for the legal services in this plan after the month period ends. Alternatively, legal advising is available through LegalZoom’s Business Advisory Plan for $469.00 a year ($39.09 per month) or $ 43.17 per month, which would be billed at $259.00 every six months.

LegalZoom add-ons and optional features

LegalZoom’s three LLC formation packages are bare-bones when it comes to business formation features, but there are plenty of services you can add to your package for an extra fee. Add-ons can be chosen during the set-up process, and they include:

• Registered agent services: $249 per year. 
• Compliance calendar: $69 per year.
• Tax plan: $1,188 to $1,428 per year.
• Legal protection plan: $469 per year. 
• Standard annual report filing: $99, plus state fees.
• Rushed annual report filing: $119, plus state fees.
• EIN filing: $79. 

Registered agent services

Businesses must designate a registered agent in each state where they conduct business to ensure that time-sensitive legal, government and tax documents are received and promptly forwarded to the company’s headquarters.

Since registered agents are required to list their physical locations (P.O. box addresses are not allowed), Hal Brand, a CPA in southern California, suggests “home-based business owners use registered agents within their own states, so their home addresses aren’t exposed.” 

LegalZoom’s registered agent services are easy to sign up for and use. They cost $249 per year per state. If you purchase these services as a stand-alone option, you will not be refunded if you decide to cancel. 

LegalZoom is also among the most expensive options, with companies like BetterLegal ($90 per year) and InCorp ($129 per year) offering cheaper services.

If your company already has a registered agent designated in your formation documents, LegalZoom will file the required change in registered agent documents with the state for no additional charge.

Once any mail is received, it takes five to 14 days for documents to be scanned and uploaded to your account. In comparison, there are many competitors that offer same-day delivery of documents, like Bizee . 

This service also includes access to email or SMS alerts from LegalZoom’s compliance calendar, which is typically an extra $69 per year. These alerts warn subscribers about critical tax and annual report deadlines to help avoid incurring filing penalties. LegalZoom’s registered agent services also include $1 million in identity theft protection and credit monitoring for you and your business through Experian. 

If you’re on a tight budget, you might want to go with another option, especially since the registered agent services aren’t included in any of LegalZoom’s business formation packages. Like its competitors, LegalZoom offers registered agent services in all 50 states and the District of Columbia. 

Business advisory plan

If you want the legal perks that come with the Premium plan, you might consider a Business Advisory plan instead. LegalZoom’s Business Advisory plan includes:

• Thirty-minute attorney consultation per legal matter.
• Contract/legal document review (up to 10 pages).
• Annual business evaluation (with the 12-month plan only).
• Unlimited downloads from legal form library.

These plans are available for an annual payment of $469 a year ($39.08 a month) or $259 ($43.16 a month) billed every six months.

LegalZoom customer support and experience

LegalZoom offers live chat support on its website, and you can use chat to connect to an agent in less than a minute. Phone support is also available Monday through Friday from 5 a.m. to 7 p.m. and on the weekends from 7 a.m. to 4 p.m. PST.

LegalZoom vs. ZenBusiness

If you go through LegalZoom or ZenBusiness, it can get expensive to purchase all of the key business formation services you need.

LegalZoom offers a better price on one-time EIN filing, but if you also want a registered agent and an operating agreement, you could save $24 per year by going through ZenBusiness. Plus, ZenBusiness has excellent customer reviews on TrustPilot and only around 95 closed complaints on BBB for the last year, versus LegalZoom’s over 400 closed complaints.

LegalZoom vs. Bizee 

Bizee is another business formation company that offers free packages, and just like LegalZoom, the $0 package from Bizee does not include an EIN or operating agreement. 

It’s free to file with the IRS for your EIN, but some business owners prefer the help of an LLC service .

If you want to spring for help with your EIN, operating agreement and registered agent services, you’ll want to choose one of the LLC services paid plans. Both companies offer EIN filing and operating agreements with their mid-tier plans. However, you’ll save quite a bit of money by choosing Bizee’s Gold plan over LegalZoom because Bizee includes a free year of registered agent services with its plan.

Is LegalZoom right for your business?

LegalZoom can be a cost-effective option for someone who doesn’t mind doing most of their own paperwork. While the $0 package lacks some of the features you might eventually want, like an EIN, it can be easy enough to file for an EIN on your own . 

If you spring for a pricier package, you’ll still have to pay for some of the business formation services you may need, like registered agent services. For most customers, the legal consultations that come with the Platinum plan are likely to be the most valuable feature. Still, you’ll have to budget your consultation time wisely since you only get 30 minutes of advising per topic.

There are also no discounts with LegalZoom. However, if you own a law or tax firm, you can get discounts for registered agents in multiple states through Legalinc, a fully-owned subsidiary of LegalZoom.

If weekend support is important to your business, LegalZoom offers nine hours of customer service access on Saturdays and Sundays. And some of its services, such as unlimited document storage and instant compliance alerts, are helpful tools. But, for most small businesses, a more affordable option will likely be the right choice.

Methodology

We extensively research the key competitors within an industry to determine the best products and services for your business. Our experts identify the factors that matter most to business owners, including pricing, features and customer support, to ensure that our recommendations offer well-rounded products that will meet the needs of various small businesses.

We collect extensive data to narrow our best list to reputable, easy-to-use products with stand-out features at a reasonable price point. And we look at user reviews to ensure that business owners like you are satisfied with our top picks’ services. We use the same rubric to assess companies within a particular space so you can confidently follow our blueprint to the Best LLC Services.

Frequently asked questions (FAQs)

LegalZoom offers all the basic services you’ll need to start an LLC, but they can get pricey if you need multiple services, like annual report filing, registered agent services or an EIN, since you may have to pay a separate fee for each one.

LegalZoom does not provide annual report filing or alerts with any of its LLC formation plans.

Their compliance package is available for $280 a year, and it includes filing of your annual reports, a compliance calendar to help you monitor upcoming filing dates and alerts . LegalZoom guarantees that they’ll pay your fine or penalty if they miss a deadline while you’re subscribed to their compliance package.

Customers with Premium plans from LegalZoom will automatically be charged $49 per month for legal service s after 30 days. Some customers have filed complaints with the BBB about unexpected, recurring charges, so you may want to monitor your payment account for unexpected transactions while using LegalZoom.

LegalZoom guarantees a refund for customers who are not 100% satisfied during the first 60 days. Refunds do not include fees that have already been paid to third parties, such as state filing fees and attorney fees.

LegalZoom offers a variety of business formation services, including registered agent services. LegalZoom also offers legal advice for business and personal matters, including:

• Estate planning.
• Tax advising.
• Accounting services.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Sarah Brady is a personal finance writer and educator who's been helping individuals and entrepreneurs improve their financial wellness since 2013. Sarah's other publications include Investopedia, Experian, the National Foundation for Credit Counseling (NFCC), Credit Karma and LendingTree and her work has been syndicated by Yahoo! News and MSN. She is also a former HUD-Certified Housing Counselor and NFCC-Certified Credit Counselor.

Bryce Colburn is a USA TODAY Blueprint small business editor with a history of helping startups and small firms nationwide grow their business. He has worked as a freelance writer, digital marketing professional and business-to-business (B2B) editor at U.S. News and World Report, gaining a strong understanding of the challenges businesses face. Bryce is enthusiastic about helping businesses make the best decisions for their company and specializes in reviewing business software and services. His expertise includes topics such as credit card processing companies, payroll software, company formation services and virtual private networks (VPNs).

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"LegalZoom provides unlimited answers to everyday legal questions from the time you dream up your business plan to implementation, and to optimal profitability. Instead of paying thousands sometimes just to obtain the answer to a simple question, LegalZoom is there to help answer your questions quickly and effectively."

"The primary benefit of a LegalZoom legal plan is that it gives individuals access to speak with an attorney about any legal issue without having to spend a fortune."

"When considering the benefits of the LegalZoom legal plan, I actually answer as a business owner myself and as an attorney. The ability to easily access reliable guidance from a friendly and skilled professional is radically superior compared to a purely 'do-it-yourself' approach."

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Tennessee customers: Attorney services in TN are provided via a flat fee legal service offering from an independent law firm and are subject to your Limited Scope Representation Agreement with the firm. This portion of the LegalZoom website is an advertisement for legal services. LegalZoom does not endorse or recommend any lawyer or law firm that advertises on our site. The law firm responsible for this advertisement is LZ Legal Services, LLC (email: [email protected]). LZ Legal Services is authorized and licensed by the Arizona Supreme Court, license number 70123. LZ Legal Services is a subsidiary of LegalZoom.com, Inc.

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LegalZoom vs. LegalShield: Which Is Right for Your Business?

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Table of Contents

Pros and cons

Customer reviews.

Paying an attorney an hourly fee or retainer can be very costly — and for many small-business owners, that expense may be prohibitive. That’s where LegalZoom and LegalShield come in. These online legal services can help entrepreneurs start a business and maintain it successfully in compliance with the law.

If you're considering online legal services, this review provides a comprehensive comparison of LegalZoom and LegalShield, so you can decide which might be a better choice for your small business.

» MORE: NerdWallet's best online legal services for small businesses

ZenBusiness

$0 + state fees  

Both LegalShield and LegalZoom offer pretty much everything you’ll need (from a legal perspective) to form your business — and then run your business for years to come.

Here are some features you can expect from LegalZoom, for both business formation and normal business operations:

Formation services for Limited Liability Company (LLC), corporation, nonprofit, sole proprietorship.

Employer identification number (EIN).

Tax, license and permit services.

Business naming services.

Workplace benefits.

Bill of sale.

Independent contractor agreement.

Nondisclosure agreements.

Trademarking services.

LegalShield

Similar to LegalZoom, LegalShield offers services for starting a business as well as continuing to run that business all while remaining compliant with local and federal laws. Here is a breakdown of LegalShield’s services:

Unlimited phone consultation with your attorney.

Document and contract review.

Letters and calls on your behalf.

Debt collection services.

Trial defense.

Member discounts.

Business formation services.

Registered agent service.

While there’s plenty of overlap in features, the pricing of LegalZoom vs. LegalShield is very different. Each service provided by LegalZoom comes with its own package options and pricing. You can also price things on an individual basis, like if you needed specific documents but not the full services of incorporating. On the other hand, with LegalShield, plans are organized by the number of employees a business has. This could work in favor of some businesses, but it could be a downside for others.

For example, to get an EIN, prices start at $79. Certified copies of documents like DBA filings, annual reports or dissolutions, start at $45. To form an LLC with LegalZoom, this is how the pricing breaks down:

If you know the documents you need outside of a business formation package, finding the pricing will be simple — but if you’re unsure, it might take some searching around. If you’re looking for attorney advice, there are two options: the Business Advisory Plan (starting at $31.25 per month) and the Legal Advantage Plus (starting at $9.99 per month).

If you’re looking for LegalShield's normal small-business plans, these are the package options you have to choose from:

While all of the plans offer document review and feedback, if you need your attorney to actually draft a document for you, there are two options: You could download a free template, fill it in and then have your attorney review it or your attorney could draft it from scratch — and that’s where the 25% off hourly rate comes in, as you would receive that discount on your attorney’s hourly rate to draft a document from scratch.

LegalShield also has a program to help you form your business called Launch , and that comes with a different price. For $145 plus state filing fees, you will be connected with a local business attorney who will help you find the right business entity to form, complete all the related paperwork and file it for you. In addition to that, you'll receive legal support for three months after your business is formed.

LegalZoom and LegalShield have about the same number of pros as they do cons, but determining which are your non-negotiables will help you decide which is better for your business.

No monthly membership to be locked into.

You will get a copy of any documents that have been filed on your behalf.

Individual pricing benefits small businesses that don’t need full service legal help.

Attorney plans available for those who need more advice.

No downloads or edits of any documents.

Access to attorneys isn’t free and doesn’t come with any other package options.

Customer service gets very mixed reviews.

Have to know what documents or services you need in order to find pricing.

Access to your attorney on an unlimited basis.

Pricing based on number of employees.

Everything you need to form your business.

Member perks, like discounts at stores including Target and Verizon and hotels like the Holiday Inn.

Attorney satisfaction will vary depending on the law firm you are assigned.

Canceling membership can be tricky.

Only 39 associated law firms throughout the U.S. and Canada, so finding one in your state might not be possible or your options will be limited.

It’s fair to say customer reviews are one of the first things people search for when trying to decide if they should go with a particular company, product or service.

Taking individual experience, mood and state of mind into consideration, the most common complaints seem to be about hidden charges, LegalZoom not making it clear what is an add-on that can be opted out of and customer service. Many people noted that they were still being charged for services they hadn’t received, or that had been canceled.

When it comes to customer service, many reviewers noted long wait times or it being impossible to get in touch with anyone at all, and when they did they were met with less than ideal assistance.

However, it’s not all bad. Those with positive experiences with LegalZoom said that they were able to have their legal questions answered quickly and for much less than they would have spent if they went with a law firm. The ample options available to customers is also a huge plus. Customers were able to complete any and all documents needed for their business without having to deal with multiple different companies.

Out of all the LegalShield reviews, the negative ones seemed to have one common theme; those who were customers when it was called PrePaid Legal are not satisfied with what the company has become. They note the lawyers are of lower quality, getting in touch with customer service is tricky and people have experienced being charged for services even after notifying the company of cancellation.

Since the company continues to operate as an MLM (multi-level marketing) business, LegalShield as an overarching company doesn’t have full control over the attorneys offered and the way certain things are handled, so this may be an explanation for the varying degree of reviews.

Those who reviewed the business services were pleased with the sound advice and results they received from attorneys. Overall, those who have left positive reviews appreciate the knowledge and attentiveness of attorneys and just how much cheaper LegalShield’s services are compared to hiring an outside attorney.

» MORE: NerdWallet's best small-business apps

A version of this article was first published on Fundera, a subsidiary of NerdWallet

On a similar note...

Rocket Lawyer Vs. LegalZoom

Updated: Apr 28, 2024, 3:24pm

Table of Contents

Legalzoom vs. rocket lawyer: at a glance, how rocket lawyer and legalzoom stack up, bottom line.

Every year, millions of people turn to online legal services to save money on the legal expenses necessary to start their business. While there are an overwhelming number of options to choose from, Rocket Lawyer and LegalZoom are two of the most popular, convenient and cost-effective online legal services that can help you save time and get great results.

Both services are accessible and user-friendly, and they each have satisfied millions of customers, so you might be wondering how to figure out which product is right for helping you form a new business. Forbes Advisor has all the details so that you can make an informed decision.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

On LegalZoom's Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

$0 + State Fee

On Formations' Website

Rocket Lawyer and LegalZoom both have an extensive slate of offerings, including ones to help you file business formation documents in any state. The main difference between the two is their respective pricing models.

As previously mentioned, there are two ways of accessing Rocket Lawyer’s services: as a member or as a non-member. Non-members can purchase the services they need à la carte, while members pay $39.99 per month for a range of free or discounted services. You can cancel your membership at any time, and there’s a seven-day free trial period, although some services are not included in the trial.

LegalZoom offers multiple business formation plans starting for free (plus state filing fees) for a limited liability company (LLC) and varying in price depending on the type of business you want to start. Filing the final documents with your state incurs an additional fee. The biggest difference between individual plans is the document turnaround time; the more you pay, the quicker the filing process will be. LegalZoom also offers other useful services that could help your business but you’ll have to make separate purchases to access them.

Both companies can also help you with family and personal legal matters. If you’re a Rocket Lawyer member, access to these services and documents is included in the monthly membership. If you’re a non-member, you’ll have to pay on a per-document basis. Since LegalZoom does not have a subscription-based business model, you’ll have to make separate payments to access the legal services you want.

Rocket Lawyer

From $39.99

per month, or à la carte

Registered Agent Service

Access to Attorneys

Free 30-minute consultations

included with membership

As mentioned previously, Rocket Lawyer members have much less restricted access to the company’s services, including templates for hundreds of legal documents. New members get free business incorporation services for their first LLC and a 25% discount thereafter. The membership also includes 30-minute attorney consultations, the option to ask a lawyer unlimited questions through Rocket Lawyer’s website and up to a 40% discount if you hire a Rocket Lawyer On Call attorney.

While Registered Agent services are not included in its Premium Membership, you can elect to hire one for a discounted rate of 50% off.

If you don’t elect to become a member, then you’re going to be paying full price ($39.99) every time you need a legal document. Not only that, but some of the most attractive legal services that are included in the membership will cost you as well. Without a membership, you’ll be stuck paying out of pocket for each of these services—fees that will add up quickly if you use them often.

The membership is an appealing option because you get access to the full slate of Rocket Lawyer’s offerings. Not only can it help with incorporating your business or reviewing your business’s important legal documents, but it can also help with your real estate, family and personal legal needs, such as Last Will and Testament, Divorce Settlement Agreement and Child Care Authorization.

• Unlimited access to full library of legal templates with membership
• LLC registration included with membership
• 30-minute consultation with attorneys included with membership
• Membership is expensive if you don’t need legal forms or access to a lawyer
• Pricing for non-members can be more expensive than LegalZoom
• Registered Agent services not included for free with membership

(plus state filing fees) for basic business filing services

for $199 per year

with purchase of Business Advisory Plan

LegalZoom offers multiple packages to help you with your business registration needs. The cheapest option is filing an LLC with the Basic package ($0 plus state fees), which includes business filing, articles of incorporation, name check service and customizable website. This package has a document turnaround time of 20 days, and LegalZoom will guide you through a review of all your LLC documents before they are submitted to make sure there aren’t any errors. Paying for a more expensive plan will get your documents filed more quickly.

LegalZoom offers the same business formation services as Rocket Lawyer and can also help with the legal documents necessary for loaning money or filing for bankruptcy. LegalZoom also offers more robust intellectual property offerings than Rocket Lawyer, including trademark and copyright registration, patent applications and a host of other intellectual property services.

Unfortunately, access to immediate legal advice is not included in any of LegalZoom’s LLC packages. If you need legal advice for your business then you’re also going to need to purchase its Business Advisory Plan. This plan includes unlimited 30-minute sessions with an attorney, and rates start at $39.09 per month when you sign a multimonth contract.

LegalZoom also boasts a legal library with more than 1,600 templates of a wide range of legal documents that can be used for personal needs (family and estate planning, real estate agreements, etc.).

• Only pay for what you need
• Unlimited downloads from its legal library with one-time payment
• Robust IP services
• Higher costs for faster document delivery
• Registered Agent Service only available with an additional purchase
• Legal advice requires a separate subscription

If you’re looking for the cheapest and simplest way to set up a new business, LegalZoom’s Basic package―$0 plus state filing fees―offers everything you need to get your business off the ground.

If you think you’ll need legal consultations in addition to basic business filing services, Rocket Lawyer’s Premium membership―$39.99 per month―includes unlimited 30-minute attorney consultations. The membership also includes free business registration for your first business. In lieu of becoming a member, Rocket Lawyer also offers a one-time payment option for business incorporation services ($99.99 plus state filing fees).

If time is of the essence, LegalZoom has a Premium package―$299 plus state filing fees―for business incorporation. With this package, your order will be fulfilled within two to five business days, and it includes a standard two-day shipping policy for business documents and materials.

If you’re a new small business, setting up an LLC with LegalZoom’s Economy Package is a great option: you get a smooth, one-time service at a very reasonable rate. You can also add on any services that you need as your business flourishes. It’s cheaper than filing with Rocket Lawyer as a non-member, and you only pay for what you need.

But if you want to have the ability to get in touch with an attorney or anticipate needing ongoing legal services—whether you’re expanding or making changes to your business—the legal services included in Rocket Lawyer’s Premium membership are well worth the low monthly price.

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Jacqi is a seasoned legal professional committed to simplifying complex legal issues. With her in-depth knowledge of tax laws, she thrives on helping individuals and businesses navigate the maze of financial obligations. Clients trust Jacqi to provide comprehensive solutions to empower their success.

Miles Hamberg graduated from Connecticut College in 2020 with honors. He's been cognizant of the impact technology is having on his generation since he first played Brick Breaker on his mother's Blackberry.