CorpNet vs LegalZoom

Are you in the process of forming a limited liability company (LLC) but you don’t want to go the full DIY route?

There are plenty of LLC services out there like CorpNet and LegalZoom that can assist you with your formation, but it can be tough to figure out which company is the best choice for you.

In this CorpNet vs LegalZoom comparison, you’ll find the info you need to make the right pick. Read on to find out which company should handle your LLC formation.

Quick Summary

LegalZoom and CorpNet are two of the most popular LLC formation services available, and they are both entirely capable of forming a compliant LLC. Each company has some advantages over the other.

Most importantly, LegalZoom’s pricing is more reasonable than CorpNet’s. In addition, LegalZoom has an advantage when it comes to experience and longevity. However, CorpNet offers assistance with state-specific compliance requirements, which LegalZoom does not.

6 Things They Have In Common

1) Affordable: With either CorpNet or LegalZoom, you’re getting a service that bridges the gap between hiring an attorney and going it alone. They both save hundreds of dollars over hiring a lawyer, and you won’t be left to handle your formation by yourself.

2) Customer Support: Customer service is one of the main reasons people hire these companies, as you can give them a call or send them an email anytime you have a question. This saves lots of time because you won’t have to go digging for answers yourself.

3) Experience: Experience is a major selling point for CorpNet and LegalZoom, as they’ve both served thousands of customers over the years.

4) Additional Services: Both of these companies offer far more than just LLC formation services. If you need registered agent service, a federal tax ID number (EIN), or many other business services, LegalZoom and CorpNet can help your business reach the next level.

5) Security: There’s no need for concern about online security. LegalZoom and CorpNet both use Norton products to protect their websites from malware and to encrypt data transfers. Your private info will remain private.

6) Educational: If you need more information about formations or any of a number of other business issues, CorpNet and LegalZoom have extensive online learning centers filled with valuable information. Whether you require info about business types, licensing issues, or taxation, they have a wealth of info to help you out.

Side-by-Side Comparisons

Pricing

LegalZoom: While LegalZoom does offer a $0 package for LLCs, the number of upsells can get overwhelming — and expensive. Furthermore, they do not include registered agent service with any of their formation packages, and it costs anywhere from $249-299 per year to add on.

CorpNet: CorpNet charges $29 for shipping and handling of every order, so we added that fee to the price of each package to make their service easier to compare with their competitors. Their $108 Basic package provides a decent value if your business formation needs are relatively simple, but it only includes a 60-day trial of registered agent service (a year of registered agent service from CorpNet costs $149). Their $228 Deluxe and $278 Complete packages do include a full year of registered agent service but are rather expensive compared to some other services.

Experience

LegalZoom: LegalZoom has served more than 2 million business customers since it started offering business services online in 2001.

CorpNet: CorpNet’s ownership group got its start in 1997, with more than 100,000 businesses served since then.

Customer Support

LegalZoom: LegalZoom offers phone and email support. We reached out twice via the email form on their site, but it took them a full week to respond. The response we received was generic – thanking us for reaching out but not answering our question.

When we contacted them via phone, our question was answered very thoroughly. The representative went into detail about our different options and then sent us an email with their direct extension so that we could reach out directly with questions. Overall, while their customer service via phone is good, their online support could be improved.

CorpNet: CorpNet offers phone, email, and chat support. Unlike most competitors, they also offer bilingual support, which is a wonderful feature for Spanish-speaking customers. We tested all three support options and received prompt responses, with accurate answers that were expanded upon to an impressive degree.

Turnaround Times

LegalZoom: Unlike most competitors, their turnarounds are based on which package you order rather than which state you’re forming in. With their most expensive package, you could receive your finalized business formation documents in 7-10 business days, but their cheaper packages take as long as 30 business days (six weeks).

CorpNet: CorpNet conveniently lists turnaround times for both standard and expedited service on the package selection screen. Depending on your state, this could be as quick as a couple of business days, or it could take as long as several weeks. Their Deluxe and Complete packages both include 24-hour document preparation, which means CorpNet will prepare and submit your formation paperwork within 24 hours of you placing your order.

Customer Reviews

LegalZoom: LegalZoom has more than 6,000 reviews available. While LegalZoom receives many more positive reviews than negative ones, the ratio isn’t quite as impressive as CorpNet’s.

CorpNet: CorpNet has about 600 mostly positive reviews online, with their customers frequently praising the assistance they receive from their support reps.

Ease of Use

LegalZoom: Unlike most competitors, LegalZoom doesn’t give you your package options to begin the application. Instead, you enter your personal info first, then navigate through a series of rather costly upsells before you select your formation package. It’s a bit convoluted, and it can result in some surprisingly high price points by the time you work your way through the order form to the package selection screen.

CorpNet: Your total price adds up at the bottom of the package selection page as you choose your package and add-on features, and it includes your state fee so that you know exactly how much your formation will cost before you even start entering your information. Once you’ve made your choices, you’ll fill out their order form, which is where you give them your contact info, along with any relevant business information that they’ll need to form your company.

Additional Services

CorpNet and LegalZoom both offer many other services that can help you start and cultivate your new business entity. In addition, these two companies provide their customers with access to quite a few of the same services, as you can purchase registered agent service, annual reports, foreign qualifications, amendments, conversions, and more.

However, there are also some services that you can only purchase from LegalZoom, as they offer a wide variety of personal services in addition to their business services, so they offer things like last will and testament, power of attorney, and divorce papers. LegalZoom also provides access to attorney consultations, which CorpNet does not.

Which Is the Best LLC Website for You?

CorpNet and LegalZoom are both entirely capable of handling your LLC formation service, and as you can see, there’s not a whole lot differentiating the two companies. To get a better grasp on which one is best for you, let’s review some scenarios where each of them has an advantage.

➥ Choose CorpNet if You Are:

Do you want a service with a personal touch? Do you prefer to use smaller businesses as opposed to mega-companies? If so, CorpNet should be a strong candidate for your LLC formation.

➦ Choose LegalZoom if You Are:

Do you place lots of importance on experience? Do you want to save some money? LegalZoom has fairly substantial advantages over CorpNet in those areas, so if this appeals to you, they are a good option.