Are you in the process of forming a limited liability company (LLC) but you don’t want to go the full do-it-yourself 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.
LegalZoom and CorpNet are two of the most popular LLC formation services available, and they’re both 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 like New York publication, which LegalZoom doesn’t.
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 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 services, a federal tax ID number (EIN), or many other business services, LegalZoom and CorpNet can help you start and maintain your business.
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.
Identify the LLC package and services that fit your needs and then get started.
LegalZoom: While LegalZoom does offer a $0 (+ state fee) package for LLCs, the number of upsells can get overwhelming — and expensive. They charge $199 per year for registered agent service.
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 baseline LLC formation package costs $108 (+ state fee). Their $228 Deluxe and $278 Complete packages include a full year of registered agent service (normally $149 per year) but are rather expensive compared to some other services.
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.
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 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 some competitors, they also offer bilingual support, which is a nice 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.
LegalZoom: 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 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.
LegalZoom: We found 6,000+ reviews for LegalZoom, and while they do have some negative reviews mixed in, a majority of this feedback is positive. Their satisfied customers often talk about how convenient and easy it is to use LegalZoom’s services.
CorpNet: CorpNet has similarly high ratings but with a smaller volume of feedback. Still, we were able to find around 700 mostly positive reviews of their services.
LegalZoom: First, you’ll pick your business entity type (LLC, corporation, nonprofit) and which of LegalZoom’s three packages you’d like to purchase. From there, you fill out your business information and payment details over a series of screens that also include upsells for registered agent service, an operating agreement, an EIN, a license research package, ongoing compliance assistance, a tax consultation, ongoing legal guidance, standard or complex tax returns, a legal protection plan, two options for business bank accounts, expedited processing, and an LLC kit and seal.
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 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.
CorpNet and LegalZoom both offer many other services that can help you start and maintain 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 from either company.
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.
CorpNet and LegalZoom have many similarities in the way they provide LLC service, but they also differ in a few key ways. Furthermore, depending on your specific needs and priorities, your preference may vary.
If you’re not yet decided between CorpNet and LegalZoom, let’s review a couple of scenarios that may sway you in one direction or the other.
Do you want a service with a personal touch? Do you prefer to use smaller businesses as opposed to mega-companies? If so, CorpNet could be a candidate for your LLC formation.
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 can be a good option.
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They do. CorpNet will handle your state-specific requirements, including New York’s publication step. However, LegalZoom doesn’t offer assistance with publication. For more information on your options, check out our New York publication service.
LegalZoom has a ton of upsells, to the point where we added this question to our FAQ sections because of them. If you accepted every upsell LegalZoom throws your way throughout its order form, you’d be on the hook for more than $1,000 in additional service fees.
CorpNet doesn’t have many upsells, but we will quickly mention that they exclude shipping costs from their advertised prices ― we only know of two other companies (InCorp and MyCorporation) in this industry that doesn’t include shipping in the advertised price points. Considering that CorpNet charges $29 just to ship a few pieces of paper, it’s a significant added cost.
LegalZoom and CorpNet (and ZenBusiness) have nearly identical refund policies that are among the best in the industry. They both have satisfaction guarantees that allow you to request a refund at any time within 60 days of placing your order, and neither of them charges any sort of convenience fee for refund requests either.
These companies take different routes when it comes to providing turnaround time estimates. LegalZoom bases its processing times on which level of LLC formation service you purchase from them. Their Economy package has a 30 business-day turnaround, while their Standard package takes 15 business days, and the Express Gold package can be ready in 7-10 business days. CorpNet bases their turnarounds on the actual capabilities of each state, so their times could either be faster or slower than LegalZoom depending on your state (and which package you want to purchase from LegalZoom).
Yes, this is always an option in any state. In fact, quite a few entrepreneurs form their own LLCs every day. However, we would simply like to mention that because there is no one set way to form an LLC across the country, each state has its own rules and regulations for LLCs.
Therefore, you’ll need to familiarize yourself with the specific requirements of your own state, which can take a bit more effort than you might expect. Of course, the other factor here is that the do-it-yourself route doesn’t provide the peace of mind that we get from using a professional service because we can trust their expertise to get the job done right.
CorpNet has high average rating scores on review websits, meaning their customers are clearly quite satisfied. This is its biggest advantage in general, although LegalZoom also receives strong reviews. LegalZoom’s big advantage is in pricing. It offers a $0 (+ state fee) LLC formation service package, while CorpNet charges at least $108.
If you’re looking for assistance with maintaining your good standing with the state into the future, either of these companies can help. LegalZoom offers registered agent service for $249 per year, and they also have annual report service available for $99. CorpNet also charges $99 for annual reports, and it has a $149 annual rate for registered agent service.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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