LegalZoom LLC Service Review
Read the LegalZoom LLC service review below or get Mark Cuban's recommendation (ZenBusiness) for $0 + state fee.
Starts at $0 + state fees and only takes 5-10 minutes
12,253 reviews
LegalZoom opened for business in 2001, and since then it has formed more than 2 million business entities. LegalZoom has significant brand power due to its consistent advertising efforts, and it has plenty of experience. The company is also currently offering LLC formations for free (+ state fee), but it charges $299/year for registered agent service.
Pros and Cons of LegalZoom
Pros of LegalZoom
✔ When it comes to experience and brand recognition, LegalZoom impresses. They have millions of business customers.
✔ LegalZoom offers a 100% money-back satisfaction guarantee that you can leverage at any time within 60 days of your purchase. It’s nearly identical to the refund policy we have at ZenBusiness.
✔ LegalZoom’s extended customer service hours run until 10 p.m. ET on weekdays and 7 p.m. ET on weekends.
✔ Beyond your LLC formation, LegalZoom has a wide variety of other business and personal services available — more than most competitors.
Cons of LegalZoom
✖ While LegalZoom offers a $0 (+ state fee) LLC formation package, it has high prices for some other services. For example, LegalZoom charges $299/year for registered agent service compared to $199/year from ZenBusiness. Additionally, if you’d like to form a corporation instead of an LLC, LegalZoom charges at least $149 while ZenBusiness will still do it for free, as long as you pay your state’s fee.
LegalZoom LLC Formation Packages
LegalZoom offers three levels of LLC formation service packages: Basic, Pro, and Premium. To review the full details of each package yourself, take a look at the breakdown below.
Basic = $0 + State Fee
➢ Business Name Availability Check: LegalZoom searches the business database of the state where you’re forming an LLC to determine whether the business name you want is available or if it’s claimed by another entity.
➢ Preparation of Your Articles of Organization: This document is the form required by the state to create your new LLC. LegalZoom will draft your Articles of Organization for your state of formation.
➢ Customizable Website: LegalZoom partnered with Wix to help you create a business website, even if you don’t have a coding background.
Pro = $249 + State Fee
Includes everything from the Basic package, plus…
➢ Operating Agreement: This is an internal document that outlines several important aspects of how your LLC functions. LegalZoom will provide a template for you to create an operating agreement for your new LLC.
➢EIN: Also known as a Federal Tax ID number, an employer identification number (EIN) is essentially a Social Security number for a business entity. LegalZoom will acquire your EIN from the IRS.
➢ Business License Guide: With this feature, LegalZoom identifies all of the licenses and permits your LLC will need to operate in compliance with the federal, state, and local governments based on your location and industry.
➢ Business Tax and Insurance Consultations: You can speak with specialists about business insurance and taxes.
Premium = $299 + State Fee
Includes everything from the Pro package, plus…
➢ Attorney Guidance: A business lawyer will provide hands-on assistance with your LLC formation.
➢ 30-Day Attorney Consultation Trial: You can get unlimited 30-minute phone consultations for new legal matters with business attorneys for 30 days.
➢ Amendments: If you need any changes made to your formation documents within your LLC’s first 30 days, LegalZoom will file your amendments.
Alternative to LegalZoom
If you’re looking for an alternative LLC service, go with us at ZenBusiness.
ZenBusiness is a Texas-based company that has helped form more than 500,000 businesses since 2015, with positive reviews online to back it up.
What’s unique is that we are a socially conscious organization focused on doing good while growing as a company. ZenBusiness is a Public Benefit Corporation that offers 40 $5,000 small-business grants to our customers and loans money to help underrepresented entrepreneurs get their businesses off the ground.
$0 + state fee and takes 5-10 minutes
Should you form an LLC with LegalZoom?
At the end of the day, LegalZoom has some meaningful positives, but they also have some disadvantages that shouldn’t be overlooked. Here’s when you should and shouldn’t form an LLC with LegalZoom.
✔ When to Form an LLC with LegalZoom
If you place a high value on working with an experienced online legal service, LegalZoom is an option. The company’s long hours of availability and free LLC formation package are also points in its favor.
✖ When NOT to Form an LLC with LegalZoom
If you want to save some money on other features, there are some alternative LLC services that can beat what LegalZoom has to offer. LegalZoom charges $149 to form a corporation and $299 for registered agent service, while ZenBusiness charges $0 and $199, respectively.
Start your LLC with ZenBusiness
Pricing starts at just $0 + state fee
Frequently Asked Questions About LegalZoom
LegalZoom has been around since 2001, and they’ve served millions of customers with reliable and trustworthy business services since then. Their customer feedback used to be a bit of a mixed bag, but it has improved in recent years.
They have thousands of reviews available online, and more of them are positive than negative. Their clients appreciate their speedy services, but they also have some issues with inconsistent customer support.
Unfortunately, we are not aware of any discount codes for LegalZoom. LegalZoom does have reasonable pricing to begin with, but it’s disappointing that there aren’t any ways to knock their rates down a bit.
LegalZoom has a 100% satisfaction guarantee that’s nearly identical to the ZenBusiness refund policy. If you request a refund within 60 days of your purchase date, they’ll provide it with no questions asked. This is one of the industry’s best refund policies, in our opinion.
It depends. Each state has a way to reserve a business name before forming your entity itself. In general, this is only necessary if you aren’t yet ready to enter the LLC formation process.
If you’re ready to start your business, there’s no reason to reserve your name before forming your LLC. That said, we will note that certain states (like Alabama) require you to reserve a name before you form your business.
We contacted LegalZoom’s customer support via phone, and they told us that they don’t offer assistance with publication requirements because that step technically occurs after the business entity itself is formed. Interested in a company that will handle this process for you? Take a look at ZenBusiness — we will take care of your New York publication step.
You can contact LegalZoom via phone by calling 1-888-379-0854. Instead of listing an email address on their website, they have a form you can fill out on their “Contact Us” page to initiate their email support function.
Yes, there’s no requirement that you be present in the U.S. to form an LLC. In fact, you don’t need to be a U.S. citizen or resident to form an LLC either, as foreign nationals are allowed to own and operate LLCs just like U.S. citizens are.
LegalZoom offers more additional services than the majority of its competitors, partially due to the fact that they provide many personal services in addition to their business offerings. For example, they can help individuals with their last will and testament, power of attorney, divorce proceedings, etc.
As for their business services, LegalZoom offers registered agent service, trademark and copyright protection, doing business as (DBA) names, amendments, dissolutions, foreign qualifications, conversions, annual reports, operating agreements, EIN acquisition, business licensing, and more.
This is a tough question to answer without knowing the specific needs of your unique business. Some entrepreneurs enjoy getting an EIN included with their LLC formation, even if it means spending extra to add it on.
The convenience of not having to get one themselves through the IRS is worth it, and they like to have Articles of Organization and EIN confirmation in the same place — the LLC service’s dashboard. However, we understand if you’d rather save some money and acquire your own EIN from the IRS directly, which is free.
Experience matters and LegalZoom has plenty of it. They’ve been around for decades, and they’ve helped millions of customers. Their longevity and customer volume are an advantage over many competitors.
When it comes to disadvantages, we think their overall pricing for several popular services is rather unappealing. For instance, LegalZoom charges at least $149 (+ state fee) to form a corporation (ZenBusiness has a $0 package) and $299/year for registered agent service (ZenBusiness charges $199).
Yes. LegalZoom offers registered agent service for $299 per year, and it also provides annual report services for $99 (plus state fee).
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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