Excited to start a new business, but unsure where to begin? You may want to consider hiring a professional service provider like LegalZoom to help simplify the LLC formation process.
In our LegalZoom review, we’ll go over the details of the company’s online legal services, LLC formation packages, pricing, features, and customer reviews to help you decide whether it’s a good fit for you.
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Start NowWhat Is LegalZoom?
Since 2001, LegalZoom has been a trusted name in legal and business services. The platform offers a wide array of legal solutions for both individuals and businesses, ranging from estate planning to intellectual property protection. One of their popular services is LLC formation, which helps entrepreneurs establish their businesses with guided, step-by-step processes.
LegalZoom’s approach combines user-friendly online tools with professional legal support, aiming to make legal services more affordable and approachable. Their platform includes features such as customizable legal documents, compliance calendars, and access to attorney consultations.
LegalZoom At a Glance
| Services | Business formation, trademark registration, compliance, business licensing |
| Pricing | $0 + state fees |
| Best For | Entrepreneurs looking for extensive legal services in addition to business formation. |
Jump Ahead:
Pros and Cons of LegalZoom
What We Like
- With LegalZoom, you don’t need any legal training or even much computer savvy — they’ll take care of pretty much everything on your behalf.
- If you need legal services past LLC formation, LegalZoom offers plans with tax advice, attorney help, and access to legal forms.
- You can expect quick turnaround times in terms of filing and receiving your documents. (Note: LegalZoom isn’t the fastest filing service on the market, but they’re impressively efficient considering their size.)
- While they’re not the lowest in the industry, LegalZoom’s price-points are competitive — and less expensive than working with a business attorney.
What Could Be Better
- LegalZoom charges more than other LLC formation services on the market
- In online LegalZoom reviews, many users have complained about billing issues. In order to avoid any headaches, we advise you to pay close attention during the checkout process.
- Since LegalZoom is such a large company, their customer support can get pretty backed up at times.
LegalZoom Alternative: Northwest
Northwest offers reliable, affordable formation services with unmatched data protection and a year of registered agent services free.
Get StartedLegalZoom LLC Pricing
LegalZoom offers three LLC formation plans: Basic, Pro and Premium.
Basic = $0 Plus State Filing Fees
The Basic package includes the minimum features needed to form a limited liability company, such as articles of organization filing, business name check service, and dedicated customer support. It also offers a customizable Wix site. However, we don’t recommend this plan, since it doesn’t include the basics such as an operating agreement or registered agent service for the first year.
Pro = $249 + State Filing Fees
In addition to everything in the Basic package, the Pro plan includes:
- Operating agreement
- Employer Identification Number (EIN) (for opening a business bank account)
- Tax and business insurance consultations
- Legal documents
- Financial account authorization letter
- Faster turnaround time
If you’re looking to expedite the formation process, the Pro package may be a good fit. However, it’s worth noting that many providers offer these services at a lower cost.
Premium = $299 + State Filing Fees
The Premium package includes all the features of the Pro package, plus some extra perks:
- Access to a business attorney during LLC formation
- 30 days of free unlimited 30-minute attorney consultations on new legal topics related to your business
- Legal forms access for one year with LLC formation
If you want to get the most legal services, the Premium package may be right for you. Just remember that the attorney service will renew after 30 days as a subscription service at $49 per month.
Optional Services
LegalZoom also offers the following add-on services if you want to build a more customized package for your business:
- Operating Agreement ($99)
- Operating Agreement & EIN ($159)
- Operating Agreement, EIN & Business Licenses ($199)
- Registered Agent ($249 for the first year) – keep in mind that this is a pricey option compared to some competitors
- Business Advisory Plan (12-month plan: $39.09/mo) – unlimited 30-minute consultations on new legal matters, document review, and access to a library of over 150 customizable business and personal legal documents and tools.
- Trademark registration – $649 + federal filing fees
LegalZoom’s Standout Features
LegalZoom sets itself apart with several key offerings:
Customizable Legal Forms and Documents
LegalZoom offers a wide range of customizable legal forms and documents for LLC formation. Users can access and personalize operating agreements, articles of organization, and other essential paperwork. This feature streamlines the process of creating legally sound documents tailored to specific business needs.
Access to Business Attorneys
The ability to consult with experienced attorneys can be invaluable for businesses navigating complex legal issues. With certain packages, LegalZoom provides access to business attorneys for legal consultations. This service allows LLC owners to seek professional legal advice on various matters related to their business.
Compliance Calendar
LegalZoom’s compliance calendar helps LLC owners stay on top of important deadlines and filing requirements. This tool sends reminders for annual reports, tax filings, and other regulatory obligations. By keeping businesses informed of upcoming compliance tasks, it reduces the risk of penalties or legal issues due to missed deadlines.
Intellectual Property Services
LegalZoom offers intellectual property services to help protect an LLC’s assets. These services include trademark searches, patent applications, and copyright registrations. This feature is particularly useful for businesses with unique products, services, or branding that require legal protection.
Annual Report Service
The annual report service provided by LegalZoom assists LLC owners in preparing and filing required annual or biennial reports. This service helps ensure that businesses remain compliant with state regulations. LegalZoom handles the paperwork and submission process, saving time and reducing the risk of errors.
Business Licenses
LegalZoom offers assistance in obtaining necessary business licenses and permits. Their service includes researching required licenses based on the LLC’s location and industry. This feature simplifies the often complex process of acquiring proper licensing, helping businesses operate legally from the start.
Accounting Software
While LegalZoom primarily focuses on legal services, they partner with accounting software providers to offer discounted rates to their clients. This allows LLC owners to access tools for managing finances, tracking expenses, and preparing for tax season.
100% Satisfaction Guarantee
LegalZoom stands behind their services with a 100% satisfaction guarantee. If a customer is not satisfied with their LLC formation service, LegalZoom offers to make it right or provide a refund, demonstrating the company’s commitment to customer satisfaction and providing peace of mind to those using their services.
LegalZoom Reviews
LegalZoom receives high reviews from customers overall, earning 4.3 stars out of five on Trustpilot. Much of the praise that LegalZoom receives centers around their excellent customer service — including their customer service team’s knowledgeability — and a seamless formation process. While some negative reviews cited upsells and difficulty receiving assistance, the company responded to most negative and positive reviews with support and further assistance to resolve any outstanding issues.
Here are some verified LegalZoom reviews from Trustpilot by customers who used the service to help launch their businesses:
“Great experience all the way around. Very simple and helpful through the whole process! Would recommend this route to anyone starting a business that’s a little intimidated by the process.”
“I have been dancing around using LegalZoom for years because I thought it would be very pricey. Boy was I wrong, and not only is it not pricey, they give the best guidance setting up your business but also making sure you are compliant.”
“The agents are very helpful, if I could redo my decision however I would’ve gone through the government myself to get my LLC worked up. I never did anything with my LLC, but ended up paying a fortune.”“Kinda easy to walk through. Agent follow-up response almost instantaneous upon initial setup. My only complaint is that there are more monetary add-ons vs advertised prices, and the way they are listed (could) make you feel as if they are necessary. For a 1st timer, this was a bit concerning. Time will tell whether or not this route was a wise expenditure.”
LegalZoom Alternatives
LegalZoom is a popular choice for LLC formation services, but it’s not the only option available. In this section, we’ll compare LegalZoom to some of its top competitors: Northwest Registered Agent, Tailor Brands, and ZenBusiness.
Each of these companies offers similar services to LegalZoom but with different pricing structures, features, and customer support models. By examining the pros and cons of each alternative, you can determine which provider best fits your business needs and budget.
Northwest vs. LegalZoom
Northwest is known for its personalized customer support and affordability. Unlike LegalZoom, Northwest includes a year of registered agent service in its $29 LLC formation package, a free operating agreement, and free mail forwarding, which can save you money in the long run. However, LegalZoom focuses more on legal services and has a more extensive library of legal documents.
If you prioritize one-on-one support and want to save on registered agent fees, Northwest may be the better choice. But if you need ongoing legal assistance and a variety of document templates, LegalZoom could be a better fit.
Tailor Brands vs. LegalZoom
Tailor Brands started as a branding and marketing platform, however, their parlay into LLC formation has given business owners a valuable service to form a business and establish their brand all on one platform. With Tailor Brands’ LLC formation services, entrepreneurs receive access to valuable branding services such as AI-powered logo generation as well as an array of add-on services for both legal and marketing services.
The company offers three formation packages including one free formation package that requires customers to only pay state filing fees. However, the real value of the Tailor Brands platform is best accessed through the Elite Plan ($199/year). With this plan, businesses benefit from all the necessary formation and compliance tools they need to start as well as a suite of comprehensive digital marketing features.
ZenBusiness vs. LegalZoom
ZenBusiness is another popular formation service with a lot of brand power. Their Starter Plan begins at $0 plus state fees and includes a year of free compliance service. The Pro Plan at $199 adds an EIN and faster processing time, while the $299 Premium Plan further includes a business domain name, business email, and website. Similar to LegalZoom, the platform does not include a free year of registered agent service.
ZenBusiness lets you add on features a la carte, giving more flexibility. However, LegalZoom offers more advanced legal services in their premium plans.
Below is a table comparing the costs of key services offered by LegalZoom, Northwest, Tailor Brands, and ZenBusiness. Keep in mind that you can always obtain an EIN for free directly from the IRS, but we’ve included the cost of getting an EIN through each provider in case you prefer the convenience of using a professional service.
Basic Plan Comparison
*does not include state fees
Is LegalZoom Right For Your Startup?
The bottom line? LegalZoom is a well-known and trusted name in the online legal services industry, offering a range of LLC formation packages and ongoing legal support. While it may not be the cheapest option on the market, LegalZoom’s experience, brand recognition, and comprehensive services make it a solid choice for entrepreneurs who want the peace of mind that comes with working with an established provider.
It’s particularly well-suited for:
- First-time entrepreneurs who need guidance through the LLC formation process
- Small business owners looking for a comprehensive, user-friendly legal service platform
- Companies requiring ongoing legal document support and compliance assistance
However, it may not be the best fit if:
- You have complex legal needs that require extensive, personalized attorney consultation
- You’re on a very tight budget and looking for the absolute cheapest LLC formation option
All things considered, it’s essential to consider your specific business needs and budget when choosing an LLC formation service. If you prioritize personalized support, affordability, or additional features like branding assistance, alternatives like Northwest or Tailor Brands may be a better fit.
Comprehensive Formation + Legal Services
LegalZoom makes forming your LLC simple and includes valuable legal services to keep your new business compliant.
Start NowReview Methodology
To provide an comprehensive and honest review of LegalZoom, we considered several key factors:
Pricing and Value
We examined LegalZoom’s pricing structure and package features to determine the overall value for customers. By comparing LegalZoom’s prices to those of its competitors, we assessed whether the company offers fair and competitive rates for its services. Additionally, we considered the quality and breadth of services included in each package to gauge the value proposition for entrepreneurs with different needs and budgets.
Ease of Use
We evaluated the LegalZoom website and user interface to determine how user-friendly and intuitive the process of forming an LLC through the company is. We considered factors such as the clarity of instructions, the simplicity of the ordering process, and the availability of customer support to guide users through any potential challenges. A seamless and straightforward user experience is essential for entrepreneurs who may not have extensive legal or technical expertise.
Customer Support
We assessed the quality and responsiveness of LegalZoom’s customer support by examining customer reviews and firsthand experiences. Factors such as the availability of support channels (e.g., phone, email, live chat), the helpfulness and knowledge of support representatives, and the speed of response were taken into account. Strong customer support is crucial for entrepreneurs who may have questions or concerns throughout the LLC formation process.
Customer Reviews and Reputation
To gauge customer satisfaction and overall reputation, we analyzed LegalZoom reviews from various third-party platforms, such as the Better Business Bureau, Trustpilot, and Sitejabber. We looked for patterns in customer feedback, noting common praise and complaints. By considering a wide range of customer experiences, we aimed to provide a balanced and accurate assessment of LegalZoom’s strengths and weaknesses.
Frequently Asked Questions
Is LegalZoom trustworthy?
Yes, LegalZoom is a trustworthy company for business formation, legal services (e.g., intellectual property protection, providing legal forms, etc.), registered agent services, and more. They have a lon-standing reputation in providing these services and have assisted a large number of businesses in various legal aspects.
Is LegalZoom free?
No. While their basic LLC formation package starts at $0, you will still have to pay state filing fees, which vary depending on the state where you are forming your business.
Can I form an LLC myself?
Can you form your LLC yourself? Sure! If you’re a DIY kind of entrepreneur and don’t mind investing your time into learning the process, feel free to follow the step-by-step guides we built.
Are their LLC services easy to use?
Yes for most, no for others. Although their platform is very user-friendly, if you browse through their online reviews you’ll still find a portion of folks who struggled to understand everything involved. If we had to rate usability, we’d give it a 4/5.
What’s their refund policy?
In some circumstances you can get a full refund, while in others LegalZoom will simply correct the problem or offer you credit with their company to be used on further orders. Check out their Satisfaction Guarantee page and their Terms of Service for all the particulars.
Are there any hidden fees?
No. There shouldn’t be any surprises as long as you aren’t in a hurry, make sure and pay attention to ALL check-boxes through the checkout process.
Is my information safe?
While there is technically no such thing as 100% safe information in the digital world, with LegalZoom your information is as safe as it would be working with a major bank.
Does LegalZoom offer compliance services?
Yes, LegalZoom offers compliance services. These include a compliance calendar that helps businesses keep track of important filing deadlines and dates to maintain their legal standing.
What about ongoing support?
LegalZoom will answer questions about your LLC, even if it’s a year from now. However, it’s important to mention there are a couple other online reviews that have done their own testing too. They have also pointed out that LegalZoom customer service is not as helpful as it could be.