LegalZoom Overview: Pros and Cons (November 2023)

In this article, we will take a look at LegalZoom’s LLC formation service and assess its features, pricing, customer support, and overall value.

Whether you are a first-time business owner or an experienced entrepreneur, this overview aims to provide you with the information you need to make an informed decision about using LegalZoom for your LLC formation needs.

Summary of LegalZoom LLC Service

LegalZoom has recently changed its pricing structure with the pricing for its basic LLC filing starting at $0 + state fee.

Here are some pros and cons of using LegalZoom’s LLC formation and registered agent service:

Pros
1. Established and Trusted Brand: LegalZoom is a well-known and reputable brand in the legal services industry. They have been in operation for many years and have served millions of customers, establishing trust and credibility.

2. Easy-to-Use Platform: LegalZoom offers a user-friendly online platform that guides customers through the LLC formation process. The platform is designed to be intuitive and simplifies the steps required to establish an LLC.

3. Additional Legal Services: In addition to LLC formation, LegalZoom provides a wide range of legal services, such as trademark registration, legal document preparation, and business compliance assistance. This can be convenient for customers who require multiple legal services for their business.

4. Customer Support: LegalZoom offers customer support via phone, email, and live chat. Their support team can assist customers with questions, concerns, and general guidance throughout the LLC formation process.

5. Satisfaction Guarantee: LegalZoom offers a satisfaction guarantee, which provides some reassurance to customers. If you are not satisfied with their services, they may offer a refund or work to resolve any issues.

Cons
1. Higher Price Point: LegalZoom’s LLC formation and registered agent services are often more expensive compared to some competitors in the market. While they provide a comprehensive service, the pricing may be a deterrent for cost-conscious individuals or small business owners.

2. Upsells and Additional Fees: Some customers have reported that LegalZoom’s checkout process includes upsells and additional services, which can increase the overall cost of LLC formation. It’s important to carefully review the pricing details and be aware of any optional add-ons that may come with extra fees.

3. Limited Customization: LegalZoom’s online platform follows a standardized process, which may limit the level of customization available for specific business needs. If you have unique requirements or prefer a more personalized approach, this may be a drawback.

4. Potential for Delays: While LegalZoom aims to provide efficient service, some customers have reported delays in processing times, document delivery, or response from customer support. This can be frustrating, especially if you have time-sensitive needs.

It’s important to conduct thorough research and consider your specific needs and budget before choosing any service provider. While LegalZoom has its advantages and disadvantages, it’s essential to evaluate their services against your unique requirements to make an informed decision.

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We Compared LegalZoom With Other Online Legal Services

There are a number of online legal services that offer LLC formation services similar to LegalZoom. Below, we compare LegalZoom to some of its main competitors in terms of pricing, features, customer support, and overall reputation.

1. Incfile: Incfile is a popular online legal service that offers LLC formation services, among other business formation services. Like LegalZoom, Incfile offers a range of formation packages with varying levels of features and services.

Incfile’s pricing is always been slightly lower than LegalZoom’s, with its basic package starting at $0 plus state fees, compared to LegalZoom’s new basic package starting at $0 plus state fees.

Incfile provides one year of registered agent service for free while LegalZoom charges $299. However, Incfile does not offer as many customization options as LegalZoom, and its customer support has received mixed reviews.

2. Rocket Lawyer: Rocket Lawyer is another online legal service that offers LLC formation services. Rocket Lawyer’s pricing is higher than LegalZoom’s, with its basic package starting at $99.99 plus state fees. However, Rocket Lawyer offers more robust legal document creation and management tools than LegalZoom, which may be useful for businesses that require ongoing legal assistance.

Rocket Lawyer also offers access to on-demand legal advice through its network of attorneys.

3. ZenBusiness: ZenBusiness is a newer online legal service that has gained popularity for its affordable and streamlined LLC formation services. ZenBusiness’s basic package starts at $0 plus state fees, making it another affordable option on this list. ZenBusiness charges $199. per year for registered agent service. Like LegalZoom, ZenBusiness offers three main formation packages with varying levels of features and services.

However, ZenBusiness’s customer support has received very positive reviews on Trustpilot, While LegalZoom has some customers reporting difficulty getting in touch with its support team. Over the past 3 years, LegalZoom’s Trustpilot reviews have improved substantially.

In general, LegalZoom is a well-established and reputable online legal service that offers a range of formation packages and customization options. Its pricing is slightly higher than some competitors, but it offers a wider range of features and services than some more affordable options.

LegalZoom’s customer support has received mixed reviews, but overall, it is a reliable choice for businesses looking for LLC formation services.

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LegalZoom: Pros and Cons

LegalZoom is an online legal services provider that has been helping entrepreneurs and small business owners form their own limited liability companies (LLCs) for over two decades.

As with any service, LegalZoom has both pros and cons. In this article, we will examine the advantages and disadvantages of using LegalZoom’s online LLC formation services.

Pros:

1. Experience and Reputation

LegalZoom has been in business for over 20 years and has helped over 2 million entrepreneurs and small business owners form their own LLCs. The company has a strong reputation and is one of the most well-known online legal services providers. Its experience in the industry gives customers peace of mind knowing that they are in capable hands.

2. Versatile Range of Services

LegalZoom offers a diverse range of legal services, including business formation, intellectual property protection, registered agent services, tax contracts, and agreements. This means that entrepreneurs and small business owners can use LegalZoom for all their legal needs. It is an all-in-one shop for personal, professional, and business legal needs.

3. Affordable Business Advisory Plan

LegalZoom’s Business Advisory Plan offers business owners convenient access to year-round attorney help, for an affordable, flat monthly fee. This plan is perfect for anyone needing regular assistance with contracts and agreements, legal forms and copyrights, or just general legal advice to help protect their business. It is a cost-effective alternative to constantly using LegalZoom’s one-off services.

4. Great Customer Support

LegalZoom has a customer support team that is friendly, helpful, and knowledgeable. The support team is available via phone, email, and live chat seven days a week. The quality of customer support has been inconsistent in the past, but LegalZoom has recently improved its support services, and current customers consistently report excellent customer support.

5. Extended Customer Support Hours

LegalZoom extends generous support contact hours in comparison to its competitors. The US-based support team is available from 5 am to 7 pm (PT) Monday through Friday and from 7 am to 4 pm on weekends. This means that customers can get in touch with LegalZoom’s support team at any time that is convenient for them.

6. Lengthy Satisfaction Guarantee Period

LegalZoom offers a satisfaction guarantee period of two months. If customers are unsatisfied with LegalZoom’s services, they can request a correction or a 100% refund on its services, no questions asked.

7. Knowledge of Local Laws

LegalZoom operates legally in all 50 states, and it has documents that fit individual state laws. It makes use of local attorneys that can ensure customers are following local regulations and laws. Laws for forming an LLC vary from state to state, so it is extremely important for LegalZoom to operate in this manner.

Cons:

1. Higher Pricing

LegalZoom’s prices are higher than some of its competitors, which can be a concern for budget-conscious entrepreneurs and small business owners. LegalZoom’s basic LLC formation package starts at $79, which is higher than some of its competitors.

2. Lack of Customization

LegalZoom’s formation packages are pre-set and do not offer much room for customization. This means that some businesses may need to purchase additional services or look elsewhere. The lack of customization can also mean that some businesses end up paying for services they do not need.

3. Additional Fees

LegalZoom charges additional fees for services such as registered agent services and expedited filing. These fees can add up quickly and make LegalZoom’s services more expensive than expected.

4. Limited Attorney Advice

LegalZoom’s services are not a substitute for a lawyer. While LegalZoom offers attorney help, it is limited to specific services and does not provide legal advice. This means that entrepreneurs and small business owners may need to seek additional legal advice outside of LegalZoom’s services.

LegalZoom Pricing and Options

Recently, LegalZoom has had to change its pricing to stay competitive with ZenBusiness and Incfile. It offers basic LLC formation services starting at $0.00 plus the state fee where the LLC is being formed.

LegalZoom’s LLC formation services provide customers with the option to form an LLC in any of the 50 states in the United States. In this section, we will take a closer look at LegalZoom’s LLC formation prices and options.

Pricing Options

LegalZoom offers three different pricing options for LLC formation: Economy, Standard, and Express Gold. The prices listed below do not include state filing fees or any additional services.

1. Basic: LegalZoom’s Basic package is priced at $0. This package includes name availability search, articles of organization, and a personalized operating agreement. While this package is the most affordable, it does not include some of the more advanced features that may be useful to businesses.

2. Pro: LegalZoom’s Standard package is priced at $249. This package includes everything in the Economy package, along with a federal tax ID number (EIN), a banking resolution, and a business compliance calendar. The Standard package is a great option for businesses that want additional features but don’t want to pay for the most expensive package.

3. Premium: LegalZoom’s Premium package is priced at $299. This package includes everything in the Standard package, along with expedited filing, express shipping, and an LLC kit and seal. The Express Gold package is the most expensive option but offers the most features and expedited filing.

Customized Add-Ons

LegalZoom also offers a variety of add-ons that can be purchased with any of the three LLC formation packages. These add-ons can help businesses customize their formation package to meet their specific needs. Some of the most popular add-ons include:

1. Registered Agent Service: LegalZoom’s registered agent service is priced at $299 per year. This service is required by law in most states and ensures that a business’s legal documents are properly delivered to the appropriate parties.

2. Employer Identification Number (EIN): LegalZoom can assist businesses in obtaining an EIN for $79. This is required by the IRS to open a bank account, file taxes, and hire employees.

3. Operating Agreement: LegalZoom can provide businesses with a customized operating agreement for $99. This is a critical document that outlines the ownership structure, management, and operations of the business.

4. Business License Compliance Package: LegalZoom offers a business license compliance package for $99. This package provides businesses with a customized compliance report and assistance with obtaining the necessary licenses and permits to operate in their state.

Overall, LegalZoom’s LLC formation prices and options are competitive and flexible. Businesses can choose from three different packages and a variety of add-ons to create a customized formation package that meets their specific needs.

However, it’s important for businesses to consider the additional fees for state filing and any necessary add-ons, as these costs can add up quickly. It’s also important to note that while LegalZoom is a reliable and reputable service, it may not be the most cost-effective option for all businesses.

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Trustpilot Reviews

LegalZoom has improved its customer reviews on Trustpilot with over 2600 user reviews and an average rating of 4.6/5.

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LegalZoom’s Trademark Service

LegalZoom offers a range of legal services, including trademark registration. Trademark registration is a critical step for businesses that want to protect their brand name, logo, or slogan from infringement.

LegalZoom’s trademark service helps businesses navigate the complex process of trademark registration, providing assistance with everything from the initial search for available trademarks to filing and monitoring applications.

LegalZoom’s trademark service begins with a comprehensive trademark search. This search is designed to identify any existing trademarks that may conflict with the proposed trademark. This step is critical to avoid the risk of infringing on an existing trademark, which can result in costly legal battles down the line.

Once the trademark search is complete, LegalZoom will assist with the application process. This includes preparing and filing the necessary paperwork with the United States Patent and Trademark Office (USPTO).

LegalZoom’s team of experienced attorneys will review the application to ensure that it meets all of the USPTO’s requirements, increasing the likelihood of successful registration.

LegalZoom’s trademark service also includes monitoring the status of the application and responding to any inquiries from the USPTO. This can help ensure that the registration process proceeds smoothly and efficiently. Once the trademark is registered, LegalZoom can provide ongoing monitoring services to help businesses protect their trademark from infringement.

Overall, LegalZoom’s trademark service provides businesses with a comprehensive solution for trademark registration. From initial trademark searches to ongoing monitoring and protection, LegalZoom’s team of experienced attorneys can help businesses protect their brands and ensure that their trademark registration is successful.

Conclusion

Compared to other LLC formation services, LegalZoom is priced a little higher than the others, but they continue to be a solid choice for business formations and registered agent services. LegalZoom is not our top choice, but we continue to recommend them and they have stayed in our top 10 list for quite a while.

If you are searching for the best LLC formation service or registered agent service, our top 3 recommended services are Northwest Registered Agent, Incfile and ZenBusiness.