LegalZoom Review (2023): Services, Pricing, Pros and Cons
LegalZoom offers comprehensive services and support for both emerging and established businesses. Customers of LegalZoom benefit from a positive user experience and strong customer support services.
LegalZoom also offers professional consultations with licensed attorneys. While most LLCs probably won’t need this service, some companies may have complicated circumstances and would benefit from working closely with an experienced attorney as their guide. Similarly, some businesses may prefer the reassurance of knowing they have access to an attorney’s advice as needed.
LegalZoom Reputation
Over the last 22 years, LegalZoom has established itself as a well-known legal services provider. If you look at customer reviews posted by users on the Better Business Bureau (BBB), Trustpilot and Consumer Affairs platforms, you’ll notice a common theme: praise of LegalZoom’s high-quality customer support experiences.
With an average star rating of 4.5 out of 5 on ConsumerAffairs (from 2,500 reviews), 4.6 stars out of 5 on Trustpilot (from 3,071 reviews) and 4.64 stars out of 5 on the BBB (from 6,712 reviews), it’s clear that LegalZoom is a recognized and reputable leader in the industry.
LegalZoom Pros and Cons
LegalZoom offers comprehensive and customizable legal services to assist people who want to create their own LLC. For those thinking about working with a professional LLC formation company like LegalZoom to start a business, we’ve included four of LegalZoom’s key pros and cons for you to review below.
Pros
- Offers LLC formation packages all including a customizable website
- Provides high-quality customer service
- Staffed by a diverse network of legal experts with industry experience
Cons
- Difficult-to-locate pricing for some of the extra services LegalZoom offers
- Slow chat support on the website
- Free package includes fewer business services in comparison to some competitors’ free packages
What Is LegalZoom?
LegalZoom was founded in 2001 by a team of professionals committed to making legal services available and accessible to everyone. Over the past two decades, LegalZoom has grown and expanded its services.
LegalZoom has assisted entrepreneurs in starting more than two million businesses. As a result, LegalZoom customers leverage and benefit from its extensive industry experience and refined expertise.
For those looking to start a new business, LegalZoom provides a wide array of services – and not just for emerging LLCs. For instance, LegalZoom offers services to help you start a sole proprietorship, a limited partnership, a limited liability partnership, a C-corporation, an S-corporation and even a nonprofit.
But what if you’ve already started your small business? LegalZoom also offers additional legal services for existing companies that support their ongoing operation and growth. For example, LegalZoom offers registered agent services, assistance acquiring business licenses and permits, annual report services, trademark registrations and more. By partnering with LegalZoom, customers can rest assured that their business is and will continue to maintain compliance with both local and federal laws and regulations.
How LegalZoom Works
LegalZoom helps simplify the process of legally forming your own LLC by doing the bulk of the heavy lifting. LegalZoom will help identify which forms and documents you need to fill out, identify where to file your business documents and file everything for you. Depending on which LLC formation package you purchase from LegalZoom, the company will also provide further services to help you successfully set up and run your business.
LegalZoom’s user-friendly platform provides a straightforward business formation process that will save you time (and confusion). Even if you haven’t decided what organizational structure is best for your new business, LegalZoom can help you determine which option suits your needs and goals best by answering just 10 simple questions.
Alternatively, if you’ve already created your company, LegalZoom’s platform provides a comprehensive list of the legal services available to support existing businesses.
LegalZoom doesn’t require users to create an account to purchase any of its individual services or to order one of its LLC formation packages. However, customers will need to create an account eventually to access various information and their business documents later. Creating an account with your information before making any purchases will make subsequent orders easier to fill out.
After a customer has completed an order, LegalZoom will proceed to file the information with the appropriate legal body or bodies. Once the filing process is concluded, copies of the associated forms will be provided to the customer for their records via posted mail. Depending on the services provided and the nature of the associated documents, these copies will also be made available online.
LegalZoom Features and Services
If you’re ready to start your own company, LegalZoom is your one-stop shop for all your business and legal service needs. Not only does LegalZoom offer customers three tiers of customizable LLC formation packages, but it also offers a wide spread of legal services that empower business owners to get just the level of support they need.
From LLC formation services to day-to-day business operations, LegalZoom’s team of industry experts is ready to help both new and existing businesses. We’ve outlined some of LegalZoom’s most popular services for you below.
Online Document Preparation
Starting your own LLC involves a lot of paperwork – both before filing your business with the Secretary of State and after. LegalZoom’s online document preparation services help simplify and streamline the process so you don’t have to struggle through nuanced language or worry about missing any crucial forms.
Customers of LegalZoom’s documentation services benefit from access to a repository of more than 150 attorney-drafted legal forms. Moreover, users can easily edit and customize legal documents to meet their business needs without leaving LegalZoom’s platform.
For instance, LegalZoom’s legal document library includes articles of organization forms for LLCs, operating agreements, EIN applications, DBA forms, employee non-disclosure agreements (NDAs), amendment of agreement forms, product supply agreements and more.
Business Formation
From start to finish, LegalZoom provides legal services and guidance that will help you start your new business. For example, you need to decide on a name for your new business before you can officially file your articles of organization. LegalZoom’s name check service enables customers to determine if their preferred name meets legal requirements or if an existing business has already claimed it.
Not only does LegalZoom provide business formation services for LLCs, but it also offers formation services for additional business structures. LegalZoom can help you form a sole proprietorship, a limited partnership, a limited liability partnership, a C-corporation and an S-corporation, and a nonprofit.
Operating Agreement
Since an operating agreement is an internal document private to the company, whether your business is legally required to establish an operating agreement depends on the state where your company is registered. However, even though operating agreements are not filed on a state or federal level, it’s always considered best practice to draw one up.
While LegalZoom’s upper-tiered LLC formation packages include an operating agreement, business owners can also purchase this customizable service a la carte. So whether you’re starting an LLC or a corporation, LegalZoom’s operating agreement services will help you set up parameters for how you run your business and also help you protect your assets.
Digital Welcome Packet
Customers partnering with LegalZoom to start a new business receive a special service feature particular to LegalZoom: a digital welcome packet.
Once your LLC is officially registered, the welcome packet includes a step-by-step checklist to help guide you through the subsequent stages of creating and running your business.
Articles of Organization
The articles of organization document is the very root of your new business’s existence. This form is typically filed with your Secretary of State and asks you to fill in key information about your company.
For example, articles of organization forms often require you to specify your business’s name and mailing address, as well as identify a registered agent and their contact information.
LegalZoom will help you with the necessary documentation and ensure you correctly fill out the form. Once the articles of organization are complete, LegalZoom then takes care of correctly filing your paperwork with the appropriate Secretary of State.
Customizable Website
As necessary as it is, creating a website can be a time-consuming and daunting challenge. By partnering with Wix, LegalZoom makes setting up a business website simple and painless. Customers receive a fully functional website generated by Wix that users can easily customize and tailor to their business needs.
LegalZoom provides customers of all three LLC formation package tiers with a professional business website powered by Wix.
Document Storage
LegalZoom utilizes multiple layers of encryption to enforce the secure storage of sensitive information. Customers can rest assured that all the personal and business information provided to LegalZoom is securely stored in the cloud.
In light of LegalZoom’s extensive legal services, not all documents are accessible online. In this case, your documents will be mailed to you. However, the website indicates that LegalZoom’s team may expand this feature in the future.
Legal Document Templates
Customers who purchase access to LegalZoom’s repository of more than 150 legal forms and documents can save valuable time and energy adjusting them to fit their business needs.
LegalZoom simplifies the documentation process by asking various questions relevant to the specific business form at hand. LegalZoom then plugs in the user-provided information to generate the legal document for customers to download as a PDF and print.
LegalZoom’s platform also provides a text editor that enables users to go in, edit and customize their legal documents themselves, as needed.
Some popular document templates include mutual nondisclosure agreements, independent contractor agreements, sale of goods agreements and consulting service agreements.
Legal Advice
Unlike several LLC formation service competitors, LegalZoom offers its customers legal support and advice. For those who lack a strong grasp of the legal aspects of starting a new business, this service is a key benefit of partnering with LegalZoom.
LegalZoom’s Basic LLC formation package doesn’t include legal advice services, but the Pro and Premium offer different levels of legal support.
The Pro package provides customers with small business and insurance guidance services. This includes discussing asset coverage options and discussions on taxes, legal compliance and other topics to help set your business up for success.
The Premium package includes the above legal support services and a subscription to LegalZoom’s Business Attorney Plan. This plan provides customers with an unlimited number of 30-minute consultations with professional attorneys. The Business Attorney Plan also provides customers with a professional legal review of business forms and documents.
It’s important to note that LegalZoom’s Premium LLC formation package only includes a free 30-day subscription to its Business Attorney Plan. After the free trial, the subscription will renew automatically every month for a fee of $49.
Registered Agent Services
To officially file and register a new LLC, you must identify a registered agent for your business on the articles of organization form. Although many companies that provide LLC formation assistance include registered agent services in their packages, it’s important to note that LegalZoom does not.
Customers purchasing any of LegalZoom’s three LLC formation packages can add registered agent services to their orders for $199 annually.
For those who have already created their LLC, you can purchase their registered agent services a la carte. However, the price differs when only ordering LegalZoom’s registered agent services. Instead of $199, this will cost you $249 a year.
LegalZoom Pricing and Plans
Basic Package $0 + state filing fees |
Pro Package $249 + state filing fees |
Premium Package $299 + state filing fees |
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Basic Package
LegalZoom’s Basic LLC formation package is perfect for those who are interested in starting their own business and are confident in their abilities to handle most of the legwork themselves. Costing only the fees necessary to file your LLC with the state, LegalZoom’s Basic package helps customers complete their articles of organization, access their business name check service and create a customizable business website powered by Wix.
The Basic package also provides customers with a digital welcome packet and email and chat support. The digital welcome packet includes a checklist of what to do after officially filing your LLC with the Secretary of State.
The key advantage of LegalZoom’s Basic package is its low price. However, the Basic package only provides the bare minimum to help customers legally register their new LLC. Compared with other free business formation services, LegalZoom’s package isn’t as robust.
Since the Basic LLC formation package is so limited in the business services it provides, LegalZoom pushes a lot of its add-on features and services during the ordering process.
Pro Package
LegalZoom’s Pro package carries a fee of $249 plus state filing fees. This package includes everything from the Basic LLC formation package in addition to an operating agreement, a federal tax ID number (EIN) and a financial account authorization letter. The Pro package also provides small business and insurance guidance services, including a personalized consultation with a licensed insurance agent and a consultation with a small business specialist. Lastly, the Pro package includes one year of access to LegalZoom’s library of more than 150 customizable legal forms and documents, an unlimited number of eSignatures for one year and access to customer service and support via email, website chat and over the phone.
The main advantage of LegalZoom’s pro package is that it includes essential business documents necessary for legally operating a business. However, the change in price between LegalZoom’s Basic LLC formation package and its Pro formation package is notably substantial. Furthermore, like the Basic package, the Pro package doesn’t include registered agent services, a legal requirement for LLCs.
Premium Package
LegalZoom’s final tier of LLC formation packages is its Premium package, which costs customers $299 plus state filing fees. The Premium package includes all of the services provided in LegalZoom’s Basic and Pro packages, along with a handful of other features beneficial for those starting a new business that need more legal support and guidance.
Specifically, the Premium package enables customers to make an entity amendment within the first 30 days of purchasing this LLC formation package. Not only does LegalZoom take care of the amendment paperwork, but it will also expedite the filing process and subsequent delivery of customer document copies. However, customers may still be subject to state filing fees (if applicable).
The Premium package also supplies customers with a free 30-day trial subscription to LegalZoom’s Business Attorney Plan, which will automatically renew for a monthly fee of $49. This feature of LegalZoom’s Premium LLC formation package provides customers with unlimited access to 30-minute attorney consultation sessions concerning legal business topics. The Business Attorney Plan also enables customers to have all their legal documents and contracts reviewed by an experienced attorney from LegalZoom’s network in addition to monthly copyright registration services.
Lastly, customers can receive support by sending LegalZoom an email, using their website’s chat feature or by giving them a phone call.
Overall, LegalZoom’s Premium package offers the best value for its price. From a financial perspective, the jump in price from the Pro LLC formation package to LegalZoom’s Premium package is minimal compared to the extra features and services included. The Premium package is a solid choice for those who would feel more at ease knowing that they’ll have access to robust legal services and support throughout the whole LLC formation process.
However, even this upper-most tier of LegalZoom’s LLC formation packages lacks registered agent services.
How To Start a Business with LegalZoom
Starting a new business is easy with LegalZoom’s help. No matter which formation package you choose, using LegalZoom to form a new LLC is a quick and relatively straightforward process that anyone can do.
Prepare Before You Start
From start to finish, LegalZoom provides contextual information and helpful suggestions as it guides you through each step of the business formation process. Of course, you can still take steps to make the filing process go even faster and more smoothly. For example, deciding on the name of your new business is a significant first step. Each state has its own rules and legal parameters regarding the naming of LLCs. As such, it’s wise to take the time to review the regulations of the state you’re going to register your business in before settling on a name for your new business.
For good measure, we also suggest coming up with a few backup ideas in case LegalZoom determines that your first choice is already taken. However, you can reduce the chances of this occurring:
- At a federal level, you can look up your name ideas using the United States Patent and Trademark Office’s Trademark Electronic Search System (TESS).
- Find out if your name ideas have already been registered in your state. For example, if you’re creating an LLC in New York, you can look up your business name ideas on the Department of State’s Corporation and Business Entity Database.
Here are some additional components of your LLC checklist:
- The state your business will be registered in and your business’s physical address
- The purpose or nature of your LLC and associated industry
- Registered agent information (if you wish to appoint a person or another entity other than LegalZoom)
- The names of the other LLC members (if applicable)
- The official start date of your LLC
Generally, a new business’s start date is when the articles of organization are filed with the Secretary of State. However, you may be able to specify a later date instead. Be sure to check your state’s associated rules and regulations.
LegalZoom’s LLC Formation Process
To help you understand what to expect, we went through LegalZoom’s formation process. You can get a feel for the process and the different add-ons in our outline below.
- Choose your LLC formation package.
To start the formation process, you’ll need to select a pricing package. For the purposes of our review, we choose LegalZoom’s free Basic package. However, we go over the different LLC formation packages in more detail later in this review.
- Enter your business name.
In the first official step of forming your new LLC, LegalZoom asks for you to identify the name of your business. For those who haven’t quite settled on a name for their new company, LegalZoom allows users to skip this step and continue with the process.
- Choose the state to register your LLC.
Next, you’ll be asked to identify the state where you want to register your new business.
- Provide contact information.
You’ll then be asked to fill out some contact information, including your email address and phone number. While this step is optional, we suggest filling in your information so LegalZoom can quickly and easily contact you about your new LLC.
- Identify your business’s industry type.
The following step will ask you to classify the industry that best describes your new business.
- Click on the Next button.
This page identifies some documents and legal requirements necessary to form and operate your new LLC.
- Select and identify your registered agent.
This step asks you to appoint the registered agent for your new company. While you can identify yourself as your LLC’s registered agent, LegalZoom tries to upsell its annual registered agent services on this page.
- Add business documents to your order.
This next step is similar to the registered agent services offered on the previous page. However, in this step, LegalZoom allows users to add legally required documentation to their LLC formation package order.
However, LegalZoom promotes three different business documentation packages for customers. In other (and maybe a little confusing) words, this step provides the option to add a package to your package.
- Add compliance services to your order.
The following step on the next page once again tries to upsell LegalZoom’s compliance services to customers forming a new LLC.
- Add a business license report to your order.
In the next step, LegalZoom offers customers the option to add a service to their LLC formation package: a business license report. This report essentially tells you what permits and licenses are legally required to create and run your business. Between industry, state and federal regulations and requirements, determining what licenses your new business needs can be complex and confusing.
- Add bookkeeping services to your order.
In the next step, customers can add bookkeeping services to their LLC formation package order.
Similar to the business documentation upsell options in Step 8, this step presents users with two of LegalZoom’s bookkeeping service plans.
- Open a business bank account.
One of the final steps of the LLC formation process offers customers the opportunity to set up a new bank account just for their new business.
- Enhance your order.
The next step of LegalZoom’s free LLC formation process gives customers two more upsell opportunities to enhance their orders. Users can opt for expedited processing of their new business for a fee of $99 or can select standard processing for no extra cost.
Finally, customers of LegalZoom’s Basic LLC formation package can add a Founder’s Kit to their order for an additional $99.
- Review your order.
The last thing you need to do is to carefully review your order before continuing to the checkout page and paying LegalZoom for your customized LLC formation package.
After completing your order, LegalZoom will file your business’s information with the Secretary of State. Depending on if you opted for expedited processing, the turnaround time will take somewhere between one business day and two weeks. However, this service only applies to LegalZoom’s processing and doesn’t reflect state turnaround time for state processing.
Once the LLC filing process is complete, your business documents will be made available online in your account and mailed to you.
LegalZoom Customer Service and Support
One of LegalZoom’s key strengths is its high-quality customer service and support experiences. You can quickly and easily contact LegalZoom over the phone, through their website chat or via email.
LegalZoom Phone Support:
- General support: (855) 787-1221
- Customer support: (888) 379-0854
- Order support: (800) 773-0888
- Subscription support: (888) 310-0151
- Sales support: (855) 787-1922
- eSignature support: (833) 563-1603
LegalZoom Chat Support:
- Users can click on the chat button in the lower right-hand corner of the website to connect with a LegalZoom agent and ask their questions in real-time.
LegalZoom Email Support:
- You can send your email to support@legalzoom.com or customercare@legalzoom.com
LegalZoom Additional Services Worth Noting
Not only does LegalZoom provide LLC formation services, but they also offer additional services that can be beneficial for someone starting their own business. You can check out some of them in our list below:
- Entity name reservation: If you’ve come up with the perfect name for your new business, LegalZoom will help you ensure someone else doesn’t take the name before you’re ready to file your LLC’s articles of organization. LegalZoom’s entity name reservation service is available for $49 plus state filing fees.
- Doing business as (DBA): If the name registered to your new business is long or clunky, LegalZoom can help you apply for a DBA name that’s shorter or more catchy. You can register your business’s DBA name with LegalZoom for $99 in addition to state filing fees.
- Compliance calendar: LegalZoom understands that there are a lot of different dates and documents to keep track of when running a business to remain legally compliant. LegalZoom’s compliance calendar service is available for an annual fee of $69.
- Business advisory plan: For those who have already officially formed their new businesses but would benefit from more legal support, LegalZoom offers two different business legal plan services. Both plans include the same robust set of features but differ in their subscription options. Customers can purchase LegalZoom’s six-month business advisory plan for a monthly fee of $43.17 or its 12-month plan for $39.09.
- Business licenses: Depending on the industry, your business will require various licenses and permits to operate legally. Starting at $99, LegalZoom takes care of this legal hassle for you.
- Certified copies of business documents: LegalZoom can also help companies get certified copies of all business documents that have been filed with the secretary of state. LegalZoom offers a Standard Package for $45 plus state filing fees and an expedited Rush Package for $75 plus state filing fees.
- Certificate of good standing: LegalZoom can help existing businesses obtain a certificate of good standing, a document that verifies your business has complied with all legally required reports and state fees.
- EIN: This service is only included in LegalZoom’s Pro and Premium packages. However, the EIN service can be purchased a la carte for $79.
- Annual reports: LegalZoom’s annual report service can be purchased a la carte for $99 plus state filing fees (standard processing and shipping) or $119 plus state filing fees (expedited processing and shipping).
LegalZoom Alternatives and How They Compare
Starting your own business is an exciting decision – but it’s also a big one. As such, it’s essential to carefully consider all of your LLC formation service options before making decisions.
| ZenBusiness | Incfile | LegalZoom | Swyft Filings | |
|---|---|---|---|---|
| Pricing | Three package options from $0 to $349 + state filing fees | Three package options from $0 to $299 + state filing fees | Three package options from $0 to $299 + state filing fees | Three package options from $0 to $299 + state filing fees |
| Turnaround Time | One day to three weeks | One business day to six weeks | One business day to 14 | Same day to 10 business days |
| Registered Agent | No | Yes | No | No |
| Operating Agreement Included? | Included in Pro and Premium packages, or a one-time fee of $99 | Included in Gold and Platinum packages, or a one-time fee of $79 | Included in Pro and Premium packages, or a one-time fee of $99 | Included in Standard and Premium packages, or a one-time fee of $35 |
| EIN Application | Included in Pro and Premium packages, or a one-time fee of $99 | Included in Gold and Platinum packages, or a one-time fee of $70 | Included in Pro and Premium packages, or a one-time fee of $79 | Included in Standard and Premium packages, or a one-time fee of $70 |
| Customizable Website | Included in Premium package, or $129 annually | No | Yes | Included in Premium package |
LegalZoom vs. Swyft Filings
Right out of the gate, LegalZoom has 14 years of business formation experience over Swyft Filings. LegalZoom has helped create a substantially larger number of businesses than Swyft Filings. For people who are apprehensive about the LLC formation process, this is a significant advantage of LegalZoom.
However, Swyft Filings offers more competitive processing times than LegalZoom, including same-day LLC filing. Swyft Filings also includes expedited shipping services within its two upper-tiered LLC formation packages.
LegalZoom vs. Incfile
Unlike LegalZoom and several other LLC formation competitors, all three of Incfile’s packages provide customers with one free year of registered agent services. On top of that, Incfile’s annual renewal rate of $119 is significantly lower than LegalZoom’s yearly fee of $199.
Incfile’s free LLC formation package also offers more customer support than LegalZoom’s free package does. While customers of LegalZoom’s Basic package have access to email and chat support, customers of Incfile’s correlating package have access to unlimited phone and email support.
LegalZoom vs. ZenBusiness
Comparing the companies side by side, LegalZoom offers access to attorneys and legal expertise that ZenBusiness lacks. Legal expertise aside, ZenBusiness’s prices are more competitive than many of LegalZoom’s. All three of ZenBusiness’s LLC formation package options include more business services when compared to LegalZoom’s packages.
For example, ZenBusiness’s lowest-tiered package includes one free year of compliance support, whereas LegalZoom customers will have to add that service to their order for a fee. ZenBusiness also includes a faster turnaround time for customers of their Pro and Premium LLC formation packages, whereas LegalZoom doesn’t offer expedited processing in any of their packages. Instead, LegalZoom customers must add this service to their order for $99.
However, ZenBusiness’s Pro and Premium packages are an annually billed service, while LegalZoom’s packages are priced as a one-time fee.
Who Is LegalZoom Best For?
LegalZoom offers a plethora of legal services that provide support for both new and existing small businesses. Customers have the option to select one of LegalZoom’s three LLC formation packages that provide their preferred level of business support. On top of that, LegalZoom also offers various business and legal services that can be purchased online a la carte via its easy-to-use platform. While other companies offer more competitively priced LLC formation packages, LegalZoom’s attorney services set it apart from the competition.
With over 20 years of industry experience, LegalZoom’s team of experts has helped customers start more than two million businesses. While admittedly on the more expensive side, LegalZoom’s refined legal expertise makes it a strong choice for entrepreneurs seeking assistance to form their own LLC.
Start a Limited Liability Company Online Today with LegalZoom
Ready to start your own small business? Partner with LegalZoom today to easily and quickly form your LLC in less than 10 minutes.
Frequently Asked Questions About LegalZoom
How hard is it to set up an LLC with LegalZoom?
It’s easy to form an LLC with LegalZoom. Several reviews praise the simple formation process, which is bolstered by prompt and patient customer service and support.
Is LegalZoom a good way to start an LLC?
Yes. LegalZoom is a user-friendly platform offering comprehensive solutions for starting an LLC.
Can I form an LLC without physically being in the United States?
Yes, it’s possible to form an LLC in the U.S. without being physically present in the U.S. Whether you are a U.S. citizen or not will determine how you are taxed.
What are the best LLC services for small businesses?
The best LLC services for small businesses are LegalZoom, ZenBusiness, Incfile and Swyft Filings.
What is the LegalZoom customer support phone number and email?
You can quickly and easily get in touch with LegalZoom over the phone, through their website chat or via email. Contact general support at (855) 787-1221 or support@legalzoom.com.
Is LegalZoom legitimate?
Yes, LegalZoom is a legitimate and reputable business accredited by the BBB since 2001.
What does an LLC service help with?
An LLC formation service helps guide and support you through the entire process of starting your own LLC.
What other legal classifications are there for my business?
In addition to an LLC, the other legal classification options for your business include a sole proprietorship, a limited partnership, a limited liability partnership, a C-corporation or an S-corporation.
