LegalZoom LLC Review | Is It Right for Your Business?


Steve Bennett
Steve Bennett
Business Formation Expert
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In the realm of online legal services, LegalZoom has emerged as a prominent and reputed provider, striving to make the legal process more accessible and transparent for small businesses and individuals alike. LegalZoom’s LLC Formation Service, in particular, has garnered significant attention from business owners looking for a convenient and efficient solution for their company setup. By examining each aspect in detail, we aim to help you decide whether LegalZoom’s services align with your business needs and objectives.

LegalZoom has become a household name in the world of online legal services. Founded in 2001, the company aimed to make legal services more accessible to the average person, and over the years, it has undoubtedly achieved that goal. Small business owners seeking an LLC often consider LegalZoom’s services convenient. But is LegalZoom the right choice for your Limited Liability Company?

In this LegalZoom LLC Review, we’ll explore the company’s pros, cons, and features to give you an in-depth understanding of whether you should opt for their services when forming an LLC.

We have an elaborate video of LegalZoom Review for you. Watch this video to learn quickly about LegalZoom services and how it works. If you’re not a fan of reading, then this video is for you!

LegalZoom: A Quick Summary

Pros 👍

  • Wide range of business formation services available
  • User-friendly online platform
  • Affordable pricing
  • Offers ongoing business compliance support
  • Positive customer reviews

Cons 👎

  • Charges additional fees for some services
  • Customer support can be slow to respond.
  • Limited refund policy
  • Lack of transparency with some fee

Overall Rating: (4 out of 5)

LegalZoom offers a comprehensive range of business formation services and ongoing compliance support at an affordable price. However, be aware of additional fees and the potential for slow customer support. While its refund policy is somewhat limited, it receives positive reviews from many satisfied customers.

LegalZoom: About the Company

LegalZoom is a pioneering and well-established company in the online legal services sector, founded in 2001 with the vision of making quality legal assistance more accessible and affordable for the average person. Over the past two decades, LegalZoom has successfully served millions of customers, including small business owners and individuals seeking Business Attorneys.

Legalzoom

The company covers various services, from LLC formation, Corporation Formation, Nonprofit, DBA, and more. With a dedicated customer support team and an easy-to-use online platform, LegalZoom has effectively disrupted the traditional legal landscape, delivering a streamlined and customer-friendly approach to legal services.

What is LegalZoom Service?

LegalZoom’s service for forming LLCs is one of its main services. Streamlining the procedure gives business owners more time to concentrate on other elements of their enterprise. They offer a variety of crucial qualities, some of which are:

  • Drafting and submitting Articles of Incorporation
  • Customized Operating Agreements
  • Help to acquire an Employer Identification Number (EIN)
  • Assistance with compliance to help uphold compliance with state regulations

LegalZoom LLC Formation Packages

LegalZoom offers three LLC formation packages: Basic, Pro, and Premium Package. Each package comes with varying features and processing time, which allows you to choose the one that fits your business needs and budget ideally.

Basic Package ($0 + State Fee)

This is the most basic package offered by LegalZoom. The economy package includes the following.

  • Articles of organization, the document needed to register your LLC with the state officially
  • Name check service to confirm that your preferred business name is valid and available to be reserved
  • A digital welcome packet, which includes a step-by-step checklist to follow after your LLC is officially registered
  • Customizable website to establish your professional online presence in minutes —powered by WIX.

Pro Package ($249 + State Fee)

Besides the features provided in the basic package, the standard package includes the basic packages plus the following.

  • An Operating Agreement that helps you set entity guidelines and settle disputes
  • An EIN, which is used to file taxes, open bank accounts, and build your staff
  • A comprehensive guide to business licenses for your location and industry
  • Initial phone consultations with specialists about business insurance and taxes

Premium Package ($279 + State Fee)

The premium package has everything the standard package offers but with expedited processing times. LegalZoom prioritizes express gold filings and guarantees that your Articles of Organization will be filed with the state within 7-10 business days.

LegalZoom also offers additional services as add-ons, including the Pro package plus the following.

  • Hands-on guidance from an experienced business attorney that you choose based on state, years of experience, and rating
  • Unlimited 30-minute attorney consultations about new legal topics related to your business (first 30 days of subscription included)
  • Any changes to your LLC formation documents within the first 30 days

Remember that state filing fees are NOT included in the package prices – they vary depending on the state where you’re forming your LLC. Here is a quick breakdown of all the LegalZoom packages.

legalzoom
Registered Agent Services

LegalZoom also offers Registered Agent Services as an add-on for businesses needing a reliable representative to handle official correspondence and legal notifications from the state. With LegalZoom’s Registered Agent services, you get a trustworthy and professional agent to receive and manage your legal documents, ensuring your company meets its state compliance requirements consistently.

For customers who choose the Registered Agent service add-on, LegalZoom provides the first year of registered agent service for free as part of the trial. After the initial year, LegalZoom charges an annual fee of $299 to maintain its Registered Agent services. Though this pricing may not be the lowest in the industry, LegalZoom’s reputation and quality of service guarantee a dependable solution for businesses that require a registered agent.

Ongoing Compliance Assistance

LegalZoom offers Ongoing Compliance Assistance to help businesses stay up-to-date with their state requirements and avoid potential legal complications. LegalZoom ensures that your business fully complies with annual filings and deadlines, getting Busines License and other state-specific mandates with this service. LegalZoom’s Ongoing Compliance Assistance includes proactive email reminders, automatic form completion, online storage of all documents, and live customer support.

The cost for LegalZoom’s Ongoing Compliance Assistance is available upon consultation with their customer support, where they’ll provide you with pricing based on the specific state requirements and the complexity of your business’s compliance needs. They offer a Compliance Calendar ($69 + state fees) to inform you about important deadlines and an Annual Report Filing Service to handle the filing. By entrusting LegalZoom with your business’s ongoing compliance, you can focus on running your business and be confident that your company is maintaining its good standing with the state authorities.

Operating Agreement

LegalZoom is a well-known legal services company that offers a range of services, including Operating Agreement Preparation and Review Services for businesses. These services help business owners ensure that their operating agreements are legally sound and properly drafted. LegalZoom’s legal experts will review your business’s operating agreement for any potential issues and guide how to address them. The preparation and review service is available for a one-time fee of $99. This is an affordable option for business owners who want to ensure their operating agreements comply with state and federal laws and protect their interests properly.

Alternatives for LegalZoom LLC Formation Services

Although LegalZoom is a well-liked option for forming an LLC, a few other options are worth considering. To choose the platform that best meets your company’s needs, compare each platform’s features and costs. Here are some of the best options for LegalZoom for forming an LLC:

LLC Service

Rating & Pricing

Top Features

Learn More

#1 Recommendation

$0 + State fee

  • Free LLC Formation

  • Legal Support

  • Highly Reputed Company

$299 + State fee

  • Single LLC formation package

  • Flat price for all services

  • Legal consultation

  1. ZenBusiness – ZenBusiness is a company that provides LLC formation services. Their starter plan, which costs $0, includes filing LLC formation documents with a 100% accuracy guarantee.
  2. TailorBrands – TailorBrands is a branding and design company that provides LLC formation services. This service includes checking the business name’s availability, filing the formation documents, and accessing a free business website builder. Their LLC formation costs $49.
  3. Northwest Registered Agent – Northwest Registered Agent offers LLC formation services, including filing the formation documents with the chosen state, registered agent service, and online tracking. Their basic plan costs $100.
  4. Inc Authority – Inc Authority provides affordable LLC formation services. Their basic plan costs $0, but customers must still pay the state fees. This plan is best for those on a budget but still need a registered agent and a basic business formation service.
  5. BetterLegal – BetterLegal offers LLC formation services that cover the filing of the formation documents, registered agent service for one year, compliance alerts, and a template for the operating agreement. The basic plan costs $299.
  6. Incfile – Incfile is another provider of LLC formation services. Their basic plan costs $0, but customers must still pay the state fees. This plan includes registered agent service and LLC formation documents. They also offer services like business name reservations, EIN filing, etc.

Overall, these alternatives to LegalZoom provide LLC formation services at various price points and with different features. Business owners need to evaluate their specific needs and budget to choose the provider that best fits their needs.

Is LegalZoom Worth It?

LegalZoom is worth it because it offers affordable legal services to individuals and businesses. The company has a team of experienced attorneys knowledgeable in many law areas, including business law, intellectual property, and estate planning. LegalZoom’s services are comprehensive and easy to use, allowing customers to complete their legal needs quickly and efficiently. The company also provides online resources and customer support to help customers with questions or concerns. LegalZoom offers a money-back satisfaction guarantee, so customers can feel confident using their services. Overall, LegalZoom is worth it because it provides customers with quality legal assistance without the hefty price tag of hiring a traditional law firm.

How to Use LegalZoom

Using LegalZoom is simple and user-friendly. Follow these steps to access their wide array of legal services:

  1. Start by going to the LegalZoom website to browse their selection of legal services ranging from business formation, estate planning, intellectual property protection, and more.
  2. Choose the service that best fits your needs, such as LLC Formation, will creation, or trademark registration.
  3. Sign up for a LegalZoom account using your email address and a password. This will enable you to keep track of your legal documents and order history and communicate with their team of experts.
  4. Each service has an easy-to-understand, step-by-step questionnaire to gather necessary information. Fill this out accurately to ensure your legal documents are tailored to your needs.
  5. After completing the questionnaire, review your responses for accuracy before submission. LegalZoom’s team will use this information to create your customized document(s).
  6. LegalZoom’s professionals will prepare your documents based on the information provided. The turnaround time varies depending on the service you’ve selected.
  7. Once the document(s) are ready, review them thoroughly to ensure they meet your requirements. You can request any changes or revisions needed.
  8. After reviewing and making any necessary changes, finalize your document(s) by signing them as required.
  9. Some services, like business formation or trademark registration, may require LegalZoom to file your documents with the appropriate government agencies. In such cases, follow the instructions provided for proper submission. LegalZoom may also monitor and notify you of any updates or requirements related to your filing.

These steps make LegalZoom an easy and cost-effective alternative to traditional legal services. Through their platform, you’ll get access to expert guidance, high-quality legal documents, and valuable support.

LegalZoom Customer Support

LegalZoom offers all its users a comprehensive customer support service. They have a team of experienced professionals to help customers with queries or issues.

The customer support team can be reached via email, phone, or live chat, and they are available during business hours to answer any questions or concerns. Additionally, LegalZoom provides customers with a detailed FAQ section on their website. The FAQ section is updated regularly and covers various topics, from billing inquiries to service updates and account-related issues.

LegalZoom’s customer support team is known for its professionalism, knowledge, and efficiency in assisting customers. They are well-trained to address customer queries and offer solutions to problems promptly and courteously.

The company also offers a satisfaction guarantee, ensuring customers are satisfied with their services. In case of dissatisfaction, they try to resolve issues or offer a refund. This policy has helped to ensure that LegalZoom provides quality services and maintains excellent customer relationships.

Overall, LegalZoom’s customer support is essential to their service, offering excellent assistance to clients whenever needed. Their support team’s dedication to customer service makes using the platform easy, convenient, and hassle-free.

Pros and Cons of LegalZoom LLC Formation Services

LegalZoom is a popular online legal services provider catering to individuals and businesses needing legal assistance. Before deciding, potential customers should consider the advantages and disadvantages of using LegalZoom services. While LegalZoom may be convenient and cost-effective for simple legal tasks, more complex matters may require personalized attention and the services of an experienced attorney. We will dive into the pros and cons of using LegalZoom for legal services.

Pros of LegalZoom LLC Formation Services

  • Brand Recognition and Positive Customer Reviews: LegalZoom is a renowned and reliable name in the online legal services industry that’s been around for two decades. They have served over 4 million customers, including over 2 million business owners. The sheer volume of satisfied customers is a testament to their service quality and professionalism.
  • Lifetime Customer Support: One of the significant advantages of using LegalZoom is its customer support. The company claims to provide lifetime customer support (as long as you are a LegalZoom customer). They have knowledgeable customer support agents available through phone or email. The customer support hours are Monday through Friday, from 5 AM to 7 PM PT, and Saturday through Sunday, from 7 AM to 4 PM PT.
  • One-Year Registered Agent Service Trial: If you opt for the registered agent service add-on, LegalZoom offers a free one-year registered agent service. This service ensures that your LLC complies with state requirements for receiving legal and state documents. After the first year, LegalZoom will charge an annual fee of $159.
  • Comprehensive Intellectual Property Services: LegalZoom excels in providing intellectual property services to its customers. They offer services related to trademarks, copyrights, and patents to protect their business name, logo, and other intellectual property. Having these services available through the same provider as your LLC formation can be convenient for customers requiring intellectual property protection.

Cons of LegalZoom LLC Formation Services

  • Lack of Basic Features in the Basic Package: The economy package offered by LegalZoom is quite basic compared to what competitors provide at similar price points. The package does not include crucial features like obtaining an EIN, creating an operating agreement, or registering agent services—these services come at additional costs. Many competing providers include these features in their basic packages without extra charges.
  • Upselling Tactics: LegalZoom often employs upselling tactics when customers try to make a purchase. They encourage customers to add services that might not be necessary for their LLC formation in the early stages, causing customers to spend more money than initially intended.

Here are the breakdowns of the pros and cons of LegalZoom. You must ensure that every detail in this article emphasizes whether you buy one.

Pros 👍Cons 👎
Brand RecognitionLack of Features in the Basic Package
Positive Customer ReviewsUpselling Tactics
Lifetime Customer Support
1-Year Registered Agent Service Trial
Comprehensive Property Services

Real-Life Customer Testimonials

When evaluating LegalZoom, hearing from real customers who have experienced their services firsthand is useful. In this section, I’ve compiled several testimonials from actual users to provide a well-rounded perspective on the pros and cons of using LegalZoom for legal services.

One common theme among users is LegalZoom’s platform’s ease of use and convenience. Many customers appreciate the straightforward process and clear instructions for creating important legal documents, such as wills, trusts, and incorporations. For example, one user said,

“LegalZoom made setting up an LLC incredibly user-friendly and hassle-free.”

Another aspect that customers frequently mention is attentive customer support. According to multiple reviews, the LegalZoom team is responsive, knowledgeable, and attentive to clients’ needs. A satisfied user mentioned,

“I had a great experience with LegalZoom, and their customer service was top-notch. They answered all my questions promptly and professionally.”

However, some users have noted concerns regarding the pricing of LegalZoom services. A few reviewers have mentioned that while they found the services valuable, they wish the costs were more affordable. One user stated,

“I needed to form an LLC, and LegalZoom provided a comprehensive service. However, the fees are a little steep compared to other options.”

In summary, here’s what customers generally have to say about LegalZoom:

  • User-friendly platform and straightforward process for creating legal documents
  • Attentive and helpful customer support
  • Fees that some customers perceive as a bit high compared to other options

Ultimately, most customers had a positive experience with LegalZoom, appreciating its user-friendly platform, clear instructions, and excellent customer support. However, it’s worth considering the pricing concerns some customers have mentioned when making your decision.

LegalZoom Review Summary

LegalZoom is an online platform offering a variety of legal services for both individuals and businesses, such as business formation, estate planning, intellectual property protection, and legal document preparation. While many customers appreciate the platform’s accessibility, affordability, and wide range of services, LegalZoom has received mixed reviews. Some common concerns users raise include inconsistent customer service, unexpected fees, limited legal advice, and challenges with subscription cancellations. As a result, LegalZoom may be suitable for users with basic legal needs. Still, those who require more in-depth legal advice or personalized support may want to consider alternative options. It is always essential to conduct thorough research and compare different legal service providers before deciding.

FAQ

What is LegalZoom?

LegalZoom is an online legal services company that provides do-it-yourself legal documents and business services.

Can LegalZoom help me form an LLC?

Yes, LegalZoom offers LLC formation services.

How much does LegalZoom charge for LLC formation?

LegalZoom’s LLC formation packages start at $0, plus state filing fees.

What services does LegalZoom offer for LLCs?

LegalZoom offers LLC formation, registered agent services, legal document preparation, and more.

Is LegalZoom reliable for LLC formation?

Yes, LegalZoom has helped millions of individuals and businesses create legal documents, including LLC formation.

How long does it take for LegalZoom to form my LLC?

LegalZoom’s standard turnaround time for LLC formation is 30 business days.

Can LegalZoom provide legal advice for my LLC?

Yes, LegalZoom offers legal advice and document review services for an additional fee.

Can I change my LLC name to LegalZoom?

Yes, LegalZoom offers LLC name change services.

Can I cancel LegalZoom’s LLC formation service?

Yes, LegalZoom offers a refund for its LLC formation service if you have not yet received your completed documents.

Does LegalZoom offer customer support for LLC formation?

Yes, LegalZoom offers customer support by phone, email, or live chat to answer any questions.

Will LegalZoom file my LLC formation documents with the state?

Yes, LegalZoom will file your LLC formation documents with the appropriate state agencies.

Is LegalZoom’s LLC formation service cheaper than hiring a lawyer?

Yes, LegalZoom’s LLC formation service is typically less expensive than hiring a lawyer to form your LLC.

How long has LegalZoom been in business?

LegalZoom was founded in 1999 and has helped millions with their legal needs.

Can LegalZoom help me convert my current business to an LLC?

Yes, LegalZoom offers business conversion services for various business types, including sole proprietorships and partnerships.

Does LegalZoom offer registered agent services for LLCs?

Yes, LegalZoom offers registered agent services for LLCs to ensure legal documents are properly delivered.

Can LegalZoom help me create an operating agreement for my LLC?

Yes, LegalZoom offers legal document preparation services, including operating agreements for LLCs.

What sets LegalZoom apart from other online legal service providers?

LegalZoom has a large network of attorneys who review its documents for accuracy and offers a satisfaction guarantee for its services.

Does LegalZoom offer any discounts for its LLC formation services?

Yes, LegalZoom often offers discounts and promotions for its LLC formation services.

Can I use LegalZoom to form an LLC in a different state than where I reside?

Yes, LegalZoom can help you form an LLC in any state where it is authorized to do business.

Are there any drawbacks to using LegalZoom’s LLC formation service?

Some people have reported that LegalZoom’s customer service can be slow or unresponsive, and its services can be more expensive than other online legal service providers.

How to Use Legalzoom LLC Service

When using LegalZoom for LLC formation, it is crucial to have a clear understanding of your business needs and the services offered. LegalZoom provides a convenient online platform that guides you through the necessary steps to set up your LLC, including preparing and filing the necessary paperwork. While this can save you time and money compared to hiring a lawyer, it is essential to recognize that LegalZoom is not a substitute for personalized legal advice.

One of the primary benefits of using LegalZoom is its affordability and simplicity. By providing a user-friendly interface and comprehensive services, LegalZoom simplifies a process that can often be daunting for new business owners. However, it is important to note that there may still be additional costs beyond LegalZoom’s fees, such as state filing fees or registered agent services.

Another factor to consider when using LegalZoom is the level of customization and flexibility it offers. While LegalZoom provides standard templates for LLC formation documents, you may have specific needs that require additional customization. In these cases, it may be necessary to consult with a lawyer to ensure that your legal documents are tailored to your unique situation.

Additionally, it is vital to understand the limitations of LegalZoom’s services. LegalZoom is not a law firm, and its employees are not attorneys. While they can provide information and guidance on legal matters, they cannot offer legal advice or represent you in legal proceedings. If you have complex legal issues or anticipate needing ongoing legal support, it may be best to consult with a licensed attorney.

Ultimately, the key to successfully using LegalZoom for LLC formation is to approach it as a helpful tool rather than a comprehensive solution. By understanding the services offered, being aware of potential limitations, and seeking additional legal advice when necessary, you can use LegalZoom to streamline the process of starting your LLC without sacrificing the quality and accuracy of your legal documents.

In conclusion, while LegalZoom can be a valuable resource for individuals looking to form an LLC, it is essential to approach it thoughtfully and with awareness of its capabilities and limitations. By using LegalZoom as a supplement to personalized legal advice and understanding the full scope of your business needs, you can make informed decisions about whether it is the right choice for your LLC formation journey.

Conclusion

LegalZoom’s LLC formation services are reliable, professional, and backed by numerous positive customer reviews. Their lifetime customer support and comprehensive intellectual property services can help customers throughout their business’s life cycle. However, the more expensive pricing structure and lack of essential features in the basic package make it difficult to endorse LegalZoom as the best choice for small businesses looking for an online legal service provider to form their LLC.

For small business owners on a tight budget or those looking for greater value, other legal services providers like Incfile or Northwest offer a better option. However, if you value brand recognition and are willing to pay a premium, LegalZoom’s LLC formation services can help you set up your company without complications.

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