LegalZoom LLC Service Review


LegalZoom is a professional online legal service that caters to a variety of legal needs, including LLC formation services. Since its inception in 1999, LegalZoom has been providing legal services to over 4 million companies and consumers. 

From forming an LLC to getting tax advice and consulting with a professional lawyer, LegalZoom is the one-stop-shop for all legal services. If you are looking for a formation service that has plenty of experience, then LegalZoom is the one for you.

Even though their rates are expensive, they are still popular amongst businesses and are well-reviewed. As new business owners, we know how hard it is to keep regular hours. With the extended customer support hours at LegalZoom, you will always be able to get your legal queries answered no matter what the time!

Let’s take a look at their features, pros, and cons in detail!

Excited about your new business but don’t know where to start from? Hiring a professional LLC formation service will simplify things for you.

There are loads of LLC formation service providers online and it gets really confusing to choose the one that suits your needs. Worry not! Equipped with the right knowledge, you can do anything in life including choosing the right LLC formation service.

In this review, we will explore the pricing structure, customer reviews, pros, and cons of LegalZoom. Without further ado, let’s get started!

LegalZoom Pros and Cons

Like everything else in the world, LegalZoom also comes with advantages as well as disadvantages, After thorough research and going through thousands of reviews online, we have put together this comprehensive list of benefits and drawbacks of using LegalZoom.

Benefits of LegalZoom

  • Experienced and Established Service Provider. Since it was founded in 1999, LegalZoom is one of the oldest online legal service providers. It has helped over 4 million clients and is generally well-liked. 

    If you are searching for a service that has been around for a long time and knows the ins and outs of LLC formation perfectly, then LegalZoom is a good choice.
  • Money-back Guarantee. It is possible that you may dislike the services that you get from LegalZoom. Does this mean that your hard-earned money has been wasted? Certainly not. LegalZoom has a 60-day money-back guarantee. 

    There are LLC service providers who don’t even offer a guarantee let alone one for 60 days! Moreover, you can cancel your LegalZoom membership and you will get a prorated refund!
  • Free Business Name Availability Search. Thinking of business names and want to see if it is available? Using LegalZoom’s free business name availability search on their website, you can do this. 

    You don’t have to be a customer to do this. This something we actually like because very few formation services provide you with this option.
  • Extended Customer Services. Are you working late and have a legal query? Don’t go down the rabbit-hole of search engines. You will search for hours for the relevant information and even then, you can’t be sure of its credibility. 

    Instead, you should pick up the phone and call LegalZoom’s customer service.

    With their extended service hours, you can reach them till 7 pm on weekdays and 4 pm on weekends (PT). There are not a lot of LLC formation services that can beat this.
  • Wide Range of Services. LegalZoom isn’t only an incorporation service. They are an established brand and have a variety of legal services and products that you can use. Anything that you need for your business’s legal needs, LegalZoom is very likely to provide that to you! 

Disadvantages of LegalZoom

  • Comparatively Expensive. As compared to other LLC formation services, LegalZoom is expensive. They may be an old, well-established brand with services well-worth the money, but for small and new business owners who are on a budget, they are not quite affordable.
  • Not Good for One Time Help. If you are looking for one-time legal help, LegalZoom may not be the option. They provide certain service one monthly subscription plans and even if you have to use them just once, you will have to pay the full monthly subscription fee.
  • Lots of Upsells. Most of the LegalZoom customers complain of upsells all through the order process and even later. If you use LegalZoom, make sure that you read everything – even the fine print – very carefully to know what you are signing up for.

LegalZoom LLC Formation Packages 

Is LegalZoom Excellent Value for Money?

Before moving on to the packages and services offered by LegalZoom, let’s see if LegalZoom is worth your money. Paying $79 to form an LLC is a decent offer and is certainly less than the amount you will have to pay if you hire an attorney. 

However, there are other LLC formation services out there that provide you with the same services at better rates. Similar to other incorporation services out there, LegalZoom has multi-tiered packages. They have three plans:

  1. Economy
  2. Standard
  3. Express Gold

Additionally, they provide a broad range of add-on legal services that new business owners may find useful.

Economy Package

The first package that LegalZoom offers is the economy package at a rate of $79 plus the state filing fees. There is no expedited filing service in the economy package. The usual processing time for economy orders is 30 business days. 

Depending on your state of formation, it may even take longer. The economy package starts from $79. The economy package includes the following features:

  1. Name Check
  2. Business Filing
  3. Articles of Organization – Preparation & Filing
  4. Lifetime customer support
  5. Banking Resolution
  • Business Name Check. We really like this feature offered by LegalZoom. They will through the business database in your state of formation and let you know whether the name you are looking for is available or not.
  • Articles of Organization – Preparation and Filing. In order to create an LLC, certain documents are required by the state. LegalZoom will draft these documents for you. Moreover, they will file them with the state as well.
  • Lifetime Customer Support. If you choose the economy package, you will get free customer support for a lifetime. Since they offer extended customer service hours, this is a good feature.
  • Financial Account Authorization Letter. A banking resolution shows who can open a bank account on the behalf of your LLC. If you choose the economy package, you will get access to a customized business resolution.

Moreover, you also get a “Peace of Mind Review” to make sure that everything you have ordered is in place. A step-by-step guide on LLC formation is also a part of this package. If you are a new business owner looking for the bare essentials and want to simply form an LLC without any perks, then this package is the one for you. 

Moreover, if you choose this package, make sure time is not a priority for you since your process may take more than 30 days.

Standard Package 

The second package offered by LegalZoom is the standard package for $329. You will get all the features of the economy package along with three additional features.

The features that are a part of this package are:

  1. Name Check
  2. Business Filing
  3. Articles of Organization
  4. LLC Next Steps Guide
  5. Peace of Mind Review
  6. Lifetime customer support
  7. Financial Account Authorization Letter
  8. Deluxe Organizer
  9. Business Seal and Certificates
  10. VIP Processing
  • Deluxe Organizer. You will get a personalized record book with the name of your business embossed on it. You can keep all the essential business documents in this organizer. 
  • Official Seal and Certificates. Miss the days of old and the classic seals on letters? Well, you can get a personalized seal from LegalZoom to give your business documents an official appearance. 

    Moreover, you get 20 customized business membership certificates as well.
  • VIP Processing. To ensure that your business gets incorporated quickly, VIP processing is a part of this package. Your order will be given priority over the economy package users.

The standard package includes all the features present in the economy package with a few additional perks that you can do without. The only benefit that this package offers is the faster processing time, which is a plus. You can get your LLC formed in 15 business days.

Express Gold Package

The third and last package offered by LegalZoom is the Express Gold package. It costs $349 along with the state filing fee. The main benefit of this package is the fast order processing. You will typically get your business incorporated in 7 to 10 business days.

The features provided in this package are:

  1. Name Check
  2. Business Filing
  3. Articles of Organization
  4. LLC Next Steps Guide
  5. Peace of Mind Review
  6. Lifetime customer support
  7. Financial Account Authorization Letter
  8. Deluxe Organizer
  9. Official Seal and Certificates
  10. Rush Processing
  11. Express Shipping
  • Rush Processing. This is the major perk of using this package. If your state of the formation allows expedited processing, then you will be able to avail that option. Your order will get the highest priority and it will be processed within 7 to 10 business days.

    Express Gold orders are also processed on an expedited basis by the government. However, the expedited state filing fees are not included in the package and you will have to pay that additionally. 

    If you are in a hurry to form an LLC, then we recommend this package.
  • Express Shipping. The express shipping ensures that you get your documents shipped to you in two days. If you want to avail next-day shipping, then you will have to pay $7 for that. 

    Your documents will be shipped through Express Mail and you will get a tracking number to check their progress.

LegalZoom express gold package is best for those individuals who want to form an LLC as quickly as possible. However, we will not recommend this package to you since it is very expensive and other formation services offer better features at highly affordable rates.

Additional Features

Other formation services offer features such as Business operating agreements, EIN numbers, etc. as a part of their packages. However, you will have to pay for these services at LegalZoom. A business operating agreement costs $99. 

If you want an operating agreement as well as EIN, then you will have to pay $159. Paying $199 will provide you with a business operating agreement, your EIN, and a business license search. To use their registered agent services, you will have to pay $159 annually. 

Unlike various other formation services, they don’t provide free registered agent services even for a year. 

LegalZoom Customer Reviews

No matter how good the services look on the paper, they are of no good if they are not well-received by the users. LegalZoom has been around for a long time and has catered to the needs of over 4 million clients, which is a huge number.

However, LegalZoom is focused on providing a wide range of legal services and LLC formation is just a part of those services. Therefore, as compared to other LLC formation services, their rates are high and the features they offer are relatively less.

With so many clients, there is no shortage of reviews and customer feedback for their services. Generally, customers are satisfied with their services but complain of inconsistent customer service help. 

According to online reviews, people really like the fact that they can get access to all kinds of legal services from one place. This helps them in getting multiple things done quickly from one legal service provider.

There are a lot of complaints about customer service. The wait time for getting hold of a customer rep is long. However, once you get to talk to a rep, they are friendly and knowledgeable and will help you with any issues that you might be facing. 

Best LegalZoom Alternative

You landed on this review looking specifically for information about LegalZoom and their LLC formation services, but for us to provide a fair review we also need to make it clear that they may not be the best option, depending on your needs.

They do offer a good service but for a straightforward LLC formation, there are better alternatives. This is why for most entrepreneurs and business owners, we recommend ZenBusiness.

$49

★★★★★


ZenBusiness is the LLC Jet recommended service because their price is incredibly low, the customer support is top-notch, and they include everything you would want when forming your company in a simple package intended to get your company formed fast.

To find out more, read our comprehensive ZenBusiness LLC review.

Is LegalZoom Worth It?

Now comes the million-dollar question – Is LegalZoom worth your time and money? Honestly, we don’t recommend LegalZoom with options like ZenBusiness available in the market. LegalZoom does have some meaningful services to offer but there are serious cons that one can’t overlook. 

If you want to get all your legal needs taken care of from a single service provider, then LegalZoom is a good option. However, if you want to save money and get your hands on some additional features as well, then you should take a look at other LLC formation services available in the market.

  • Cost value. As far as the cost is concerned, LegalZoom is an expensive formation service. There is a stark difference between the prices of Economy and Express Gold packages. However, the only major benefit we see in the expensive package is the faster processing time.

    Another thing that we don’t like about LegalZoom is the fact that they offer registered agent services at a high cost. Most of the LLC formation services available in the market provide free registered agent services with their packages for the first year of service at least. 
  • Customer Service. Even though LegalZoom has longer customer service hours, you are not going to like the fact that you will have to wait for quite some time before you actually get to talk to a customer representative. 

    Most of the customer reviews online also mentioned that they were not satisfied with the quality of customer services and there was a definite lack of communication.
  • Ease of Use. LegalZoom has a user-friendly website and the whole order process takes 15 to 20 minutes. Moreover, if you are unable to complete your order in a single sitting, you will get a link via email with your answers saved. 

    This means that you can resume from the place where you left the next time! With other LLC formation services, you get an online dashboard that ensures your legal documents stay in one place and are easily accessible. 

    However, you don’t get an online dashboard with LegalZoom.

Recommended

LegalZoom

★★★★★

For the experienced and established service provider, LegalZoom is our recommended LLC formation service.

Compare All LLC Services

See how Northwest Registered Agent LLC compares to other LLC formation services like LegalZoom

LegalZoom FAQs

LegalZoom has been around for a long time and has catered to the needs of various individuals. If you are looking for a comprehensive legal service, and not only an LLC formation service, then you should use LegalZoom. Otherwise, there are better and more affordable LLC formation services out in the market.

LegalZoom offers no free packages. It has three LLC formation packages, and all of them are paid. If you are looking for a free service, then IncFile does have a free package – all you have to do is pay the state filing fees and you are good to go!

LegalZoom has been around for more than 2 decades and has over 4 million clients. This definitely attests to the fact that they are a legit service provider and you will not lose your hard-earned money at the hands of a fraudulent company. 

Even though the customer feedback is slightly mixed, with complaints regarding their slow customer service, they have overall positive feedback.

Unfortunately, LegalZoom doesn’t offer any discounts in the form of sales or coupons. This is disappointing since other formation services not only affordable rates but discounts as well. 

No., unlike other LLC formation services, you will not get a year of free registered agent services at LegalZoom. You can pay for the service separately.

Yes. There are a lot of upsells at LegalZoom and usually, you don’t even need those features. Therefore, make sure to go through all the services you order carefully and check whether those features will help your new business in the long run or not. 

Moreover, you might get the same services free or at reduced prices from other LLC formation services.

You will like the extended hours of customer services that LegalZoom offers. However, there are a few complaints by users about the consistency of the support and long wait times. With a company as big as LegalZoom, this is to be expected.

However, if this is a deal-breaker for you, then you should look for alternative LLC formation services.

Yes, LegalZoom has a refund policy. If you are not satisfied with their services, you can request a refund within 60 days. They will provide you a refund.

If you have acquired LegalZoom’s services on a subscription basis, such as registered agent services, you can cancel them by calling the customer care center. You can also cancel online via the “My Account” portal. You will get a prorated refund.

Conclusion

As a new business owner, it is very likely that you will have loads of pending tasks and not enough time to complete them. Moreover, not all of us have a grasp over legal documentation and paperwork. In such cases, LLC formation services are a great help.

If you are looking for an established brand to form your LLC and are willing to pay the extra money, then LegalZoom is a safe bet for you. They have been around for a long time and have plenty of clients which attest to the fact they provide quality services.

However, if you are looking for affordable services, then there are better options out there in the market. The pricing of LegalZoom isn’t competitive. Many of the services they provide at high rates are available for free at other LLC formation service providers like ZenBusiness or IncFile.

From forming a business to getting legal help, LegalZoom will provide you with a variety of services all under one roof. If money and time are not issues for you, and you want an established brand to take care of your needs, then you should go for LegalZoom.

Here’s to you running a successful business!