Looking to start your new company? Instead of trying to navigate your way through all the legal jargon, you should hire a professional LLC formation service to handle all the paperwork for you! Can’t figure out which incorporation service to use? We are here to help!
ZenBusiness and LegalZoom are two of the most popular and quality companies online. Both ZenBusiness and LegalZoom are experienced LLC formation service providers that not only help you incorporate your business but provide you with a ton of other ongoing services as well!
In this ZenBusiness vs LegalZoom comparison review, we will take a look at the services both of them to offer, along with pricing, customer feedback, and a lot more to help you choose the one that is perfect for your business!
Without further ado, let’s get started!
Quick Summary: ZenBusiness vs LegalZoom
Are you in a rush and don’t have time to delve into our comprehensive review? Let us make it easier for you by providing you quick highlights.
ZenBusiness and LegalZoom both are efficient LLC formation services with plenty of catchy features. The one you choose depends on what your personal and business requirements are. Remember, there is no wrong choice!
- Sign up for ZenBusiness if you want high-quality business formation services at affordable rates with excellent customer support.
- Sign up for LegalZoom if you prefer to use an experienced and well-known brand, even if it costs you a lot more and you don’t get annoyed by a lot of upsells.
For the best overall value, ZenBusiness is our recommended LLC formation service.
For the experienced and well-known LLC formation service.
Our Recommendation: To get more bang for your buck, and the best overall services we recommend the socially conscious ZenBusiness.
Similarities Between ZenBusiness and LegalZoom
ZenBusiness and LegalZoom are both highly-qualified and professional service providers that help entrepreneurs and new businesses every step of the way. You get customized and personalized assistance according to your personal and professional needs.
Lifetime Compliance Support
As a new business owner, we understand how hard it is to keep a track of all the deadlines. Wouldn’t it be nice to have a reminder when your legal filing deadlines are coming up? Both ZenBusiness and LegalZoom provide you with this service and will inform you about any impending deadlines.
ZenBusiness even goes one step ahead. They provide you “Worry-Free Compliance Services” which means that they will take care of the annual report filing!
You can hire a business attorney to handle the LLC formation process. However, that is going to cause your bank account balance to take a dive. Whether you choose ZenBusiness or LegalZoom, you will get affordable rates that won’t break your bank.
Both the companies have a fast and efficient process. You can quickly incorporate your business within a few weeks or even a few days, depending upon the package that you chose.
Professional Customer Support
Have a technical question and want to get an authentic, reliable answer? Instead of getting lost down the rabbit hole of search engines, what if you can talk to professionals and experts? Sounds amazing, right?
Well, by contacting the customer support at both ZenBusiness and LegalZoom, you can get all your queries answered!
Additional Features and Services
Apart from filing your company, ZenBusiness and LegalZoom offer many other features and services that are essential for your business. Registered agent services, annual report filing, online dashboard, etc. are a few of the additional services that you get from ZenBusiness and LegalZoom.
Informative Articles and Blogs
Moreover, you will find informative articles on the websites of both ZenBusiness and LegalZoom on LLC topics like EIN, Articles of Organization, business taxes, etc. ZenBusiness has an informative blog where they regularly share business tips and techniques.
LegalZoom has a knowledge center where there is plenty of information regarding legal problems that entrepreneurs might face.
Differences Between ZenBusiness and LegalZoom
There are a few features that set ZenBusiness and LegalZoom apart from each other. Let’s see what those distinctive features are:
Availability of Legal Services
LegalZoom is a comprehensive legal service provider and you get legal services other than business formation. On the other hand, ZenBusiness is an LLC formations service, whose sole purpose is to get your business filed and incorporated!
Annual Registered Agent Costs
Only ZenBusiness provides free registered agent services for one year. With LegalZoom, you have to pay $299 to use their registered agent services separately. After the first free year, you will pay $99 with ZenBusiness and $299 with LegalZoom to continue using their services.
This is a huge price difference and as all businesses need registered agent services, this is a make-or-break point.
LegalZoom has been around since 1999 while ZenBusiness is relatively new as it was formed in 2001. Even though LegalZoom has more number reviews as compared to ZenBusiness, the feedback is poor as compared to Zen Business’s reviews.
With ZenBusiness, you can get LLC formation services for just $49! You get a free year of registered agent services after which you have to pay $99 annually. For anyone who is looking to form an LLC and get registered agent services, we highly-recommend ZenBusiness. At this price point, you are not going to find a better deal anywhere else.
LegalZoom offers you LLC formation services starting from $79. Even though you get the first year of registered agent services for free, you have to pay $299 annually after that. Moreover, you will get a compliance calendar for tax deadlines and annual reports.
- Starter package: $49
- Pro package: $199
- Premium package: $299
- Economy: $79
- Standard: $329
- Express Gold: $349
If you are looking for brand power, go for LegalZoom but don’t expect to be blown away with a variety of features or affordable prices. You got ZenBusiness for that!
ZenBusiness’s packages are structured in such a way that they work perfectly for all businesses, especially small business owners who can’t afford heavily priced services. LegalZoom offers the same business services at a much higher rate – you pay for using their name.
The difference between $49 and $79 package plans is just the tip of the iceberg. When you compare the features present in the packages, you will be surprised to see the stark differences.
When it comes to pricing, ZenBusiness is the clear winner.
If price is your priority then it's really hard to beat the free LLC formation that IncFile provides. For the budget conscious entrepreneur, it's the best way to get started as cheaply as possible. All you pay are the state filing fees.
When you set out to form your LLC, the features that you get with ZenBusiness and LegalZoom differ according to the package you choose. Let’s see what the difference between the three package plans offered by ZenBusiness and LegalZoom when it comes to features is.
- Business Name Search
- Articles of Organization – Preparation & Filing
- Registered Agent Services
- Business Operating Template
- Articles of Organization – Preparation and Filing
- Banking Authorization Letter
Features in the First-Tier Package
- Processing Time. The processing time in the basic package is 2-3 weeks with ZenBusiness. With LegalZoom, it will take 30 business days (6 weeks) to form your company with the basic package.
- Registered Agent Services. Registered Agent Services are included in the ZenBusiness package and you don’t have to pay extra money for it. However, LegalZoom provides you the same service at a whopping rate of $159 for the first year and $299 after that.
- Business Operating Agreement. A business operating agreement is present in ZenBusiness’s basic package. If you use LegalZoom, you will have to pay $99 to get a business operating template.
- Worry-Free CPA Assessment. Moreover, you get a Worry-Free CPA Assessment with ZenBusiness. LegalZoom doesn’t offer you this feature.
Second-Tier Package Comparison
- Order Processing Time. If you choose the second-tier package from ZenBusiness, the order processing time will be 1 week. With LegalZoom, it takes 15 Business days.
- EIN Registration. You will get your Federal Tax ID if you go with ZenBusiness. You will have to pay an additional $60 with LegalZoom which is bundled with the Operating Agreement for a total of $159.
- Annual Compliance. With ZenBusiness you get lifetime free compliance. If you go for LegalZoom you will get free one-month compliance and then you will have to pay $320 annually.
Highest-Tier Package Comparison
- Order Processing. It takes only 3-5 business days with ZenBusiness in this plan while LegalZoom takes 7-10 business days to form your company.
- Web Domain. Along with EIN, business operating agreement, and annual compliance, you get a web domain for your company with ZenBusiness. LegalZoom doesn’t provide this feature.
ZenBusiness was founded in 2015 and is relatively new to the LLC formation industry. However, due to their high-quality services at affordable rates, they have quickly gained popularity and have helped thousands of businesses get started.
LegalZoom is an industry giant that has been around for more than decades. Since its inception in 1999, LegalZoom has provided services to over 3.6 million clients. They have a lot of experience and brand power under their belt.
LegalZoom clearly has more experience, but ZenBusiness is doing all it can to catch up by providing quality services.
Nothing beats the importance of Customer Support. At ZenBusiness, customer support is available via phone from 8 am to 8 pm (CT) Monday to Friday. On Sundays, the timings are from 10 am – 7 pm (CT).
Whether it is a technical question you want to be answered or a question regarding their services, ZenBusiness has competent customer service to help you out. You can contact them via email, phone, or webchat.
You get a quick response and their customer representatives are polite, courteous, and knowledgeable.
The customer support at LegalZoom is available through phone, email, or chat. They have extended phone support hours and are available from 10 am – 8 pm (ET) on weekdays. On weekends, they are available from 10 am – 7 pm (ET).
When it comes to customer support, LegalZoom has a shaky reputation. You can contact them through phone and email. The wait time for phone support is not a lot, but as compared to ZenBusiness it definitely makes a difference. Their customer representatives are friendly and will answer all of your queries in detail.
However, their email support response rate is extremely slow. You can keep waiting from a few days to a whole week for them to reach back to you. Furthermore, when you do get a response, it is very likely that it will be a generic email that won’t answer your query.
The turnaround times are based on two factors:
- State’s Processing Speeds
- Package you select
The processing speed and turnaround times with ZenBusiness are very fast. Roughly, if you choose the starter package, you should expect a 3-4 week TAT. With the Pro package, the turnaround time is around 1-2 weeks while with the Premium package, it only takes 3-5 business days.
When it comes to LegalZoom and turnaround times, you will be slightly disappointed. With their starter package, the TAT is for 6 weeks. The standard package offers a TAT of 15 business days while their most expensive package offers a TAT of 7-10 business days.
ZenBusiness is a clear winner here!
Both ZenBusiness and LegalZoom offer you tracking tools so that you can keep an eye on your order. All you need to do is log into your account and check the order status from your profile. The online dashboard also acts as a safe place for keeping your legal documents all in one place!
You will get constant updates regarding the status of your order which helps you relax and focus on growing your business.
It should come as no surprise in this digital age that both companies have a tracking tool on their website that will let you log in and check on the status of your filing. You can see at a glance where the process is.
Registered Agent Service
Getting a registered agent is a legal obligation for every LLC in the United States. A registered agent is a person who receives important documents from the state on your behalf. This is essential since the state needs a reliable and credible way of contacting your company at any time.
With all of its LLC formation packages, ZenBusiness provides free registered agent services for one year. With LegalZoom, you don’t get this feature and you have to pay $159 if you want to avail of this service.
Moreover, after the first year, you have to pay $99 annually with ZenBusiness and $299 with LegalZoom. One important thing is that their registered agent service subscription is automatic and recurring, so you will be charged automatically. If you want to cancel their service, you will have to appoint a new registered agent first.
Once again, ZenBusiness comes ahead in the race!
When it comes to customer feedback, LegalZoom has more reviews as compared to ZenBusiness. This is a given because they have been around for a long time. However, when it comes to the feedback rating, ZenBusiness leads the race.
With over 3,700+ reviews online and most of them glowing, you can rest assured that you will get high-quality services from them. The reviews praise their affordable rates, efficiency, ease of use, and quality customer service. With ZenBusiness, there are no upsells, and hidden fees.
As far as LegalZoom is concerned, they have mixed feedback. Customers feel happy that they can avail other legal services along with incorporating their company. With plenty of positive and negative reviews, there are various concerns raised by their clients.
From high prices to inconsistent support, their customers have quite a few issues with their services. Make sure you check out all the features you are subscribing for because, according to user feedback, it can be hard to cancel them timely.
If you pay importance to what the user ratings and reviews say, then ZenBusiness is the best option for you.
Ease of Use
As a new business owner, we know how important your time is. You can’t waste it by going through complex order forms and following complicated instructions. Therefore, ease of use is an important factor to consider before you use any LLC formation service.
The order form is pretty simple and straightforward at ZenBusiness. Just select the package you want, provide basic information about your company, and you will get the ball rolling! They have very few upsells and third-party offers throughout the order process.
When it comes to LegalZoom, their order process structure is slightly different. Instead of selecting a package, you start by entering your personal info. After that, you go through a lot of expensive upsells, before finally selecting your package.
It is a confusing and time-consuming process that is overwhelming for new business owners. This category definitely goes in the favor of ZenBusiness.
Both services are pretty easy to use and offer the information you need in an easy-to-find way. ZenBusiness has less upsells and distractions than IncFile but it's really a non-issue as both of them are equally easy to use to form your LLC.
When it comes to additional LLC formation services, ZenBusiness offers a lot more features as compared to LegalZoom as we have clearly seen above. However, if you are looking for legal services, LegalZoom has a large variety of legal services that you can use.
A few states require publication services (like New York) and ZenBusiness provides them while LegalZoom doesn’t. On the other hand, with LegalZoom, you get a variety of trademark registration and copyright protection services, which ZenBusiness doesn’t provide.
A business website, business email, as well as domain privacy, are offered by ZenBusiness whereas LegalZoom doesn’t have these services.
ZenBusiness vs LegalZoom: Which is Best?
Now that you have gone through the side-by-side comparison of ZenBusiness and LegalZoom, you are in a better position to make an informed, educated decision. The million-dollar question is: Which is the best company in ZenBusiness vs LegalZoom?
ZenBusiness offers comprehensive, affordable LLC Packages and has excellent customer feedback. LegalZoom is a large company that has been around for a long time but their overall value doesn’t even come close to that provided by ZenBusiness.
Don’t get us wrong – LegalZoom is popular amongst users because they offer professional and reliable service. It is just that ZenBusiness offers better services than them, in so many ways.
After looking at the pricing, ease of use, additional features, and a lot of other factors, the answer should be crystal clear to you. If you are still confused, let us make it even simpler and easier for you.
- Signup for ZenBusiness if you want an affordable LLC formation service that takes care of all your business needs in a timely fashion.
ZenBusiness will be a perfect choice for business owners who:
- Want high-quality service on a small budget
- Are looking to form an LLC quickly without paying hefty rush processing fees
- Want to get notifications about filing deadlines and a worry-free guarantee
- Signup for LegalZoom if you are looking for a well-established brand and you are not on a budget and are not in a rush to get your LLC formed.
LegalZoom will be perfect for entrepreneurs who:
- Are searching for a well-known and established brand
- Don’t have to worry about their budget
- Can wait for a long time to get their LLC formed
- Want a full legal service company instead of an LLC formation company
For the best overall value, ZenBusiness is our recommended LLC formation service.
For the experienced and well-known LLC formation service.