Last Updated 19 July 2018 | By:

LegalZoom LLC Review

Is It Really Worth It?

LegalZoom LLC ReviewExcited to start your LLC, but unsure where to begin?

If you don’t know much about navigating the legal processes required to turn your great idea into an actual business, odds are the vague and oftentimes confusing information on your state website isn’t going to cut it.

In order to streamline your research, my team and I have spent hundreds of hours studying LLC formation providers like LegalZoom. In this LegalZoom LLC review, we’ll take a look at their pricing, features & more to help you decide whether or not their services are a good fit for your new business.

Pros & Cons Of LegalZoom

Pros

  1. With LegalZoom, you don’t need any legal training or even much computer savvy — they’ll take care of pretty much everything on your behalf.

  2. You can expect quick turnaround times in terms of filing and receiving your documents. (Note: LegalZoom isn’t the fastest filing service on the market, but they’re impressively efficient considering their size.)

  3. While they’re not the lowest in the industry, LegalZoom’s price-points are competitive — and substantially less expensive than working with a business attorney.

Cons

  1. LegalZoom charges $30 more than other providers, like IncFile — a formation service that will start your LLC for $49 rather than $79.

  2. Many users have complained about billing issues. In order to avoid any headaches, we advise you to pay close attention during the checkout process.

  3. Since LegalZoom is such a large company, their customer support can get pretty backed up at times.

LegalZoom LLC Pricing & Features

LegalZoom offers three LLC formation packages: Economy, Standard and Express Gold. Take a look at the screenshot below:

LegalZoom LLC Review

ECONOMY = $79 + STATE FEE

What It Includes: The Economy package basically offers the minimum set of features you need in order to form an LLC — no bells and whistles. That said, you’ll still have LegalZoom’s dedicated customer support team behind you throughout the formation process.

Who It’s Right For: This package is ideal for anyone who only needs very basic formation services, and isn’t in a hurry to get their LLC formed.

 

STANDARD = $329 + STATE FEE

What It Includes: In addition to everything in the Economy package, the Standard plan includes a company seal/binder, 20 customized membership certificates and a faster turnaround time.

Who It’s Right For: If you’re looking to expedite the formation process and invest in a branded company binder, the Standard package may be a good fit for you. However, it’s worth noting that many providers offer these services at a much lower cost.

 

EXPRESS GOLD = $349 + STATE FEE

What It Includes: Express Gold includes all the features of the Standard package, plus some extra perks like VIP support, express shipping and even quicker turnaround times.

Who It’s Right For: If you’re in a hurry to get your LLC formed and have the budget for some premium features, the Express Gold package is probably your best bet. Frankly, it provides significantly more value than the Standard plan, which is only $20 cheaper.

 

OPTIONAL SERVICES

Operating Agreement ($99):

LegalZoom no longer includes operating agreements in their formation packages, but rather offers them as a $99 add-on.

Operating Agreement & EIN ($159):

For an extra $60, LegalZoom will obtain your EIN (Employer Identification Number) on your behalf.

Operating Agreement, EIN & Licenses ($199):

If you’d like LegalZoom to take care of any necessary licenses or permits required to start your business, you can add this feature for a total of $199.

Registered Agent ($159/year):

LegalZoom will act as your registered agent (the party responsible for receiving/processing all legal notifications on behalf of your LLC) for $159/year.

 

RECOMMENDED PACKAGE

At the end of the day, it really comes down to how quickly you need your LLC formed. If you’re simply looking for an affordable plan with a standard turnaround time, we’d recommend the Economy package.

On the other hand, if you’re seeking expedited LLC formation and some other premium features, Express Gold actually offers pretty decent value. It really just depends on your budget and the needs of your new business.

LegalZoom Customer Reviews

Customer ReviewsAre all entrepreneurs happy with LegalZoom’s services? No. But does LegalZoom have a good amount of positive feedback for a company of their size? In our opinion, they do.

To provide you with as clear a picture of their customer feedback as possible, take a look at LegalZoom’s average ratings on a few popular third-party review platforms (as well as their own website) below:

Customer Reviews Section Last Updated: 6-14-18

  • BBB: A+
  • Sitejabber: 3/5 based on 657 Reviews
  • FitSmallBusiness: 2/5 based on 21 Reviews
  • LegalZoom Onsite Reviews: 4.7/5 based on 14,502 Reviews

Despite LegalZoom’s massive size and scale, the majority of their customers seem to be happy with the quality of their customer support and the value built into their formation packages.

How LegalZoom Compares

IncFile ComparisonLegalZoom is certainly one of the most popular and ranked LLC formation services on the market, but that doesn’t necessarily mean they’re the right choice for you.

We highly recommend comparing their pricing, features and other essential qualities to some other providers before settling on one.

To round out this LegalZoom review, let’s see how they compare to my personal favorite LLC formation service, IncFile.

PRICING:

LegalZoom charges significantly more than IncFile for essentially the same services. For example, LegalZoom’s least expensive package is $79, while IncFile’s is $49. Why? Brand power — nothing more.

FEATURES:

If you place their offerings side by side, you’ll notice that IncFile has significantly more generous packages — especially considering their lower prices. For instance, LegalZoom’s registered agent services cost $159/year, while IncFile’s are free for the first year and $119/year upon renewal.

TURNAROUND TIME:

Both LegalZoom and IncFile offer expedited turnaround times. Basically, the more you’re willing to pay, the quicker they’ll get your LLC formed.

CUSTOMER SUPPORT:

In our experience, both LegalZoom and IncFile have decent customer support. Their reps are friendly, knowledgeable and dedicated to troubleshooting customer issues. You may experience a brief wait-time if you call during peak business hours, but aside from that, we’re pleased with both companies in this regard.

BUSINESSES FORMED SO FAR:

IncFile has formed over 150,000 businesses, while LegalZoom has formed over 1 million.

HERE’S THE QUICK VERSION

IncFile
  • Pricing Starts at
    $49

  • 150,000+ businesses formed so far

  • Perfect for:
    Anyone forming an LLC on a budget & need quick formation

Visit Website
LegalZoom
  • Pricing Starts at
    $79

  • 1 million+ businesses formed so far

  • Perfect for:
    Anyone wanting to work with an LLC formation service that has a huge brand

Visit Website

Frequently Asked Questions

Can I Form An LLC Myself?

Can you form your LLC yourself? Sure! If you’re a DIY kind of entrepreneur and don’t mind investing your time into learning the process, feel free to follow the step-by-step guides we built.

Are Their LLC Services Easy to Use?

Yes for most, no for others. Although their platform is very user-friendly, if you browse through their online reviews you'll still find a portion of folks who struggled to understand everything involved. If I had to rate usability, I'd give it a 4/5.

What’s Their Refund Policy?

In some circumstances you can get a full refund, while in others LegalZoom will simply correct the problem or offer you credit with their company to be used on further orders.

Check out their Satisfaction Guarantee page and their Terms of Service for all the particulars.

Are There Any Hidden Fees?

No. There shouldn’t be any surprises as long as you aren’t in a hurry, make sure and pay attention to ALL check-boxes through the checkout process.

Is My Information Safe?

While there is technically no such thing as 100% safe information in the digital world, with LegalZoom your information is as safe as it would be working with a major bank.

What About Ongoing Support?

LegalZoom will answer questions about your LLC, even if it's a year from now. However, it's important to mention there are a couple other LegalZoom LLC formation reviews that have done their own testing too. They have also pointed out that the customer support is not as helpful as it could be.

Should You Use LegalZoom?

LegalZoom gets a 4.3/5 rating in my book and is ideal if you're wanting to form an LLC with the most well-known brand. I've personally used their services and walked away happy.

However if you'd like to do more research and get a close-up of your options, use the buttons below to see the top 7 formation services.

Visit LegalZoom Or Visit Our Top Options