LegalZoom LLC Review 2023
Is It the Best LLC Service?
Last Updated: By TRUiC Team
Excited to start your business, but unsure where to begin? You may want to consider hiring a professional LLC service provider to help simplify the process.
We spent hours researching business formation services such as LegalZoom. We’ll go over the details of the company’s online legal services, LLC formation packages, pricing, features, and customer reviews to help you decide whether it’s a good fit for you.
Recommended: Form an LLC with LegalZoom today.
Recommended Step Before Using LegalZoom to Form an LLC
It’s important to name your LLC before going through the business formation process with a professional service. TRUiC’s Free LLC Name Generator will help you to do the following:
- Find the perfect name for your new LLC.
- Conduct a name search to make sure your desired LLC name is available.
- Help secure a domain name for your company.
LegalZoom Pros and Cons
Pros of LegalZoom
- 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.
- If you need legal services past LLC formation, LegalZoom offers plans with tax advice, attorney help, and access to legal forms.
- 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.)
- While they’re not the lowest in the industry, LegalZoom’s price-points are competitive -- and less expensive than working with a business attorney.
Cons of LegalZoom
- LegalZoom charges more than other providers on the market
- In online LegalZoom reviews, many users have complained about billing issues. In order to avoid any headaches, we advise you to pay close attention during the checkout process.
- Since LegalZoom is such a large company, their customer support can get pretty backed up at times.
LegalZoom LLC Alternative
Northwest Registered Agent is one of the best services to choose if you're forming a business on a budget but are still looking for all the essential features. Read Review
LegalZoom LLC Pricing & Features
LegalZoom offers three LLC formation packages: Basic, Pro and Premium.
Basic = $0 + State Fee
What It Includes: The Basic 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.
Pro = $249 + State Fee
What It Includes: In addition to everything in the Basic package, the Pro plan includes an operating agreement, EIN, and a faster turnaround time.
Who It’s Right For: If you’re looking to expedite the formation process, the Pro package may be a good fit for you. However, it’s worth noting that many providers offer these services at a lower cost.
Premium = $299 + State Fee
What It Includes: Premium includes all the features of the Pro package, plus some extra perks like attorney consultations, legal forms, 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 high-quality legal features, the Premium package is probably your best bet.
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 ($249 for the first year):
LegalZoom will act as your registered agent (the party responsible for receiving/processing all legal notifications on behalf of your LLC) for $249 for the first year.
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 Basic package.
On the other hand, if you’re seeking expedited LLC formation and some other premium features, Premium actually offers pretty decent value. It really just depends on your budget and the needs of your new business.
Should You Use LegalZoom?
LegalZoom gets a 3.8/5 rating in our book and is ideal if you want to form an LLC with the most well-known brand.
LegalZoom Customer Reviews
To provide you with an overview of LegalZoom reviews and customer feedback, 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: 4-11-2023
- BBB: A+
- Sitejabber: 3.4/5 based on 1,110 Reviews
- Trustpilot: 4.6/5 based on 2,674 Reviews
Despite LegalZoom’s massive size and scale, several customers seem to be happy with the quality of their customer support and the value built into their formation packages.
LegalZoom Competitors and Alternatives
LegalZoom 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 our personal favorite LLC formation service, Northwest Registered Agent.
LegalZoom charges significantly more than Northwest for essentially the same services. Why? Brand power -- nothing more.
If you place their offerings side by side, you’ll notice that Northwest has a more generous package -- especially considering their lower price. For instance, LegalZoom’s registered agent services cost $249 for the first year, while Northwest's are $125/year (and free for one year).
In our experience, Northwest Registered Agent excels when it comes to customer support. They provide their clients with Corporate Guides, highly trained U.S.-based support agents. Every customer gets a Corporate Guide assigned to their specific account, so you can talk to the same person whenever you have a problem or question. As for LegalZoom, their customer service is a more standard call-center type of experience.
Here’s the Quick Version
Pricing Starts at $29
Perfect for: Anyone forming an LLC on a budget & need quick formation
Pricing Starts at $0
Perfect for: Anyone wanting to work with an LLC formation service that has a huge brand
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 we 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.