ZenBusiness vs. LegalZoom 2024

Which Is the Best LLC Service?

Woman gesturing to three point six star LegalZoom and four point seven star ZenBusiness.

Wondering how to start a limited liability company (LLC)? Online business formation services like LegalZoom or ZenBusiness prepare and file the paperwork in a more secure and structured way than your typical DIY approach.

Our ZenBusiness vs. LegalZoom review covers their main similarities and differences, customer reviews, pricing, and more. Overall, we’ll answer the important question in our comparison – which is the best LLC service in 2024?

Recommended: Check out our review of the best LLC services.

What Sets ZenBusiness and LegalZoom Apart

Pricing

Both ZenBusiness and LegalZoom provide LLC formation, but ZenBusiness is slightly cheaper than LegalZoom. LegalZoom LLC packages are priced higher for similar business services and products. Customers are also expected to pay a lot extra for other features such as an LLC Operating Agreement template and business accounting evaluation and guidance. As a result, LegalZoom is more expensive than it seems at first.

Experience

The experience advantage goes to LegalZoom; the company lays claim to starting 3 million businesses in 16 years. ZenBusiness was founded in 2015, and since then, they have helped thousands of entrepreneurs overcome the difficulties of starting a business.

Online Legal Services

While ZenBusiness is focused more on LLC formation, LegalZoom offers more ongoing legal services beyond business formation. For example, LegalZoom features legal plans that customers can purchase such as the Business Advisory Plan and Legal Advantage Plus; the plans provide professional tax and legal advice.

Similarities Between ZenBusiness and LegalZoom

Personalized Business Advice and Assistance

Both LegalZoom and ZenBusiness have business formation experts to help entrepreneurs every step of the way during the LLC formation process. You can contact the services online or by phone.

Useful Information and Advice

Both ZenBusiness and LegalZoom websites are filled with tips and tricks for small business owners beyond basic doc-prep and processing. Entrepreneurs can learn more about business formation filing services and LLC topics such as Articles of Organization, EIN to help open a business bank account and hire employees, registered agent services, business credit card options, and business licenses.

Lifelong Compliance Support

The online services will notify you of upcoming legal filing requirements, such as your annual report. This will help keep your business compliant. In fact, ZenBusiness even offers a Worry Free Compliance service, in which they'll cover the annual report filing.

Customer Reviews

LegalZoom maintains a 4.6/5 out of over 6,000 reviews on the Better Business Bureau. Overall, many of the LegalZoom reviews are quite positive, like this one:

"LegalZoom has helped me from the beginning of my business. They have been informing me of nearly everything I need to do for my business to be lawful and offer options of service providers to help you. They have offered very Professional and competent assistance if youve never started a business before."

Unfortunately, there’s also a significant number of highly-critical LegalZoom reviews, particularly around customer support and payment processing issues. Keep in mind, LegalZoom is a big operation dealing with a high volume of customers.

"Terrible company. Tried to have me fill out paperwork that wasn't required by my state. I tried to get a refund through customer service, but it seems their departments don't even communicate properly with each other - I never got my scheduled call back. They also tried to keep my money for tax services when they didn't even submit my LLC paperwork. Go literally anywhere else with your money."

Online ZenBusiness reviews are great. The LLC service has over 14,000 reviews on Trustpilot with an overall rating of 4.7/5. Here are a couple ZenBusiness review examples:

“I was blown away at how simple and straight-forward this process was. Using ZenBusiness to set up the LLC for my consulting agency was the best decision I could have made as an entrepreneur. I especially love how they made it super easy to get a Tax ID and set up a registered agent. I'd recommend ZenBusiness to anyone starting a new business.”

“Quick and Simple. The website is well-designed and the process was very transparent without being overwhelming. Any information that I needed to make the right choices was at my fingertips and I feel like I'm set up well with my new business.”

If customer reviews carry a lot of weight in your decision-making process, you may want to consider ZenBusiness.

ZenBusiness vs. LegalZoom: Pricing

ZenBusiness LLC Packages

Be aware that LLC formation packages could change at any time.

Starter ($0 + State Filing Fees)

  • Basic LLC formation
  • Unlimited name availability searches
  • Unlimited phone and email support
  • Digital dashboard to access business documents
  • Free accounting consultation
  • Free automatic expense tracking
  • Free tax deduction tagging
  • Worry-free compliance free first year (Auto-renewal price: $199/yr)

Pro ($199 + State Filing Fee)

  • Everything in Starter
  • Filing speed (1 - 2 business days)
  • Employer Identification Number (EIN)

Premium ($349 + State Fee)

  • Everything in Starter and Pro
  • Business domain name privacy
  • Business email address
  • Business website builder
  • Business Documents

LegalZoom LLC Packages

Basic ($0 + state fees) includes:

  • LLC formation
  • Articles of Organization
  • 30-day order processing guarantee (this does not include state processing times).

Pro ($249 + state filing fees) includes:

  • Operating agreement
  • EIN
  • Insurance and tax consultation
  • Faster processing times than Basic package

Premium LLC package ($299 + state fees) includes:

  • All features in Basic and Pro
  • Attorney consultations
  • Legal forms
  • Faster shipping and processing

More Info:

Rush processing times vary from state to state and some states will expedite processing to 1 hour for high fees. Before purchasing the Express Gold package, it would be a good idea to ask LegalZoom what rush state processing means in your state.

If you come across the terms “processing” time vs. “filing” time on the different business formation websites, know that they mean two different things. Processing time refers to the number of days it takes to process all LLC documents relating to your business by the service you choose and filing time is up to the government office responsible for filing the legal documents.

The Bottom Line

After comparing ZenBusiness and LegalZoom, we recommend exploring other LLC formation services.

If you’re looking for the lowest price and best bundled package that includes all the necessities to start your business quickly, our favorite, Northwest Registered Agent, comes out on top. In addition to LLC formation, Northwest provides a free year of registered agent service.

However, if you want to instantly build a brand in addition to receiving business formation services, we recommend Tailor Brands.

Frequently Asked Questions

Which one is better ZenBusiness or LegalZoom?

The better choice between ZenBusiness and LegalZoom depends on your specific needs. ZenBusiness is generally more affordable and has a higher customer satisfaction rate. If your primary need is business filing with additional support services like compliance and registered agent service, ZenBusiness might be the better option. On the other hand, if you require ongoing legal services, LegalZoom would be more suitable.

Can I form an LLC on my own?

Yes, you can form a limited liability company (LLC) on your own. This involves understanding the requirements to set up this business entity in your state, completing the necessary paperwork, and ensuring compliance with all legal obligations. However, an LLC formation service can simplify this process, offering expertise and support to ensure everything is done correctly.

Learn how to form an LLC by reading our step by step instructions.

Which business formation service provides legal assistance?

LegalZoom offers extensive legal help compared to ZenBusiness. It provides a range of ongoing services and tools, including important legal documents and professional tax advice, which can be valuable for businesses requiring regular legal support.

Do either companies offer registered agent services?

Yes, both ZenBusiness and LegalZoom offer registered agent service. These services are part of their business formation packages, ensuring that your business has a reliable point of contact for legal and government correspondence.

How much do LegalZoom and ZenBusiness charge for filing annual reports?

The cost varies based on the package you select with either LLC registration service. ZenBusiness offers a "Worry Free Compliance" service that includes annual report filing. The cost for this service after the first year is $199 per year. LegalZoom also provides assistance with annual reports, but the specific cost for this service is dependent on the package and state fees. It's important to check the current pricing on their websites, as these costs can change.