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?
Our Pick: LegalZoom
Form your business with a trusted service like LegalZoom and gain access to important legal services to keep your business compliant.
Get StartedLegalZoom vs. ZenBusiness At a Glance
| Basic Plan Features | LegalZoom | ZenBusiness |
| LLC Filing | $0* | $0* |
| Registered Agent | $249/year | $199/year |
| Operating Agreement | $99 | $99 |
| EIN | $79 | $99 |
| Get Started | Get Started |
*Does not include state fee
What Is ZenBusiness?
ZenBusiness is a tech-driven business services platform that offers LLC formation services, compliance support, and more. The company is known for a user-friendly interface and affordable formation services, including a free formation package (not including state filing fees). One of the standout features offered by ZenBusiness is Worry-Free Compliance, which helps entrepreneurs ensure their business meets state requirements and maintains good standing.
Who Is ZenBusiness Best For?
ZenBusiness is best suited to small businesses seeking a sleek, user-friendly platform and basic formation services.
Read our full ZenBusiness review to learn more.
What Is LegalZoom?
LegalZoom is a widely-known business and legal services provider. The platform offers affordable formation plans as well as robust, feature-rich packages for businesses looking for more comprehensive features. LegalZoom stands out for the company’s legal services and business formation services. Customers receive extensive customizable legal documents as well as legal guidance, which can prove pivotal — especially during the formation process.
Who Is LegalZoom Best For?
LegalZoom is best suited to business owners seeking legal services in addition to business formation.
Read our full LegalZoom review to learn more.
Go Beyond Formation With LegalZoom
LegalZoom offers more than just LLC formation. Gain access to legal guidance and other valuable business features by forming your LLC with LegalZoom today.
Get StartedZenBusiness vs. LegalZoom: In-Depth Comparison
While LegalZoom and ZenBusiness both offer LLC formation services, the providers differ in several aspects such as processing time, experience, and plan customization. Here are the key areas where ZenBusiness and LegalZoom compare.
Pricing
🤝 Tie
Both ZenBusiness and LegalZoom offer tiered packages, including a free formation package (not including state filing fees). Their entry-level plans are priced competitively with similar included features while their premium packages offer additional features at higher, yet still comparable costs.
Processing Time
🏆 ZenBusiness
ZenBusiness generally offers faster processing times than LegalZoom for LLC formation, giving it an edge in efficiency. While LegalZoom’s standard processing can take several weeks, ZenBusiness typically completes the process more quickly (even with the basic package). ZenBusiness also provides expedited and rush filing options that can significantly reduce waiting times — sometimes to just a few business days.
User Experience
🏆 LegalZoom
LegalZoom’s user experience is a step above ZenBusiness with a seamless formation process and easy sign up. Additionally, LegalZoom engaged in fewer upselling attempts than ZenBusiness, which makes for a more positive experience overall.
Legal Services
🏆 LegalZoom
LegalZoom is known for its legal services. Customers not only gain access to more than 150 customizable legal documents, but also can take advantage of hands-on guidance from experienced business attorneys and unlimited document eSignatures.
Experience
🏆 LegalZoom
LegalZoom holds a significant edge over ZenBusiness in terms of experience in the business formation space. Founded in 2001, LegalZoom has been a pioneer in online legal services for over two decades and has helped form millions of US businesses. This long-standing presence has allowed LegalZoom to refine its processes, accumulate extensive knowledge of state-specific requirements, and build a robust network of legal professionals.
Customer Support
🤝 Tie
ZenBusiness and LegalZoom offer comparable customer support experiences — each striving to provide comprehensive assistance to their users. Both companies offer multiple channels for customer communication, including phone, email, and live chat options during extended business hours. They each have teams of trained representatives who can address a wide range of queries — from basic questions about LLC formation to more complex legal and compliance issues.
Plan Customization
🏆 ZenBusiness
While LegalZoom does offer three different tiers of plans, ZenBusiness allows for a much higher level of customization. With ZenBusiness, users can customize their chosen plan through the platform’s extensive number of add-on services thus allowing businesses to pick and choose the features that best suit their specific needs.
Educational Resources
🤝 Tie
Both ZenBusiness and LegalZoom offer robust educational resources — from helpful articles and form templates to access to experts who can help during the formation process. With either service, business owners benefit from a wealth of information to support their entrepreneurial journey.
LegalZoom vs. ZenBusiness: Customer Reviews
Both LegalZoom and ZenBusiness have fairly high scores on Trustpilot. LegalZoom has earned 4.2 out of five stars while ZenBusiness has earned 4.8 out of five stars, giving the company a slight advantage. For both providers, customers primarily praised their customer service team for quick, expert support — especially when troubleshooting was necessary.
Both services respond to 99% of negative reviews on Trustpilot in less than one week from the review’s submission.
Here are some verified LegalZoom reviews (from Trustpilot) by customers who used this LLC formation service to help launch their business:
“LegalZoom has made this tricky process easy and took out the complication. Left more time to stay motivated and excited about my venture. Easy to call and connect with a knowledgeable person who answers questions completely.”
“This company is so helpful and everything that they do if you have any questions they’re right there to help answer them. Their customer reps are so friendly and very knowledgeable. I will recommend them over and over and I will use them again over and over.”
“The agents are very helpful, if I could redo my decision however I would’ve gone through the government myself to get my LLC worked up. I never did anything with my LLC, but ended up paying a fortune.”
“Kinda easy to walk through. Agent follow-up response almost instantaneous upon initial setup. My only complaint is that there are more monetary add-ons vs advertised prices, and the way they are listed (could) make you feel as if they are necessary. For a 1st timer, this was a bit concerning. Time will tell whether or not this route was a wise expenditure.”
Here are some verified ZenBusiness reviews (from Trustpilot) by customers who used this formation service to help launch their business:
“ZenBusiness has been a great help so far and hopefully will continue to do so. Their customer support team is always willing and ready to help.”
“Too many emails, a phone call and lots of issues all at once. It would be helpful to take it one step at a time, when [the] first step [is] complete move to next step, etc. Starting up is confusing, not necessarily difficult. But your process adds to the confusion.”
“I’ve used this service twice and haven’t had a bad experience ever. Always responsive and efficient.”
“Experience was pretty smooth and easy. Way too [many] upselling attempts. Nearly constant requests in-app for me to add on additional services, even after I decline[d] them. Then I got cold-called by a rep trying to upsell me on the same addons I’d already declined multiple times.”
ZenBusiness vs. LegalZoom: Pricing
When choosing between ZenBusiness and LegalZoom for your LLC formation needs, understanding their pricing structures and feature offerings is crucial. Let’s break down the plans and features of both services to help you make an informed decision.
Be aware that LLC formation packages could change at any time.
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
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
- Rush processing speed (Processes in 1 business day*)
- Employer Identification Number (EIN)
Premium ($299 + State Fee)
- Everything in Starter and Pro
- Business domain name privacy
- Business email address
- Business website builder
- Business Documents
*Processing times are based on receiving complete information. ZenBusiness processing times do not include Secretary of State processing times, which can vary.
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.