Company Formation

LegalZoom LLC Review & Cost (2023)

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When it comes to forming an LLC, the process can be overwhelming for many entrepreneurs and small business owners, fortunately, there are companies like LegalZoom that offer LLC formation services to make the process easier and more streamlined.

LegalZoom’s LLC formation service is designed to simplify the process of setting up an LLC, helping entrepreneurs and small business owners navigate the legal requirements and paperwork. The service offers a variety of features, including customizable operating agreements, registered agent services, and ongoing compliance support.

In this article, we will provide a review of LegalZoom’s LLC formation service, examining its cost and features, so that you can determine whether it’s the right option for your business needs.

Comparison Chart

BasicProPremium
PriceCheck PriceCheck PriceCheck Price
Articles of organizationYesYesYes
Name checkYesYesYes
Business filing serviceYesYesYes
Operating agreementYesYes
EINYesYes
Business licenses & permits guideYesYes
Tax & insurance guidanceYesYes
Attorney guidanceYes (for 3 months)
One entity amendment with rush serviceYes (for 3 months)
One copyright registration per monthYes (for 3 months)
Full library of customizable legal formsYes (for 3 months)
Customer supportChat, emailPhone, chat, emailPhone, chat, email

LegalZoom Overview

Pros

  • Established company with decades of experience
  • Provides online legal services not available with other LLC formation companies
  • Wide range of services offered including wills, trademarks, estate planning, power of attorney & more
  • Excellent customer support
  • Money back guarantee

Cons

  • Basic package is limited
  • Slightly aggressive upsells

LegalZoom started as a simple online document preparation service but has since grown to offer a wide range of legal services, including LLC formation, wills and trusts, trademark registration, and more. Today, LegalZoom is one of the most popular legal services providers, serving over 4 million customers in the United States and the United Kingdom.

One reason for LegalZoom’s popularity is its reputation for providing affordable and accessible legal services. The company has been recognized by numerous organizations for its commitment to innovation, including being named one of the “World’s Most Innovative Companies” by Fast Company in 2019. LegalZoom has also been accredited by the Better Business Bureau since 2001, maintaining an A+ rating for its commitment to customer satisfaction.

LegalZoom’s LLC formation service is one of its most popular offerings. In addition to forming LLCs, the company offers a wide range of legal services, including business formation, copyright registration, and estate planning. LegalZoom also provides legal advice through its network of independent attorneys and offers online legal documents for a variety of legal needs. With its user-friendly platform, affordable prices, and commitment to customer satisfaction, LegalZoom has become a trusted partner for entrepreneurs and small business owners looking for affordable and accessible legal services.

Plans, Pricing and Features

LegalZoom offers three LLC formation packages: Economy, Standard, and Express Gold. Each package is designed to cater to the specific needs of different types of businesses. Here’s a closer look at each package:

Basic: This package is priced at $0 + state fees and includes the preparation and filing of the articles of organization, a business name availability check and a step-by-step guide on what to do once the filing is done. This package is best suited for entrepreneurs and small business owners who are just starting and need a basic legal structure for their business.

As far as value for money goes, it’s basically free so you’ll get a lot for your money. That said, there are other LLC formation companies that offer more features and services for the same amount. ZenBusiness comes to mind here.

Pro: The Pro package is priced at $249 (excluding state fees) and includes everything in the Basic package, plus an operating agreement, Employer Identification Number (EIN), financial account authorization letter, and tax & insurance consultation with a specialist.

The Pro package provides decent value for its price, but if you add $50 more, you can get the Premium package and a lot more features and add-on services.

Premium: The Premium package is priced at $299 (excluding state fees) and includes everything in the Pro package, plus unlimited 30-minute consultations with an attorney about legal issues for three months. You can also seek an attorney to review legal documents and contracts. In addition to those add-on services, you also get access to a full library of customizable legal forms, one copyright registration per month and one entity amendment with rush service for 90 days.

The Premium package provides good value for its price, especially with the inclusion of an attorney guidance that can help you with legal issues. Some users may not find the additional services necessary for their business needs, but if you foresee your business needing legal assistance in the near future, this is the package to get.

User Experience

LegalZoom’s LLC formation service provides an overall positive user experience, but with some areas for improvement.

LegalZoom’s LLC formation service provides a high level of quality and accuracy, ensuring that all necessary documents are filed correctly and on time. The company offers a variety of features, including legal assistance and all the business formation basics and compliance essentials. Though you do have to pay for the Pro and Premium packages to get most of these add-on features.

When it comes to user experience with their website, it’s easy to navigate, with clear instructions and explanations provided throughout the LLC formation process. The company also offers helpful resources, such as legal guides and frequently asked questions, to assist users at every step of the way.

Another feature that separates LegalZoom from the competition is their money-back satisfaction guarantee for its services. If a customer is not satisfied with the service provided, they can request a refund within 60 days of purchase. This policy is pro-consumer as it provides an added layer of protection and ensures that customers are able to receive the services they paid for or receive a refund. It also reflects the company’s commitment to providing quality services and customer satisfaction.

While LegalZoom’s LLC formation service offers several benefits, there are some potential drawbacks to consider. Firstly, the Basic package is barebones in terms of features, which may not meet the needs of all users. While it includes the preparation and filing of the articles of organization and a business name availability check, it does not include an operating agreement or registered agent service, which may be necessary for some businesses.

Secondly, LegalZoom has been criticized for excessive upselling during the checkout process. Some users have reported feeling pressured to purchase additional services that may not be necessary for their business needs. While the company does offer useful services such as EIN acquisition and registered agent service, the amount of upselling can be overwhelming for some users.

Finally, LegalZoom’s turnaround time for LLC formation may not be the fastest available. While they offer expedited processing for an additional fee, some users have reported longer than expected wait times for document processing and delivery. This may be an issue for businesses that need to establish their LLC quickly and cannot wait for extended processing times.

Verdict

There are several reasons why users may want to choose LegalZoom for their LLC formation needs. Firstly, LegalZoom provides access to legal services throughout the LLC formation process. This includes the preparation and filing of legal documents, obtaining necessary permits and licenses, and legal advice on any issues that may arise. This is especially important for entrepreneurs and small business owners who may not have the resources to hire an attorney and require affordable legal services.

Additionally, LegalZoom is an established brand with extensive experience in the field of LLC formation. The company has a reputation for providing high-quality services and excellent customer support, making it a reliable choice for those looking to form an LLC.

However, while LegalZoom has several benefits, there are some downsides to consider. The company’s add-on services can be expensive, which may be a consideration for those on a tight budget. Additionally, LegalZoom’s turnaround time for LLC formation may not be the fastest available, although they do offer expedited filing for an additional fee. Despite these drawbacks, LegalZoom remains a popular and reputable choice for LLC formation, and they are actually one of our picks for the best LLC formation services.