What Is LegalZoom?
LegalZoom is one of the first do-it-yourself platforms with a focus on a user-friendly experience, designed for a quick and easy preparation from start to finish, all without having to leave the comfort of home. If you are at the beginning stages of forming an LLC and you’re considering using LegalZoom, let’s begin by taking a look at how LegalZoom may benefit you.
- Affordable: LegalZoom can be considered affordable, especially for individuals and small businesses that don’t have the budget to hire a lawyer for legal services. It also offers a free plan for simple LLC formation needs. In addition, LegalZoom also offers a refund policy within the first 60 days if you are unhappy with the services and will process your refund within five business days.
- Customization: LegalZoom offers a wide range of customizable legal documents to meet your specific needs. The platform offers over 150 legal forms for business and personal needs, all created by attorneys. Choose your form, customize it to your needs and print, store or share for later.
- Convenience: Legal services and phone support are easily available online and over the phone, eliminating the need for in-person visits, and saving time and money. LegalZoom offers a (BPA) Business Advisory Plan, giving you ongoing access to its vetted network of attorneys for less than $50 per month.
- Expertise: LegalZoom provides access to experienced tax professionals and an independent network of attorneys who can provide legal advice. LegalZoom has attorneys who are licensed in every state and have knowledge about both federal and local state laws.
- Support: LegalZoom provides customer care phone support and sales phone support, Monday through Friday from 5 a.m. to 7 p.m. Pacific time and weekends from 7 a.m. to 4 p.m. PT. In addition, you can submit questions online through email or chat.
- Security: LegalZoom uses secure encryption technology to protect customer information, but LegalZoom also collects very personal information about you and your internet activity so be sure to read its privacy policy here.
Featured Partners
1
ZenBusiness
$0 + State Fees
Varies By State & Package
2
LegalZoom
$0 + State Fees
Varies By State & Package
3
Northwest Registered Agent
$39 + State Fees
Varies By State & Package
How LegalZoom Works
Now that you know what LegalZoom is and how it can benefit you, you’re probably wondering how it works. The process is fairly simple but we’ll put it in its simplest form so you’ll have a general idea.
The first step to getting started with LegalZoom is to create an account. From there, you’ll want to select the type of document you need as well as answer a series of questions to customize the document. In this case, it would pertain to an LLC, so you’ll select the “Form an LLC” option.
After you complete the form, LegalZoom will then create the document and provide you with a copy to review and sign. If you would like to have your documents reviewed by an attorney before signing, you may do so for an additional fee. Once the document has been signed, LegalZoom stores it in a secure online repository for easy access. LegalZoom will review your filing documents for accuracy and make sure they go to the right place at the state level to officially register your LLC.
What Sets LegalZoom Apart
There’s no doubt that LegalZoom offers a variety of resources as well as a wide range of legal services but how does LegalZoom stand out from its competitors? Let’s take a close look.
- Free version: LegalZoom is one of the few platforms that offers a free version to its customers. This option includes articles of organization, name check, a digital welcome packet and a customizable website. While most other platforms offer the basic necessities, they do not offer a customizable website for free. Although you can start an LLC without the help of a service platform, some find it valuable to work with a professional service. The free service plans can be appealing since they come with perks that are not otherwise included if you file yourself.
- Customizable website: LegalZoom has partnered with Wix to generate a fully functional website that you can customize to your needs. Existing businesses and new businesses in the formation stage will be able to easily start their business and create an online presence with a ready-made site created by Wix. LegalZoom’s intention for including this feature is to help empower entrepreneurs and support their growth. If you’re a new business in need of a website, you might find this helpful to get you up and running. If you already have your website in the works, you might not find this feature necessary.
- Mobile app: LegalZoom offers a mobile app for all of its LLC and corporation customers. The app allows you to manage and track the formation process from anywhere. It gives you the ability to schedule appointments with experts, get and access business formation and official digital documents, track the status of your paperwork and resolve any issues that pop up. It also offers unlimited cloud storage so you can securely share, save and view your documents.
- Additional Services: LegalZoom not only gives you the free version with the basic necessities but if you opt for the paid plans, you’ll have access to a variety of professional guidance—from tax specialists to registered agents, insurance agents and an extensive network of attorneys. On top of that, you can also file for an employer identification number (EIN), file for a DBA (Doing Business As), and get an operating agreement and annual reports as add-ons.
- Satisfaction guaranteed: LegalZoom has a refund policy offering 100% satisfaction guarantee within the first 60 days of purchase if you are unhappy with the service. Refunds are processed within five business days.
- One-stop-shop: LegalZoom not only provides help for your business, but for all other areas of your life as well, including wills, power of attorney, estate planning, trademarks, copyrights and patents. Not all service platforms include this, so if you are looking for more than just a business formation, LegalZoom is a great option.
Pros
LegalZoom wants legal help to be accessible to all in a less expensive way. Therefore, it has created a directory of attorneys from all over the country as part of its network. For less than $50 per month, the Business Advisory Plan gives you access to its attorneys who provide legal advice on all matters from business formations and estate planning to intellectual property, family law and more.
If you are looking to save on attorney fees, this service option can save you $300 per hour or more in lawyer fees and provide you with more than one area of expertise. LegalZoom also offers a variety of resources to help individuals with their legal needs such as an online library of legal information.
Cons
All LLCs are required to have a registered agent but It can be costly to use LegalZoom as a third-party agent at $199 per year. If you are the face of your business and you reside in the state of your LLC, you or someone you know can be the registered agent at no cost.
The purpose of a registered agent is to receive legal documents, letters or important tax documents, so unless you have multiple LLCs in multiple states or you have a need to stay anonymous, you can certainly be your own registered agent and save the cost. The downside, your information will be available to the public.
LegalZoom Services
To properly start an LLC, it’s important to check with your state LLC formation guides for information that is specific to your state. In this case, you can do most of the work yourself, but LegalZoom offers multiple ways to meet your needs and more. Let’s take a look at just some of its main features to see how LegalZoom can provide for you as a business formation service.
Online Document Preparation
LegalZoom offers a library of over 150 legal documents that can be customized, prepared and filed online or printed, stored or shared. These include wills, trusts, LLCs, copyrights, trademarks, affidavit forms, real estate forms and so much more.
Business Formation
LegalZoom helps customers form and register their business entities, such as LLCs, corporations, nonprofits, DBAs and sole proprietorships. Name Check Service: LegalZoom offers a name check search to confirm that your business name is available to use. This feature is available in the free plan.
Operating Agreement
LegalZoom helps you create an operating agreement starting at $99 for the Standard plan or $199 for the Rush plan if you buy it separately. It is included free with the second- and third-tier LLC formation plans.
Digital Welcome Packet
After your LLC is officially registered, LegalZoom will send you a digital welcome packet that includes a step-by-step checklist to follow. This feature is available in the free plan.
Articles of Organization
LegalZoom provides you with articles of organization, which is the legal document used to establish your LLC at the state level. This feature is available in the free plan.
Customizable Website
LegalZoom has partnered with Wix to offer immediate access to a personalized website, customizable for your business at the time of formation. This feature is available in the free plan.
Document Storage
LegalZoom provides secure document storage and retrieval services. Customers can store and access their legal documents online.
Legal Forms
LegalZoom offers a wide range of legal forms and templates that customers can use to customize, create, download and print. For example, mutual NDA, independent contractor agreement and consulting services agreement just to name a few.
Legal Advice
LegalZoom provides immediate and ongoing legal support with access to a network of attorneys for less than $50 per month.
Registered Agent Services
LegalZoom offers to represent you as the registered agent for your business at $199 per year.
LegalZoom Pricing and Plans
If you are ready to form an LLC or want professional advice, LegalZoom offers three plans to choose from—the Basic plan, the Pro plan or the Premium plan. As an add-on, LegalZoom also offers a Business Advisory Plan. Let’s take a look at each plan to see what best meets your needs.
LegalZoom Tiered Pricing and Plans [Compared]
The Basic Plan
If you want to do most of the work yourself and only need the essentials, this may be the plan for you. This plan includes the articles of organization, which is the document you need to officially register your LLC with the state. It also has a name check service to check that your business name is available as well as a digital welcome packet that includes a step-by-step guide to follow after your LLC is registered.
On top of that, It also includes a customizable website for your business, powered by Wix. This plan gives you everything you need to make your business official. Bonus—this plan is free but remember, you will still have to pay state filing fees. Also, take note, this package does not include any access to an attorney.
The Pro Plan
This plan gives you everything you need and more to form your LLC. It includes everything the Basic plan offers and then some. The Pro plan includes an operating agreement, which is a legal document that outlines the rules and guidelines for your LLC. It also includes an EIN (employer identification number), which is the tax ID number assigned to businesses for tax filing and reporting purposes.
In addition, the Pro plan includes a complete guide to business licenses for your specific location and industry. It also includes a consultation with an insurance agent and a tax consultation with a small business specialist. This plan starts at $249 plus state filing fees.
The Premium Plan
This plan gives you everything the Basic plan and the Pro plan include and more. This plan starts at $299 plus state filing fees and includes one-day LegalZoom expedited processing time and prioritization within the Secretary of State’s queue (in states where applicable).
As a solid, low-cost option for small businesses that don’t have their own lawyers, LegalZoom was included as one of Forbes Advisor’s Best LLC Services.
Getting Started With LegalZoom
As a small business owner, you want to start a business properly so it’s important you have all the information you need before diving in. Once you have the essentials in order, it’s fairly easy to get going with LegalZoom. You’ll be asked a series of questions during the process of formation. It doesn’t take long, but the process can feel tedious to some. Let’s take a look at what you’ll need to have on hand before getting started.
- The name of your business (first thing you will do is search for name availability with LegalZoom before filing)
- The state you are forming your LLC in
- Primary name, phone, address and email
- Start date of business
- The nature of your business
- Where are you selling products or services? (for example, online or in person, if applicable)
- Will you accept cash payments?
- Will you have employees within the first 12 months?
From here, LegalZoom will try to upsell so take note—although some of these features are included in the plans, many of these are additional add-on services that can get costly.
- Do you want the registered agent service?
- Do you need an operating agreement?
- Do you need an EIN?
- Do you need compliance services?
- Do you need tax and accounting services?
- Do you need a legal protection plan?
Turnaround time depends on any state-specific backlogs and filing times for services. Some states also offer expedited processing. If you decide to download LegalZoom’s mobile app, you’ll be able to check on the status of your order at any time.
LegalZoom Customer Service and Support
Having a good customer experience can lead to an impactful and favorable outcome. It is a crucial aspect of customer satisfaction and product experience. We took a close look at how LegalZoom measures up by evaluating its most recent customer service reviews and interacting with them firsthand.
Wait time: Forbes Advisor had firsthand experience calling LegalZoom and experienced very little wait time. The time we recorded was around one minute before a representative became available.
Representatives: Most recent online reviews suggest agents are very helpful, patient and knowledgeable as they guide you through the process of setting up an LLC. So, if it is your first time setting up an LLC, there is no need to worry as they will walk you through each step, leaving you feeling confident. The chat option can also help walk you through the process by connecting you with a human being. Our firsthand experience with customer service was very pleasant as the agent was very kind and helpful.
Resolutions: Most recent reviews suggest the majority of customers with questions and/or difficulties setting up their LLC were resolved quickly, leaving them feeling satisfied with the outcome.
LegalZoom provides multiple methods of contact and support through phone, email or an online chat forum. You can contact customer care at (888) 379-0854, or for sale inquiries, call (855) 787-1922. Hours of operation are Monday through Friday from 5 a.m. to 7 p.m. PT, or weekends from 7 a.m. to 4 p.m. PT. LegalZoom does not offer 24/7 support.
You may also submit questions online by entering your contact information under the “submit a question” tab through the “contact us” page.
LegalZoom also has an online chat support, but to use this feature, you must enter your name and email with the option of also giving your phone number. Once entered, the chat forum will pop up and an agent will be available to chat. Take note, if you do decide to enter your phone number, you are agreeing to allow LegalZoom to call you about your order or special offers.
LegalZoom Additional Services Worth Noting
If you are in need of an attorney for more complex or ongoing legal matters beyond the initial consult, the legal plan provides a 25% discount on your consulting attorney’s hourly rate.
LegalZoom might look like a viable alternative to hiring an attorney due to attorneys being costly but, in the long run, hiring an actual attorney might save you real money depending on your actual needs.
LegalZoom Alternatives and How They Compare
LegalZoom vs. Bizee (formerly Incfile)
LegalZoom and Bizee both offer free plans and similarly-priced premium plans. Two key differences are that Bizee offers next-day processing and free first-year registered agent services.
With LegalZoom, registered agent services are an additional add-on for $199 a year. With that said, if you want more bang for your buck, LegalZoom has more to offer as far as legal services and personal services. Bizee also does not include a mobile app.
LegalZoom vs. ZenBusiness
ZenBusiness can certainly take care of your LLC formation filing needs, but it doesn’t offer the same capabilities as LegalZoom.
ZenBusiness offers a premium package at $349, which includes rush filing speed, worry-free compliance, a guided operating agreement and a website, compared to LegalZoom’s Pro plan at $249, which includes a website, an operating agreement, EIN and phone consultations with specialists. With ZenBusiness, an EIN is an add-on and will cost you an extra $99.
ZenBusiness will save you $100 on registered agent services at $199 a year vs. LegalZoom, which also costs you an extra $199 per year.
Each service offers a free plan, but ZenBusiness offers a customizable website for $129 a year vs. LegalZoom, which has partnered with Wix to include it in the plans. Even though Wix typically offers free website services, there may be potential for upgrades.
LegalZoom vs. Rocket Lawyer
One thing both LegalZoom and Rocket Lawyer have in common that the others don’t is that they both handle business formation as well as personal matters and legal and tax advice.
The difference is that Rocket Lawyer charges a yearly or monthly membership fee. If you are a member, it is $39.99 per month for a range of services including personal legal matters.
Rocket Lawyer also offers a seven-day free trial with the option to cancel anytime. LegalZoom offers a free service for LLC business formation but any additional matters such as legal advice or personal matters are additional add-ons unless you opt for the paid plans.
Who Is LegalZoom Best For?
LegalZoom has been helping people start businesses for over 20 years. Its goal is to make the process for you efficient and easy, from simple online filing to available attorneys, tax experts and trusted partners. Overall, LegalZoom is a great option for anyone looking to form a small business LLC, but it can also provide you with many other legal sources to meet all of your needs. With a friendly platform, affordable starting price and personal legal services, LegalZoom wants you to feel secure and confident with the many phases.
Our Expert Take
Starting a business or filing important legal documents can be intimidating. Most people who are not familiar with the process want assistance or expert advice on how to begin. Those who seek out help are looking for a product or service that provides a level of trust, accuracy and peace of mind. Everyone wants to feel that anything they invest in is setting them up for success and ensuring the decisions they make are the right ones. We pay for services that make our life easier, not harder.
Frequently Asked Questions (FAQs)
Can I set up an LLC myself?
First, check with your state if you are interested in starting a limited liability company. Each state may use different regulations. Here are a few general guidelines to help navigate the process: How To Set Up An LLC In 7 Steps.
Is LegalZoom a good way to start an LLC?
LegalZoom is a well-known, established brand and it may be a good option if you are willing to pay the additional cost for professional guidance and services.
Can I form an LLC without physically being in the United States?
Yes, nonresidents of the United States can form an LLC under the laws of any state they choose. There may be some restrictions under various state laws.
What are the best LLC services?
With many LLC services to choose from, LegalZoom, ZenBusiness and Northwest Registered Agent rank at the top of the list. The right LLC services for you personally will depend on your budget and specific needs.
What is the LegalZoom customer support phone number and email?
Customer Care: (888) 379-0854
Monday–Friday: 5 a.m. to 7 p.m. Pacific time
Weekends: 7 a.m. to 4 p.m. PT
Sales Support: (855) 787-1922
For email inquiries: support@legalzoom.com
Is LegalZoom a trusted site?
Yes, LegalZoom is a trusted site. It provides a variety of legal services, including LLC formation, trademark registration and wills.
What does an LLC service help with?
LLC services can provide different variations in offerings, but all of the LLC services on Forbes Advisor’s list include name availability search, online document access, the option for a registered agent add-on, creation of articles of organization and additional legal services. Some, if not most, of these services may only be available through add-on fees or the more expensive packages, depending on the service provider.
What other legal classifications are there for my business?
There are a number of different kinds of legal classifications your company can use to protect itself from liabilities. For example, filing a corporation can be useful if you want your company to be partially owned by outside shareholders. This is a preferable arrangement for many business owners. For more details, check out our comparison of LLCs and corporations.
