An online legal filing service can make establishing a new business easy. For a small fee, you can form a new limited liability company (LLC), corporation or other business entity without having to complete and file all of the forms yourself. Two of the most popular online business formation services available today are LegalZoom and ZenBusiness.
In this comprehensive ZenBusiness vs. LegalZoom guide, we’ll compare the two providers based on price, services, support, customer reviews and more. Read on to find the best service for your needs and budget.
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
LegalZoom vs. ZenBusiness at a Glance
Both LegalZoom and ZenBusiness can help you establish your business entity. However, LegalZoom also offers legal advice to those who subscribe to its services, whereas ZenBusiness keeps things simple and only handles business filings. In choosing an option, you’ll want to determine what other needs you have for your business so that you can determine if you will need more services.
LegalZoom
Starting price for limited liability company (LLC)
$0
plus state filing fees
Money-back guarantee
Yes
$0
plus state filing fees
Yes
LegalZoom is a popular legal services provider that has à la carte services as well as subscription offerings that give you access to legal and financial advice from licensed professionals as you need it. When it comes to starting your business, you can choose to start an LLC, a corporation, a nonprofit or a DBA. You can also get a registered agent and have LegalZoom file annual reports on your behalf.
- Wide variety of legal services for businesses
- Peace of mind with a money-back guarantee
- Online minutes logging
- Tax advice on business plans
- Slow in getting an employer identification number (EIN)
- Users report refund issues
- Problems with expedited services
ZenBusiness
Starting price for limited liability company (LLC)
$0
plus state fees
Money-back guarantee
Yes
$0
plus state fees
Yes
ZenBusiness has some of the lowest prices for filing you can find. For example, LLC formation starts at $0, plus state filing fees. With your ZenBusiness filing, you also get a binder with your operating agreement, bylaws and ongoing compliance services for an added fee of $49. You can get an EIN from the IRS or choose Zen Business as your registered agent for an additional fee.
- More affordable than LegalZoom
- Quick turnaround time
- Easy-to-understand dashboard
- Cumbersome chat application
- Confusing Pro and Premium packages
- Poor customer service
How LegalZoom and ZenBusiness Stack Up
Quick Overview
| LegalZoom | ZenBusiness | |
|---|---|---|
|
Starting Price
|
$0 plus state filing fees
|
$0 plus state filing fees
|
|
Legal Advice
|
For added fee
|
Not offered
|
|
Registered Agent
|
Yes, for $249 per year
|
Yes, starts at $199
|
|
Filing Binder
|
Included
|
Included
|
|
EIN Registration
|
Yes, $79
|
Yes, $99
|
|
Customer Support
|
Monday to Friday: 5 a.m. to 7 p.m. |
Monday to Friday: 8 a.m. to 8 p.m. |
LegalZoom and ZenBusiness offer the same product with nuanced differences. Both will get your business entity registered for a fee, though ZenBusiness is less expensive. Both offer registered agent services and EIN registration for an additional fee and send you a binder with all pertinent registration documents for your business records.
Where the two companies differ is in the follow-up advice that you can receive. LegalZoom has attorneys associated with its business advisory plan. For $259 for six months or $469 for 12 months, you can get unlimited half-hour consultations with a lawyer as well as reviews of legal documents (limit of ten pages) so that you know what you’re signing before you enter into a contract.
If you think you need more than just business formation, LegalZoom has the extra services that can take your business to the next level.
Cost
Here’s how the two providers measure up in terms of cost. They each have a basic, advanced and premium plan. Here’s how they compare:
Basic Plans
| ZenBusiness | LegalZoom | |
|---|---|---|
|
Starting Price
|
$0
|
$0
|
|
Ongoing Compliance
|
Included
|
$199 per year
|
|
Operating Agreement and Bylaws
|
+$125
|
+$99
|
|
Registered Agent
|
+$199 per year
|
$249 per year
|
|
EIN
|
+$149 per year
|
+$60 per year
|
Pro Plans
| ZenBusiness | LegalZoom | |
|---|---|---|
|
Starting Price
|
$199 per year
|
$199
|
|
Ongoing Compliance
|
Included
|
+$199 per year
|
|
Operating Agreement and Bylaws
|
Included
|
+$99
|
|
Registered Agent
|
+$199 per year
|
$249 per year
|
|
EIN
|
+$149
|
+$60
|
Premium Plans
| ZenBusiness | LegalZoom | |
|---|---|---|
|
Starting Price
|
$349 per year
|
$199
|
|
Ongoing Compliance
|
Included
|
+$199 per year
|
|
Operating Agreement and Bylaws
|
Included
|
+$99
|
|
Registered Agent
|
+$199 per year
|
+$249 per year
|
|
Domain and Website
|
Included
|
Not offered
|
|
EIN
|
+$149
|
+$60
|
Standout Features We Like
LegalZoom
In the process of setting up your entity, LegalZoom will perform a business name search to make sure that you formalize a unique name in your state so that you don’t run into copyright or trademark issues. You’ll receive a book complete with your operating agreement, minutes and bylaws when your company is formed.
LegalZoom’s assistance doesn’t stop there. You can sign up for a registered agent so that you get a legal address, which is often needed if you are setting up a legal entity in a state where you don’t reside. LegalZoom can also help you file your annual reports and provide you with a compliance calendar to ensure you don’t miss a deadline.
ZenBusiness
Worry-Free Compliance with ZenBusiness eliminates your annual filing stress, reminds you of critical compliance deadlines and continuously monitors your status with the state so that you can have peace of mind knowing that everything is up to date. If you do not maintain your good standing status, ZenBusiness will help get your business back in compliance and pay for any financial damages that resulted from its mistake.
ZenBusiness will also help you brand your business through its website builder. There are hundreds of mobile-friendly templates you can customize to fit your brand. It comes with built-in SEO tools and a drag-and-drop interface so you don’t need to know Java or HTML to create a beautiful website. And when you’re ready to expand, it offers a host of guides to get business funding, grow your business and expand locations.
Customer Support
LegalZoom
LegalZoom customer support is available via phone and contact form. Agent hours are Monday through Friday from 5 a.m. to 7 p.m. Pacific time and weekends from 7 a.m. to 4 p.m. PT. When submitting a contact form, you should hear back within 24 hours.
ZenBusiness
ZenBusiness customer support is available via chat, phone and email. Chat and phone hours are Monday through Friday from 8 a.m. to 8 p.m. Central time and Sunday from 10 a.m. to 7 p.m. CT. When sending an email, you’ll receive a reply within one business day.
Customer Reviews and Reputation
LegalZoom
On the Better Business Bureau (BBB) website, LegalZoom has 5,824 customer reviews with an average customer review rating of 4.57 out of 5 stars. On Trustpilot, it has over 3,000 reviews with an average rating of 4.5 stars out of 5. Overall customer sentiment is that any issues resolve quickly, and staff are knowledgeable and professional. Its BBB rating is A-, and customer complaints come from a misunderstanding of ongoing charges for subscriptions.
ZenBusiness
On Trustpilot, ZenBusiness has 10,148 reviews averaging 4.7 out of 5 stars. Its company profile on Better Business Bureau doesn’t fare as well, with 167 customer reviews with an average of 4.31 out of 5 stars. Its BBB rating is B+, with 77 complaints closed in the last three years, 42 of which were closed in the last 12 months. Overall, customer sentiment is staff is knowledgeable and friendly, and most complaints come from a misunderstanding of ongoing subscription costs.
Bottom Line
Both ZenBusiness and LegalZoom offer a host of features for a range of business services. If you are looking for the best price in business formation filing, ZenBusiness is the most cost-effective option that you’ll find. However, if you think you’ll need more by way of legal advice, you can get a LegalZoom subscription to answer any legal questions you may have.
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
LegalZoom and ZenBusiness Alternatives
- Northwest Registered Agent
- BetterLegal
- Inc Authority
- Harbor Compliance
- Incfile
- Rocket Lawyer
Frequently Asked Questions (FAQs)
How much does it cost to start an LLC?
The cost of starting an LLC will vary depending on the state in which you form your LLC. Typically, there is a filing fee to submit the articles of organization, which averages from $20 to $100. You may also need to pay an annual fee to maintain your LLC status.
Which is better: ZenBusiness or LegalZoom?
The best option for your business depends on what you need help with. LegalZoom is better for those who need legal advice while ZenBusiness is a more cost-effective option for business formation filing. You could even use each service in tandem, delegating all formation services to LegalZoom and your business growth services to ZenBusiness.
How do I register an LLC on my own?
The process of registering an LLC varies by state. However, the process typically involves completing and returning the correct registration documents with appropriate fees to your local Secretary of State. Get step-by-step instructions on how to register an LLC.
Which is cheaper, ZenBusiness or LegalZoom?
The pricing for ZenBusiness and LegalZoom varies by service. For example, when it comes to registering an LLC, ZenBusiness is cheaper at just $49, compared to LegalZoom at $79 while the cost to register an EIN with LegalZoom is cheaper than ZenBusiness at $79 as opposed to $99.
Is ZenBusiness good for registering an LLC?
ZenBusiness is widely regarded as a good service for registering an LLC. Its LLC registration service starts at $49, which includes a filing binder. However, it does not include additional legal advice, nor does it include a money-back guarantee like other online services, such as LegalZoom.
Is LegalZoom good for registering an LLC?
LegalZoom is a good resource for businesses that are looking for a professional LLC registration service. While it’s not the most affordable option on the market, it does offer peace of mind with a money-back guarantee, as well as a wide variety of services for LLCs.
