Starting a business can be one of the most exciting and rewarding ventures in life. However, the process of forming a legal entity, such as a Limited Liability Company (LLC), can often feel like navigating a maze of paperwork, legal requirements, and decisions. Thankfully, there are online platforms like LegalZoom and ZenBusiness that simplify this process, making it more accessible for new entrepreneurs.
Both LegalZoom and ZenBusiness provide a range of services designed to help business owners form an LLC quickly and efficiently. However, despite their similarities, they differ significantly in terms of pricing, features, customer support, and the types of services they offer.
LegalZoom has been a well-established player in the legal service industry for over two decades, with a broad range of services that extend beyond LLC formation, including trademark registrations, patent filings, and legal consultations.
ZenBusiness, on the other hand, is a more recent company, founded in 2015, and has gained traction for its focus on small business owners. Known for its affordability, transparency, and ease of use, ZenBusiness offers a streamlined approach to LLC formation and ongoing business compliance.
For new entrepreneurs, the decision to choose between LegalZoom and ZenBusiness can be challenging. Should you opt for the more expensive but extensive services provided by LegalZoom, or is the simpler, more affordable approach from ZenBusiness the better option for your business? The answer depends on a variety of factors, including the complexity of your legal needs, your budget, and the level of ongoing support you require.
In this comparison, we’ll dive into the features, pricing, customer support, and overall user experiences of both LegalZoom and ZenBusiness. By the end of this guide, you’ll have a clearer understanding of which service aligns best with your business goals and needs, allowing you to make an informed decision that will help set your new business on the right path.
Whether you’re looking for a comprehensive legal service provider or a simple and affordable LLC formation service, we’ll help you decide which platform is right for you.
LegalZoom
LegalZoom has been a go-to provider for legal services since it was founded in 2001. Over the years, the company has grown into one of the largest players in the online legal service industry. LegalZoom offers an extensive range of legal services that go beyond business formation, making it a versatile option for entrepreneurs who may need ongoing legal assistance.
Whether you’re a first-time entrepreneur or someone looking to expand your business services, LegalZoom offers solutions for a variety of legal needs, including trademark registration, intellectual property protection, and even estate planning.
However, LegalZoom comes with a premium price tag compared to other services in the industry, making it a better choice for those who need more than just LLC formation.
ZenBusiness
ZenBusiness is a much newer player in the legal service space, having been founded in 2015. The company’s primary focus is to help small business owners and entrepreneurs form and manage their LLCs or corporations with ease. ZenBusiness has carved out a reputation for providing affordable services and excellent customer support. It’s particularly attractive to small business owners because of its transparent pricing and straightforward services. ZenBusiness offers everything from LLC formation to compliance and registered agent services, making it an all-in-one platform for small business management.
Despite being newer, ZenBusiness has quickly gained popularity due to its commitment to simplifying business formation processes, and it has successfully formed hundreds of thousands of businesses in the past few years.
How LegalZoom and ZenBusiness Stack Up
In this section, we’ll compare the services, pricing, features, and support offered by LegalZoom and ZenBusiness.
Quick Overview
LegalZoom:
- Offers comprehensive legal services beyond business formation.
- Strong brand recognition and a large customer base.
- Known for providing a broad array of legal services that extend beyond LLC formation, including intellectual property protections and access to attorneys.
ZenBusiness:
- Focuses mainly on business formation and management services.
- Affordable pricing, especially for entrepreneurs who need just LLC formation and compliance services.
- User-friendly and customer-centric, designed to provide value to small business owners without unnecessary frills.
Cost Comparison
One of the most important factors when choosing an LLC formation service is the cost. Both LegalZoom and ZenBusiness offer different pricing tiers based on the services you select. Let’s take a closer look at their pricing models.
LegalZoom Pricing
LegalZoom offers three main LLC formation packages, each of which provides different levels of service. Here’s a breakdown of the cost:
- Basic Package:
- Price: $79 + State Fees
- Services Included: Name check, Articles of Organization filing, online access to business formation documents.
- Standard Package:
- Price: $329 + State Fees
- Services Included: Everything in the Basic package, plus an official seal, personalized operating agreement, and expedited processing.
- Premium Package:
- Price: $349 + State Fees
- Services Included: Everything in the Standard package, plus a complete business website and domain name.
Additional services like registered agent services are available for an additional fee, starting at $249 per year. LegalZoom also offers an array of extra services, such as trademark registration, patent services, and access to consultations with attorneys, though these come at an additional cost.
ZenBusiness Pricing
ZenBusiness, on the other hand, offers simpler, more transparent pricing options. Here’s what their plans look like:
- Starter Package:
- Price: $0 + State Fees
- Services Included: LLC formation, filing of Articles of Organization, and a free operating agreement template. The first year of registered agent services is free for customers who choose the Pro or Premium package.
- Pro Package:
- Price: $199 + State Fees
- Services Included: LLC formation, Articles of Organization filing, operating agreement template, and one year of registered agent services.
- Premium Package:
- Price: $299 + State Fees
- Services Included: Everything in the Pro package, plus an expedited filing service, business website, and domain name, and a worry-free compliance guarantee.
ZenBusiness’s prices are much lower than LegalZoom’s, especially considering the services included, and their registered agent service is included in the Pro and Premium plans.
Standout Features
LegalZoom Features
LegalZoom offers a robust set of features beyond business formation. Some of the most notable include:
- Comprehensive Legal Services: LegalZoom gives access to a wide range of legal services such as trademark filing, patents, and legal consultations.
- Legal Consultations: With LegalZoom, you can consult with an attorney on an ongoing basis to address any legal issues your business may face.
- Customizable Packages: You can customize your services with LegalZoom to suit your unique business needs, adding things like custom legal documents or more specialized services.
ZenBusiness Features
ZenBusiness focuses on providing affordable, straightforward services for small business owners. Their standout features include:
- Affordable Pricing: ZenBusiness offers one of the most affordable ways to start an LLC, especially when compared to LegalZoom.
- Customer-Friendly Platform: ZenBusiness is designed with user-friendliness in mind, making it easy for entrepreneurs to navigate the LLC formation process.
- Free Registered Agent Service: ZenBusiness includes free registered agent services for the first year in their Pro and Premium plans.
- Compliance Assistance: ZenBusiness offers ongoing compliance management tools to help you stay on track with state requirements.
Customer Support
Both LegalZoom and ZenBusiness offer customer support, but there are some differences in how they handle it.
- LegalZoom: LegalZoom has a large customer support team available by phone, email, and live chat during extended business hours. However, customers have sometimes noted slower response times, especially during peak periods.
- ZenBusiness: ZenBusiness has a reputation for offering responsive and helpful customer service. Their support is available via phone, email, and chat, and they are known for their friendly and knowledgeable staff.
Customer Reviews and Reputation
Both LegalZoom and ZenBusiness have strong reputations, but their reviews differ in some key areas.
- LegalZoom: LegalZoom is a well-established brand with millions of customers. Many users appreciate the platform’s broad range of services, but some have reported issues with pricing and customer support, particularly regarding upselling and hidden fees.
- ZenBusiness: ZenBusiness has earned praise for its simplicity and affordability. Reviews frequently highlight the transparent pricing model and the ease of use of their platform. The majority of customers are satisfied with their service and especially appreciate the free registered agent service and ongoing compliance management.
LegalZoom vs. ZenBusiness: Which One to Choose?
Now that we’ve compared the features, pricing, customer support, and reputation of both platforms, let’s summarize which one might be the best fit for your business needs.
Choose LegalZoom If:
- You need more than just LLC formation services and are looking for ongoing legal support, intellectual property protection, or legal consultations.
- You’re willing to pay a bit more for a well-established and trusted name in the legal services industry.
- You want access to a wider range of services as your business grows.
Choose ZenBusiness If:
- You want an affordable and transparent pricing structure without hidden fees.
- You need a simple, easy-to-use platform for LLC formation and compliance services.
- You are a small business owner who wants to avoid paying for extra services that you don’t need.
Alternatives to LegalZoom and ZenBusiness
If you’re still not sure which service is best for you, there are other alternatives to consider:
IncFile: Known for offering free LLC formation services, IncFile can be an excellent choice for those looking for a low-cost option.
Rocket Lawyer: Offers a more comprehensive legal service package, including access to lawyers for ongoing consultations, which could be ideal for businesses requiring ongoing legal support.
Northwest Registered Agent: Known for excellent customer service, Northwest offers comprehensive LLC formation and registered agent services with a focus on privacy protection.
Frequently Asked Questions (FAQs)
How much does it cost to start an LLC?
The cost of starting an LLC varies based on the state you are in and the service provider you choose. On average, you’ll pay around $50 to $500 in state fees, with additional charges for services like registered agents and operating agreements. LegalZoom’s basic LLC formation package starts at $79 plus state fees, while ZenBusiness offers a free starter plan with state fees.
What is the difference between LegalZoom and ZenBusiness?
LegalZoom is an established platform offering a wide range of legal services, including LLC formation, intellectual property protection, and legal consultations. ZenBusiness, on the other hand, focuses primarily on LLC formation and compliance services, offering more affordable and straightforward options for small business owners.
Do I need a registered agent for my LLC?
Yes, most states require LLCs to have a registered agent, which is someone or a service that receives legal documents on behalf of the company. Both LegalZoom and ZenBusiness offer registered agent services, though ZenBusiness provides it for free in their Pro and Premium plans for the first year.
What’s the difference between LLC formation and incorporation?
LLC formation involves creating a Limited Liability Company, which is a popular business structure offering liability protection to owners without requiring a formal corporate structure. Incorporation refers to forming a corporation, which is a more complex structure involving shareholders, a board of directors, and more formalities. The main difference lies in the management and tax structure.
Can I change my LLC’s name or structure after it is formed?
Yes, you can change your LLC’s name or business structure after it is formed. If you want to change your LLC’s name, you need to file an amendment with the state. If you want to change to a different business structure (like from an LLC to a corporation), you would typically need to dissolve the LLC and form a new entity. Both LegalZoom and ZenBusiness can help facilitate these changes.