LegalZoom LLC Services Review (Advantages & Disadvantages)
Since 2001, LegalZoom has been the most recognized LLC formation service available. Even though there are over 20 services that will form an LLC for you online, they’re typically the first to come to mind for entrepreneurs.
As with anything, there are advantages and disadvantages to using their services. This LegalZoom LLC formation review was built out outline everything you should keep in mind before using their services.
Advantages & Disadvantages
- The main advantage of LegalZoom LLC services is that they essentially handle all paperwork on your behalf. This let’s you focus your energy on starting a business rather than learning about state requirements.
- Past LLC formation, LegalZoom does a good job sending you alerts about requirements you’ll need to adhere to with the state.
- If you’d like them to be, they can handle the paperwork to form an LLC, act as your registered agent and a lot more. It’s fairly all inclusive. The only thing they cannot do is provide specific legal advice for your business.
- While many of entrepreneurs mention that their services are affordable, just as many have voiced it is too expensive. There are more affordable options out there that basically offer just as much value. Ex: IncFile is $100 less for basically the same services.
- Since they are such a large organization (with over 1 million businesses formed) they don’t have the greatest customer support reps.
- Through LegalZoom’s checkout system, it can get a little confusing — leading you to likely sign up for add-ons that drive the prices of your order. True, just about every service in this industry does it, but LegalZoom is a bit more aggressive about it.
LegalZoom LLC Packages
LegalZoom has 3 ‘packages’ you can choose from that have different levels of pricing and features. Let’s talk about each.
Economy = $149 + State Fee
- LLC name availability check to see if your name is taken or not.
- LegalZoom handles the paperwork with your state. No need for you to file anything.
- Personalized Operating Agreement (unique to LegalZoom; other filing companies charge extra).
- LLC banking resolution (indicates who is authorized to open a business bank account).
- LLC approval time: 30 business days.
- Free shipping.
Standard = $289 + State Fee
- Everything in the Economy package plus the features below.
- A company seal and binder. Keep in mind that this is not required and is more of a formality. You do not need this if you don’t want to pay for it.
- 20 custom membership certificates.
- It will take 15 business days to process and receive your LLC.
Express Gold = $359 + State Fee
- Everything in the packages above.
- Discounted & expedited EIN.
- It will take 7 to 10 business days to receive your completed LLC.
- 2 day free standard shipping.
- 30 day trial to LegalZoom’s Business Advisory Plan. This is an interesting add-on which offers features like contract review, independent attorney consultations and more. This renews after 30 days, charging you $39.99/month.
- EIN (Federal Tax ID) for $79 if you choose the Economy or Standard package. If you choose the Express Gold, this only costs $49. However keep in mind this can be done for free through the IRS website.
- Registered Agent Services for $159/year. While a registered agent is a requirement for each state, you might be able to be your own. (What is a registered agent?)
- Compliance Calendar for $69. This essentially keeps you up to date on any requirements your LLC may need to adhere to in the future.
Which Is The Better Package?
At the end of the day, the choosing the ‘better’ package depends on you. If you do decide to use LegalZoom to form an LLC, I’d recommend the Economy package because it’s the one that gets the job done without the extra fluff.
The only other consideration I would add is how quickly you need an LLC formed. If you’re in a rush, the Express Gold handles everything in ⅓ the time. But keep in mind you’ll be automatically subscribed to a $39.99/month subscription you may or may not need.
LegalZoom LLC Customer Reviews
Here is where things get interesting. One of the best ways to gauge the quality of an online legal service like LegalZoom is to take a look at what their customers have to say.
For this customer review section we did research on three 3rd party customer review sites (Ex: SiteJabber and TrustPilot). In this section, rather than adding any curation on our part, it is worth spending about 10 minutes to scroll through the reviews.
In the long story short, LegalZoom does not score well with the online customer reviews published to the internet.
Should You Use LegalZoom?
When You Should
- If you don’t want to form an LLC yourself and would prefer to have a service do it for you.
- If you’re in a rush and would like to expedite your order for a faster turnaround time.
When You Shouldn’t
- If you simply want to save money and use a service that charges $100 less. If that’s the case, you should use Incfile.
- If you can’t stand upsells and being automatically subscribed to recurring services.
- If you’re not totally confident your business should be formed as an LLC.
Should You Form an LLC With LegalZoom?
At the end of the day, LegalZoom does what they say they will. If you prefer to work with companies with a recognizable brand and fairly good pricing, give it a shot. They do have a 100% money-back guarantee in place. The one thing we would recommend is being careful what add-ons you select. Be sure you’re getting what you actually need.