LegalZoom LLC Services Review (Advantages & Disadvantages)
Since 1999, LegalZoom has been the most well-known LLC formation service available. Even though there are over 20 services that will form an LLC for you online, they’re almost always 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 will 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, 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.
- LegalZoom costs more than other LLC services, with pricing that starts at $79. There are alternatives that will form your LLC for $30 less. (See Top Services)
- Since they are such a large organization (with over 1 million businesses formed) they don’t have the best 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 lot more aggressive about it.
LegalZoom LLC Formation Packages
LegalZoom has 3 ‘packages’ you can choose from that have different levels of pricing and features. Let’s talk about each.
Economy = $79 + State Fee
- LLC name availability check to see if your name is taken or not.
- LegalZoom handles the paperwork and communication with your state. No need for you to file anything.
- LegalZoom Peace of Mind Review.
- Digital Tracking of your order.
- LLC Next Steps guide.
Standard = $329 + State Fee
- Everything in the Economy package.
- Business newsletter.
- 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.
- Custom membership certificates and seal.
Express Gold = $349 + State Fee
- Everything in the Standard package.
- LegalZoom VIP processing.
- Priority filing and express shipping.
- 7 days a week customer support.
- Financial account authorization letter.
- Exclusive LegalZoom discounts.
- Operating Agreement for $99.
- Operating Agreement + EIN (Tax ID Number) for $159.
- Operating Agreement + EIN + Business Licenses for $199.
- Registered Agent Services for $159/year. (What is a registered agent?)
Which Is The Better Package?
At the end of the day, choosing the ‘better’ package depends on you. If you 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 (very expensive) 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.
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.
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 professional 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 less.
- 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.
Is LegalZoom Right For You?
At the end of the day, LegalZoom is a reliable service. If you prefer to work with a company that has a recognizable brand and reliability, give it a shot. They do have a 100% money-back guarantee in place.
The one thing we would recommend is being careful what package and add-ons you select. Past their basic package, everything about their service is a bit more expensive than alternative LLC services. Just be sure you’re getting what you actually need.