Do you need to form a new LLC, but you aren’t familiar with the details of the DIY option? Are you also unwilling to spend hundreds or even thousands of dollars to hire an attorney to draft and form your articles of organization?
Companies like Rocket Lawyer and BizFilings offer convenient alternatives to these options, but how do you figure out which one is the better choice for your company?
This Rocket Lawyer vs BizFilings comparison guide takes a look at their commonalities and differences. We’re confident that by reading this guide, you’ll get a good idea for which one you should choose.
With Rocket Lawyer and BizFilings, we’re discussing two of the top LLC formation service providers available in the industry today. They’re both quite capable of quickly and professionally forming your new LLC, but in general, we think Rocket Lawyer is a slightly better service provider for our readers.
Most importantly, Rocket Lawyer gets excellent customer feedback, with high average rating scores across their 3,000+ online customer reviews. By contrast, we were only able to track down three total reviews of BizFilings’ services anywhere online, which is odd for a company with hundreds of thousands of customers.
Is There a Better Alternative? While Rocket Lawyer and BizFilings both have plenty of positives, neither of them is our absolute favorite or the best deal.
In general, we prefer to use an online incorporation service like ZenBusiness or IncFile. Both of these providers include a full year of registered agent service with all of their LLC formation packages and many other important features. Plus, IncFile and ZenBusiness both have fabulous customer feedback reputations, with thousands of positive reviews all over the web.
Want to learn more about these two top LLC services? Check out our comparison review.
6 Things They Have In Common
1) Affordable: Compared to the high cost of paying attorney fees, Rocket Lawyer and BizFilings can both save you quite a bit of money. Especially considering the fact that an LLC isn’t a terribly complex business structure, you may not require a lawyer’s expertise to begin with.
2) Customer Support: Saving money is always great, but if you’re not getting the assistance you need, what’s the point? With Rocket Lawyer and BizFilings, you have access to their customer support networks that can get your questions answered quickly and accurately, leaving you more free time to run your LLC instead of searching for answers on your own.
3) Experience: Experience matters in this industry, and both Rocket Lawyer and BizFilings have plenty of it. They’ve each formed thousands of businesses in the past, and they have the expertise necessary to do a great job forming your new LLC.
4) Efficiency: Do you need your new business formed sooner rather than later? Both BizFilings and Rocket Lawyer can expedite your order (for an extra fee, of course) that can speed up your formation time considerably. In some states, it can even go from a couple of months down to just a few days!
5) Guaranteed Services: BizFilings guarantees that their formations are done accurately and quickly, and this guarantee lasts for the life of your LLC. Whether it’s tomorrow or several years down the line, if you find that they made a mistake with your filing, they’ll correct it or refund your money. As for Rocket Lawyer, they have an even more impressive 100% money-back guarantee that gives you 30 days to request a refund for any reason.
6) Additional Services: If you need other business services beyond your LLC formation, these companies can certainly help. From LLC operating agreements to registered agent service to federal tax ID numbers (EIN), they both have many other business services available. They’re truly one-stop business shops.
Side by Side Comparisons
Clearly, there isn’t much to talk about in this category, as we doubt many of you care all that much whether you pay $99 or $99.99 for similar services. However, as we work our way through the rest of these categories, you’ll see that there actually is quite a bit that separates these two companies from each other. Let’s find out which one you prefer to form your new LLC.
Both of these companies provide the basics of formation (name availability search, preparation and filing of articles of organization), but Rocket Lawyer’s LLC formation package doesn’t include any advanced features. For its part, BizFilings provides six months of registered agent service, along with six months of its online compliance management tool.
This category is clearly a big win for BizFilings. They charge 99 cents less than Rocket Lawyer, but they still include six months of registered agent service and compliance management. If you wanted your Rocket Lawyer LLC package to match the features BizFilings includes, you would need to add $75 for a total of $174.99. Or, you could just pay BizFilings $99.
It’s still not quite that simple though. We have a sneaking suspicion that Rocket Lawyer will put up a fight in the remaining categories…
Rocket Lawyer is a true industry giant, as they’ve served more than 20 million customers since opening their doors in 2008 ― an incredible volume of clients for a company that’s only been around for a little over a decade. BizFilings has plenty of experience too, but not nearly on Rocket Lawyer’s level, as they’ve served more than 500,000 clients since 2001.
These service providers both have solid customer service reputations, and we really don’t have a preference between the two in this area. Rocket Lawyer has slightly longer hours of operation ― they’re available on weekdays from 9 am-9 pm ET, compared to BizFilings’ 9 am-8 pm ET hours ― but BizFilings is a bit more consistent with the quality and responsiveness of their support.
Like most competitors, Rocket Lawyer’s turnaround times are based on each state’s processing speeds, which can vary from a couple of days all the way up to several weeks. BizFilings takes a different approach though, instead choosing to base their estimates on which LLC formation package you purchase. Their Basic plan has a 4-6 week turnaround time, while their Standard and Complete packages take 7-10 business days.
Both Rocket Lawyer and BizFilings offer expedited processing according to state guidelines. However, BizFilings charges an additional $60 fee on every expedited order, in addition to whatever your state charges, so expediting your order with BizFilings gets very expensive, very quickly.
This category is also quite even, as both Rocket Lawyer and BizFilings have ways to check your order status when you log into your account on their websites. They both make it easy to keep track of what step your formation is in.
Registered Agent Service
Every LLC in America is required to designate a registered agent, which is a person or business service that receives important document deliveries (like service of process) from your state government, informs you of the receipt, then forwards the documents to you. This is so crucial because the state needs to have a reliable means of contacting your business at any time.
We discussed earlier how BizFilings includes six months of registered agent service with any LLC formation package, which is a feature Rocket Lawyer does not bundle in with their formations.
Beyond that, these companies have similar pricing models for registered agent service: Rocket Lawyer charges $149.99 per year, and BizFilings has a price point of $164. It should be noted that many competitors can beat these prices rather easily, and neither of these service providers would be near the top of our list for the best registered agents.
There is no greater difference between these two service providers than when it comes to customer feedback. Rocket Lawyer has more than 3,000 reviews available online, and the vast majority of them are positive in nature. Customer feedback is clearly a big pro for Rocket Lawyer.
It’s a different story entirely for BizFilings, as they have basically no customer feedback online at all. It’s quite strange for a company with hundreds of thousands of customers, but we were only able to find three reviews of their services. Two of those three reviews are positive, but it’s such a small sample size that this is still a major disadvantage for BizFilings.
Ease of Use
Both of these companies have excellent websites that are very easy to navigate, and they both provide services that are much simpler to leverage than the DIY method. Rocket Lawyer and BizFilings are equals in this area.
Rocket Lawyer and BizFilings both provide access to a wide variety of additional business services, and they also offer many of the same services. For instance, either of them can help you with registered agent service, LLC operating agreements, and more. However, there are also quite a few services that you can only purchase from one company or the other.
Rocket Lawyer has many services related to business documents and attorney consultations that BizFilings doesn’t have. On the other hand, BizFilings has some advanced business features that Rocket Lawyer doesn’t offer, like entity conversions and reinstatements.
Best Service for LLC Formation?
Rocket Lawyer and BizFilings are both highly reputable companies that provide top-notch LLC formation services. They’re both worthy of forming your new LLC, and we think you’ll be satisfied with either one.
That said, if some of you are still undecided, let’s close out this comparison guide by quickly touching on a few of the main reasons people choose one or the other.
➥ Choose Rocket Lawyer if You Are:
Are you more comfortable using a service provider that has tons of experience and loads of positive customer feedback? Rocket Lawyer should be a strong choice for you.
➦ Choose BizFilings if You Are:
Are you interested in receiving registered agent service bundled in with your LLC formation? BizFilings should fit the bill quite nicely.
While both of the LLC services in this comparison offer good overall value and have formed thousands of businesses, we think Rocket Lawyer is the better option. However, in the larger picture, neither of these LLC services are our top pick. We highly recommend checking out our list of the top LLC services to see which is the best option available.
Frequently Asked Questions
Got questions? We’ve got answers.
If I Decide to Use Rocket Lawyer, Which Package Should I Choose?
Rocket Lawyer only has one LLC formation package available, so perhaps the better question would be whether you should purchase it as a standalone service, or subscribe to their legal services subscription plan for $39.99 per month.
While Rocket Lawyer’s LLC service costs $99.99, new subscribers to their legal services plan receive formation service for free. When you consider that they have a 7-day trial available, it’s worth trying if you’re interested at all in their ongoing legal services.
Does Rocket Lawyer Handle New York Publication?
They sure do. Rocket Lawyer doesn’t list publication service as an available feature on their website, but when we called them to double-check, they surprised us by saying that they do offer publication.
However, they charge a premium price for this service, as their publication fee is $299, plus whatever your county charges for a fee. It’s certainly worth noting that BizFilings charges just $100 for this same service.
Which Service Has Fewer Upsells?
On one hand, Rocket Lawyer doesn’t have many upsells at all. On the other hand, they do push their legal services subscription pretty hard at times.
As you place your order, they take several opportunities to remind you that you could subscribe to their legal services plan instead of placing your a la carte order. Other than that though, they don’t bother us in this regard. As for BizFilings, they really don’t have many upsells at all that we’ve noticed.
Do These Services Share My Information With Third Parties?
Rocket Lawyer doesn’t have any “free extras” or “special offers” that companies in this industry so often use as an excuse to share your information with third-party partners.
For a perfect example of this, look no further than BizFilings. BizFilings is absolutely relentless in overwhelming customers with third-party offer after third-party offer. Their order form for LLC formation service includes attempts to distribute your personal info to the following companies: Palo Alto, ADP, Pitney Bowes SendPro, Grasshopper, Hubspot, and a “business insurance provider” that they don’t even tell you the name of.
Does Either of These Services Have a Refund Policy?
Rocket Lawyer says that they will process refunds as long as you request one within 30 days of your initial purchase, but they also say that there are no refunds available whatsoever on payments collected for “incorporation-related services.”
BizFilings’ refund policy is even more convoluted. They say that they’ll provide a refund less a $50 processing fee if you request it before they conduct your business name availability check. If you request one after they do the name check but before they send your articles of organization to your state, they’ll grant a refund less a $75 fee. After that, there are no refunds at all.
Which LLC Formation Website Is Faster?
Depending on which state you’re forming your LLC in, either Rocket Lawyer or BizFilings could be significantly faster due to the way they structure their processing times.
Rocket Lawyer has turnaround times that are based on each state’s ability to process LLC formations, but BizFilings instead chooses to base their processing times on what level of service you purchase from them. Their Basic package takes 4-6 weeks regardless of your formation state, while their Standard and Complete packages take 7-10 business days.
Can I Just Form an LLC On My Own, Without a Service?
Absolutely! In fact, many entrepreneurs do choose to DIY their business formations every day. While this is certainly always an option for you, we’re always a bit hesitant about recommending it to our readers.
The reason for this is that every state has its own set of rules and regulations regarding the way an LLC should be formed, so to ensure your LLC’s compliance, you’ll need to familiarize yourself with your state’s specific requirements.
Furthermore, nothing beats the peace of mind we get from hiring a reputable LLC formation service like Rocket Lawyer or BizFilings, because we know each step was completed correctly.
Ready to Create Your LLC?
Visit the winner’s website or continue your research to find the best LLC service for you.