Do you need to form a limited liability company, but you don’t want to bother with the complexities and hassles of forming your own LLC?
With this ZenBusiness vs Rocket Lawyer comparison guide, you’ll find the information you need to make this choice laid out in a convenient manner. Which service is the right choice to form your new limited liability company?
With ZenBusiness and Rocket Lawyer, we’re discussing two of the best companies for LLC formation service. Either of these service providers will do a good job of forming your new business efficiently and effectively. Depending on your preferences and the unique needs of your company, one or the other of these services will likely be a better fit for you.
Most importantly in our opinion, ZenBusiness has a pricing model that’s much more friendly on your wallet than Rocket Lawyer is. On the other hand, Rocket Lawyer has a big advantage when it comes to experience, as they have millions of customers served over the years.
If you would like to know all the relevant details of each service, read on as we walk you through a thorough comparison.
Is There a Better Alternative?
While ZenBusiness and Rocket Lawyer both have plenty of positives, neither of them are among our absolute favorite companies in this industry. In general, we prefer to use either IncFile or Northwest Registered Agent to form an LLC.
Both of these service providers include a full year of registered agent service with all of their LLC formation packages, which for IncFile start at $49 and for Northwest start at $79. Other than that, IncFile’s best attribute is their fabulous customer feedback reputation, with thousands of positive reviews all over the web. As for Northwest, they’re the only major national service provider that locally scans every document they receive as your registered agent, whereas most competitors only scan the government docs that they’re legally required to.
6 Things They Have in Common
1) Affordable: With either ZenBusiness or Rocket Lawyer, you’ll save a significant amount of money on your LLC formation compared to hiring a business attorney to handle your formation process.
2) Great Customer Feedback: Both of these companies receive fantastic reviews from their clients, and they both have hundreds of reviews available online. When it comes to client satisfaction, both ZenBusiness and Rocket Lawyer really shine.
3) Customer Support: While the methods they use to provide customer service are quite different (which we’ll discuss shortly), these two services both have customer support networks that can answer your tough questions. Why go it alone when you can get help from ZenBusiness or Rocket Lawyer?
4) Additional Services: Both Rocket Lawyer and ZenBusiness have many other services that they can provide to your business, from registered agent to annual report service and much more.
5) Efficiency: These companies both work quickly, and they can get your formation processed with the state in a matter of weeks or even days.
6) Informative: ZenBusiness has a blog where they share business tips, information about different entity types, etc. Similarly, Rocket Lawyer has links to many helpful business articles in the “Help” portion of their website.
Side by Side Comparisons
It’s quite difficult to beat ZenBusiness when it comes to pricing, seeing as they offer their Basic LLC formation package for free, as long as you pay your state fee. Rocket Lawyer’s price point for standalone LLC service is $99.99 plus state fee, or you can subscribe to their $39.99/month legal services subscription and receive formation service for free.
There is essentially zero difference between Rocket Lawyer’s a la carte LLC formation service and ZenBusiness’s free offering. They’re both rather barebones formation packages.
Rocket Lawyer’s website says that they’ve helped 20 million people since they opened in 2008, making them one of the most experienced LLC services around.
On the other hand, ZenBusiness is still basically brand new, as they opened in 2015. However, they do handle a pretty high volume of clients, as they’ve already formed thousands of businesses in just a few short years.
Customer service is another big difference between these companies. Rocket Lawyer has extended customer support hours that run from 9am to 9pm ET every weekday, and they offer phone, email, and web chat options for support.
On the other hand, ZenBusiness offers support from 10am to 7pm ET on weekdays, and their support is only available via web chat. There is no email or phone support with ZenBusiness.
ZenBusiness has turnaround times that are based on which level of service you purchase from them. They have a 4-week turnaround time for their Basic package, which you can cut down to 3-4 weeks with the Starter package, 1-2 weeks with the Pro package, and 3-5 days with the Premium package.
As for Rocket Lawyer, they post a state-by-state list of their turnaround times on their website. For standard processing, these turnarounds are anywhere from 1-2 business days for Kansas LLCs to 13 weeks for Alabama LLCs. For expedited service, the range goes from 1-2 business days (multiple states) to 25-30 business days (Iowa).
Both of these service providers have order tracking tools available on their websites. Simply log into your account and you’ll find your order status in your profile.
Registered Agent Service
Every LLC in America is required to designate a registered agent, which is a person or business entity 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. If you would like to see a list of our favorite registered agent service providers, simply click this link.
ZenBusiness includes registered agent service with all of their LLC formation packages except for the free Basic package, and this service costs $120 per year. Rocket Lawyer does not include registered agent with their formation package. However, if you subscribe to their $39.99/month legal services plan, you can get 25% off of their $149.99 annual fee for registered agent service.
ZenBusiness excels when it comes to customer feedback, as they have over 500 reviews available online, and nearly all of them are positive. Their clients are clearly satisfied with their services, and they frequently praise their efficiency, along with the general ease of use provided by their platform.
Rocket Lawyer also receives very good customer reviews, with mostly positive scores on their 1,700+ online reviews. Their customers love how simple Rocket Lawyer makes the formation process, and they often mention how much value they receive from the legal services subscription plan.
Ease of Use
While both of these companies make the LLC formation process far simpler than doing it yourself, we think Rocket Lawyer’s website is significantly more intuitive and user-friendly than that of ZenBusiness.
Which Is the Best LLC Service for You?
There are quite a few common characteristics between ZenBusiness and Rocket Lawyer, but as you can see, there are some significant differences as well. With this in mind, let’s take a look at some scenarios where you might want to choose one over the other for your company’s LLC formation service.
Regardless of which one you end up selecting, we think that both of these companies are entirely capable of forming your new business with minimal hassle and stress.
Choose ZenBusiness if You Are:
If you’re looking for the lowest price points, ZenBusiness is the obvious choice.
Choose Rocket Lawyer if You Are:
Is experience a major factor for you? Are you interested in their comprehensive legal services subscription? These are a couple of the main reasons why customers choose Rocket Lawyer.
While both of the LLC services in this comparison offer decent overall value and have formed thousands of businesses, we think ZenBusiness 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
If I Decide to Use ZenBusiness, Which Package Should I Choose?
In our opinion, there are two ZenBusiness LLC formation packages that represent excellent bargains. First and foremost, their Basic plan really is completely free of charge except for your state fee, and it includes the full formation process for your new business. If you want to add registered agent service to your LLC formation, we also like their Starter plan, which includes registered agent and still only costs $10/month.
Does ZenBusiness Handle Extra State Requirements Like New York Publication?
They absolutely do. We’re sometimes frustrated by the supposed “top companies” in this industry not offering publication service in states that require it, so we were pleased to see that ZenBusiness does handle this crucial step. As an example, check out their description for publication service in the state of New York.
Which Service Has Fewer Upsells?
While these companies both have upsells, we’ll say that Rocket Lawyer has fewer of them. The only real upsell we ever notice from Rocket Lawyer is the way they heavily promote their $39.99/month legal services subscription plan. While it can get a bit annoying, at least this is a valuable feature that some entrepreneurs will find highly useful, especially considering there’s a 7-day free trial and LLC formations are included for free for all new members.
As for ZenBusiness, they attempt $495 worth of upsells as you work your way through their order form for LLC service. The worst kind of upsells are the ones that feel unnecessary, and that’s certainly the case here, as every feature they present as an upsell is available in their LLC formation packages, so if you actually wanted them, you would’ve already had a chance to order them by the time they present them to you on the order form.
Do These Services Share My Information With Third Parties?
ZenBusiness has quite a few third-party partnerships, as you can see by taking a look at their LLC formation package options. Especially in their upper-tier packages, you’ll see lots of “bonus features” like CPA consultation, domain name registration, insurance quotes, and accounting software. Unfortunately, these are all attempts by ZenBusiness to get your permission to share your information with other companies.
On the other hand, Rocket Lawyer doesn’t have any info-sharing agreements with third-party partners that we’ve noticed. Instead, they focus on selling their own products and services, which is always good to see.
Do Either of These Services Have a Refund Policy?
Rocket Lawyer has a straightforward refund policy that states that any customer who requests a refund within 30 days of their initial purchase date will receive one. There’s no sneaky fine print, and they don’t even charge a cancellation fee.
It’s a bit of a different story for ZenBusiness, because their refund policy is quite vague. Take a look for yourself, and you’ll see what we mean: “Once ZenBusiness has submitted your business for filing with the State under no circumstances can you charge-back or dispute the fees associated with forming your business. If you contact ZenBusiness before your business has been submitted for filing with the State, ZenBusiness may refund the charge, less a $50 cancellation fee, if certain conditions are met.”
Which LLC Formation Website Is Faster?
Like most other companies in this industry, Rocket Lawyer bases their turnaround times on the processing speeds of each state. So, in some states they can complete your formation in just a few days, but in others it could take a few weeks.
ZenBusiness does things a bit differently, as their turnaround times are not directly tied to your formation state. Instead, they have processing speeds that vary depending on which level of LLC service you purchase from them. Their free Basic plan has a 4-week turnaround, their $10/month Starter package takes 3-4 weeks, the Pro plan ($30/month) has a 1-2 week processing time, and their Premium package for $60/month takes just 3-5 days.
Can I Just Form an LLC On My Own, Without a Service?
The DIY route is always available to you as an option, and quite a few people do choose to form their own LLCs without any assistance. However, this can be more of a hassle than you might expect, simply because every state has its own guidelines for forming LLCs, and it’s not always easy to figure out exactly what your state requires. Also, don’t underestimate the peace of mind you get from using a professional service to form your business. You can trust the expertise of ZenBusiness and Rocket Lawyer.