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, we’ll take a look at what actually matters to help decide which is the service that will be the better fit for you.
What Does Good Value Look Like?
Before we dive into this comparison of ZenBusiness and Rocket Lawyer, let’s briefly talk about what a good overall value for an LLC formation service looks like. While there are a lot of services like LegalZoom that charge $99+ to form an LLC, there are a few services that’ll create an LLC for far less — and still include great features.
ZenBusiness is one of these good deals. In fact, they’re one of the best available.
6 Things They Have in Common
- 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.
- 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.
- Customer Support: 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?
- 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.
- Efficiency: These companies both work quickly, and they can get your formation processed with the state in a matter of weeks or even days.
- 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
Whereas Rocket Lawyer’s LLC service package includes only the absolute necessities of business formation, ZenBusiness includes a free registered agent service and customizable operating agreement in all of their formation plans. They also provide an in-house CPA Worry Free assessment to help make recommendations for keeping your new business’ accounting organized.
That said, ZenBusiness provides far more value than Rocket Lawyer at nearly 1/3 the price.
Rocket Lawyer’s website says that they’ve helped 20 million people since they opened in 2008, making them one of the most experienced online legal services around.
On the other hand, ZenBusiness is still fairly new, as they opened in 2015. However, they do handle a pretty high volume of business formations, as they’ve already formed thousands of entities in just a few short years.
Customer service is another close similarity 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.
ZenBusiness used to only provide customer service via web chat, with no availability for phone or email access. However, they recently overhauled their service department, and they now offer support via phone, email, or chat from 10am to 7pm ET on weekdays.
ZenBusiness has turnaround times that are primarily based on which level of service you purchase from them, although they do note that some states may be a bit faster or slower than their general estimates. They have a 3-4 week turnaround time with the Starter package, which you can cut down to 1-2 weeks with the Pro package, and 3-5 days with the Premium package.
As for Rocket Lawyer, standard processing turnaround times 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).
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 important because the state needs to have a reliable means of contacting your business at any time.
ZenBusiness includes registered agent service with all of their LLC formation packages, and this service costs $110 per year if ordered separately. Rocket Lawyer does not include registered agent with their formation package. However, if you subscribe to their $39.99/month legal services plan (which includes free formation service for new clients), 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 a little over 900 reviews available online and nearly all of them are positive. Entrepreneurs are clearly happy with their services and frequently praise Zen’s efficiency and ease of use.
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.
Which LLC Website to Choose?
There are quite a few common characteristics between ZenBusiness and Rocket Lawyer, but as you can see, there are some significant differences as well. For most entrepreneurs, we think ZenBusiness is the better choice.
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.
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.
➥ Choose ZenBusiness if You Are:
If you’re looking for a low cost LLC service and want a free registered agent service with your LLC formation, 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.
Overall, while both are good LLC services, we recommend ZenBusiness. They simply offer more overall value and more affordable prices. If you’d like to do a little more research and see how they stack up to the most well-known service, check out our comparison of LegalZoom vs ZenBusiness.
Frequently Asked Questions
Got questions? We’ve got answers.
If I Decide to Use ZenBusiness, Which Package Should I Choose?
Depending on your budget and the needs of your business, there are two different ZenBusiness packages that we really like.
First, it’s hard to find any fault with their Starter plan, because it costs just $39, and it includes the full formation of your LLC, one year of free registered agent service and a customizable operating agreement.
We also like their $149 Pro plan, which adds an EIN, managed annual report service and a banking resolution.
Both are well rounded and a great deal. (See Packages)
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 required step.
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 $285 worth of upsells as you work your way through their order form for LLC service.
Do These Services Share My Information With Third Parties?
ZenBusiness has a few third-party partnerships, as you can see by taking a look at their LLC formation package options.
On the other hand, Rocket Lawyer doesn’t have any info-sharing agreements with third-party partners that we’ve found. Instead, they focus on selling their own products and services, which is always preferred.
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 fine print, and they don’t even charge a cancellation fee.
In ZenBusiness’ words: “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 vary depending on which level of LLC service you purchase from them. While they do note that their processing speeds in some states may be a bit faster or slower, in general their $39 Starter package takes 3-4 weeks, the Pro plan ($149/year) has a 1-2 week processing time, and their Premium package for $249/year 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. If you’d like to explore this option, check out our step-by-step guide.
Ready to Setup an LLC?
Visit the winner’s website or continue your research to find the best LLC service for you.