Let’s start our LegalZoom review – every small business needs legal help at some point – especially when starting up. There are so many things to consider and plan, so you do not need to do it yourself when it comes to limited liability company (LLC) registration. This is valuable advice for entrepreneurs at the beginning of their business journey. And well, these days, you don’t have to opt for the traditional channels when it comes to legal paperwork.
Whether you are signing up or seeking more in-depth advice, as a small business in 2022, you can turn to the online world for legitimate help no matter the LLC issue. There are plenty of options to assist new LLCs and other corporations.
Online legal services are the latest innovation in new business assistance. Let’s discover why by taking a closer look at LegalZoom.
Editorial Note: We earn a commission from partner links on Startup Honcho. Commissions do not affect our editors’ opinions or evaluations.
What Is LegalZoom?
Beyond formation services, and as the oldest legal help platform, LegalZoom is the one-stop shop for any business that needs legal assistance. It is a DIY-style platform designed to help businesses that do not have access to their own lawyers.
LegalZoom offers various services – from one-time services to business formation to creating legal documents. So, when you are starting a business, LegalZoom can assist you in the tedious task of filing your papers with your specific state.
What Legal Services Do LegalZoom Offer?
As mentioned, dedicated to helping small business owners, LegalZoom has a variety of services available. These services can be broken into a few categories. They include:
- Business formation services
- Business operations offerings
- Intellectual property services
- Business advisory plan
Why Choose LegalZoom Above Other LLC Formation Companies?
$49 + State Fees
Varies By State & Package
$39 + State Fees
Varies By State & Package
$0 + State Fees
Varies By State & Package
LLC formation is time-consuming, and employing an LLC formation service provider from the very first steps will save you time and money. And although LegalZoom is priced higher than some of its online legal service competitors, they have one unique feature that can sway any start-up.
LegalZoom offers a generous 60-day money-back guarantee. This is tough to come by in the legal services industry and will put you at ease when starting your LLC journey. Starting a business costs a lot of hard cash, and knowing that an LLC formation company will give you back what you have spent if the process proves to be unsuccessful offers you peace of mind.
Actual Law Versus Legal Forms
Before opting for an LLC formation company, always read the fine print. At first glance, LegalZoom gives you the perception that they will sort all your legal needs and that this one-stop shop will assist you no matter your legal issue.
Yes and no – and this you will find in the fine print. LegalZoom is not a lawyer and technically cannot practice law. You have to view their offering as a self-service provider to your legal needs. This means that if you need legal business advice, you can use them as a starting point, but for more pressing issues, you will need to get an actual attorney.
With LLC Formation, Forget About Free
In business, the word ‘free’ should trigger your red flags immediately. Somewhere, somehow, the company will make money. How else do they sustain themselves?
This is no worry with LegalZoom as they do not offer anything for free. They do not have a free business formation plan or give you free benefits or legal assistance. You will be charged for any add-ons or extra benefits.
In itself, there are a lot of pros and cons to LegalZoom, but what you should be fully aware of from the start is what you need and what you don’t. This is where an actual attorney or business legal services can guide you. Ensure you know what you need and build your LLC formation plan accordingly, and expect to pay for it. Paying for service keeps the provider liable, and ultimately that is what you want.
This especially rings true on the legal side of their offering. LegalZoom will help you with your formation needs and if you need legal support, put you in touch with a professional service. But remember, at a cost that will also benefit their own pocket.
Looking at LegalZoom’s Online Legal Services’ Pros and Cons
Of course, many online legal services will have good and bad sides. Some are pricier, and others offer better customer support.
From a business formation standpoint, LegalZoom is on the pricier side. Let’s delve into this a little deeper.
LegalZoom Pros
Business Formation Services
When starting an official business, an entrepreneur needs to file formation paperwork, and with the right company by their side, it is an easy task.
Generally, LegalZoom gets positive reviews, but there are a few cons to using their service to file your legal paperwork. A massive pro for them as an LLC formation company is that they provide all their services in-house, which means that you do not need to go elsewhere for registered agent services like you would have to do with BetterLegal.
On the other hand, they are a little more expensive than the free options on the market but less costly than some top contenders. With a starting fee of $79 plus state filing fees, it is initially not that bad, but the added extras add up.
LegalZoom offers three different packages at different price points – economy, standard and express gold.
The Economy Package
This is the most well-priced option – not only for LegalZoom’s services, but the package also stands out from other online legal services. At $79 plus state filing fees, you can search for a business name in your state and file your papers with LegalZoom. The whole process takes around four to five weeks to complete from start to finish.
With the economy package, you will enjoy no added extras.
The Standard Package
Want to speed up your LLC formation? Well, with LegalZoom, you will have to pay quite a bit more. For $329 plus state filing fees, you can half the time your LCC processing will take. Apart from cutting the entire process to 15 days, LegalZoom will send you a kit that includes an embossed organizer and company certificates.
Express Gold Package
The Express Gold Package is the cream of the crop amongst the three LLC plans that LegalZoom offers. For $349 plus state filing fees, every new business will get the standard packages as well as their paperwork back within ten days. LegalZoom will express ship your documents.
Let’s Summarize LegalZoom’s Packages
To sum up, what we have just learned from LegalZoom is that if you have money, you will enjoy efficiency. The significant differences between the packages they offer are differences in time and cost. Yes, you can go down the cheaper route if you have time. Yet, with this LLC partner on board, you will feel like you are off to a good start, considering that LegalZoom not only advises you where needed but it also has a fair price for its services.
Add-on With Legal Documents and More
When starting a new business, time is your biggest asset, and LegalZoom knows this. Therefore, LegalZoom charges as an add-on for whatever comes above and beyond business formation. With BetterLegal, you also have to use an outside registered agent service, but they give it at a discount rate. $299 per year is quite steep against the $99 per year BetterLegal offers.
LegalZoom’s add-ons include:
- Registered agent services
- Operating agreement
- Employer identification number (EIN)
- Business licenses
- Compliance calendar
They Have Been Around for Years
Industry experience will always count in your favor, and LegalZoom has been in the online legal services industry for more than 20 years.
Diverse Range of Legal Services, From Business Formation to Tax Advice
As a legal services company, LegalZoom offers its clients the most diverse range of services.
Get a Business Advisory Plan That Has Everything You Need
New businesses can get affordable and convenient access to year-round attorney help for a flat monthly fee. The slight snag here is that it is more cost-effective than using LegalZoom’s one-off services.
Improved Customer Support for a Satisfaction Guarantee
Customer support can be a make or break for many LLC formation services. And amongst the many other companies in the sector, LegalZoom extended their customer service support in the US. Their customer support is now available from 5 am to 7 pm Monday to Friday and from 7 am to 4 pm on weekends. The plus here is that you do not have to waste your time with chatbots. You can get hold of the LegalZoom team via phone, email, or live chat.
LegalZoom Cons
Everything Has a Price Tag
Although Inc Authority is the most expensive in the market, LegalZoom, holistically, is not far behind. Yes, the cheapest package within their stable starts at $79 plus filing fees, but it does not give you an extensive list of advanced or impressive features.
The Upsets Can Be Heavy on the Pocket
With LegalZoom, never assume. Make sure that you understand what your business needs before starting the process. Why? Before you even get to choose one of LegalZoom’s packages, you will face many unnecessary options that can be redundant for where you are as a start-up.
Inclusive but Expensive Registered Agent Services
LegalZoom’s registered agent services are amongst the highest priced in the business formation market. To compare: Incfile and ZenBusiness include it in their offer, and BetterLegal provides it as an add-on for $99 per year. This is something to think about when opting for registered agent services.
You Will Wait for Your Business Filing
Yes, LegalZoom offers a diverse range of product and industry experience, but (and especially if you opt for the cheaper options) you will wait to receive your business formation documents. With LegalZoom’s most affordable package, you will wait up to 30 days.
LegalZoom Review Conclusion
If it is the experience you want, this is your option. LegalZoom is one of the oldest online legal services around. With customer service representatives available almost around the clock, you will be sure to feel supported throughout the entire process.
But as we mentioned, experience comes with a price. LegalZoom is not the cheapest or fastest option on the market, and in our opinion, there are more up-to-date, less traditional structures to use when you form an LLC. For a start-up that isn’t familiar with business structure or formation, the LegalZoom pricing might come in too costly. We mean that if you do not understand your business’ LLC requirements, you will ultimately pay heavy dollars for unnecessary add-ons.
The one great plus of LegalZoom, though, is that you can get your money back if you are unsatisfied. But of course, knowing their experience level, this is unlikely to happen because, in the end, you will receive your registration documents.
This brings us to. If you have a little more cash at hand and need more legal services than other businesses, LegalZoom offers you an extensive list of options. They definitely use their long-term knowledge to assist new business owners no matter the industry.
So, from customer support to tax advice to their express gold package, one thing stands true, many entrepreneurs trust LegalZoom, and they have successfully helped more than two million businesses. They are a trusted and recommended business formation company in the US.
Frequently Asked Questions
What if My Legal Issues Stretch Beyond LLC Formation?
Small businesses often need legal assistance, and working with LegalZoom can give you that. Still, if you need in-depth legal advice and documents, a legal entity will be much better suited to you, especially if you need ongoing legal advice.
Which of Legalzoom’s Packages Is the Best?
It will depend on your business formation and if you need to get it done quickly. All three packages will get your business registered, but it is best to opt for the express gold package for rush processing if time is an issue.
Can Legalzoom Customer Service Be Trusted?
Some reviews suggest that LegalZoom does not have the best customer support, but they have improved their help systems in recent years. They have extended the hours their support team is available, and their US-based support team is available via phone, email, and live chat.
Is Legalzoom a Great Way to Start an LLC for New Businesses?
Of course, LegalZoom is not a legal entity, but for small businesses who want access to legal forms and document libraries, it will be good to stick to LegalZoom. It will be a definite yes for businesses that need a little extra legal advice. For the rest, LegalZoom is a good business formation company but a little pricier if you don’t have time to wait for state filing. But if you do, $79 plus state filing fees is a great start.
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