Is LegalZoom good for starting a business? Or are there better alternatives out there?
In our LegalZoom review, we will cover everything you need to know before deciding on whether to use their services to form your LLC.
- Affordable LLC filing
- A 60-day satisfaction guarantee
- Tax consultation
- LLC guide
- Vetted attorneys
- Poor customer support
- Expensive add-on services
Price starts at
$79 + state fees
30 business days (Economy plan)
Depends on the package
10 free + $280/year
Unlimited legal and accounting consultations
Web domain & hosting
What Is LegalZoom Best for?
LegalZoom is a company that offers online legal services. It was founded in 2001 and has since helped more than 1.6 million entrepreneurs to open an LLC.
LegalZoom reviews are a mixed bag: some customers are happy with the service they got, while others felt they got ripped off. But are the negative LegalZoom ratings justified?
The following are the LLC services offered by LegalZoom, whether they are included in an LLC package or an add-on service.
Business Name Availability Search
LegalZoom will check if the business name you want is available in your state. This service is included in their LLC packages.
LegalZoom will review and complete all your paperwork, before filing it with your state.
Comprehensive LLC Welcome Packet
This service includes:
- Articles of Organization
- A financial account authorization letter
- A step-by-step checklist for after your LLC is formed
Tax Savings Analysis by 1-800Accountant
Included in the LLC package is a 30-minute phone conversation to discuss tax benefits, tax requirements, etc. In brief, you will be talking about the best tax option for you.
Operating Agreement and an Employer Identification Number
These two come as a package add-on and cost $99.
Registered Agent Service
The LegalZoom LLC fees of the RA service are costlier when compared to competitors. When creating your LLC through their website you have the option to add this service. If you click on this service during checkout, you will get a notification stating that once your documents are submitted to the state you will be charged $249.
Plans & Pricing
You can choose one of the three LegalZoom LLC packages:
- Economy $79 + filing fee (30 business days)
- Standard $329 + filing fee (15 business days)
- Express Gold $349 + filing fee (10 business days)
The following are the LegalZoom prices for additional services:
- Legal Zoom registered agent: $249 for the first year + renews annually
- Operating agreement: $99
- Operating agreement plus EIN: $159
- Operating agreement, EIN, and licenses: $199
- Smart employer: The first 10 days are free — once the trial period is over, pay only $39.99/month
- Total compliance: This service is offered for 10 days with your LLC order, then it continues automatically at $280/year
With all the additional services you purchase, the total Legalzoom LLC cost increases. Most of the services are optional, meaning you don’t need to purchase them from LegalZoom.
You, however, would need to have a look at the state-specific requirements to see which extra services you might need.
We also recommend checking if your state has the option for rush filing. The LegalZoom LLC pricing model is a bit confusing: they offer rush filing for an extra cost. If this isn’t offered in your state, however, you are basically paying them to prioritize your order over their other orders.
In one LegalZoom review, a customer complained that they paid for the express package and still had to wait a long time before their LLC was formed.
The Legal Zoom customer service team can be reached via the contact form on their website or by phone.
- Sales (855) 787-1922
- Customer care (800) 773-0888
The LegalZoom customer service hours are the following:
- Monday to Friday, from 7 am to 5 pm PT
- Saturday and Sunday, from 7 am to 4 pm PT
A good number of negative LegalZoom reviews suggest that customer support isn’t one of the firm’s strong suits. The sales team is easier to reach than the support team, and the waiting time for a support agent is upwards of one hour.
Ease of Use
Using LegalZoom’s website to create your own LLC is a bit tricky. For starters, LegalZoom tries to upsell online formation services each step of the way.
Essential documents, total compliance, operating agreement + EIN, etc. We recommend against clicking next without reading carefully what you agree to pay. You may end up having to pay more than $1,000.
Another issue is the fact that when using LegalZoom for LLC formation, the company is your registered agent by default. This service costs $249 per year. When you are at the checkout page, the price isn’t listed, so customers assume they are getting a free service included in the package. You would need to manually edit the item and nominate your own agent. As mentioned in one LegalZoom review, this fee is subject to change. Each year you may end up paying more for this service. To cancel it, you would first need to change your registered agent with the state. Understandably, customers were upset by this practice and many business owners claimed that LegalZoom scams their customers by doing this.
LegalZoom has a profile with the Better Business Bureau which has been accredited since 2001. They have an A+ BBB rating. The company has a 1.5-star average rating, based on 306 LegalZoom reviews on the BBB.
There are 106 LegalZoom reviews on Trustpilot, giving the company an average rating of 2 stars.
LegalZoom is an accredited partner of Consumer Affairs. The 486 reviews of LegalZoom give the company an average rating of 3.5 stars.
Sitejabber gives LegalZoom a confidence score of 10 out of 10. Based on 978 LegalZoom reviews, customers gave the company an average rating of 4.07 stars.
The main issues customers complained about in their LegalZoom LLC reviews are:
- Customer support
- Renewal of the registered agent service
Getting in touch with a customer service representative seems to be a hard endeavor. In almost all LegalZoom complaints, customers stated that they were on hold for more than an hour when they needed help.
Another one of the problems with LegalZoom is that they charge for services that are cheaper or free elsewhere.
For example, getting an operating agreement + EIN costs $159. However, you can get your federal tax ID number from the IRS for free in less than 15 minutes. So, there’s no need to pay those additional $59.
Lastly, in a LegalZoom review on Reddit, a customer was also complaining about this service and mentioned that a lawyer can serve as your registered agent for a fraction of the price. And a good lawyer is more likely to provide the best registered agent service you can find.
While the customer support team is criticized in most of the LegalZoom reviews from 2020, the company has a lot of experience and more than a million customers. Their LLC package also contains some beneficial services, such as tax consultation. They also include a guide on what to do once your LLC is formed.
If you believe that these services will be useful for your business, then LegalZoom may be the best incorporation service for you.
As part of our LegalZoom LLC review, we considered the main LegalZoom competitors.
LegalZoom vs Rocket Lawyer
Rocket Lawyer offers similar LLC filing services. The main differences between these companies are the pricing models and the satisfaction level of customers.
The one-time LLC formation package by Rocket Lawyer costs $99.99. However, they offer a monthly membership which costs $39.99 and the first business incorporation is free for members.
Rocket Lawyer reviews are also mostly positive. The site has a minimum of 4 stars on the most popular review sites.
To find out if this is a good LegalZoom alternative, check out our Rocket Lawyer review.
LegalZoom vs ZenBusiness
ZenBusiness has a higher rating on Trustpilot and more satisfied customers, compared with the Legal Zoom reviews for LLC formation on the same site.
Besides having numerous customers say that this is the best LLC website, ZenBusiness also offers lower prices. Their starter package costs only $49 per year.
To find out which is the best LLC service for you, have a side-by-side look at our ZenBusiness review and LegalZoom review.
And to sum up: the main advantage of this company is that the team will help you start your business at an affordable cost while discussing your best options for your individual situation. While a lot of LegalZoom reviews highlight problems, mostly with customer support, ultimately, the service is good value for money.
What is LegalZoom?
LegalZoom is an online legal company that offers business formation services, as well as the creation of legal documents (will and testaments, etc).
Is LegalZoom legit?
Yes, LegalZoom is a legitimate company, founded in 2001 and headquartered in California.
How much does LegalZoom cost?
The LLC packages start at $79, excluding the state fees.
Is LegalZoom worth it for LLC filing?
While LegalZoom is an affordable option, they do not offer the cheapest LLC registration. At $49 per year, the starter package offered by ZenBusiness is cheaper than LegalZoom.
Can you get a refund from LegalZoom?
LegalZoom has a satisfaction guarantee. You can request a refund within 60 days of purchase. As stated in the LegalZoom refund policy, they cannot refund filing fees, taxes, or money paid to third parties (attorneys affiliated with their legal plans).
Is LegalZoom good?
There are both positive and negative LegalZoom reviews online. So, all in all, they are affordable if you decide to skip the extra pricier services.