LegalZoom LLC Review
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LegalZoom LLC Review: Is It the Right Choice for Your Business?
Read our in-depth LegalZoom LLC review, to see if their services, pricing, and features are the best fit for your business needs.
LegalZoom is an innovative online legal technology firm aiming to transform the legal industry by delivering convenient, affordable, and high-quality legal solutions. As stated on their website, LegalZoom was established in 1999 and has successfully launched over 4 million businesses. Renowned for its LLC formation services, LegalZoom offers packages that include various legal documents and additional LLC services. The LegalZoom logo is a registered trademark of LegalZoom Inc. For aspiring business owners interested in starting a Limited Liability Company (LLC), LegalZoom’s reputation and straightforward filing procedures make it an appealing choice.
However, be advised: If you do not reside or conduct business in the state where LegalZoom forms your LLC, you must register your LLC as a Foreign LLC in your home state. This requires maintaining two LLC filings, paying two state filing fees, and having two Registered Agents. Refer to “Best state to form an LLC” to ensure you are forming an LLC in the appropriate state.
But is LegalZoom the right choice for forming your LLC? Several critical factors should be considered before selecting LegalZoom for your business launch. The LLC University® team has evaluated the LegalZoom website, engaged with multiple customer service representatives, and reviewed all terms and conditions to save you time. Our LegalZoom LLC review will explore the features and services LegalZoom provides. However, we advise you to read multiple LegalZoom reviews and research other LLC filing companies before deciding on a service provider.
LegalZoom Business Formation Services
Based on the information from LegalZoom’s website, setting up an LLC through them involves: Answering a few straightforward questions, which should only take a few minutes. Paying the required state filing fees along with LegalZoom’s service charges. Allowing LegalZoom’s team to prepare and submit all necessary paperwork. Receiving a complete LLC package, which will be available in your account or sent by mail. While these four steps are standard for all customers, the specific outcome depends on the LLC formation package you select.
Does LegalZoom send my LLC approval documents by mail or email?
It varies. According to LegalZoom, the method of receiving your approved documents—either via mail or available for online download—depends on the type of document and the state in which you are filing.
LegalZoom LLC Formation Costs
Please note that prices for LegalZoom’s LLC formation services may vary, as they often experiment with different pricing structures. However, the features within each package tend to remain consistent.
The most budget-friendly option is the Basic package, which is priced at $0 plus the applicable state fee. For detailed information about LLC state fees, visit our page on LLC Costs. With the Basic package, LegalZoom will:
– Verify the availability of your LLC name
– File your state LLC formation documents
– Provide a digital welcome packet
LegalZoom offers two enhanced LLC packages: Pro ($249 + state fees) and Premium ($299 + state fees).
LegalZoom LLC Formation Packages
The differences between LegalZoom’s packages are minimal. The Pro package mainly adds extra paperwork and phone support to the Basic package.
Premium, which is the most expensive option at $299 plus state fees, includes the same extras as Pro and also offers a subscription for attorney consultations. These consultations are 30-minute sessions focused on business basics, with an auto-renewing 30-day subscription at $49 per month.
Both Pro and Premium packages include everything in the Basic package, along with additional features like a personalized company seal, document folder, and membership certificates.
In our opinion, the additional features don’t justify the significant price increase from Basic at $0 plus state fees to Pro at $249. You can easily create your own membership certificates using our free LLC Membership Certificate template.
For ordering a business seal or other stationery, we suggest Moo.com. Moo.com allows you to design and customize your orders, unlike the pre-packaged items from LegalZoom.
LegalZoom customer support
LegalZoom’s LLC formation packages include customer service accessible via online chat or phone, available 7 days a week. However, when we reached out to LegalZoom representatives, they required details about our business before addressing our inquiries. We found it curious why this information was necessary. Moreover, their focus seemed to be on guiding us towards the LLC formation questionnaire and persuading us to make a purchase rather than directly answering our questions.
If customer support is a priority for you, it’s worth considering: LegalZoom earns a significant amount by upselling their “call a lawyer” services. So, how reliable can the basic, complimentary customer support be?
How much are you prepared to spend?
LegalZoom’s costs for establishing your LLC can become quite steep, especially with the upsells and additional products.
Speaking of costs, a major complaint about services like LegalZoom involves upselling tactics. Many LegalZoom reviews highlight the frequency of upsells and the relatively high prices of their products and services. Beyond the features provided in their Basic, Pro, or Premium packages, LegalZoom offers multiple chances to opt for additional services. If you opted for every upsell product LegalZoom presents, you’d end up spending around $1,500. Yikes! We break down each service and product below.
LegalZoom Review: Other LLC Services
Operating Agreement Packages $99:
LegalZoom will create an LLC Operating Agreement.
Our Analysis: LegalZoom asks questions about your business and provides a pre-filled Operating Agreement. If you’re not interested in paying $99 for this, we offer a free LLC Operating Agreement template. You can complete our template to draft your own Operating Agreement, and easily update it as your business evolves.
$79: LegalZoom will obtain an EIN for your LLC
Our Analysis: You can request an Employer Identification Number (EIN) from the IRS online at no cost. Learn more about acquiring an EIN for an LLC.
$99: LegalZoom will prepare a business license report
Our Analysis: LegalZoom outsources to another company to determine if your business needs a license or permit to operate, then sends you a report outlining necessary applications, but doesn’t assist with completing them or cover fees. For help with license and permit research, we suggest Bizee for the same feature at just $99.
Registered Agent Services $249 per year
LegalZoom acts as your LLC Registered Agent. This fee renews annually.
Our Analysis: Numerous Registered Agent service providers offer similar services, often with better privacy protection, at a lower cost than LegalZoom. Northwest Registered Agent provides this service for much less.
Annual Report $99 plus state fees annually:
LegalZoom files your LLC Annual Report.
Our Analysis: Annual Reports are generally straightforward to file; you verify your LLC information, pay the state fee, and you’re done. Paying LegalZoom an extra $99 each year for this is unnecessary.
Compliance Calendar $69 per year
LegalZoom creates a Compliance Calendar for your LLC.
Our Analysis: LegalZoom claims the Compliance Calendar includes deadlines specific to your business’s filing requirements. However, the main deadlines involve the LLC Annual Report and taxes. Paying $69 for a calendar that tracks a few dates is impractical, especially when you could use your existing calendar.
Minutes Manager $99 per year:
LegalZoom provides access to the Minutes Manager program, featuring templates and procedures for business meetings.
Our Analysis: While corporate governance requires formal meetings, LLCs don’t have to keep minutes as corporations do. LLC meetings can be informal. Recording changes in control or structure is important, but can be done simply as long as notes are comprehensive and stored securely.
Tax Return Filing and Advice $119 per month:
LegalZoom assists with tax information for your annual return.
Our Analysis: These fees accumulate quickly. The $119 fee is part of an annual plan, billed monthly, totaling over $1,400 a year.
Legal Forms:
One popular service LegalZoom offers is their collection of legal forms. After selecting a document, LegalZoom asks questions to auto-complete it. You can either pay for a single document (usually $99 each) or subscribe monthly ($99 per month) to generate and download multiple documents.
Our Analysis: LegalZoom doesn’t sell templates or blank forms. You complete a questionnaire, pay the fee, and receive a PDF document filled with your information. If you need to update the document later, you must retake the questionnaire and pay again, as you can’t modify the existing document.
LegalZoom Review: Upsells
During the LLC formation process on LegalZoom, you’ll encounter two service packages with appealing yet ambiguous names. We delved deeper to uncover what each package truly offers.
Legal Protect Plan
LegalZoom presents a “Legal Protect Plan” during LLC formation, but opting out can be tricky. You need to scroll past the offer to find the “No thanks” link below the prominent “sign up” button. The Legal Protect Plan is free for the initial 10 days (which is ineffective because your LLC won’t be approved and set up for at least 10 business days, even with LegalZoom’s Premium LLC service). Afterward, it costs $40 monthly.
What is the Legal Protect Plan?
This plan provides two benefits:
30-minute consultations with an attorney and access to documents like HR policies and legal forms from LegalZoom’s library.
However, there are restrictions. The plan’s contract stipulates that your attorney calls cannot cover taxes or business operations. A different upgraded plan is required for business-related advice. Essentially, you can discuss broad legal issues like contract law, liability, and employment law. Each topic allows just one free 30-minute call—subsequent queries on the same issue require paying for additional attorney assistance.
Regarding the “Legal and HR Documents” in the plan, we explore LegalZoom’s document library in more detail below.
Total Compliance
Another upsell is the Total Compliance package, and again, LegalZoom makes it challenging to bypass (you must scroll past the offer to find the “No thanks” link below the prominent “sign up” button).
The Total Compliance package is priced at $149 annually.
What is the Total Compliance package?
Overpriced! Essentially, Total Compliance bundles three LegalZoom services. Typically, bundles offer a discount, but we see no additional value here. LegalZoom’s description of this package is vague and designed to emphasize its importance for new businesses. We contacted LegalZoom for details, and here’s what we discovered:
The package includes LegalZoom’s Annual Report, Minutes Manager, and Compliance Calendar services. Buying them individually costs less than the $149 annual Total Compliance package.
Warning: There’s a glitch on the Total Compliance screen. The contract link erroneously leads to the LegalZoom Registered Agent contract, which isn’t part of the Total Compliance package.
Even if you’re considering these other LegalZoom services, there’s no financial benefit in succumbing to the intimidating language on the Total Compliance screen.
Note: The Total Compliance package doesn’t include “legal services.” These LLC services don’t provide legal advice or a relationship with an attorney.
Banking Offers
LegalZoom collaborates with a range of banks and financial service providers. Typically, the final stage of upselling comes from these partners. To present these offers, LegalZoom shares your contact details with these companies. Moreover, the financial institutions and service providers often further distribute your information. Thus, opting into these deals can lead to significant privacy concerns.
In this illustrative image, the initial offer involves a promotion (potentially up to $500 in statement credits, not actual cash) for opening a business bank account and a business credit card at the specified bank. Another offer includes waiving certain fees when you register to handle customer payments through the designated payment processor.
How fast do you need your LLC?
Tip: Take a look at our article on How long it takes to obtain an LLC in each state. Processing times at state offices can range from a single day to several months. Many states provide a “rush filing” service, which might require in-person submission.
If you’re eager to establish your LLC quickly but don’t reside near the Secretary of State office, LegalZoom offers a nearby courier to handle rush filings, expediting the processing of legal documents. However, this service incurs an additional, nonrefundable fee, even if approvals are delayed. (See more under Satisfaction Guarantee below.)
Premium Package
LegalZoom’s Premium package delivers a 5-14-day turnaround similar to its other plans. However, like the others, you can pay an extra $99 for next-business-day processing with LegalZoom, in addition to expedited state filing. If you need an immediate LLC formation, this could be beneficial.
Before deciding, verify if your state has expedited filing options. Consider whether it’s worthwhile to pay LegalZoom $299 plus the state filing and expedited fees.
Premium LLC Filing: What is the actual cost?
For instance, if you use LegalZoom to register an LLC in North Carolina:
File your own LLC: In North Carolina, the LLC filing fee is $125, with a $99 option for 24-hour processing. Filing and expediting yourself online would cost you $224 total, with your documents processed the next business day.
File with LegalZoom: Opting for LegalZoom’s Premium package in North Carolina involves the $125 state filing fee, the $99 expedited fee, and $299 in Premium LegalZoom fees, totaling $423. You would receive your approved LLC documents in 10-15 business days, not the following day. While additional features are included in LegalZoom’s upgraded packages, these may not hold significant value.
Does LegalZoom offer legal forms?
Not exactly. LegalZoom utilizes an interactive questionnaire to assist you in forming an LLC, but they don’t provide the Articles of Organization form directly. Similarly, they ask questions to create your LLC’s Operating Agreement. They don’t supply legal forms for future modification or reuse.
Is using LegalZoom equivalent to hiring an attorney?
It might be, if you choose to pay for one of LegalZoom’s attorneys. If your business is too complex for you to handle the paperwork alone, LegalZoom’s templates might be overly simplistic for your needs. They do offer enhanced customer support by connecting you with their staff attorneys, though this service incurs additional costs.
Does LegalZoom offer legal advice?
No, they do not. Unless you pay for professional legal counsel, LegalZoom does not provide legal or tax advice. They may imply they offer legal guidance while clearly disclaiming it. Consider their Peace of Mind Review™ program, which might sound like a legal professional reviewing your documents.
Unfortunately, it’s merely an automated program checking for typographical or completion mistakes. It functions like many website features that alert you to missing information, such as an incomplete address, or inconsistencies in names. No live individual, especially not a licensed attorney, reviews your documents before they’re submitted to the state. You remain accountable for the accuracy and any errors in your filing.
What is a Financial Account Authorization Letter?
LegalZoom’s Pro and Premium LLC Formation Packages include this letter, which specifies who has the authority to open a bank account for the LLC. While it’s a helpful document, it’s not required to set up an account for your LLC. For guidance, see our instructions here: LLC bank account. Essentially, the financial account authorization letter can serve in place of the Operating Agreement to inform the bank of the authorized individual. If you choose the Basic Package, LegalZoom charges $99 to create an Operating Agreement for your LLC.
LegalZoom’s article on opening a business bank account states that the financial account authorization letter isn’t a necessity.
To open a bank account for your LLC, you’ll need the following: your approved Articles of Organization, your LLC EIN number (CP575 or 147C), your LLC Operating Agreement, and your driver’s license or passport.
Do you have any inquairy about creating an LLC?
The LegalZoom site offers a comprehensive section titled “Common Questions,” but the answers are often general and mainly guide you toward using various parts of LegalZoom’s site and services.
LegalZoom also provides numerous articles on topics related to LLC formation, but these are usually written by their staff, who may not necessarily be lawyers. These resources are useful if you’re interested in the costs associated with LegalZoom or want to know if they provide certain services.
However, if you have more complex inquiries such as, “Is an LLC the right business structure for my situation?” or “How can I reduce my risks as an employer?” LegalZoom advises consulting with a licensed and independent attorney. Even for straightforward questions about LLC formation, LegalZoom encourages you to hire an attorney for advice.
Satisfaction Guarantee
LegalZoom provides a satisfaction guarantee for their business formation services. If you use their LLC formation service and are dissatisfied with the outcome—perhaps due to a clerical error or delayed document filing—you can request a refund. However, LegalZoom will only reimburse the fee you paid for their services, excluding any state filing fees you paid through them.
For instance, if you purchased the LegalZoom Economy LLC Formation Package, you paid them $79 for their service, plus the state filing fee for your LLC. With the Satisfaction Guarantee, LegalZoom will refund the $79 service fee.
In conclusion
LegalZoom offers a significant time-saving solution for aspiring entrepreneurs by streamlining paperwork, which could also lead to cost savings. With a solid 20-year track record of client satisfaction, LegalZoom stands as a reputable company. The platform is easy to navigate, and customer feedback is largely favorable.
However, it’s important to note that LegalZoom does not replace the need for legal counsel and lacks the comprehensive protections a licensed business attorney can provide.
Tip: Explore our review of Northwest Registered Agent to evaluate alternatives to LegalZoom.
FAQs
Is LegalZoom superior to IncFile?
In 2025, we evaluated LegalZoom and IncFile (now Bizee) based on their LLC formation packages, Registered Agent services, customer support, upsells, extras, and pricing. Although both companies are popular and share many similarities, we preferred IncFile. For more details, read our IncFile vs LegalZoom review. However, our top recommendation—and the service we personally use—is Northwest Registered Agent. They offer exceptional customer service with LLC experts, competitive package pricing, and valuable extras, including address privacy. Visit our Northwest Registered Agent review to learn why they’re our top choice.
What distinguishes LegalZoom from Rocket Lawyer?
Both LegalZoom and Rocket Lawyer provide LLC formation services and legal forms. LegalZoom leans more towards business formation services, while Rocket Lawyer focuses primarily on legal services and also offers LLC formation. For further information, see our Rocket Lawyer vs LegalZoom review.
What is the best LLC formation service?
After reviewing the leading LLC formation services in the industry, we believe the best are:
Northwest Registered Agent – Our #1 recommendation for privacy
ZenBusiness
Bizee (formerly IncFile)
Rocket Lawyer
LegalZoom
For a detailed comparison of these companies, see Best LLC Services.
Note: To save money, you can start your LLC yourself using our free step-by-step guides.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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- support@uniprime.online
- +1 (646) 347-3833
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