LegalZoom Review: Is It Really One Of The Best LLC Formation Services?

By  //  August 18, 2021

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As an online legal services company, LegalZoom specializes in providing its base with LLC formation services. Over the years, LegalZoom has quickly become popular amongst small business owners for their legal service and knowledge of business filing matters. 

If you wonder what the big deal is with LegalZoom and whether it is the best LLC service out there, here’s one of the most comprehensive LegalZoom reviews to help you make an informed decision. 

What is LegalZoom?

LegalZoom is a limited liability company (LLC) formation service provider. The company provides small enterprises with legal business advice, as well as various other legal services. 

LegalZoom has become very popular amongst business owners as the company can help small businesses handle all of their legal and filing matters – support that every business needs, especially when setting up, as backed up by Schmidt & Clark. These services include documenting agreements and contracts, providing them with an attorney, and managing property leases and deeds.

What sets LegalZoom apart from other companies is their ability to offer all these services at a much lower cost. Compared to regular law firms who charge higher fees, businesses that are just getting started don’t have such a budget, which is the biggest reason they choose LegalZoom over everyone else for all their business needs.

How Does It Work?

LegalZoom provides a wide range of legal consultations clients sign up for on online platforms like any other LLC services provider. 

LegalZoom requires official documentation for their registration process. To start, a client picks from a selection of packages, where they are then asked to fill in a form regarding their company profile. Once all the paperwork has been completed, LegalZoom registers the firm as a new business entity. 

From here, the client is allowed to begin business operations as a registered business. They also get to choose from a number of membership plans as part of an ongoing services package.

As part of their ongoing membership plan, clients get access to lawyers who are available for a number of services. These include the ability to answer any legal questions, provide advice on company contracts, and provide knowledge on areas such as the LLC formation process, business’ legal plans, and employment.

LegalZoom Services Offered and Pricing For Each

For LegalZoom LLC pricing, the company offers three payment packages, each with its own set of services. Depending on what state you live in, these filing fees can range in price anywhere from $50 to $500.

1. Trademark Registration ($199 + fees)

For only $199 plus state filing fees, LegalZoom offers excellent trademark registration services needed to form an LLC

Once the trademark registration and the accompanying legal work are complete, LegalZoom immediately notifies the client, which reduces delays and allows them to get started fast. 

2. Economy Services ($79 + fees)

Business Name Search

LegalZoom’s business name search verifies the availability of a chosen company name for the state the client has registered itself in. 

As a result, the client wishing to form an LLC is free from delays, the need to refile, and any refiling fees that may arise from using a duplicate name. This process also prevents lawsuits related to trademarked names and other legal complications in the industry.

Customer Support                                       

From what we’ve heard, the customer service representative at LegalZoom is well-equipped at handling complaints and offering solutions that appeal to all parties involved. According to WestWord, the LLC service provider has extended operating hours, assisting customers with all the help they may need.

Preparation and Filing of Articles of Organization

LegalZoom prepares and files documents that define a business as a legal entity and its scope of operation. 

One of these includes an important document known as the Articles of Organization, which define ownership and the regulations associated with how a business operates.

Registered Agent Services and Financial Account Authorization Letter 

An authorization letter defines parameters such as what individuals have the power to set up a business banking account and attend to financial matters.

One point to note is that Legal Zoom also provides a registered agent service. 

However, this service is considered an add-on for a $299 fee. Compared to other firms that provide this service for free, this pricing strategy is one way that LegalZoom makes up for their lower prices.  

3. Standard Fee Costs ($329 + fees)

LegalZoom standard fee includes their economy package, offering business advice on top of other additional services. These additional services may include:

Membership Certificates 

LegalZoom offers 20 membership certificates which come with a seal.

VIP Processing

This service is all about speed. For a small fee, individuals that like to go fast can opt for LegalZoom’s VIP processing service, which prioritizes your order over all others in their internal queue.

While this doesn’t guarantee that state authorities will accept your documents any faster, it does ensure your paperwork gets processed by LegalZoom’s internal team ASAP – which could result in one or two weeks saved.

Deluxe Organizer

For individuals that prioritize organization and tidiness, LegalZoom’s deluxe organizer provides you with a branded organizer that includes your business name. This is great for keeping all of your legal documents in one safe and secure place.

4. Express Gold ($349 + fees)

If you’re looking to get the most bang for your buck, Express Gold is a much better option compared to LegalZoom’s Standard Fee package.

For only $20 more, it includes all the services of the Standard Fee package, plus two additional extras:

Express Shipping

Express Shipping enables you to get express delivery from professional services, which usually arrives overnight. This package delivers LLC certificates as fast as possible and is therefore popular amongst entrepreneurs that need to get set up quickly.

Rush Processing

LegalZoom prioritizes customers’ satisfaction so that their processing takes no more than 7 to 10 days. 

Business owners under pressure to set their pending LLC product orders and contracts should consider this choice for maximum efficiency.

LegalZoom Pros and Cons

Pros

  • An already established brand with plenty of positive reviews to enable favorable decision-making
  • Legal Zoom makes it easy to create a professional LLC or an LLC formed entity
  • Facilitates a broad range of legal products and services
  • The wide range of legal services enable business managers and owners to work out legal issues and challenges for creating and maintaining a firm

Cons

  • Customer reviews and several other online LegalZoom reviews cite a lack of transparency when it comes to service charges
  • Higher Legal Zoom LLC pricing compared to options such as ZenBusiness
  • Customers have to pay for additional LLC features such as a Free Operating Agreement and Employer Identification Number (EIN)

How To Choose The Right Service

If you’re wondering which services you need, here are some guidelines you’ll want to consider to help you make your decision.

Frequency of Legal Aid

A company that requires recurrent legal assistance for legal tax advice, legal forms, and contracts should have a Business Legal Plan or a Business Advisory Plan.

Budget Size       

LegalZoom is known for their lower pricing options which is the main reason customers are attracted to them. 

Individuals with low budgets should opt for their economy plan, which provides everything they need at the lowest cost possible. 

Some additional expenses to factor in include a registered agent, federal employer identification numbers, and an LLC looking for a recognized brand name.

Urgency

In a rush? You’ll want to opt for the Express Gold Package, which for only $20 more includes everything in their Standard Fee package and ensures everything is ready within just ten days.

So, Is LegalZoom Worth It?

If you’re looking to incorporate your business, LegalZoom LLC service offers great starter packages that can satisfy the majority of your needs. 

LegalZoom LLC formation prices are lower than other LLC formation services, which is a big attraction for business owners looking for the cheapest service packages.

If you regularly need legal documents to be prepared – such as a business advisory plan, operating agreements, or authorization letters, LegalZoom LLC service offers attorneys that can provide you with legal help and legal advice to ensure your needs are met.

Additionally, LegalZoom customer service is very responsive, and their Express Gold plan ensures your paperwork is filed, completed, and shipped within just ten days – just another factor that makes LegalZoom stand out from the competition.

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