LegalZoom Review: Pros, Cons, & Pricing

What Is LegalZoom?

LegalZoom is a well-known company that uses technology to offer various legal services. It was established in 2001 by Brian P. Y. Liu, Brian S. Lee, Edward R. Hartman, and Robert Shapiro. LegalZoom’s main goal is to make legal documentation and services easier for small businesses and individuals. The company is recognized for offering more than just LLC formation. It provides a range of services to meet different legal needs throughout the life of a business.

Packages and Pricing

LegalZoom offers a tiered pricing structure with three main packages for LLC formation: Basic, Pro, and Premium. Each package aims to meet the varying needs and budgets of different businesses. Below is a detailed table outlining what each package includes.

Ease of Use

I have found LegalZoom’s platform highly user-friendly, having made significant improvements in usability in 2023. Starting an LLC is now more straightforward, with a step-by-step process that can be completed on their website. This process involves answering a few simple questions, making the overall experience modern and uncomplicated. However, it’s noted that some users have encountered unexpected hidden fees during the signup process.

A particular point of concern is the pricing for the Registered Agent Service, which isn’t disclosed upfront during the LLC formation process, potentially leading to a surprise $249 charge.

Registered Agent Service

LegalZoom offers a registered agent service known as a resident agent or statutory agent in some states. This service is crucial for LLCs as it handles important legal and tax documents on behalf of the business, ensuring compliance with state laws.

Registered Agent Review

LegalZoom’s registered agent service is available for an additional cost of $249 per year. This service is not included in any of the initial LLC formation packages, requiring customers to opt-in separately if they need it. While LegalZoom is a well-known provider with a broad range of legal services, the cost of their registered agent service is higher compared to some competitors, which might be a consideration for small businesses looking to minimize expenses.

LegalZoom Registered Agent Price

LegalZoom charges $249 per year for their registered agent service. This fee is consistent across all packages and is not included in the initial LLC formation cost. Customers need to be aware of this additional cost, especially since it is not disclosed upfront during the LLC formation process.

Pricing Comparison: LegalZoom vs. Others

In comparing LegalZoom with ZenBusiness, and Bizee (formerly Incfile), we observe various offerings and pricing models tailored to different business needs. Below is a comparative table based on the information extracted from my knowledge source:

LegalZoom positions itself with a starting price for LLC formation higher than some competitors but offers comprehensive legal services. ZenBusiness stands out for its worry-free compliance and fast filing speeds at no initial cost. Bizee provides a low-cost, straightforward LLC formation process with a free first year of registered agent service.

I have analyzed, researched, and written a comprehensive comparison of the best LLC services, which will provide you with more options.

Customer Support Quality

I rate LegalZoom’s customer support is rated as good. They offer multiple channels for assistance, including phone, email, and live chat. Their representatives are knowledgeable and capable of addressing a wide range of questions related to LLC formation and legal services.

However, some users have reported longer wait times during peak hours, which is an aspect to consider. Overall, the support system is structured to provide valuable help to customers throughout the LLC formation process.

LegalZoom Phone Number and Email Address

LegalZoom provides multiple avenues for customer support:

• Email: [email protected]
• Phone: +1-888-379-0854
• Support Hours: Monday-Friday: 5:00 AM – 7:00 PM PT; Weekends: 7:00 AM – 4:00 PM PT
• Contact Page: LegalZoom Contact Us

These resources offer users various options to get assistance with their services, ensuring support is available when needed.

Turnaround Time

LegalZoom’s timeframe for forming an LLC doesn’t account for the processing time by the Secretary of State. They suggest 5-14 days for standard processing, and they also offer a faster option for an extra fee. This duration is somewhat longer compared to typical industry timelines and can fluctuate based on each state’s processing procedures and the specific service package selected by the customer.

LegalZoom offers faster processing for a fee, which can speed up the LLC formation process. When choosing between the regular and faster options, Northwest Registered Agent performs better at a lower price range.

Customer Feedback Analysis

When it comes to customer feedback, LegalZoom has received a mixed bag of reviews. Some customers have run into challenges, such as unanticipated charges, less-than-stellar customer service, and glitches with service delivery. Key areas of concern include:

• Unauthorized charges and subscription issues, with complaints about unexpected charges to credit cards.
• Poor customer service experiences, highlighted by long wait times and unresponsiveness.
• Service delivery inefficiencies are particularly noted in delays and inaccuracies in document processing.
• Difficulties in canceling services, with customers finding it extremely hard to cancel subscriptions online.

On the other hand, there are elements of LegalZoom’s service that customers have spoken highly of:

• Knowledgeable and professional staff appreciated for their informative and high-quality service.
• Helpful and patient customer service, with representatives noted for their ability to clearly answer questions.
• Ease of process and efficiency, with many users finding the LLC setup process straightforward and simple.
• Personalized assistance and thorough attention to detail, ensuring customers’ specific needs are well-addressed.
• Problem-solving and responsiveness, with customer service often resolving issues promptly and effectively.

It’s crucial to understand that experiences with LegalZoom can vary widely. Some people have faced challenges, while others have found it to be a valuable resource. This difference in experiences emphasizes the need for individual assessment when considering LegalZoom. It’s not a one-size-fits-all solution, but many have found value in its wide array of legal services and support.

Operating Agreement Service

LegalZoom’s Operating Agreement service costs $99. It’s not part of their basic LLC formation packages, so it’s an extra expense for those who need to set up their business structure formally. This service helps create an Operating Agreement, which is critical for laying out roles, responsibilities, and financial arrangements among the members of an LLC. It’s a key document for managing an LLC and can play a significant role in keeping business operations smooth and protecting the interests of its members.

LegalZoom lets customers choose to get an Operating Agreement as a separate service or as part of a more comprehensive package. This choice allows customers to shape their experience based on their unique needs. It’s a handy option, especially for new business owners who are finding their way through the complexities of setting up their legal and operational structures for the first time.

LegalZoom Mobile App

LegalZoom does not have an Android app but offers an application for iPhone and iPad users, which has received a 4.5/5 rating. The app’s reviews present a mixed picture:

• Some users have praised the app for making the process of managing their business services straightforward, noting the ease of tracking orders and the helpfulness of having access to customer support through the app.
• Others, however, have reported technical issues, mentioning that the app can be unresponsive or difficult to navigate. There were also comments about the lack of integration between multiple orders or services, indicating some inconvenience for users managing more than one business through LegalZoom.

The feedback about the app shows a mix of both positive and critical views. Users value the app’s concept and the functions it provides, but they also share feedback about how it could be improved in terms of performance and user experience.

LegalZoom Alternatives

When weighing up LegalZoom against its competitors, it’s useful to consider a few key factors: how much they charge for setting up an LLC, the cost of their registered agent services, how user-friendly their platforms are, and the unique features that set each service apart.

LegalZoom vs. ZenBusiness

This comparison highlights key differences in LLC formation and registered agent services between LegalZoom and ZenBusiness, focusing on aspects like pricing and customer support.

LegalZoom is known for its broad range of legal services, while ZenBusiness offers competitive pricing and a focus on customer support quality.

LegalZoom vs. Bizee

Comparing LegalZoom with Bizee (formerly Incfile) to spotlight the differences in their offerings, particularly in LLC formation costs and the inclusivity of registered agent services.

Bizee stands out for its no-cost entry point and more affordable registered agent service after the first year, positioning itself as a budget-friendly alternative.

LegalZoom vs. Northwest Registered Agent

This table contrasts LegalZoom’s and Northwest Registered Agent‘s services, focusing on pricing for LLC formation and the annual cost of their registered agent services.

Northwest Registered Agent provides a more affordable option for both LLC formation and registered agent services, emphasizing privacy and personalized customer service.

Cancellation Policy

LegalZoom offers a structured cancellation policy across various service categories:

• Filed Products: If documents haven’t been submitted to a government agency, requests for refunds are possible within 60 days of purchase. Once submitted, refunds are not issued. This applies to services like LLC and corporation formations.
• Non-filed Products: Services not requiring submission to a government entity allow for refund requests within 60 days of purchase, provided the order hasn’t been completed. Once completed, a 7-day window for refund requests is available.
• Subscription Services: Refunds for subscription services can be requested within 30 days of purchase, with specific conditions for services like LZ Virtual Mail, legal plans, LZ Tax®, and legal forms impacting the refund eligibility.

LegalZoom’s cancellation policy covers a variety of situations, including those involving attorney-led trademark registration and other intellectual property services. This gives customers a sense of satisfaction, knowing their needs are considered. However, clear limits are also set on when refunds are possible, ensuring a balanced approach.