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ZenBusiness vs LegalZoom: Which One Is Right for Your Business?

zenbusiness vs legalzoom

As an entrepreneur, one of the most important steps in starting a business is registering it. Incorporation can be a daunting task, but with online legal services like ZenBusiness and LegalZoom, it’s never been easier. These two companies are among the most popular and highly recommended business formation services online. In this ZenBusiness vs LegalZoom review, we’ll compare the pros and cons of each company and take a look at the five key factors you need to consider when deciding which service is the better fit for your business. Check our selection of the best LLC services if you’re looking for other alternatives.

ZenBusiness vs LegalZoom: Why Choosing the Right Online Legal Service Matters

The right online legal service can make all the difference when incorporating a business. It’s essential to choose a service that can provide the necessary legal documentation, file them correctly, and offer reliable customer support. A wrong choice can lead to legal complications, loss of time and money, and even lead to the failure of your business. This is why choosing the right online legal service is crucial.

Five Key Factors to Consider When Choosing an Online Legal Service

When it comes to choosing an online legal service, some factors are more important than others. Here are the five key factors we’ll consider in our comparison of ZenBusiness and LegalZoom:

  1. Pricing and Features
  2. Track Record and Experience
  3. Customer Service
  4. Ease of Use
  5. Turnaround Times for Incorporating Online

Now that we have a brief overview of what we will be discussing, let’s dive in and compare the two services in detail.

Pricing and Value

When it comes to choosing a business formation service, pricing and value are key considerations. In this section, we’ll compare the pricing structure, packages, and services offered by ZenBusiness and LegalZoom.

Comparison of the pricing structure for both services

ZenBusiness offers a straightforward pricing structure with its basic package starting at $0, plus state fees. If you need more advanced features, its $199 Pro package includes ongoing compliance assistance, a guided operating agreement or corporate bylaws, and faster processing. The $299 Premium package adds the fastest processing, a domain name, and a business website package.

LegalZoom, on the other hand, structures its pricing differently. Its cheapest incorporation package has a price point of $149 for corporations ($79 for LLCs), and it includes no noteworthy advanced features. LegalZoom also charges a variable fee of $249-299 per year to add registered agent service to their packages.

Overview of the packages and services offered by each service

LegalZoom and ZenBusiness offer LLC formation services, with several packages to choose from. ZenBusiness offers three packages, while LegalZoom offers four. In general, LegalZoom’s packages include more features but are also more expensive than ZenBusiness’s packages.

ZenBusiness

  • Starter ($0): Includes business name availability search, preparation and filing of articles of organization, and personalized dashboard.
  • Pro ($199): Includes everything in the Starter package, along with registered agent service, compliance guarantee, operating agreement, and a worry-free guarantee.
  • Premium ($299): Includes everything in the Pro package, along with domain name registration, business website, and expedited filing.

LegalZoom

  • LLC ($79): Includes preparation and filing of articles of organization, name availability check, and a customized operating agreement.
  • Corporation ($149): Includes preparation and filing of articles of incorporation, name availability check, and corporate bylaws.
  • Express Gold LLC ($359): Includes everything in the LLC package, along with an expedited processing time of 7-10 business days.
  • Express Gold Corporation ($359): Includes everything in the Corporation package, along with an expedited processing time of 7-10 business days.

Comparison of value for each service

When comparing the value of each service, it’s important to look beyond just the price. ZenBusiness’s basic package may be the most affordable, but it also offers plenty of valuable features, such as its registered agent service. On the other hand, LegalZoom may be more expensive, but it has a higher level of experience and brand recognition.

To get a better idea of the value offered by each service, here’s a table comparing the prices and features of their basic packages:

ZenBusinessLegalZoom
Price$0 + state fees$79 + state fees
Registered Agent ServiceIncludedNot included
Operating AgreementNot includedNot included
EIN RegistrationNot includedNot included
Customer SupportEmail and phone support, including weekendsEmail and phone support

As you can see, ZenBusiness offers more features in its basic package, which can make it a better value for some businesses. However, it’s important to carefully evaluate your needs and consider all of the options before making a decision.

Track Record and Experience

When choosing an online legal service, it’s essential to consider the company’s track record and experience. This factor helps you determine if the service provider has the expertise and capacity to handle your business’s legal needs.

Comparison of the track record and experience of both services

ZenBusiness is a relatively new player in the online legal service industry, having launched in 2015. In contrast, LegalZoom has been operating since 1999 and has served over 6 million customers. LegalZoom’s extended time in business means they have more experience with various types of businesses and legal needs. On the other hand, ZenBusiness has served thousands of clients and boasts of positive feedback from over 10,000 customer reviews.

Overview of the customer volume and feedback for each service

The customer volume and feedback of an online legal service provider can indicate the quality of service and level of customer satisfaction. LegalZoom is a giant in the industry, having served over 6 million customers, and about a third of them are business clients. Although LegalZoom has mostly positive customer feedback, they have a slightly lower quantity and quality of reviews than ZenBusiness.

ZenBusiness, despite being relatively new, has thousands of clients and has garnered an impressive number of positive reviews. ZenBusiness prides itself on its socially conscious business model and has excellent customer reviews to show for it.

Comparison of the quality of service provided by each company

Both ZenBusiness and LegalZoom have competitive packages, but the level of service provided by each company may differ. ZenBusiness offers an excellent range of packages at affordable prices, including a free plan. The company also has a reputation for providing outstanding customer support, which is available seven days a week.

LegalZoom, on the other hand, is known for its extensive experience in the industry, serving a massive volume of customers. However, the company’s customer support is not as impressive as ZenBusiness’s. LegalZoom provides support via email or phone, but their email support can take up to a week to receive a reply. Additionally, their responses are typically form emails that don’t address specific queries.

To help you compare the quality of service offered by ZenBusiness and LegalZoom, the following table compares some of the essential features of their business formation packages:

CompanyLowest Package PriceFree Registered AgentOperating Agreement
ZenBusiness$0First-year freeIncluded
LegalZoom$149Not includedAdditional Fee

Both companies offer other packages with more features, but this comparison is to provide an idea of the differences in their standard packages.

Customer Service

ZenBusiness and LegalZoom both offer customer support through a variety of channels, including phone, email, and chat. However, there are some differences in the quality and responsiveness of their support.

The table below compares the customer service options provided by ZenBusiness and LegalZoom:

Customer Service OptionsZenBusinessLegalZoom
Phone supportYesYes
Email supportYesYes
Chat supportYesNo
Weekend availabilityYesNo

Overview of the customer support channels offered by each service

ZenBusiness provides its customers with access to customer service through phone, email, and chat support channels. Additionally, ZenBusiness offers weekend availability, which is a great bonus for those who need help on weekends.

On the other hand, LegalZoom provides customer service through email and phone, and they do not offer chat support. While LegalZoom’s phone support is generally helpful, their email support can take longer to respond and may not be as helpful as ZenBusiness’s support.

Comparison of the quality and responsiveness of customer support

When it comes to customer support quality and responsiveness, ZenBusiness offers a better service than LegalZoom. ZenBusiness has a great reputation for providing responsive and helpful customer support, with many positive customer reviews. In contrast, while LegalZoom’s phone support is generally helpful, their email support can have long response times, and their responses are often form emails that do not address any specifics.

In summary, if customer support quality is a top priority, ZenBusiness is a better choice than LegalZoom.

Final Verdict

In conclusion, both ZenBusiness and LegalZoom are reputable online legal services that offer reliable business formation solutions.

However, based on our comparison of the two services, ZenBusiness stands out as the better value for money.

While LegalZoom has been in business for longer and has more extensive experience, ZenBusiness offers more affordable packages that include useful features like registered agent service in their basic package.

Additionally, ZenBusiness has received positive reviews for its excellent customer support, which is available seven days a week, including weekends.

Therefore, for entrepreneurs who want to save money while still getting quality service and support, ZenBusiness is the better choice.

What are LegalZoom and ZenBusiness?

LegalZoom and ZenBusiness are online legal services that help entrepreneurs register their businesses.

Why is it important to choose the right online legal service?

Choosing the right online legal service can make all the difference when incorporating a business. A wrong choice can lead to legal complications, loss of time and money, and even lead to the failure of your business.

What are the five key factors to consider when choosing an online legal service?

The five key factors to consider when choosing an online legal service are pricing and features, track record and experience, customer service, ease of use, and turnaround times for incorporating online.

What are the pricing structures of ZenBusiness and LegalZoom?

ZenBusiness offers a straightforward pricing structure with its basic package starting at $0, plus state fees, while LegalZoom structures its pricing differently. Its cheapest incorporation package has a price point of $149 for corporations ($79 for LLCs), and it includes no noteworthy advanced features.

Which service is more affordable?

ZenBusiness’s basic package may be the most affordable, but it also offers plenty of valuable features, such as its registered agent service.

Which service has more experience?

LegalZoom has been operating since 1999 and has served over 6 million customers, while ZenBusiness has served thousands of clients and launched in 2015.

Which service offers better customer support?

ZenBusiness provides better customer support than LegalZoom, with more channels and weekend availability, as well as positive customer reviews.

Which service is the better fit for a business?

The choice between ZenBusiness and LegalZoom ultimately depends on your business’s specific needs and preferences. It’s important to carefully evaluate your options and consider all factors before making a decision.

The information on this page was last verified on November 27, 2023

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