LegalZoom LLC review 2023: Cost, plans, features and more
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BLUEPRINT
Updated 1:17 p.m. ET July 28, 2023
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Our take
LegalZoom can help you form your LLC for just $0, plus state fees. But if your formation needs are more complex, or you need legal advice, LegalZoom can get expensive.
Pros
- Offers a free LLC service.
- Free package includes a Wix website.
- 60-day 100% satisfaction guarantee.
Cons
- Free package has limited services.
- Add-ons are costly.
- Pricing can be confusing.
LegalZoom LLC Review: Cost, Plans, Features and More
LegalZoom (LZ) can be a good service for someone with a do-it-yourself approach to business formation.
If you’re shopping around for a low-cost LLC formation package with articles of organization and name check services included, LZ’s Basic Plan will do the trick. But you’ll have to take care of your operating agreement and EIN on your own, and LZ’s registered agent services will cost you an extra $299 per year.
LegalZoom stands out amongst the competition for its unlimited 30-minute legal consultations, included with the Premium Plan for the first three months. LZ also has a 60-day, 100% satisfaction guarantee and Wix websites to build your business’s online presence are complimentary with every plan.
LegalZoom LLC overview and facts
LegalZoom was established as a tech company in 2001. Since then, LZ has added business formation services, tax filing/advising and other business and personal services to its roster. The company now has corporate offices in Los Angeles, Austin and the San Francisco Bay Area.
While LegalZoom offers a $0 LLC formation package, the price tag isn’t the only thing to look for when deciding whether or not to sign up. According to William Fry, CEO of Beacon, a company that assists with buying and selling small businesses, you should also focus on customer reviews.
“Some providers have terrible customer service,” warns Fry, “so you’ll regret going with a service that appeared cheaper on the front end but cost you more in time and headaches on the back end.”
Most customers have positive things to say about LegalZoom. On Trustpilot, 82% of LegalZoom reviews are five stars. Most customers comment on how easy it is to use LegalZoom, and their positive experiences with customer service.
The Better Business Bureau (BBB) gives LegalZoom an A+ rating, although LZ has closed 424 complaints over the last year. Several recent complaints mention unexpected monthly charges.
LegalZoom LLC plans and pricing
LegalZoom is one of many LLC formation services that has packages starting at $0, plus state filing fees. But you should be prepared to pay state filing fees of $50 to $500 or more, and depending on your needs, the $0 package may not include everything it takes to form your business.
“Feature-wise, you definitely want filing of your articles of organization and registered agent services, but the EIN is so easy to D.I.Y. it’s not worth paying for,” says Fry.
With LegalZoom, registered agent services aren’t included in any package, so you’ll have to pay $299 a year to get the services, on top of your plan’s fee. By comparison, Incfile includes complimentary registered agent services in its $0 package for the first year, and charges $119 annually afterward.
While registered agent services may be cheaper through some competitors, most business formation companies charge fees for EINs and operating agreements, just like LegalZoom. However, unlike some competitors, LegalZoom’s offers live chat support, a free app and a website, regardless of which plan you sign up for.
Basic
LegalZoom’s Basic plan costs $0, plus state fees. According to LegalZoom, this plan is for someone who can do most of the work themselves, and who only wants the necessities for making their business official. (Namely, filing of your articles of organization.)
For just the cost of your state filing fees, LegalZoom’s Basic plan comes with the following:
- Articles of organization filing.
- Name check service.
- Wix website.
If you go directly through Wix, you’ll pay a minimum of $16 a month for a website.
Pro
The mid-tier plan from LZ costs $249 plus state fees. LegalZoom recommends the Pro Plan for customers who need the essentials for compliant operations, but who can do most of the work themselves.
For the $249 Pro plan, LegalZoom customers get these additional features that don’t come with the Basic plan:
- Operating agreement.
- An EIN.
- Tax consultation with a small business specialist.
- Consultation with a business insurance agent.
If purchased separately, you’ll pay $79 for LegalZoom’s EIN filing.
Premium
The Premium plan from LegalZoom costs $299, plus state fees. This top-tier plan is recommended for customers who want upfront advice from attorneys, to help ensure they properly form their business.
When you opt for the Premium plan — which is $50 more than the Pro plan — you get all of the features listed above, plus a three-month subscription to the following services:
- Unlimited 30-minute attorney consultations.
- Attorney review of your legal contracts and documents.
- Monthly copyright registration.
- Access to a library of legal forms.
Note that attorney consultations are limited to one call per business topic, and you’ll be charged $49 a month for the legal services in this plan after the three-month period ends. Alternatively, legal advising is available through LegalZoom’s Business Advisory Plan for $469 a year ($39.08 a month) or $43.16 every six months.
LegalZoom add-ons and optional features
LegalZoom’s three LLC formation packages are bare-bones when it comes to business formation features, but there are plenty of services you can add to your package for an extra fee. Add-ons can be chosen during the set-up process, and they include:
- Registered agent services: $249 per year.
- Compliance package: $280 per year.
- Compliance calendar: $69 per year.
- Tax advisory plan: $49-$199 per month.
- Legal protect plan: $49 per month.
- Standard annual report filing: $99 (plus state fees).
- Rushed annual report filing: $199 (plus state fees).
- EIN filing: $79.
Business advisory plan
If you want the legal perks that come with the Premium plan, you might consider a Business Advisory plan instead. LegalZoom’s Business Advisory plan includes:
- Thirty-minute attorney consultation per legal matter.
- Contract/legal document review (up to 10 pages).
- Annual business evaluation (with the 12-month plan only).
- Unlimited downloads from legal form library
These plans are available for an annual payment of $469 a year ($39.08 a month) or $259 ($43.16 a month) billed every six months.
LegalZoom customer support and experience
LegalZoom offers live chat support on their website and you can use chat to connect to an agent in less than a minute. Phone support is also available Monday through Friday from 5 a.m. to 7 p.m., and on the weekends from 7 a.m. to 4 p.m. PST.
LegalZoom vs. ZenBusiness
If you go through LegalZoom or ZenBusiness, it can get expensive to purchase all of the key business formation services you need.
LegalZoom offers a better price on one-time EIN filing if you don’t sign up for ZenBusiness’s Premium plan for $349 per year, but if you also want a registered agent and an operating agreement, you could save $24 a year by going through ZenBusiness. Plus, ZenBusiness has excellent customer reviews on TrustPilot and only 70 closed complaints on BBB for the last year, versus LegalZoom’s 424 complaints.
LegalZoom vs. Incfile
Incfile is another business formation company that offers free packages, and just like LegalZoom, the $0 package from Incfile does not include an EIN or operating agreement.
It’s free to file with the IRS for your EIN, but some business owners prefer the help of an LLC service.
If you want to spring for help with your EIN, operating agreement and registered agent services, you’ll want to choose one of the LLC services paid plans. Both companies offer EIN filing and operating agreements with their mid-tier plans. However, you’ll save quite a bit of money by choosing IncFile’s Gold plan over LegalZoom because IncFile includes a free year of registered agent services with its plan.
Is LegalZoom right for your business?
LegalZoom can be a cost-effective option for someone who doesn’t mind doing most of their own paperwork. While the $0 package lacks some of the features you might eventually want, like an EIN, it can be easy enough to file for an EIN on your own.
If you spring for a pricier package, you’ll still have to pay for some of the business formation services you may need, like registered agent services. For most customers, the legal consultations that come with the Platinum plan are likely to be the most valuable feature, but you’ll have to budget your consultation time wisely, since you only get 30 minutes of advising per topic.
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LegalZoom offers all the basic services you’ll need to start an LLC, but they can get pricey if you need multiple services, like annual report filing, registered agent services or an EIN, since you may have to pay a separate fee for each one.
LegalZoom does not provide annual report filing or alerts with any of its LLC formation plans.
Their compliance package is available for $280 a year, and it includes filing of your annual reports, a compliance calendar to help you monitor upcoming filings dates, and alerts. LegalZoom guarantees that they’ll pay your fine or penalty if they miss a deadline while you’re subscribed to their compliance package.
Customers with Premium plans from LegalZoom will automatically be charged $49 a month for legal services after 90 days. Some customers have filed complaints with the BBB about unexpected, recurring charges, so you may want to monitor your payment account for unexpected transactions while using LegalZoom.
LegalZoom guarantees a refund for customers who are not 100% satisfied during the first 60 days. Refunds do not include fees that have already been paid to third parties, such as state filing fees and attorney fees.
LegalZoom offers a variety of business formation services, including registered agent services. LegalZoom also offers legal advice for business and personal matters, including estate planning, tax advising and accounting services.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
