LegalZoom is an online legal – tech firm aiming to transform the legal industry. It offers legal solutions that are convenient, affordable, and of high quality.
As per its website, LegalZoom was established in 1999 and has helped launch over 4 million businesses. It’s well – recognized as a provider of LLC formation services, offering packages that come with various legal documents and other LLC – related services.
The LegalZoom logo is a registered trademark of LegalZoom Inc.
For entrepreneurs looking to start an LLC, LegalZoom’s strong brand and straightforward filing processes make its LLC formation service very appealing.
However, there’s a warning. If you form an LLC with LegalZoom in a state where you don’t live or do business, you’ll need to register it as a Foreign LLC in your home state. This means maintaining two sets of LLC filings, paying two state filing fees, and having two Registered Agents. It’s advisable to check the “Best state to form an LLC” to ensure you’re choosing the right state.
Now, should you form your LLC with LegalZoom? There are key factors to consider. The LLC University® team has tested the LegalZoom website, spoken with customer service reps, and read all the terms so you don’t have to.
Our review will examine the features and LLC services offered by LegalZoom. But we suggest you look at multiple LegalZoom reviews and research other LLC filing companies before making a decision.
If you’re seeking a better deal, consider hiring Northwest. They charge only $39 plus the state fee, and there are no upsells. (Read our Northwest Registered Agent review to see why they’re top – ranked.
LegalZoom LLC Formation Services
LegalZoom claims its LLC formation process is simple:
- Answer a few easy questions, which takes just a few minutes.
- Pay the state filing fees and LegalZoom’s charges.
- Wait for LegalZoom staff to assemble and file all necessary documents.
- Receive a complete LLC package either through your account online or by mail.
The final package you get depends on the specific LLC formation service package you buy, though all customers follow these four steps.
Delivery of LLC Approval Documents
LegalZoom says it depends on the document being filed and the state. You may receive approved documents by mail or be able to download them online.
LegalZoom LLC Formation Prices
Note that the prices can change as LegalZoom often tests different pricing models, but package features usually remain the same.
The Basic package is the most affordable, costing $0 plus the state fee. In this package, LegalZoom will:
- Check the availability of your LLC name.
- File your state LLC formation documents.
- Provide a digital welcome packet with a copy of filed documents and a checklist.
There are two upgraded packages: Pro (249+statefees)andPremium(299 + state fees).
Comparison of LegalZoom LLC Formation Packages
The Pro and Premium packages build on the Basic package. The Pro package adds paperwork and a 90 – day bookkeeping subscription (which auto – renews at 9.99permonth).ThePremiumpackage,themostexpensive,offersthesameextrasasthePro,plusasubscriptionfor30−minuteattorneyconsultations(auto−renewingat49 per month for business basics). We believe the price difference from the Basic package isn’t worth it.
Customer Support
All LegalZoom LLC formation packages come with customer support available via online chat or phone 7 days a week. However, the representatives we interacted with asked for business information before answering questions. They seemed more focused on getting us to start the LLC formation questionnaire and buy a product than answering our queries.
If you dislike dealing with customer support, Northwest is a great alternative. They have good prices and usually get things right on the first try. (Read our Northwest Registered Agent review to see why we trust them.)
Also, consider that LegalZoom makes money from upselling “call a lawyer” programs. This makes one wonder about the quality of their basic, free customer support.
Cost Considerations
LegalZoom’s total fees for LLC formation can be quite high, especially with upsells and additional products. Northwest Registered Agent is our top pick for LLC formation. They handle everything for $39 plus state fees and offer the first year of Registered Agent service for free. (Read our review to know why they’re number one.)
Many LegalZoom reviews mention the excessive use of upselling and the relatively high cost of products and services. If you were to sign up for all the upsell products LegalZoom offers, you’d spend around $1,500.
LLC Formation Questions and LegalZoom’s Offerings
Are you curious about forming a Limited Liability Company (LLC)? While the LegalZoom website has a large section for common questions, the answers are quite general. They mainly aim to encourage you to explore different parts of LegalZoom’s site and use its features.
LegalZoom also has numerous articles on LLC – formation topics. However, these articles are written by LegalZoom staff, who may or may not be attorneys. These resources can be useful if you want to learn more about LegalZoom’s costs or whether it offers specific services.
Yet, for aspiring business owners with more complex questions such as “Is an LLC the best business structure for my needs?” or “How can I minimize my risks as an employer?”, LegalZoom recommends consulting a licensed and independent attorney. Even for basic LLC – formation questions, LegalZoom wants you to pay an attorney for an answer.
LegalZoom’s Satisfaction Guarantee
LegalZoom provides a satisfaction guarantee for its business – formation services, known as the LZ Guarantee. However, it has limitations.
If LegalZoom makes an error in your order, their LZ Guarantee page states that they will correct it at no cost. But when it comes to refunds, once your documents are submitted to a government agency (e.g., sending LLC – formation documents to the Secretary of State), you won’t be eligible for a refund.
If your order doesn’t require LegalZoom to submit documents to a government agency, you can request a refund within 60 days of placing the order, but only if the order is incomplete. For instance, this applies to documents like an Operating Agreement. If the order is completed, you have 7 days to request a refund, but there’s no guarantee it will be approved.
Regarding subscription services, LegalZoom will refund most subscriptions within 30 days of the initial purchase, provided you haven’t used the service. This includes subscriptions like Legal plans and forms and LZ Tax services.
Finally, any approved refunds won’t cover third – party processing fees, such as payments to their service partners. So, you may not get back the full amount you initially paid.
