BetterLegal vs LegalZoom (2024 Comparison & Review)
Due to the large variety of legal and business formation services available in the industry, choosing the right one for your business can be hard.
BetterLegal and LegalZoom are two top business formation companies that Venture Smarter has come across offering many services.
With over a decade of experience with multiple LLC formation services, we'll share our insights on Betterlegal and LegalZoom based on their features, prices, and services to help you make the best decision.
At a Glance: BetterLegal and LegalZoom
BetterLegal is an online legal and business formation service. Since their founding in 2016, the company has assisted thousands of satisfied customers.
LegalZoom was founded in 2001 and has helped over 2 million business owners remain compliant with state regulations and operate successfully. It is ideal for businesses that need regular legal documents but don't have the budget for an in-house legal team or to hire an individual lawyer.
1. BetterLegal LLC Highlights
- Fast application services
- Business registration services
- Registered agent
- License search
- Certificate of Good standing
WE RECOMMEND ZENBUSINESS
2. LegalZoom LLC Highlights
- Business registration services
- Digital welcome package
- Registered agent services
- Legal advice
- Website customization
WE RECOMMEND ZENBUSINESS
3. How BetterLegal and LegalZoom Stack Together
LegalZoom provides basic formation services and legal consultations, and offers a wide range of packages specific to the needs of a business.
BetterLegal features a single comprehensive plan designed to expedite the process while offering other services to manage and maintain your company.
In Venture Smarter's view, both companies offer additional services that allow your company to be compliant with business state laws.
Side-by-Side LLC Plan Comparisons
A recent review by Webinarcare shows that over 30% of small businesses without business plans are likely to fail within their first three years of operations.
Both companies provide business formation plans, which is crucial for the sustenance of a business. However, BetterLegal offers only one complete package, which covers the necessary basic formation.
1. Basic Plan Comparison
- LegalZoom's Basic Plan ($0 + state fees): This free plan includes filing the Articles of Organization, a name check service, a digital welcome packet, and a customizable website.
2. Mid-Level Plan Comparison
- LegalZoom's Pro Plan ($249 + state fees): Besides the basic plan, you get a custom operating agreement, an EIN, customizable document templates, and initial phone consultations. When I availed of the package, I found it helpful that specialists handle consultation on business insurance and taxes.
3. Top-Level Plan Comparison
- BetterLegal's LLC Formation package ($299 + state fees): This formation package includes filing of the Certificate of Formation, an Employer Identification Number (EIN), an operating agreement, a banking resolution to form a business bank account, a free website, a business tax analysis, insurance evaluation, and expedited service. A client of mine was pleased that their application was processed within 2 business days.
- LegalZoom's Premium Plan ($299 + state fees): It includes all the features in the Pro package plus firsthand attorney guidance, unlimited 30-minute attorney consultations, and 30 days amendment on your LLC formation documents.
Registered Agent Services
BetterLegal offers one of the most affordable registered agent services available in all 50 states. With just $90 per year, you'll be provided with security, privacy, and rapid document delivery.
LegalZoom charges $249 annually for their top registered agent services. The package includes privacy, mail alerts, emails about taxes and annual report deadlines, and unlimited cloud storage.
Additional Services
Apart from the features included in their packages, Venture Smarter found the companies to offer the following services:
1. Permits and License Search
With LegalZoom, we were able to avail of a $99 business licensing report package, which included a customized summary of permits and licenses in the federal, state, and local levels and comprehensive details about each document.
BetterLegal offers the same plan for $125. The package features a detailed report and instructions on how to complete the documents correctly.
2. Compliance Services
Both LegalZoom and BetterLegal offer compliance service plans.
LegalZoom will submit annual reports, income tax, and other mandatory filings required to keep your business in good standing with the state. The cost of the service is undisclosed in their website, so you have to contact customer support.
BetterLegal features a state compliance service for $10 a month or $90 annually.
3. Trademark Registration
A client of Venture Smarter was able to register a trademark with LegalZoom for $599 excluding state fees. The package comes with legal management and guidelines to ensure your trademark is approved and registered.
A 2023 report published by Statista shows that trademark applications stood at 15.5 million in 2022, the highest there has ever been [1]. Unfortunately, BetterLegal does not offer this service despite it being important to businesses.
4. Certificate of Good Standing
You can request for a Certificate of Good Standing with LegalZoom for $45 excluding state fees and a rush filing option for $75.
With BetterLegal, you can obtain the document for $25 with a 1 to 3-week turnaround period.
Customer Service
BetterLegal can be contacted through phone, live chat, or submit a form through their website. Customer support is available Monday to Friday, 9 am to 7 pm EST.
LegalZoom provides priority support and typically provides responses within 24 hours. You can also reach customer service by phone or live chat from Monday to Friday, 5 am to 7 pm PST.
"Audiences seek to connect with brands that demonstrate a commitment to listening, engaging, and fostering a sustainable community over time. In today's environment, customer service represents the digital entrance to a brand's presence, making it an essential element."
- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisition
Although the representative was responsive and helpful, we had to provide details about the business before our concern was addressed.
Related articles:
- LegalZoom vs Bizee (formerly Incfile)
- LegalZoom vs Northwest Registered Agent
- LegalZoom vs BizFilings
Customer Reviews
FAQs
Which is More Affordable, BetterLegal or LegalZoom?
LegalZoom is more affordable because the company offers a free basic LLC formation plan while BetterLegal has only one package that costs $299.
Do BetterLegal and LegalZoom Offer Refunds?
LegalZoom offers a refund within 30 days of purchase while BetterLegal's services are non-refundable.
BetterLegal vs. LegalZoom: Our Recommendation
BetterLegal and LegalZoom offer business formation packages. Both platforms helped us establish LLCs successfully and within just a few days.
While both companies provide great formation services, ZenBusiness is an alternative since the company offers additional features that both services don't, such as a business website, worry-free compliance, extended business hours, and more.
If you want to start your business venture efficiently, Venture Smarter recommends you to try out ZenBusiness services today.
Our #1 Recommendation
ZenBusiness
- Worry free compliance
- Affordable formation
- Expedited filing
- User friendly
- Extended business hours
- Get the BEST PRICE until the end of October
- Have to add a registered agent service.
References:
- https://www.legalzoom.com/business/intellectual-property/trademark-registration-overview.html
