LegalZoom Review (2024 Update) An In-Depth User Report

Delina Chantel Yasmeh
Published by Delina Chantel Yasmeh | Author
Last updated: May 21, 2024
FACT CHECKED by Lou Viveros, Growth & Transition Advisor
Methodology
We diligently evaluate each service provider showcased in our reviews and guides. By interacting anonymously with their business formation and services, and leveraging the insights of an independent review team, we strive to offer unbiased, evidence-based suggestions. Learn more

As a Mergers and Acquisitions specialist with years of practice, I gained profound expertise in the formation of LLCs using different services.

After using LegalZoom and collaborating with our panel of expert advisors, I'll provide you with a comprehensive review of its features, services offered, and the benefits of employing the online legal service company.

What is LegalZoom?

A person typing on a laptop in an office with the Legalzoom logo

LegalZoom is an online legal service company that facilitates the collaboration of business owners with legal experts and consultants.

Since its founding in 2001, LegalZoom has helped over 4 million entrepreneurs form their businesses.

The service provides assistance in forming various business structures, including Limited Liability Companies (LLCs), Corporations (C Corp, S Corp), Doing Business As (DBA), Nonprofits, and Sole Proprietorships.

They also offer additional services like Registered Agent Services, Operating Agreements, Legal Help, LZ Tax, and Annual Reports.

As a businessman myself, I have proven that LegalZoom is a reliable and trusted platform that helps with LLC formation, legal matters, and compliance.

Our #1 Recommendation

LegalZoom

LegalZoom CTA
Rated 4.52/5
4.6
Support
4.7
Price
4.5
Turnaround
4.3
Ease of use
4.3
User Ratings
4.7
Features
Pros
  • Free access to numerous business templates.
  • Wide range of services for individuals and companies.
  • User-friendly website with a clear process.
  • Get the BEST PRICE until the end of June
Cons
  • LLC formation costs higher than many rivals.
  • Persistent promotion of extra services.

LegalZoom Review Ratings

In Venture Smarter's evaluation of LegalZoom, we've assessed various aspects of their service to provide a detailed rating.

Our ratings are based on firsthand experience and thorough analysis, ensuring that they reflect LegalZoom's offerings' true value and effectiveness.

Support - 4.6/5

LegalZoom's customer support is rated at 4.6 out of 5, reflecting their commitment to providing timely and helpful assistance.

Customers appreciate the knowledgeable and friendly support team, which is crucial for navigating the complexities of legal services.

The availability of multiple channels for support, including email, chat, and phone, made it easier for us to access customer services.

Price - 4.7/5

We rated LegalZoom's pricing at 4.7 out of 5, acknowledging their competitive and transparent pricing structure.

Despite being slightly higher than some alternatives, the value derived from their comprehensive service packages justifies the cost.

In my experience, the variety of options available allowed us to choose a package that best suits their budget and business needs.

Features - 4.7/5

LegalZoom's features score a high 4.7 out of 5. This rating is attributed to their extensive range of services, from LLC formation to legal document preparation.

Many of my clients vouched that their user-friendly platform and additional tools like compliance calendars and minutes manager add significant value for businesses seeking legal assistance.

Turnaround - 4.5/5

The turnaround time for LegalZoom's services is rated at 4.5 out of 5. While they offer efficient processing times, there is room for improvement in expediting certain services.

However, the option for expedited service in their premium packages is a notable advantage for those needing quicker results.

LegalZoom LLC Pricing & Packages

After using their services, Venture Smarter discovered that LegalZoom offers three tiers of service: Economy, Standard, and Express Gold.

Aside from LLC formation services, LegalZoom offers a selection of premium add-ons.

1. Basic LLC Formation ($0 + State Filing Fee)

A person holding a laptop while on a couch, with the Legalzoom logo

The Basic plan covers everything you'll need for business formation.

The following is included in this package:

  • Articles of organization
  • Name check
  • Business filing service
  • Digital welcome packet
  • Support through Email & chat
  • Customizable website powered by Wix

2. Pro LLC Formation ($249 + State Filing Fee)

This legal services plan contains all of the features of the basic package plus the following:

  • Operating Agreement
  • Federal Tax ID Number (EIN)
  • Business licenses & permits guide
  • Financial account authorization letter
  • A personalized consultation with a licensed NEXT insurance agent
  • Tax consultation with a small business specialist
  • Support through Email, chat, & phone

You can create membership certificates for your LLC at home using many templates that are available online.

3. Premium LLC Formation ($299 + State Filing Fee)

The Premium Package includes all the features above plus the following:

  • 3 months subscription included for Attorney Guidance
  • Unlimited 30-minute attorney consultations about new and unique legal topics or issues
  • 3 months subscription to a full library of customizable forms and one copyright registration per month

"Alone we can do little, if we work as a team, we can accomplish so much more."

- Danya Shafkeh, Corporate Attorney & Writer of Venture Smarter

Additional Services

A person holding a phone with the legalzoom logo in front

What Venture Smarter experienced is that the company provides services depending on your legal needs.

After creating an account, I gained access to compliance services offered by LegalZoom.

A preview of my account will allow you to view the general platform, as well as other available offers.

1. LLC Operating Agreements for $99

LegalZoom will create an LLC Operating Agreement for you for $99. They ask you a few questions about your company and then generate an Operating Agreement.

If you wish to save $99, you have the option of finding a template online.

Not every template is suitable for every business, so be careful when choosing a template.

2. LLC Operating Agreement + EIN bundle for $159

A person reading an LLC operating agreement

According to the United States Census Bureau, there were 436,358 EIN applications last February of this year. For $159, LegalZoom will prepare an LLC Operating Agreement and obtain an EIN for your company.

3. LLC Operating Agreement + EIN + business licenses bundle for $199

LegalZoom will prepare an LLC Operating Agreement, an EIN for your LLC, and business licenses for $199.

LegalZoom provides a report that tells you what applications (if any) you need to file, but they don't assist you in completing them or cover any filing fees.

4. Registered Agent Services $249 per year

LegalZoom will be your LLC Registered Agent for $249 per year.

LegalZoom's registered agent services are available early in the registration process.

5. Annual Report for $55 annually

LegalZoom will file your LLC Annual Report for $55 plus state filing fees per year.

Annual Reports are typically delivered to you by the state.

6. Compliance Calendar $69 per year

LegalZoom sets up a Compliance Calendar for your LLC for $69 per year.

According to LegalZoom, their calendar contains information and deadlines for your business.

7. Minutes Manager $99 per year

LegalZoom's Minutes Manager product, which includes templates and processes for holding business meetings, costs $99 per year.

A person typing on a laptop with the Legalzoom logo

LegalZoom's library of legal forms is one of their most popular additional LLC service options.

You can pay for a single document (typically $59) or a monthly subscription that allows you to generate and download several papers as needed.

Benefits

Here are the benefits of hiring LegalZoom as your LLC service:

  • Hassle-Free Setup: In Venture Smarter's experience, LegalZoom offers an intuitive and straightforward process for setting up an LLC, ensuring all important details are addressed without overwhelming the user.
  • Cost-Effective: LegalZoom provides a budget-friendly alternative to traditional attorneys, offering essential legal services at a significantly lower cost.
  • Time-Saving: By handling all our clients' paperwork and filings, LegalZoom saved valuable time for business owners, allowing them to focus on strategic aspects of their business.
  • Comprehensive Services: LegalZoom extends its offerings beyond LLC formation to include a variety of services such as Registered Agent Services, Operating Agreements, and LZ Tax, catering to a wide range of business needs.

LegalZoom Shortfalls

Upselling is one of the things I didn't like about LegalZoom. Many LegalZoom reviews also mention how many upsells there are and how expensive the products and services are.

Here are other downfalls you might experience: 

  • LegalZoom LLC costs more than other business creation options
  • The registered agent services are not free (unlike many other providers)

Who Should Hire LegalZoom?

Entrepreneurs stepping into the business world should hire LegalZoom.

Whether you're launching a startup, forming an LLC, or navigating complex legal paperwork, their services are invaluable.

Venture Smarter recommend LegalZoom to business owners who are on a budget, since the company is offering a cost-effective alternative to traditional legal consultations.

LegalZoom Reviews

A person thinking in front of a computer with the Legalzoom logo

LegalZoom has garnered a rating of 4.6 out of 5 stars on TrustPilot.

They also have an A+ rating from the Better Business Bureau and a 3.92/5 customer rating--a testament to their excellent customer service.

Aside from their A+ rating, the BBB has received 287 complaints against them. Several complaints claim that LegalZoom charged consumers for services they didn't know about and had trouble canceling them.

Other customers have complained about hidden costs and memberships they didn't sign up for. Before submitting your payment information, always read the fine print and be sure you understand what you agree to.

LegalZoom Alternatives

A person writing notes in front of a laptop

Several other business formation services may better suit your needs if you're not set on using LegalZoom for your LLC formation. Here are some popular alternatives to LegalZoom:

  • Bizee: Bizee (formerly Incfile) offers a $0 base price and all their plans include a full year of free registered agent service. Then it's $119 per year, which is still on the low end of registered agent costs. If you require assistance with license and permit research, Bizee offers it for only $99.
  • ZenBusiness: If you opt for the basic package, you will get LLC filing service at a standard speed of 2 to 3 weeks, along with optional worry-free compliance for the first year free of charge (it renews at $199 yearly), all for $0 plus state filing fees. The other two plans cost $199 and $349, offering faster processing and some additional useful features not included in the basic plan, such as an EIN, an operating agreement, and a convenient ''rush'' filing speed of 1 to 2 business days.
  • NorthWest: NorthWest will assist you in LLC formation for $39 plus state filing fees. When starting a company with them, you will get registered agent services for the first year, after which it will cost $125. They are also the only company that offers address privacy.
  • IncAuthority: You can create an LLC for free if you choose IncAuthority. They don't charge you anything but have to upsell you to make money. They have an arrangement with the Bank of America, making opening a business bank account straightforward.
  • RocketLawyer: One of the most well-known online legal services companies. Rocket Lawyer offers an LLC formation service for $100 + state fees and legal document creation. The annual fee for registered agent services is $150.

Related articles:

FAQs

What are the Legal Protect Plan and the Business Advisory Plan?

The Legal Protect Plan offers 30-minute consultations with an attorney and legal documents from LegalZoom's library, including HR policies and forms. The Business Advisory Plan includes Tax advice, attorney assistance, and access to legal paperwork.

Can I Edit My LegalZoom Document?

Yes, you can edit your LegalZoom document, but you must create and pay for a completely new document. It's important to note that you can't update a LegalZoom document by editing the original. Updating your document by striking out clauses or writing changes is unacceptable.

When Is the Best Time to Contact LegalZoom Customer Support?

The best time to contact LegalZoom customer support is during their working hours. They are available 12-14 hours a day, seven days a week.

Our Verdict on LegalZoom

Having personally navigated the maze of starting a business, I can't emphasize enough how valuable a service like LegalZoom is. Their straightforward approach took the guesswork out of the process for me.

From choosing a business structure to ensuring all paperwork was filed correctly, they were a lifesaver.

The additional services, like LZ Tax and Registered Agent Services, were the cherries on top. If you're on the fence about using LegalZoom, I wholeheartedly recommend giving them a shot.

Our #1 Recommendation

LegalZoom

LegalZoom CTA
Rated 4.52/5
4.6
Support
4.7
Price
4.5
Turnaround
4.3
Ease of use
4.3
User Ratings
4.7
Features
Pros
  • Free access to numerous business templates.
  • Wide range of services for individuals and companies.
  • User-friendly website with a clear process.
  • Get the BEST PRICE until the end of June
Cons
  • LLC formation costs higher than many rivals.
  • Persistent promotion of extra services.

About The Author

Author
Delina Chantel Yasmeh, J.D./Tax LL.M, specializes in Mergers and Acquisitions at Deloitte and PwC, managing billion-dollar transactions. Educated in Accountancy at California State University and holding advanced degrees from Loyola Law School, she is highly skilled in tax law. Delina also dedicates time to pro bono work for women and children.
Learn more about our editorial policy
Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
Learn more about our editorial policy

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8 thoughts on “LegalZoom Review (2024 Update) An In-Depth User Report

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