LegalZoom vs LegalShield (Comparison & Verdict 2024)
When it comes to comparing LLC services, LegalZoom and LegalShield stand out as two notable providers.
As a business consultant with a decade of experience working with LLC formation services, I’ll share my insights regarding these two online legal services based on product offerings, pricing, and customer service.
In this LegalZoom vs. LegalShield review, we compare their features, plans, services, and performance to help you choose the ideal service that aligns with your specific business needs.
At a Glance: LegalZoom and LegalShield
LegalZoom is an online LLC company that offers legal services for commercial and private needs. They have assisted over 4 million clients with launching new enterprises globally.
LegalShield is an internet-based legal service founded in 1972.
The company has helped over 140,000 businesses and partnered with more than a thousand attorneys across the states, who customers can contact for affordable legal advice.
1. LegalZoom LLC Highlights
- Business formation services
- Registered agent services
- Ongoing compliance
- Operating agreement
- Bylaws and resolutions
Our #1 Recommendation
2. LegalShield LLC Highlights
- Business formation services
- Affordable subscription plan for legal purposes
- Power of attorney
- Trial defense
- Personal online legal services
Our #1 Recommendation
3. How LegalZoom and LegalShield Stack Together
After using the services of both companies, Venture Smarter learned that LegalZoom and LegalShield offer online legal services and business formation plans.
However, LegalShield focuses more on providing accessible legal consultations and services for personal or business needs. I recommend the company to clients who want to focus on keeping their business legally compliant.
LegalZoom offers three different LLC formation packages. You can avail of the basic plan at no cost and only have to shoulder standard state fees.
Side-by-Side LLC Plan Comparisons
LegalZoom and LegalShield offer the following plans:
1. Basic Plan: LegalZoom Basic Package
- LegalZoom's Basic ($0 + state fees): The package includes filing of formation documents, name check service, customizable website, and a digital welcome packet.
2. Mid-Level Plan Comparison: LegalZoom Pro vs LegalShield Business Formation Plan
- LegalZoom’s Pro ($249 + state fees): Apart from the features in the basic plan, the package includes a personalized operating agreement, an EIN, and introductory phone consultations on business insurance and taxes.
- LegalShield’s Business Formation Plan ($149 + state filing fees): This plan includes LLC formation, operating agreement, legal consultation, business licenses and permits research, and document reviews. When Venture Smarter availed of the service, we were pleased to learn that the plan features a 3-month free legal consultation.
3. Top-Level Plan: LegalZoom Premium
- LegalZoom's Premium Plan ($299 + state filing fees): Offers all the benefits of the pro plan in addition to direct legal advice, unlimited 30-minute legal consultations, and 30 days of document amendments for your LLC formation.
4. LegalShield Small Business Plan Monthly Subscription
- LegalShield Small Business Plan ($49/month): The package includes access to all LegalShield’s features and services, business legal consultation, document review, DBA, mail and phone correspondence, as well as 25% off on additional services. I found it helpful that the plan covers the application for business licenses and permits [1].
"In a business, great things can be accomplished if you work as a team."
- Delina Chantel, Mergers and Acquisitions Specialist & Writer of Venture Smarter
Registered Agent Service
LegalZoom charges $249 for its registered agent services, which include a business address, compliance calendar, franchise tax and annual report deadline alerts, and unlimited cloud storage.
You can avail of LegalShield's registered agent service for $120 per year. The package includes instant notifications on all documents, secure online dashboard, and privacy.
Additional Services
Apart from the services included in the plans, you can avail of the following additional features:
1. Doing Business As
A client of mine wanted to register an LLC under a different name and was able to register a DBA through LegalZoom for $99 plus state fees.
The DBA registration service is included in LegalShield's Small Business Formation Plan.
2. Trademark Registration
With LegalZoom, you can register a trademark for $599 plus state fees. This package includes legal consultation and guidance to ensure the trademark is approved and registered.
Trademark registration is included in LegalShield's Small Business Plan. Trademark lawyers will review your documents and provide guidance for only a small percentage of regular attorney fees.
3. Business License Report
For a fee of $99, LegalZoom will provide you a comprehensive permits and licensing summary necessary to run your business.
A similar service is already included in LegalShield's Small Business Plan.
4. LegalShield Trial Defense for Business
LegalShield offers small businesses' courtroom protection in case of any litigation for $14.95 monthly. When a client availed of the service, they were given 100 hours of trial defense services.
5. LegalShield Tax Audit
LegalShield offers a $24.95/month tax audit service. When Venture Smarter bought this plan, we were offered affordable access to an expert consultant who evaluated the company's small business tax return with the IRS.
Customer Service
LegalZoom can be contacted through phone and live chat, Monday to Friday 6 am to 5 pm PST, and on the weekends between 7 am to 4 pm PST.
We tested all the options and were pleased with the promptness and professionalism of the agents through phone.
LegalShield's customer support can be contacted via online chat, phone, and email. Phone service is available on weekdays between 7 am to 7 pm CST.
We contacted customer service to inquire about their business formation package, and the representative was polite and clear. LegalShield responded to our email requests within 4 hours.
Customer Reviews
Here are a few online reviews of LegalZoom and LegalShield online LLC services.
FAQs
Which is More Affordable, LegalZoom or LegalShield?
LegalZoom is more affordable since it offers a $0 basic LLC formation plan.
What Does the LegalShield Legal Plan Cover?
The LegalShield Legal plan covers access to legal services and advice from local attorneys and lawyers for $29.95 per month.
LegalZoom vs. LegalShield: Our Recommendation
LegalZoom and LegalShield are great companies for offering legal services and business formation plans to entrepreneurs.
When choosing which company to employ, I advise new business owners and entrepreneurs to consider all the services and features before finalizing your decision.
If you want to launch an LLC, we recommend hiring ZenBusiness to help you. Apart from offering a free basic plan, ZenBusiness offers reputable registered agent services at an affordable rate.
ZenBusiness also offers virtual business guides, business website creation, tax savings consultations, and ongoing compliance to keep your entity state in compliance.
Our #1 Recommendation
ZenBusiness
- ZenBusiness offers a $0 basic formation plan, as well as Pro and Premium packages.
- The basic plan includes a 1-year compliance service free of charge
- Pro and Premium plans feature a rush filing option, processed in 1 to 5 days.
- Excellent online reviews and customer feedback.
- Get the BEST PRICE until the end of September
- Registered agent service is available only as an add-on.
References:
- https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits
