Nolo vs LegalZoom (Comparison 2024 – What’s Better?)
Are you looking to create a limited liability company but don't know which business formation service to use? Nolo and LegalZoom offer business formation plans with the additional benefit of online legal services.
As a business consultant with a decade of experience using LLC formation companies, I have evaluated Nolo and LegalZoom based on their features, price, additional service, and performance to help you decide which company is best suited to the needs of your business.
At a Glance: Nolo and LegalZoom
Nolo is an all-in-one formation and legal service. They have been in business since 1971, helping small business owners with legal matters and the business formation process.
LegalZoom is a company that provides business formation and legal services since its founding in 2001. The company assisted over 2 million individuals and businesses.
1. Nolo LLC Highlights
- Business formation services
- Competitively priced packages
- Legal documents
- Rush processing
- DIY guides
2. LegalZoom LLC Highlights
- Business Formation
- Legal consultation
- Online document prep
- Digital welcome packet
- Legal forms
3. How Nolo and LegalZoom Stack Together
Nolo offers a basic LLC formation package but does not provide the necessary services to maintain a business. The platform serves more as an informational website that provide legal consultation.
LegalZoom offers a more comprehensive package in the formation of LLCs and provides legal counsel, as well as, additional services to manage and maintain a company.
Side-by-Side LLC Plan Comparisons
Both LegalZoom and Nolo are top LLC service companies that offer comprehensive LLC formation packages for new business owners.
1. Basic Plan Comparison: Nolo Basic vs LegalZoom Basic
- Nolo's Basic Package ($49 + state fees): The plan includes a name check, filing Articles of Organization, automated error checking, customer service phone support, and a guide to formalizing your LLC – which I found very helpful. The guide contains information on how to maintain your business and remain compliant with the law.
- LegalZoom's Basic Package ($0 + state fees): The plan includes filing of your LLC formation document, name search, a digital welcome packet, and a customizable website.
2. Mid-Level Plan Comparison: Nolo Standard vs LegalZoom Pro
- Nolo Standard Plan ($149 + state fees): The features include everything from the basic package, plus the EIN application and business forms. A client of mine was offered over 30 business document templates, including non disclosure agreements, sales contracts, independent contractor agreements, and other documentation.
- LegalZoom's Pro ($249 + state fees): The pro plan includes everything from the previous package, plus an operating agreement, EIN, over 150 customizable documents, and phone consultation regarding business insurance and taxes.
3. Top-Level Plan Comparison: Nolo Express vs LegalZoom Premium
- Nolo's Express ($299 + state fees): The Express plan includes everything from previous packages, plus a personalized LLC records kit, seal, and priority rush filing .
- LegalZoom's Premium ($299 + state fees): The plan includes everything from the Pro package, plus a hands-on attorney guidance, legal consultation, and business document amendments .
Registered Agent Service
Nolo charges $150 per year for a registered agent service which may or may not be outsourced from other companies.
LegalZoom charges $249 a year for their professional registered agent service. The package includes mail alerts, emails regarding tax and annual report deadlines, and unlimited cloud storage.
Apart from the basic formation features and supporting products, both companies offer additional services aimed to support and maintain your business.
1. Nolo Do-It-Yourself Products
Nolo's do-it-yourself products which range from online forms and software books allow consumers and business owners to handle legal matters themselves by simply following the instructions on the platform.
When I tried to avail of an LLC Operating Agreement online form, I learned that the company charges $99 for a 1-year subscription which allows you to create, save, and edit the document.
2. Trademark Registration
With LegalZoom, you can register your trademark for $599 plus state fees. The service comes with legal management and guidelines to ensure that your trademark is approved .
Nolo does not offer a trademark registration service, however, you can order a book online for $27.99. The book contains guidelines on how to choose a trademark to differentiate your business from competitors, search for available names, and register a mark .
3. Annual Reports
To stay compliant with business laws and remain in good standing with the state, it's good practice to file annual reports on or before the due date.
A client of mine availed of LegalZoom's annual report plan for $99 plus state fees. The package includes the creation and filing of annual reports to the state.
Nolo does not offer an annual report filing service.
4. Virtual Mail Service
LegalZoom offers a virtual mail service that provides your company with a business address of your choice in order to help you manage your correspondence and packages.
Nolo does not offer a virtual mail service.
LegalZoom provides support by phone or live chat from Monday to Friday 5 am to 7 pm PST and on the weekends from 7 am to 4 pm PST.
Based on my experience, you have to provide details about your business before your concern may be addressed.
Nolo only offers phone technical support from Monday to Friday 8 am to 5 pm PST. They have good quality customer service and their representatives are helpful and knowledgeable.
Here are the reviews for Nolo and LegalZoom.
Which is More Affordable, Nolo or LegalZoom?
LegalZoom is more affordable because it offers a basic package of $0 that features all the basic necessary services to form an LLC.
What is Nolo Best Used For?
Nolo is best used as an information platform to determine business guidelines and legal matters, which they provide through books and online forms.
LegalZoom vs. Nolo: Our Recommendation
Both LegalZoom and Nolo offer mostly the same services. In our experience, both companies can meet your legal needs, as well as, help you with business formation, registered agent service, and other resources you might need while starting a business.
While both LegalZoom and Nolo offer great LLC formation services, we recommend ZenBusiness, since they offer free business formation, expedited filing, a business website, worry-free compliance, business financial planning, and more, all at an affordable price.
If you need help with starting a business, I believe ZenBusiness could be a good option.