Tailor Brands vs LegalZoom (2024 Direct Comparison)
Hiring a good company like Tailor Brands or LegalZoom effectively delegates the intricate LLC formation process to an expert.
As a seasoned business consultant with years of experience, I worked with several LLC formation companies and I am familiar with the features and services they offer.
I spent the past 4 weeks testing these two online companies to see their features, cost, additional services, and customer service to help you decide which company is suited for your business.
At a Glance: Tailor Brands vs LegalZoom
Tailor Brands is an online service established in 2015 that initially provided small business owners with affordable branding and marketing services.
Since then, it helped millions of individuals who wish to start their businesses and introduce their brands, logos, and websites formally.
Since its founding in 2001, LegalZoom has aided more than 4 million company owners in establishing and operating their enterprises in compliance with local, state, and federal regulations.
1. Tailor Brands LLC Highlights
- Business formation services
- Logo maker and website builder
- Business card tool
- Social media posts generator
- Operating agreement
Our #1 Recommendation
2. LegalZoom LLC Highlights
- Business formation
- Ongoing legal compliance
- A digital welcome package
- Business license
- Full online document access
Our #1 Recommendation
3. How Tailor Brands and LegalZoom Stack Together
Both Tailor Brands and LegalZoom offer business formation plans.
However, Tailor Brands focuses on marketing, branding and website presence. LegalZoom offers complete LLC formation packages and also features legal consultation from top-notch company attorneys.
Side-by-Side LLC Plan Comparisons
Tailor Brands and LegalZoom offer the following plans:
1. Basic Plan Comparison: Tailor Brands Lite Bundle vs LegalZoom Basic
- Tailor Brands’ Lite Bundle ($49/yr + state fees): The entry-level plan offers the most basic LLC formation in the state of your choice with a standard turnaround. To get a priced quote for each plan, Venture Smarter had to fill in and submit the online application form.
- LegalZoom’s Basic ($0 + state fees): The plan consists of all the necessary steps to form an LLC, including drafting and filing of the Articles of Organization, name searches and verification, a digital welcome package, and creation of a website that can be customized for online enterprises, which we found helpful for digital marketing purposes.
2. Mid-Level Plan Comparison: Tailor Brands Essential Bundle vs LegalZoom’s Pro
- Tailor Brands’ Essential ($199+ state fees): In addition to the Tailor Brands basic package, this bundle comes with an operating agreement and a yearly compliance report to ensure that your company conforms with the law, and access to a customer support team. We were pleased that the application was processed in two business days, which sped up the LLC creation procedure.
- LegalZoom’s Pro ($249 + state fees): This package includes everything from the previous plan and an EIN, an operating agreement, as well as business insurance and phone calls with tax specialists.
3. Top-Level Plan Comparison: Tailor Brands Elite vs LegalZoom Premium
- Tailor Brands’ Elite: The plan includes all features of the Essential package, complemented by business-building tools, eight free logos, a website builder, a social media post creator, 1 year of free domain registration, and a digital business card.
- Legal Zoom’s Premium ($299 + state fees): The package includes the features in the Pro plan plus access to local legal counsel for company matters, unlimited 30-minute legal consultation, and no-cost document amending service for the first 30 days.
"Planning and preparation are the key elements of a successful business."
- Danya Shafkeh, Corporate Attorney & Writer of Venture Smarter
Registered Agent Services
The US law stipulates that your LLC must have a registered agent to represent your company in receiving key legal papers and correspondence.
Available only as an add-on, LegalZoom will act as your registered agent for $249 annually. The package features mail notifications, compliance alert deadlines, and unlimited cloud storage.
Unfortunately, after consulting Tailor Brands, Venture Smarter learned that the company does not offer a registered agent service.
I advise new business owners to employ a registered agent service on their first year of operations to learn about the duties and responsibilities of the position.
Additional Services
LegalZoom and Tailor Brands are both reputable online formation platforms and each provide additional services which benefit the specific needs of limited liability companies.
1. Taxes and Bookkeeping
With $125 per month, Tailor Brands helped me calculate and record all the balance sheets and invoices, so that I could better understand the entity's financial position.
LegalZoom offers affordable tax preparation and filing with year-round expert guidance, access to LZ Books, and quarterly tax estimates for $799 per year.
2. Business License Report
To help you determine which registration documents you need for your business, LegalZoom provides a comprehensive permits and licensing report for $99.
Tailor Brands offers a similar service, however, you may need to sign up on their website to determine the pricing structure.
3. Business Name Reservation
Once you have a business name, LegalZoom can conduct a preliminary search and register it for $49. Unfortunately, Tailor Brands does not offer this service.
4. Trademark Registration
A client of mine registered a trademark with LegalZoom for $599 plus state fees. She was provided with hands-on attorney guidance, availability search, as well as preparation and filing services.
For $299, Tailor Brands will perform a preliminary search on the USTPO database, preparation and filing, as well as a dedicated support team.
5. DBA Registration
A client of mine availed of LegalZoom’s DBA registration service for $99 plus state fees. You can purchase this service if you intend to conduct business under a different title from your legal LLC name.
Unfortunately, Tailor Brands does not offer this service.
Customer Service
Venture Smarter appreciate that Tailor Brands specializes in providing automated customer service. On their Help Center website, we went through resources and their frequently asked topics for detailed answers.
If you want individualized support from a real person, you can send an email request, and a member of the Tailor Brands team will respond to help.
LegalZoom offers phone and web chat customer service on weekdays from 5 a.m. to 7 p.m. PST. We appreciate their extended weekend customer service hours from 7 a.m. to 4 p.m. PST.
Additionally, we emailed them by filling out a form on their website, and they responded within 24 hours.
Customer Reviews
Here's what other customers say about Tailor Brands and LegalZoom online LLC formation services.
FAQs
Do Tailor Brands and LegalZoom Offer Ongoing Legal Compliance?
LegalZoom offers ongoing legal compliance under its Business Advisory Plan for 6 or 12 months. Tailor Brands doesn't provide legal services. Instead, they focus on branding and marketing.
Does Tailor Brands and LegalZoom Give Refunds?
Tailor Brands and LegalZoom give refunds. With Tailor Brands, you may apply for a refund within 30 days of purchase. With LegalZoom, you can request a refund within 60 days, as long as the order has not been filed to the state or its equivalent agency.
LegalZoom vs. Tailor Brands: Our Recommendation
Tailor Brands and LegalZoom provide a similar service for forming an LLC with expedited filing and optional extra LLC services.
While LegalZoom is a legal services provider, Tailor Brands is more concerned with marketing and branding.
Several entrepreneurs and small business owners whom I worked with choose a server provider which best suit their needs, requirements, and finances.
Inasmuch as LegalZoom and Tailor Brands are both reputable companies, you can consider ZenBusiness as an alternative.
ZenBusiness provides a $0 cost basic LLC formation service that covers all essentials, including LLC creation, an operating agreement draft, and, most importantly, a 100% accuracy guarantee.
Our #1 Recommendation
ZenBusiness
- ZenBusiness offers a wide selection of LLC formation packages: Basic, Pro, and Premium
- The basic plan costs $0 and features a 1-year compliance service for free.
- Pro and Premium packages include a 1-5 day rush filing formation.
- Excellent online reviews and customer feedback.
- Get the BEST PRICE until the end of September
- A registered agent service is not included on all packages and have to be availed of separately.
