Fact Checked by Editorial Staff
LegalZoom vs. Rocket Lawyer: When you finally process to start an LLC (Limited Liability Company), you cannot make any mistakes while doing the paperwork. Establishing a limited liability company might look easy, but it is much more complicated than you think. LLC formation services like LegalZoom and Rocket Lawyer are something you look for in the very beginning to avoid any discrepancies in papers.
As we share our take on LegalZoom and Rocket Lawyer, we point out the pros and cons of both services so you can decide which one is suitable for your business. LLCBuddy editors dug up a lot and brought a detailed comparative guide on LegalZoom vs. Rocket Lawyer for the budding entrepreneur.
LegalZoom vs. Rocket Lawyer: Quick Review
| Services | LegalZoom | Rocket Lawyer |
|---|---|---|
| LLC Formation | Available | Available |
| Starting Price | $0 + State filing fee | $0 + State filing fee (for members) $99.99 + State filing fee (for non-members) |
| Registered Agent Service | Available at $299 a year | Available at $149.99 per year (25% discount for premium members) |
| Legal Advice | Available at an additional fee | Available |
| EIN | Available at $79 | Available at $59.99 |
| Operating Agreement | $99 | Included in premium membership |
| Annual Report | $99 + state filing fee | Included in premium plan |
| Attorney Service | Depends on services | Available with premium plan |
| Website | LegalZoom | Rocket Lawyer |
| Review | LegalZoom Review | Rocket Lawyer Review |
Before we make a purchase, we always look for affordability and quality rather than the name or brand. Of course, brand matters, however, depending on your requirements, sometimes we have to choose unpopular names over a big brand. When it comes to deciding on which service we are going to choose or purchase, we look for a few general points.
- Reliable
- Reasonable
- Meet requirements
Our main goal is to share insights into the features and prices both these services offer. We researched the details of LegalZoom and Rocket Lawyer to bring the comparison study for you.
LegalZoom vs. Rocket Lawyer: Our Take
It is a bit difficult for us to say what you should choose. It depends on what services you’re looking for. Both services offer LLC formation. However, LegalZoom is more focused on legal assistance and attorney services. On the other side, Rocket Lawyer offers membership at a flat rate. Members will not only get to form their LLCs but also will get access to their legal support system and attorney consultation. However, with membership, users will get a whole bunch of services that might not be required for a start-up. In that case, choosing Rocket Lawyer for LLC formation wouldn’t be a wise decision.
LegalZoom vs. Rocket Lawyer: Price and Packaging
LegalZoom offers LLC formation at $0; however, the required state filing fee must be paid. On the other hand, Rocket Lawyer offers the LLC formation at $239.99/year after a 7-day free trial. A monthly plan at $39.99/month plus a mandatory state filing fee is also available. For non-members, the cost of LLC formation is $99.99. When forming your LLC with LegalZoom or Rocket Lawyer, there are many more things than the formation fees.
With Rocket Lawyer, a registered agent costs $149.99 annually (25% discount for premium members). However, with LegalZoom, it is $299 a year. Hence, it is better to choose LegalZoom. It offers LLC formation at $0. However, the registered agent costs more than what RocketLawyer offers. To enjoy free LLC formation, one must sign up as a member with RocketLawyer, which is not worth it if you don’t need much legal support. Hence, it is better to go with LegalZoom.
LegalZoom Price & Package
LegalZoom offers three packages for LLC formation. Basic ($0 + state fees), Pro ($249 + state fees), and Premium ($299 + state fees).
- Business Formation Packages start at $0 + state fees and go up to $299 + state fees. Additional services can be added with a la carte options.
- Registered agent services cost $299 per year.
- Legal document review services start at $39 and can go up to $219, depending on the complexity of the document.
- Business compliance services start at $69 a year.
- Intellectual property services start at $199 and go up to $499, depending on the requirements.
Add-ons by LegalZoom
- Trademark registration: Assisting with the US trademark application process
- Copyright registration: Guidance on registering copyrights for creative works
- Patent services: Support in obtaining utility, design, and plant patents
- Estate planning: Offering personalized wills, trusts, and power of attorney documents
- Legal advice: Access to a network of lawyers for consultations and legal guidance
- Expedited Filing: With an additional $99, you can speed up your filing process.
Rocket Lawyer Price & Package
- LLC Formation has a single price of $99.99 + state filing fee.
- A 7-day trial pack is available where you can access documents for free for 7 days.
- Premium Membership is available at $39.99/month or $239.99/year, where you will get free LLC formation and a 25% discount on registered agent service.
Add-ons By Rocket Lawyer
- LLC Formation: LLC can be formed at $99.99.
- Registered Agent: Registered Agent service is available at $149.99 per year. Members will get a 25% discount on the final price.
- Rush Filing: You can pay $40 to speed up your LLC filing within 1 or 2 business days.
- Corporate Kit: At $104.99
- you can purchase a corporate kit that includes a corporate seal. Otherwise, the corporate seal costs $64.99.
Starter/Basic Package: Comparison
| Services | LegalZoom | Rocket Lawyer |
|---|---|---|
| LLC formation | $0 + state filing fee | $0 + State filing fee (for members) $99.99 + State filing fee (for non-members) |
| Processing time | 30 days | 1 to 2 business days with additional fees |
| Business Name Search | Unlimited | Unlimited |
| EIN | $79 | Available at $59.99 |
| Operating Agreement | $99 | Included in premium membership |
| Business Compliance | $280 per year | Included in premium plan |
| Web domain & web hosting | Not Available (website building through WIX) | Not available |
Pro/Mid-Level Package:
| Services | LegalZoom | Rocket Lawyer |
|---|---|---|
| LLC formation | $249 + state filing fees | $239.99/year & 39.99/month for membership (no specific package) $99.99 + State filing fee (for non-members) |
| Processing Time | 15 days | 1 to 2 business days with additional fees |
| Business Name Search | Unlimited | Unlimited |
| EIN | Yes | $59.99 |
| Operating Agreement | Yes | Included |
| Business Compliance | $280 per year | Included |
| Web domain & web hosting | Not Available (website building through WIX) | Not Available |
| Domain Name Registration | Not Available | Not Available |
| Business Email | Not Available | Not Available |
Premium/Top Level Package:
| Services | LegalZoom | Rocket Lawyer |
|---|---|---|
| LLC Formation | $299 + state filing fee | $239.99/year & 39.99/month for membership (no specific package) $99.99 + State filing fee (for non-members) |
| Processing Time | 15 days | 1 to 2 business days with additional fees |
| Business Name Search | Unlimited | Unlimited |
| EIN | Yes | $59.99 |
| Operating Agreement | Yes | Included |
| Business Compliance | $280 per year | Included |
| Web domain & web hosting | Not Available (website building through WIX) | Not Available |
LegalZoom vs. Rocket Lawyer: How They Are Different or Similar
LegalZoom and Rocket Lawyer offer similar services. Both companies have many things in common, while some things are different. Let’s look at the similarities and differences Rocket Lawyer and LegalZoom have with each other.
Business Formation
LegalZoom provides a complete business formation service that helps customers create their legal entity. They offer various business entity types, including LLC, Corporation, and Non-profit. LegalZoom offers different packages for each business entity type, including a basic package that offers the basic requirements for business formation, such as legal document filing and registered agents. With LegalZoom, you can get access to attorneys and other legal services.
RocketLawyer offers LLC formation at $99.99, which is more expensive than LegalZoom, which offers LLC formation at $0 + state filing fee. With a membership of $239.99/year or $39.99/month, you can get an LLC formation for free. For a beginner or a small business that does not need so much legal support or documents, it is not worth spending money on membership. In the case of a Registered Agent, it costs $149.99 in RocketLawyer, which is much less than a LegalZoom registered agent.
Legal Support & Attorney Services
LegalZoom, as per its name, provides in-and-out legal support to entrepreneurs. The company also offers attorney consultation services. LegalZoom is your solution if you want to hire an attorney to form your business. LegalZoom offers personal legal help not only for professional purposes but also for personal legal purposes. Property lawyers, Will, Power of Attorney, and other personal legal services are available in LegalZoom.
RocketLawyer provides attorney services and other legal support. It mainly offers legal document creation and storage. However, it offers attorney consultation and all types of corporate legal coverage. Premium members get all types of legal coverage for their business. LegalZoom offers diverse legal services at different prices. RocketLawyer offers diverse legal support at a single membership price.
Overall Cost
LegalZoom offers LLC formation at $0. However, other services, like a registered agent, cost $299 a year, making the overall cost more than other close competitors. It is a bit expensive compared to Rocket Lawyer.
RocketLawyer, like LegalZoom, provides various legal support and documents. Besides, it offers LLC formation, Registered Agent, and other formation-related document creation. RocketLawyer offers LLC formation at $99.99, which is more than what LegalZoom offers. On the other hand, the cost of a Registered Agent is much less in RocketLawyer ($149.99 per year) than in LegalZoom. Overall, RocketLawyer is a bit more expensive than LegalZoom, as it does not offer many business formation-related services like LegalZoom. However, if anyone has legal support/document requirements, then RocketLawyer might be a good choice.
Customer Support
Regarding customer support, LegalZoom has the best in the industry. The company is old, and the team is much more experienced than Rocket Lawyer. LegalZoom’s customer service is swift and available during working hours. One can contact them by asking questions and by phone. The LegalZoom official site has many business-related articles that help you understand their services.
RocketLawyer offers several ways for customers to reach them. Users can visit their official website and chat with them during the business hours. They can be reached through phone or email as well. For easy access, users can check the FAQ section on their official website.
Rocket Lawyer Additional Services
There are some services that LegalZoom does not provide, but Rocket Lawyer does. The following services are offered by Rocket Lawyer, but LegalZoom has no such services.
RocketLawyer offers a premium membership that offers unlimited access to legal documents.
LegalZoom vs. Rocket Lawyer: Pros & Cons
Before you choose either of these options, you must specify what requirements you have. If you’re establishing an LLC and looking for a basic business formation package, then both these companies, LegalZoom and Rocket Lawyer, can be considered. Both companies offer LC formation at a reasonable price.
LegalZoom: Pros & Cons:
| Pros of LegalZoom | Cons of LegalZoom |
|---|---|
| Comprehensive legal services: LegalZoom offers a vast range of legal services that can help entrepreneurs meet all their legal obligations. | Higher prices: LegalZoom has higher prices than other competitors in the business formation industry, especially for add-on services. |
| Established brand: LegalZoom has been around since 1999 and has helped over four million businesses. Thus, it has a reputation and tracks records of forming businesses. | Limited customer support: LegalZoom offers customer support, but it may not be as extensive as expected. Some customers have mentioned they had difficulty getting support from LegalZoom. |
| 100% satisfaction guarantee: LegalZoom offers a 60-day money-back guarantee, and if you are not satisfied with their services, you will get a full refund. |
Rocket Lawyer: Pros & Cons:
| Pros of Rocket Lawyer | Cons of Rocket Lawyer |
|---|---|
| Rocket Lawyer offers affordable monthly subscription plans, allowing users to access an extensive library of legal documents | Rocket Lawyer’s legal services may not be available or applicable in all jurisdictions, as laws and regulations can vary from state to state or country to country |
| Subscribers can receive up to 30 minutes of free attorney consultation on each new legal matter | Certain advanced legal services, such as trademark registration or business formation, may incur additional fees beyond the subscription cost |
| Rocket Lawyer provides secure cloud storage for legal documents, ensuring easy accessibility and backup for important files. |
FAQs
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Conclusion
LegalZoom and Rocket Lawyer are reputable companies offering quality services at competitive rates. However, which one you choose depends on your specific business needs. It is an excellent choice if you are looking for a more straightforward pricing model and a wide range of legal support services. On the other side, Rocket Lawyer should be chosen if you want to go for subscriptions instead of conventional formation packages.
It is worth noting that both companies offer a satisfaction guarantee, so if you are not satisfied with their services, you might get a refund. While comparing leading services, ZenBusiness is one of them the LLCBuddy team recommends. Besides the vast formation packages, ZenBusiness offers LLC formation at $0 and many other useful services.
To summarize the comparison, LegalZoom is suitable for entrepreneurs who want a one-stop shop for all business-related and legal services. It has higher prices, but it is worth the investment for entrepreneurs who want personalized advice from legal professionals. On the other hand, Rocket Lawyer is better for budget-conscious entrepreneurs who want a more streamlined and efficient business formation process.
Finally, before making your final decision, it is crucial to research other business formation companies and determine which one is the best fit for your business needs. By doing so, you can make an informed decision that will help you build a strong legal foundation for your business.