Fact Checked by Editorial Staff
LegalZoom vs. ZenBusiness: When you’re willing to start an LLC, LLC formation services like LegalZoom and ZenBusiness are the first things you look for. They are competent, offer diverse deals in business formation, are affordable, and help you go through a hassle-free process of LLC formation. However, not all services are the same, like ZenBusiness offers different services and prices than LegalZoom.
As we share our take on LegalZoom and ZenBusiness, we pointed out the pros and cons of both services for you to decide which one is suitable for your business. LLCBuddy editors dug up a lot and brought a detailed comparative guide on LegalZoom vs. ZenBusiness for the budding entrepreneur.
LegalZoom vs. ZenBusiness: Quick Review
| Services | LegalZoom | ZenBusiness |
|---|---|---|
| LLC Formation | Available | Available |
| Starting Price | $0 + State filing fee | $0 + State filing fee |
| Registered Agent Service | Available at $299 a year | Available at $99 per year |
| Legal Advice | Available at an additional fee | Not Available |
| EIN | Available at $79 | Available at $99 |
| Operating Agreement | $99 | $125 |
| Annual Report | $99 + state filing fee | $100 + state filing fee |
| Attorney Service | Depends on services | Not available |
| Website | LegalZoom | ZenBusiness |
| Review | LegalZoom Review | ZenBusiness 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 the insights of features and prices both these services offer. We researched the details of LegalZoom and ZenBusiness to bring the comparison study for you.
LegalZoom vs. ZenBusiness: 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, ZenBusiness does not provide such services elaborately. Instead, they offer massive business formation services that one might need as they grow their business. Hence, we recommend ZenBusiness when it comes to forming your LLC or any business. For those, who are looking for legal support, LegalZoom is your option..
LegalZoom vs. ZenBusiness: Price and Packaging
LegalZoom offers LLC formation at $0; however, the required state filing fee must be paid. On the other hand, ZenBusiness offers the LLC formation at $0 as well in their basic plan, plus the state filing fee. When forming your LLC with LegalZoom or ZenBusiness, there are many more things than the formation fees. With ZenBusiness, a registered agent costs $99 per year. However, with LegalZoom, it is $299 a year. Hence, it is better if you choose ZenBusiness because it is cost-effective. .
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.
ZenBusiness Price & Package
- LLC formation Package starts from $0 and go up till $349 + state filing fees. Add-on services are available that can be purchased without the entire package.
- Registered agent is available at $99 a year.
- Business name reservation at $50.
- Worry-free compliance at $199 a year.
- Business document templates library is available at $99 (one-time cost).
- New York publication service is available at $200 (one-time cost).
- Business license report is available at $99 (one-time cost).
- Annual report filing is at $100.
- LLC formation document amendment can be done at $100.
- Certificate of Good Standing filing costs $100.
Add-ons By ZenBusiness
- Standalone Registered Agent Service – $99
- Business Name Reservation- $50
- Annual Report Filing- $100 + state fees
- New York Publication- $200 + publication cost
- Filing Amendment- $100 + state fees
- Certificate of Good Standing- $100 + state fees
- Business License Report- $99
- Business Document Templates Library- $99
Starter/Basic Package: Comparison
| Services | LegalZoom | ZenBusiness |
|---|---|---|
| LLC formation | $0 + state filing fee | $0 + State filing fee |
| Processing time | 30 days | 2 to 3 weeks |
| Business Name Search | Unlimited | Unlimited |
| EIN | $79 | Available at $99 |
| Operating Agreement | $99 | $125 |
| Business Compliance | $280 per year | $199 a year |
| Web domain & web hosting | Not Available (website building through WIX) | Available at $129/year |
Pro/Mid-Level Package:
| Services | LegalZoom | ZenBusiness |
|---|---|---|
| LLC formation | $249 + state filing fees | $199 + State Filing Fees |
| Processing Time | 15 days | 1 to 2 business days |
| Business Name Search | Unlimited | Unlimited |
| EIN | Yes | Included |
| Operating Agreement | Yes | Included |
| Business Compliance | $280 per year | Free for a year ($199/year after) |
| Web domain & web hosting | Not Available (website building through WIX) | $129/year |
| Domain Name Registration | Not Available | $25/year |
| Business Email | Not Available | $25/year |
Premium/Top Level Package:
| Services | LegalZoom | ZenBusiness |
|---|---|---|
| LLC Formation | $299 + state filing fee | $349 + State Filing Fees |
| Processing Time | 15 days | 1 to 2 business days |
| Business Name Search | Unlimited | Unlimited |
| EIN | Yes | Included |
| Operating Agreement | Yes | Included |
| Business Compliance | $280 per year | Free for a year ($199/year after) |
| Web domain & web hosting | Not Available (website building through WIX) | Included |
LegalZoom vs. ZenBusiness: How They Are Different or Similar
LegalZoom and ZenBusiness offer similar services. Both companies have many things in common, while some things are different. Let’s look at the similarities and differences ZenBusiness 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.
ZenBusiness offers business formation services, such as LLC formation, filing formation documents with SOS, registered agent services, operating agreement, EIN, worry-free annual compliance, business domain and creating websites, and many more. LegalZoom does not provide domain services. On the other hand, ZenBusiness does not offer attorney consultation like LegalZoom does.
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. Not only the professional purpose but LegalZoom offers personal legal help as well. Property lawyers, Will, Power of Attorney, and other personal legal services are available in LegalZoom.
ZenBusiness does not provide attorney consultation of direct legal services. It does provide legal documentation and templates for compliances and such. However, if you’re looking for legal help then ZenBusiness might not be an ideal choice for you.
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 ZenBusiness.
ZenBusiness offers LLC formation service at $0 + state filing fee. Other services, such as registered agent is available at $99 a year which is less than LegalZoom’s price. On the contrary, obtaining EIN is a bit pricey than LegalZoom. ZenBusiness offers EIN at $99. Besides, ZenBusiness offers annual compliances free for a year with the basic package. Hence, in terms of overall cost, ZenBusiness is cheaper compared to LegalZoom. But, EIN and Operating Agreement costs are higher than LegalZoom.
Customer Support
Regarding customer support, LegalZoom has the best in the industry. The company is old, and the team is much more experienced than ZenBusiness. 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.
ZenBusiness has three main ways for customers to reach them. These three ways are Live Chats, Phone Call, and Email. You can reach out to them during working hours through live chat and phone call. You can also drop a mail anytime via their official email ID. The easiest way to reach out to them is through their live chat during business hours.
ZenBusiness Additional Services
There are some services that LegalZoom does not provide, but ZenBusiness does. The following services are offered by ZenBusiness, but LegalZoom has no such services.
Like LegalZoom, ZenBusiness also provides some services which LegalZoom does not offer. ZenBusiness offers financial services, domain registration, domain name, and some other business-financial services that LegalZoom does not offer.
Money Pro: ZenBusiness offers a MoneyPro service that helps you manage your finances using the simplest tool. This tool allows you to manage your expenses, bills, payments, tax deduction tracking, and more.
Domain Registration: This is one of the most important services today for any business. ZenBusiness offers domain registration at a very reasonable price.
Business Credit Cards: Business credit cards are required to separate business and personal expenses. ZenBusiness provides a business credit card for your business purposes only.
Business Banking Solutions: Finally, business bank solutions help users to get all types of banking services under one roof to support their business.
LegalZoom vs. ZenBusiness: 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 ZenBusiness, 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. |
ZenBusiness: Pros & Cons:
| Pros of ZenBusiness | Cons of ZenBusiness |
|---|---|
| Cost-effective: ZenBusiness offers affordable pricing plans for business formation services, making it accessible for small business owners or entrepreneurs on a budget. | Limited customization: While ZenBusiness offers a streamlined process, it may lack in terms of flexibility and customization options. Some entrepreneurs might prefer more personalized solutions tailored to their specific business needs. |
| Streamlined process: The platform provides a user-friendly interface that simplifies the business formation process. It guides users through necessary steps and ensures all required documents are filed correctly and promptly. | Upsells and add-on costs: While ZenBusiness offers affordable pricing for its basic services, they have several additional features at an extra cost. Customers need to be mindful of these add-ons and consider their necessity before purchasing. |
| Additional features: ZenBusiness offers a range of features, such as registered agent services, annual report filings, and ongoing compliance reminders. These services help businesses stay organized and in compliance with legal requirements. | Customer support: Some users have reported inconsistent or slow customer support responses. This lack of prompt assistance may cause frustration, especially when urgent matters need to be addressed. |
FAQs
Also Read
Conclusion
LegalZoom and ZenBusiness are reputable companies offering quality services at competitive rates. However, which one you choose depends on your specific business needs. LegalZoom is an excellent choice if you are looking for a more straightforward pricing model and a wide range of legal support services. If you are looking for a more affordable option and an excellent business formation package, ZenBusiness is the perfect choice.
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.
To summarize the comparison, LegalZoom is suitable for entrepreneurs who want a one-stop shop for all 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, ZenBusiness 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.