LegalZoom Reviews 2020: Pros, Cons, & Top Alternatives

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legalzoom-feature

3.5

Cost Value

3

Customer Service

3

Ease of Use

4

Included Features

Brand Info

  • Founded on Dec 1, 1999
  • Located in Greater Los Angeles Area, West Coast
  • Total Funding Amount of $811M

Feature

  • Requires fewer formalities
  • Protects you and your assets
  • Gives you tax flexibilitys.

About the Brand

There are a lot of business formation companies out there but only a few of them offer what LegalZoom has to offer. LegalZoom reviews often praise the company for its benefits and we agree with them.

Founded on Dec 1, 1999, LegalZoom is a veteran when it comes to business formation and it has a good network of legal experts that can help its customers. Tons of LegalZoom reviews and LegalZoom living trust reviews are divided about the company showering it with both praise and insults.

Needless to say, the company has its fair share of benefits and disadvantages and we are here to explore each and every one of them.

LegalZoom’s Advantages

LegalZoom’s greatest advantage over its competitors is in its name. It helps you give access to legal help at a discounted rate. To make things clear LegalZoom isn’t a law firm but it does have a large network of lawyers and legal experts that it can provide its customers making it a very valuable company to use.

Aside from this people who use LegalZoom tend to admire their large range of features and benefits as well as the simplicity and intuitive design of their website. This explains why a lot of LegalZoom com reviews commend them for their services.

LegalZoom LLC Formation Packages

LegalZoom is smart about their business and they understand that different business owners have different needs and different financial capabilities. With this thought in mind, the company offers its customers 3 business formation packages. These packages being:

Economy Package

Starting an LLC can be confusing and a lot of small business owners are scared to do the paperwork themselves. This is why people who’ve used LegalZoom before, recommend their economy package if you want a good deal.

In this package, you’ll get benefits like help and advice to get your LLC started. The filing of paperwork will lead to the formation of your business. You’ll also be getting help with your articles of organization as well as a personal review of your business.

What’s really amazing is that for this low of a price, you’ll also be receiving custom support for  7 days a week which is reassuring. Lastly, you’ll also get help with your financial account authorization letter which will definitely help you when you start with your business bank account.

Overall, it provides a lot of value at an affordable price. If you’re looking for an LLC formation service with a cost-effective package, then LegalZoom is a good choice with their Economy Package.

Standard Package

Up next we have their standard package.  People who’ve used LegalZoom with the hopes of starting a business and making it grow might be interested in this type of deal. The standard package offers everything that the Economy Package has added benefits.  

LegalZoom offers standard package subscribers with an organizer containing all the necessary documents you’ll need for your small business. Your very own seal for your LLC and over 20 personalized company certificates to help you with your business formation.

LegalZoom has a lot of customers which means that a lot of them are waiting for their papers to get processed which will take a while.

Being a VIP makes sure that your documents are prioritized as well as having customer service pay more attention to your concerns more. Time is money and this feature alone justifies the bump in price from $79 up to $329 including filing fees for your state. 

Overall, LegalZoom’s standard package is a huge jump from its affordable economy package. But you do get a lot of added value from this especially with their VIP processing which will definitely save you a lot of time. 

Express Gold Package

Last but definitely not least we have the express gold package. If you really want to have a great experience in creating a new business, then this is highly recommended. It’s LegalZoom’s most expensive package for a reason and that reason is that it will jumpstart your experience as a business owner.

As expected, the Express Gold Package contains all the features of the Standard Package along with some new business formation features as well. As the name implies, Express Gold Package gives you express shipping and you can finish your legal documents even faster than before.

By availing their services, LegalZoom will directly rush your legal documents to the secretary of the state allowing you to finish everything you need for an LLC within 7 to 10 business days. It might be expensive, but we highly recommend going for their Express Gold  Package if you want to get your legal forms and paperwork done as soon as possible.

Additional Services

Asides from the 3 mentioned above, LegalZoom offers additional services that you could add to their packages. You can get an operating agreement for 99$ or $159 if you want to include an EIN (Employer Identification Number, as well as a registered agent. 

Asides from being a business formation company, LegalZoom is also a legal services company as well. They offer $11.99 for prepaid legal services if you want help and the power of an attorney. You can also get discounts if you hire a lawyer from their website as well.

A lot of LegalZoom LLC reviews, LegalZoom divorce reviews, and LegalZoom wills reviews often comment that they refer competent and reliable legal advisers that help them with their business and personal problems.

LegalZoom LLC Service Brand Reviews

We like LegalZoom for its diversity and connections with lawyers. They offer a 25% discount if you join their attorney network. This could help save you a lot of money in the long run especially if you’re looking to avail legal services and legal help for an extended period of time.

Asides from the broad network of lawyers, LegalZoom offers reliable LLC formation services for as low as $79 including state fees. This gives you everything you need to form a good LLC which is why it is highly recommended that you use LegalZoom if you want a lot of value and extra features.

Is This Brand Right For You?

If you’re looking for a business formation company that has a lot of features and benefits while having the money for paying for VIP priority, then LegalZoom might be a good pick for you. You’ll also love this brand especially if you want to ask for advice for a good legal plan or ask for legal help thanks to their large network of lawyers available to you.

Overall

Overall, LegalZoom is a reliable business formation company ideal for creating small businesses and big ones alike. It provides a lot of value with its packages and deals and its website is fairly easy to use as well.

Their customer service and organization could use some work though but they are still functional and they don’t cause a lot of inconveniences. Because of this, we give LegalZoom an overall rating of 3.4/5 stars. It’s above average but it could use some improvements here and there.

Cost value

LegalZoom’s services and business formation packages are top-notch and the base package is very affordable as well making it a good service for first-time business owners. The economy package is something to look forward to since it only costs $79 plus legal fees and you’ll be on your way to creating an LLC.

They do have a large volume of customers so it might take a while before they can finish submitting and processing your Legal documents for your LLC. You can avoid this by availing of their higher packages which gives you VIP treatment and priority.

The second package deal offers much more and as mentioned previously you’ll have VIP priority saving you a lot of time. You’ll also be getting added benefits like your very own seal and personalized certificates for your LLC.

But if time is really ticking for you, you can avail of their most expensive package which makes it so that your legal documents can be finished within 7 to 10 business days. By paying $349 + state fees, your papers will be sent to the secretary of state ensuring fast turnover times.

Because of all this, we would have given the business formation company a 4.5/5 star rating but sadly they lack some features on their packages. Important features like getting a registered agent, an EID are separate which is disappointing. 

But this isn’t all bad since the company does provide discounts if you hire their lawyers and they have reasonable prices for their legal services as well.

Overall, we would give LegalZoom a score of 3.5/5 when it comes to cost value. The separation of getting a registered agent from their packages is a deal-breaker and they would gain more customers and positive ratings on this criteria if they simply found a way to incorporate this into their business formation packages.

Customer service

LegalZoom customer service representatives are either a hit or miss. Their staff is very friendly and helpful; they generally garner high customer reviews because of this alone. We’ve personally tried out their customer service staff and most of them are polite and know how to give proper advice.

Sadly, LegalZoom is a big company that has been in business for years. They have tons of customers so LegalZoom customer support staff can’t accommodate the big volume of people asking for help. Because of this, their customer support team might take a while before they process and reply to your concerns which can be a letdown to a lot of people especially to small businesses. 

We give LegalZoom’s customer support team a 3/5 star review. It’s an average rating since they are threading the line between great customer service and a poor one. If they hired more staff for customer support, then they might do better. But for now, their business needs help in getting better customer service.

Ease of use

LegalZoom might be an old business when it comes to business formation services but they still manage to keep up with the newer and more tech-savvy businesses like Rocket Lawyer. Their website is easy to navigate and it’s very intuitive so you know what to do right away despite it being your first time using it.

We are a little annoyed that their website doesn’t post the complete pricing on their services which is inconvenient and time-consuming especially if you’re looking to calculate their rates. Thankfully their website features char support as well so aren’t completely on your own here. 

Their customer services staff in chat are friendly and they do their best to answer your questions and provide a good experience. Sadly as mentioned before, their customer support is a hit or miss so it might not be a pleasant process for you.

But their website is simple and easy to use so if you’re used to visiting a lot of websites, then it might not be a problem for you. We just wish that your orders were processed more efficiently and orderly since it can be quite confusing to use especially with the lack of a dashboard.

Overall, their website is easy to use and to navigate allowing you to get legal advice and other services quite easily. It does have some kinks in its design and organization which their competitors like Rocket Lawyer do much better at. 

Because of this, we give LegalZoom’s ease of use a 3/5 star review. The website is easy to use and they process your orders quickly. It could use some improvements but it does what it’s intended to do.

Included features

LegalZoom has tons of included features in their packages as well as additional orders. The basic package is more than enough to start your business giving you tons of benefits that will help you create any form of business down to an LLC up, S corp, C corp, and much more. 

It’s highly recommended that you avail of their other packages especially since LegalZoom can help you save money through legal service. They are not a law firm but they have a large network of lawyers that you should take advantage of.

Lastly, their higher tier package deals give you VIP treatment and help speed up your legal forms and documents.  Because of this, we give LegalZoom a score of 4/5 stars.

2 Top LegalZoom LLC Alternatives

There are few companies like LegalZoom out there but we highly recommend Rocket Lawyer if you want something with similar services. Founded in 2008, Rocket Lawyer provides LLC formation services at competitive prices. 

Although it doesn’t give you access to a network of lawyers, ZenBusiness is a good alternative to LegalZoom. Founded in 2015, the company offers one the best rates of registered agent service and business formation services in the market making it a fierce competitor.

LegalZoom’s Disadvantages

Sadly LegalZoom has a large customer base and receives tons of orders daily. This essentially puts you on a waiting list delaying the formation of your business. A lot of LegalZoom reviews LLC often complain about this. If you want to get priority, you’ll have to purchase the higher packages which will grant you VIP status. So if you don’t have the patience to wait nor the funds to get VIP priority, then this brand may not be for you.

Frequently Asked Questions

Is LegalZoom a law firm?

No it is not but it will provide you access to professionals who can help you with your legal forms and other legal concerns.

How old is LegalZoom?

The business was founded on Dec 1, 1999.

Who should use LegalZoom?

LegalZoom’s services are best for people who want to start a business as an LLC while also benefiting from the 25% discount it gives for the lawyers in its network.

Conclusion

LegalZoom isn’t one of the best LLC formation services for nothing. This company has proven itself since 1999 and has continued to survive and compete with newer brands and companies.  There are tons of LegalZoom reviews out there that criticize it for its slow response times and we agree. If they can somehow find a way to manage their large volumes properly, then LegalZoom would blow away its competition like Rocket Lawyer and ZenBusiness.

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