LegalZoom vs ZenBusiness: Find the Best LLC Service

LegalZoom vs ZenBusiness

ZenBusiness vs. LegalZoom. Which is the best LLC formation service?

Find out which company is best for you and/or your business

You have many options when it comes to forming an LLC for your business. ZenBusiness and LegalZoom both offer services to help customers create LLCs. We found ZenBusiness to be a better option for simple LLC filings than LegalZoom. We will review both online services and help you choose the best one for your business.

We have spent a lot of time reviewing the top business formation companies on the marketplace and ZenBusiness was ranked amongst the top five.

This article will cover these topics,

  • Comparison of ZenBusiness & LegalZoom: A glance
  • ZenBusiness features
  • LegalZoom features
  • ZenBusiness and LegalZoom review
  • ZenBusiness vs. LegalZoom. Which do you recommend?
  • Our methodology

Comparison of ZenBusiness & LegalZoom: A glance

ZenBusiness, a venture-funded public benefit corporation, was established in Austin in 2015. ZenBusiness, despite being a relatively young company in legal tech, has assisted more than 250,000 individuals with business formations. LegalZoom, which was established in Glendale (Calif.) in 2001, has been around for a while. They have helped more than two million entrepreneurs start businesses, as well as provided legal advice. Both companies enjoy strong online reputations and have received thousands upon thousands of positive reviews.

LegalZoom vs ZenBusiness: Find the Best LLC Service 1https://www.legalzoom.com

Zenbusiness logohttps://zenbusiness.com

Here are some highlights of ZenBusiness:

  • LLC filings at a great price
  • Even the basic package includes all-inclusive business formation
  • With options for expedited file submission, quick turnaround time

LegalZoom’s Highlights include:

  • 60-day money-back satisfaction guarantee
  • Access to an attorney regularly
  • A business plan includes tax advice as well as an annual evaluation of the company

ZenBusiness features

Formation services

Entrepreneurs have the ability to quickly and easily file a Limited Liability Company or corporation (LLC), or a DBA name (Doing Business As).

Search for Names

ZenBusiness’s formation agents will run the business name through the state database to ensure that it is unique. If it’s not, they will contact to make arrangements for you to file.

Telephone and email support

Agents are available by telephone Monday through Friday between 8 a.m. and 8 p.m. CT. Sundays are 10 a.m. CT. ZenBusiness offers a guarantee that agents will reply to emails within one working day. The company’s web chat feature was extremely helpful. A representative responded to our question in three minutes.

Online document access

ZenBusiness offers clients access to templates to help them create important legal documents, such as operating agreements, corporate bylaws, and banking resolutions. You can access these documents 24/7 via your online dashboard.

Guide for virtual businesses

ZenBusiness offers a complete guide for customers who create an LLC. This includes a checklist that will help them manage their business virtually, helpful tools, and advice about how to best market themselves online and keep current with the latest trends.

Register agent

A registered agent is required for all businesses. According to U.S. Business Law, a registered agent can be any person or entity that accepts tax documents and legal documents for the business. ZenBusiness acts as the registered agent of all businesses created through its site.

Example of an operating agreement

In each of its business formation plans, ZenBusiness includes an Operating Agreement. This document protects business owners’ personal assets from the LLC actions. It clearly outlines the business’ acceptable actions and provides a succession plan for the owner who decides to exit the business.

Google Ads credit

ZenBusiness has partnered with Google to offer all customers who are in business formation up to $150 Google Ads credit. You can advertise and promote your products and services online, which will help increase traffic to your website, phone calls, and revenue.

Template for Bank Resolution

ZenBusiness has a template that can be used to quickly and efficiently complete your resolution to open a business bank account. A banking resolution is the easiest way to give authorization to someone to open a new bank account.

Employer Identification Numbers (EIN)

An Employer Identification Number or Tax ID Number (or EIN) is a 9-digit number assigned by the IRS to identify your company. EINs are required by partnerships, corporations, and LLCs to open business bank accounts, obtain financing, hire employees, and other purposes. ZenBusiness provides an EIN with its Premium and Premium packages. For an additional $70, you can add it to your company’s Starter Package.

No worries about compliance

ZenBusiness’ Worry-Free Compliance service will alert you to important compliance and filing dates, support your annual files and up to 2 yearly amendments, as well as provide expert support if you need it. This service is available as an add-on to the Starter package and costs $119 annually.

Email and website setup

ZenBusiness can help you set up a website if your business requires one. ZenBusiness offers services to secure a domain name for your business, privacy domain names, and an email address for your business. These features are available in ZenBusiness’ Premium Package. You can add them to Basic or Pro at the following rates:

  • Website for businesses: $100/year
  • Name of your business domain: $25/year
  • Domain name privacy: $10/year
  • $25 per annum for the business email address

LegalZoom features

Various formation services

LegalZoom provides business formation services that go beyond LLC filing. It also offers entrepreneurs the opportunity to file a corporation (non-profit) or DBA online. No matter what you choose to do, LegalZoom agents will handle all the paperwork required to form your company, including the articles.

Name check and filing for business

LegalZoom will assist you in completing your business formation paperwork. We’ll also correct file it for you with our Peace of Mind review.

Guide to the next steps of LLC

LegalZoom will guide you through the process of reviewing and filing your LLC documents to get your business off the ground.

Customer support for life

Contact LegalZoom to speak with an agent. They are available to you by phone from Monday through Friday from 5 a.m. until 7 p.m. PST and on weekends from 7 to 4 p.m. The company will reply by email with a statement.

Financial account authorization letter

LegalZoom also offers financial account authorization letters as part of its business formation services. This letter identifies the person authorized to open a new bank account for the LLC.

Other LegalZoom offerings (apart from the formation packages)

LegalZoom has additional features that can be used by entrepreneurs to help them get their businesses up and running.

  • Register agent services
  • Annual reports
  • Compliance calendar
  • Minutes manager
  • Operating agreement
  • Tax assistance
  • Contracts and agreements
  • Permits
  • Intellectual property protection

LLC plan comparisons

ZenBusiness Starter LegalZoom Economy
Cost $49/year plus state fee $79/year plus state fee
Time for Order Processing 10-14 business days 30 business days
Register Agent included No, add $119/year. You can, however, add $299/year
Operating Agreement included Yes You can, however, add $99 more
Register for an EIN Yes, you can increase the price by $70 Yes, it can be added for $60 but must be included with an operating agreement ($159 total).
Website for businesses $100/year No
Name of a business domain $25/year No
Business email address $25/year but must be purchased with domain name ($50 total). No

Note: customers can pay an additional fee for expedited filing within 4-9 business days (50$) or Rush filing within 1-3 business days (100$) when they have a basic membership.

Mid-level plan comparison

ZenBusiness Pro LegalZoom
Cost $199/year plus state fee $329/year plus state fee
Time for Order Processing 4-9 business days 15 business days
Register Agent included No, add $119/year. You can, however, add $299/year
Operating Agreement included Yes You can, however, add $99 more
EIN Registration Fee Yes Yes, you can.
Website for businesses $100/year No
Name of a business domain $25/year No
Email address for business $25/year but must be purchased with domain name ($50 total). No

Top-level plan comparison

ZenBusiness Premium LegalZoom Express Gold
Cost $299/year $349/year plus state fee
Processing time for orders 1-3 business days 10 business days
Register Agent included No, add $119/year. You can, however, add $299/year
EIN Registration Fee Yes Yes, you can.
Business website Yes No
Business Domain Name Yes No
Email address for business Yes No

 

ZenBusiness and LegalZoom review

LegalZoom and ZenBusiness appear to have gained customer satisfaction with numerous positive reviews. Both businesses have been rated “Excellent” on Trustpilot. ZenBusiness, however, has a rating of 4.7 out of 5 from more than 71,000 reviews. LegalZoom only received a rating of just over 1,000 reviews.

Check out other LegalZoom vs ZenBusiness comparison reviews for additional information and perspective on these services.

ZenBusiness was only around for six years, compared to LegalZoom who has been around for more than 20 years. It’s impressive that ZenBusiness has so many positive reviews.

ZenBusiness, and LegalZoom both are Better Business Bureau (BBB)-accredited businesses with A ratings. They also have more than 4 star customer reviews.

ZenBusiness LegalZoom
Trustpilot Ratings 4.7/5 (7,600+ reviews) 4.3/5 (1,000+ reviews)
BBB Ratings A A
BBB Customer Rating 4.3/5 (100+ reviews) 4.1/5 (3,600+ reviews)

Information, Dec 10, 2021

ZenBusiness vs. LegalZoom. Which do you recommend?

ZenBusiness is our preferred option for LLC filing after comparing it to LegalZoom. Although both companies have excellent reviews and reputations, ZenBusiness is a more comprehensive option for LLC formation. ZenBusiness offers better benefits and greater services at a cheaper price.

ZenBusiness’ starter package costs first-time business owners $49 plus the state fee and takes 10-14 days to process. LegalZoom’s Economy plan costs $79 plus the state fee and takes 30-days. LegalZoom does not offer a basic package that includes a registered agent, an operating agreement, and a basic package for $49 from ZenBusiness.

LegalZoom might be the best fit for you if your company needs more legal support or you want to start a nonprofit.

Tip: LegalZoom and ZenBusiness are good options for business formations but you might want to check out the other LLC services available today. Another LLC service to consider is Incfile, they have formed over 500,000 businesses. Check out this LegalZoom vs Incfile article and other resources online before deciding.

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