LegalZoom vs. Rocket Lawyer
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We compare LegalZoom vs. Rocket Lawyer, the two best-known online legal service providers today. Both offer business formation services, legal documentation creation, and access to expert advice on legal matters. Both also offer a less expensive alternative to a traditional law firm and enable users to operate their lives and businesses within a legal framework.
In this comparison, we discuss their prices, plans and provide links to alternatives for business formation including our picks for the best LLC formation services in 2020.
There are some differences between Rocket Lawyer and LegalZoom worth considering. Both companies offer unique services which means that your selection should be based on your personal or business needs.
Comparison of Trustpilot Scores
Let’s start with some online reviews and opinions. From the Trustpilot website updated August 2019, the clear winner in customer reviews is Rocket Lawyer. The LegalZoom reviews are brutal. Not a pretty picture for Legalzoom on Trustpilot… but, let’s continue.
LegalZoom vs. Rocket Lawyer – Trustpilot
What is Rocket Lawyer?
Founded by Charley Moore in 2008, Rocket Lawyer was his desire to create a site that was easy for customers to use while providing all the legal documents and online guidance needed. Easy access for those who wanted an alternative to paying for a local lawyer or law firm.
“We believe everyone deserves affordable and simple access to legal services”
Charlie Moore, Atty, Founder & CEO
After selling his company OnStation Corp, Moore’s initial efforts in creating Rocket Lawyer increased dramatically after 2009 when he added a monthly subscription fee.
With the number of subscribers reaching the six-figure mark, Rocket Lawyer began expanding its services by focusing in large part on business formation. However, they also provide all types of legal documents covering a wide range of issues from prenuptial agreements up to the incorporation of companies.
Rocket Lawyer has helped over 20 million businesses, families, and individuals make legal documents, form new companies, confidently protect their future, and get attorney advice. They are not only listed on our top 10 list of best business formation services for 2020 but they are often found on other lists regarding best LLC services online.
Rocket Lawyer offers online attorney services to answer questions and provide guidance.
What is LegalZoom?
LegalZoom was founded in 2001 by Brian S. Lee, Brian P.Y. Liu, Edward R. Hartman, and Robert Shapiro who was most famous for representing O.J. Simpson. Shapiro helped get the company off the ground through his name recognition.
Over the years, LegalZoom has grown considerably both in the US and in other parts of the world, offering legal documents and services online.
From prenuptial agreements to copyright, business formation, patents, power of attorney, real estate leases, and more, LegalZoom is primarily geared towards individuals along with small business owners who need proper legal documents without having to consult or hire a local lawyer or law firm.
Both Rocket Lawyer and LegalZoom offer many similar services
Particularly in terms of legal documents. While LegalZoom had an 8-year head start, Rocket Lawyer has managed to become quite prominent due to its emphasis on business formation. However, in comparing both online services, there are vital features that you will need to consider before making your choice.
Long-Term Subscription Service
The heart of both Rocket Lawyer and LegalZoom is their respective subscription services. This is an annual fee charged by both companies to gain access to the legal assistance that they provide. The most common services covered under their subscription fees include the following;
- Access to Legal Agreements
- Consultations with Attorneys
- Document Reviews by an Attorney
LegalZoom Business Advisory Plan
LegalZoom offers a Business Advisory Plan that costs about $375 per year. You can pay a little more each month for a six-month service if you desire. The benefits of having such a service include the following;
- 30-minute Attorney Consultation
- Unlimited Free Tax Consultation w/Accountant
- 10-page Attorney Document Review
- 1-hour Legal Update for Your Business for Year-Long Subscribers
Rocket Lawyer’s Annual Plan
By comparison, Rocket Lawyer offers an annual plan for $400. ($39.99 monthly, cancellable anytime)
The service includes:
- Free Business Formation for new members. (State fees apply)
- 25% member discount on Registered Agent Services
- 30-minute attorney consults on each new legal matter
- 40% discount on attorney hourly rate for extended legal services
- Mobile App with eSign capabilities
- Unlimited access to all legal agreements
- Document review, up to 10 pages per agreement
Rocket Lawyer members have total access to every document on the platform – both- business and personal. This includes operating agreements, will and estate documents, provisional trademark agreements, and more. (Legal Zoom charges extra for these types of premium documents.) Rocket Lawyer also offers a service called Document Defense. If one of their documents is challenged, an attorney will defend the document via a written letter or a phone call.
Comparison of Business Formation Prices
By comparison, LegalZoom offers fewer documents that come included with membership; therefore, they offer some less expensive plans. Rocket Lawyer provides free and discounted incorporation options. Non-members pay $99.99 on Rocket Lawyer. LegalZoom incorporations start at $149.
This is one of the most basic functions of both online services. Providing standard legal documents for all types of matters involving the courts. From making out a will to filing for power of attorney to forming a business, having access to the proper legal documents makes it far easier and less expensive to file with the court compared to hiring a lawyer or law firm.
The comparison between Rocket Lawyer and LegalZoom is one of the quantities versus quality. Rocket Lawyer offers reliable legal documents covering a wide range of areas that are more extensive compared to LegalZoom. This is especially true in the business formation field, where Rocket Lawyer excels in terms of providing support.
Rocket Lawyer has historically had a superior documents platform. Legal Zoom has a cleaner user interface and higher brand recognition.
Considering the different rules and requirements of forms filed with local, state, and federal courts, the ability to customize a file is essential. Both LegalZoom and Rocket Lawyer offer their files in Word document complete with instructions that let you know how to tailor them to your needs. However, one curious omission is the inability to e-sign legal forms.
Not only does Rocket Lawyer allow you to e-sign forms online, but they also offer a more straightforward, easy-to-use interface system that makes customization better and easier to understand compared to LegalZoom. There are even instructions that pop-up if you have a question. Moreover, the forms will be automatically modified if you need them to be specific to your state.
This means in terms of customizing forms for your specific needs; Rocket Lawyer has a definite edge.
Trial & Refund
Here, Rocket Lawyer stands out as you get a one-week free trial of their service. This lets you check out their membership benefits. If you decide to join, you can cancel at any time and receive a pro-rated refund based on the time and services used. LegalZoom allows you to cancel at any time as well, but they do not have a free trial.
Admittedly, in many ways, the customer service or support provided by Rocket Lawyer and LegalZoom will depend on your specific requirements. Both are good, but one will stand out as better, depending on what you need and how fast. Keep in mind that customer service is not the same as the legal advice offered by either company. This is more in line with helping you find the right forms, navigating the site, and questions about your bill.
LegalZoom Customer Support
LegalZoom offers live chat, email, and phone support available from 7 am to 9 pm CST Monday through Friday. Also, 9 am to 6 pm CST on Saturday and Sunday. There is even a FAQ page that may answer your questions without the need to make a call, send an email, or engage in live chat. LegalZoom offers an excellent, responsive support system that makes it easy to contact their offices.
Rocket Lawyer Customer Support
Rocket Lawyer offers the same basic features as LegalZoom but only offers phone support from 8 am to 8 pm CST Monday through Friday. The anecdotal evidence suggests that Rocket Lawyer may not be as responsive to questions or inquiries compared to LegalZoom. This is because Rocket Lawyer has been slow to upgrade its customer service division.
However, what is both a blessing and a curse is that the agents who respond by phone have specific knowledge depending on their department. So, if you get the right agent right away, you’ll get your questions answered quickly. If not, you may be transferred around until you do. This means that some customers may have to wait until they get the right representative to have their questions answered. Moreover, if the issue covers multiple areas, then a complete answer may be more challenging to get.
This means that in terms of customer service, LegalZoom is arguably better and more efficient compared to Rocket Lawyer. However, this is only in terms of customer support and not in the services that are offered. For the most part, the services of both organizations are relatively simple and straightforward, but the edge does go to LegalZoom in terms of answering your questions faster, but online reviews do speak loudly.
Editor’s Choice – Rocket Lawyer!
Although both services have certain advantages, Rocket Lawyer arguably edges out LegalZoom in terms of business formation and getting legal advice on a wide variety of matters. While there are some instances where LegalZoom is superior, the truth is that Rocket Lawyer offers more advantages to most people.
If you are shopping around for an online legal service to assist in business formation and getting the right type of advice in many everyday legal matters, your best bet is to check out Rocket Lawyer first.
Top 10 Best LLC Formation Services 2020
We have listed several alternative services in the area of document filing and business formation. Visit our list of alternatives to LegalZoom and Rocket Lawyer in business formation and registered agent services.
Note – This is the opinion of one website, Payroll Service Reviews. This is for informational purposes only; we do not offer legal advice. or tax advice. We suggest that readers do their research and information gathering on these services and seek the services of a competent attorney or tax accountant.