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Monday, July 14th
LegalZoom has been providing affordable self-guided services for legal documents since 1999, serving over four million customers. Their extensive range of forms covers a wide variety of topics, including LLC formation and incorporation for businesses, as well as personal documents like wills and estate plans.
No free incorporation services here, sorry
We were surprised to see how drastically LegalZoom's pricing differs when comparing LLC formation and incorporation services: most of the platforms we evaluated offered the same fees regardless of the business formation type. Not here. Unlike many rivals, LegalZoom has zero no-cost options for incorporating your company. You'll pay at least $149 plus state fees if you opt to use this service.
3 packages on offer
So, what will you pay with LegalZoom's incorporation packages? Every plan comes with comprehensive name search and business entity filing, LZ's professional Peace of Mind Review to double-check your paperwork, a tax savings consultation (30 minutes), digital welcome packet with your Articles of Incorporation and detailed instructions post-formation, 7-days-a-week customer support for the lifetime of your corporation, and a customizable website powered by Wix. That's all you'll get when you choose the economy package at $149.
Upgrades are spendy
Upgrading to Standard ($329) means you'll also get a deluxe founder's kit and a personalized notebook. For what it's worth, we're not sure that's worth paying almost double. Or, go all the way with LegalZoom's Express Gold ($349), but the only benefit is expedited processing and shipping.
60 days to request a refund
LegalZoom provides a 60-day satisfaction guarantee for their services to ensure customer satisfaction. However, there are exceptions to this guarantee, such as third-party fees that have already been paid on your behalf (such as state filing fees for incorporation) or if LegalZoom has already submitted your paperwork.
Red flags
LegalZoom has earned an excellent reputation with an "A+" rating and accreditation from the Better Business Bureau. Thousands of reviews on Trustpilot have resulted in an average rating of 4.6 out of 5 stars. Despite this, we are hesitant to recommend LegalZoom for incorporation services due to a concerning number of complaints from clients about delays, unhelpful phone support, and even representatives hanging up on customers.
Clients are happy - unless they use the business formation services here
We came across a significant percentage of these complaints while reviewing LegalZoom's services on the BBB listing and Trustpilot, with many of them specifically mentioning issues with the business formation services here. Even though LegalZoom offers a 60-day satisfaction guarantee, clients seem to either love or hate the service, and positive reviews on LegalZoom's overall performance don't mitigate the prevalence of negative feedback regarding incorporation and LLC formation.
We don't recommend LegalZoom for incorporating your business
As a result of the concerning feedback from clients and numerous complaints regarding business formation services, LegalZoom has experienced a significant drop in our rankings. For a more reliable option, we recommend choosing a competing service that has a consistent record of positive feedback from clients, particularly in regards to company incorporation, and avoiding LegalZoom.
Incorporation is the process of legally creating a corporate entity, which can be a separate legal entity from its owners, with its own rights and responsibilities. As a business owner, incorporation can offer you a range of benefits, including limited liability protection, tax advantages, and increased credibility. However, there are also various considerations and requirements that you need to be aware of when incorporating your business.
The first step for business owners is to decide what type of corporation to form. In general, there are two main types of corporations: C corporations and S corporations. C corporations are subject to corporate income tax, while S corporations are not taxed at the corporate level, but rather have their income and losses passed through to their shareholders to report on their personal income tax returns.
Once the type of corporation has been decided, you'll need to follow the legal requirements for incorporation, which vary depending on the state in which your corporation is formed. Some of the common requirements include filing articles of incorporation, appointing a board of directors, holding annual meetings, and maintaining corporate records.
So, once you've determined that you want to incorporate, what's next? You could jump in and try to wade through all of the requirements and paperwork on your own - or you could take advantage of a service that can do all of the heavy lifting for you, often at no cost beyond what you'll pay to file your paperwork in your state. Hmmm, do it yourself for free or have someone else do it for free? Easy choice.
When it comes to choosing a service for incorporating your company, it's crucial to get it right on the first try. The process can be complex, so it's important to keep some key factors in mind when deciding how to proceed with your business. Here are some of the criteria to consider when taking the next step:
At Top Consumer Reviews, we understand that company incorporation can be a crucial step in safeguarding your personal assets and limiting your liability as a business owner. To assist you in this process, we have assessed and ranked the most widely used incorporation services. With the help of our comprehensive reviews, we are confident that you will find the right provider to guide you through this important step.
Select any 2 Company Incorporation Services to compare them head to head