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LegalZoom Review

Friday, June 21st

2024 LLC Formation Service Reviews

LegalZoom Review 2 Star Rating

LegalZoom

2 Star Rating
  • Basic: no cost other than state filing fees
  • Pro: $249 + state filing fees
  • Premium: $299 + state filing fees
  • Unlimited 30-minute attorney consultations included with the Premium package (during 90-day free trial)
  • 60-day refund policy
  • "A+" rated and accredited by the BBB

LegalZoom has been assisting individuals since 1999 by offering cost-effective self-guided services for legal documents. With over four million customers served, this company gives you access to forms covering an extensive range of topics, including business requirements like LLC formation and incorporation, as well as personal matters such as living trusts and estate plans.

Pay attention to registered agent options

Form your LLC for no cost other than state filing fees? That's what LegalZoom hopes will get you through the door, so to speak. To find out if you're eligible, start by entering your business name and industry type. During the process, you'll be given the opportunity to use LegalZoom's registered agent service for $249/year, which will renew automatically every year - but you can also select "Appoint a different registered agent" when you realize that there are other ways to get that service for less (and, in fact, some of the LLC formation services in our review give you the first few months to a year for free as part of your package).

Possible to create your LLC for nothing but state fees

Still trying to get your LegalZoom services at no cost? You'll have to navigate through several more screens of offerings, like essential documents (operating agreement, EIN + licenses) priced from $99-$199, $280/year for compliance monitoring, tax returns and advisory services ($49-$119 per month), legal protection services ($49/month), and then a whole page of special offers of related services like banking. Exhausted yet? Oh, and don't forget the options for expedited processing and a founder's kit. But, yes, as long as you keep clicking "no thanks" or "I'll do this myself" , you'll eventually get to the checkout page where your LegalZoom fees are $0 and all you're paying is the filing fee for your state. You'll get the articles of organization, name check service, a digital welcome packet to follow after your LLC is registered officially, and even a Wix-powered website you can use to make an online presence right away.

Choose a bundle to save money

But, you're going to get a better deal if you just start out with one of LegalZoom's other bundles instead of adding here-and-there during the checkout process. Their Pro package is priced at $249 and it comes with most of those items we mentioned previously: all of the features of Basic, plus an operating agreement, an EIN, a comprehensive guide regarding business licenses in your industry and area, and initial phone consultations with experts in the areas of business taxes and insurance.

Legal advice available from attorney network

However, if you want a lot of hands-on help with creating your LLC, you'll want LegalZoom's Premium package. It costs $299 and gives you all the benefits of Basic and Pro, but also the ability to choose which business attorney you'd like to get guidance from and unlimited 30-minute consultations. Just be aware that that last service is a subscription and your LLC formation package only gives you the first 90 days for free.

Best LLC Formation Services

60-day satisfaction guarantee

LegalZoom wants you to have no qualms about signing up for any of their services. To that end, they have a 60-day satisfaction guarantee within the first 60 days of signing up. Of course, that won't apply to any third-party fees they've paid on your behalf (like the state filing fees required to create an LLC) or after they've already submitted your paperwork.

Solid reputation, but dig deeper

LegalZoom's reputation overall is solid, with an "A+" and accreditation from the Better Business Bureau and an average of 4.6 out of 5 stars across thousands of reviews on Trustpilot. We could even overlook the 400+ complaints filed against LegalZoom with the Better Business Bureau: after all, this company helps millions of people, so they're bound to get a few complaints, right? However, when we started looking through client complaints about LegalZoom on the BBB and Trustpilot, an alarming percentage of them specifically mentioned issues with the LLC formation service.

LLC clients have lots of complaints

Excessive delays, trouble getting help over the phone when clients notice problems, and even representatives hanging up on customers are just a few of the issues described - and those were just from the month leading up to this evaluation. So much for that 60-day satisfaction guarantee. Business owners using LegalZoom to form an LLC seem to either love it or hate it, and even the positive reviews left us wondering if maybe those clients just hadn't experienced a problem - yet.

Use a different service to create your LLC

All of that combined to earn LegalZoom a big drop in our rankings. It seems like they reel people in with the promise of free LLC creation services, but clients wind up paying for it in the end - literally and figuratively. We strongly recommend that you use a rival service that gets consistently positive feedback from clients, specifically regarding LLC formation, and stay away from LegalZoom.

Which LLC Formation Service is the Best?

LLC formation is a common way for small business owners to limit their personal liability while operating their company. A Limited Liability Company (LLC) is a hybrid business entity that combines the pass-through taxation of a partnership or sole proprietorship with the liability protection of a corporation. LLCs are a popular structure for many small businesses because they offer many of the benefits of a corporation without the same level of complexity and formality.

Forming an LLC typically involves filing articles of organization with the state in which the business will operate. Your specific process and requirements for forming an LLC may vary depending on the state where you're doing business, but it generally requires selecting a unique business name, designating a registered agent, and paying a fee. Some states may have additional requirements such as issuing an operating agreement or publishing a notice of formation in a local newspaper.

The Best LLC Formation Services Compare LLC Formation Services Compare LLC Formation Service Reviews What are the best LLC Formation Services Best LLC Formation Service Reviews

LLC Formation Service FAQ

LLC stands for "Limited Liability Company". It's one of several legally-recognized business structures in the United States.
When you change your business from a sole proprietorship or partnership to an LLC, it helps protect your personal assets from any legal actions that might be taken against your business. In other words, you won't lose your home, automobile, or savings if your company is sued.
Both incorporation and forming an LLC give you legal protection. LLCs are less complicated to create and maintain, and they're the most common structure for smaller businesses that don't plan to go public or to do business internationally.
Not necessarily. Filing fees vary by state. Also, there are a wide range of services that can help you complete the paperwork and ensure that it's done correctly. These providers' fees range from $39.99 to $799, depending on the level of service you select.
You can complete your LLC paperwork in a matter of minutes! Some providers of LLC formation services can get your application filed that same day. From there, it depends on the turnaround time in your specific state.
Absolutely! Some of the most reputable services take you from start-to-finish without ever having to print out a piece of paper or touch a document. However, other providers only give you access to the applicable forms, and you're on your own both to fill them out and to file them with your state.
You'll find a wide range of options when looking for help in forming your LLC, and most of them have a well-established history and positive reputation. Be sure to look for customer reviews and/or a good rating from the Better Business Bureau, as extra reassurance that the service you've selected is reliable.
Fortunately, most providers of LLC formation services have some kind of satisfaction guarantee. The only caveat is that any fees paid on your behalf to a third party (e.g. state filing fees) will probably not be refunded.
Compare the Best Reviews

Continued from above...

There are many services that can help with LLC formation for small businesses. Many of these services offer a range of options for businesses at various price points, from basic do-it-yourself kits to more comprehensive packages that may include assistance with obtaining tax identification numbers, preparing and filing annual reports, and ongoing compliance support.

Which of these services should you choose? You want to get it right the first time, and forming an LLC can be complicated. Here are some of the most important criteria you should keep in mind as you choose how to take that next step for your business:

  • Included services. What will you get when you sign up as a client? Does it include concierge-level assistance or will you be doing a lot of the legwork yourself? How personalized are the LLC formation services? Can you get one-on-one help if you need it?
  • Cost. What will you pay to access the LLC formation services? Is it a comprehensive one-time fee, or will you discover extra charges as you move through the process? Does the service offer a solid value for what you're spending to form your LLC?
  • Client feedback. What do other small business owners say about their experiences using the LLC formation service? Is there a lot of feedback to consider, or just a handful of comments (or even complaints)? Has the Better Business Bureau weighed in on the company? If so, is the service highly-rated and accredited?

Because forming an LLC can be an important step to protect your personal assets and limit your liability as a business owner, Top Consumer Reviews has evaluated and ranked today's most popular services. We're confident that our comprehensive reviews will help you choose the right provider to help you navigate the process.

Compare LLC Formation Services

Select any 2 LLC Formation Services to compare them head to head

best-llc-formation-services
  • Bizee
  • Inc Authority
  • My Company Works
  • FileNow
  • Corp Net
  • Swyft Filings
  • Business Rocket
  • My Corporation
  • Nolo
  • Biz Filings
  • Rocket Lawyer
  • Harbor Compliance
  • LegalZoom
  • Find Legal Forms
Bizee vs Inc Authority Bizee vs My Company Works Bizee vs FileNow Bizee vs Corp Net Bizee vs Swyft Filings Bizee vs Business Rocket Bizee vs My Corporation Bizee vs Nolo Bizee vs Biz Filings Bizee vs Rocket Lawyer Bizee vs Harbor Compliance Bizee vs LegalZoom Bizee vs Find Legal Forms Inc Authority vs My Company Works Inc Authority vs FileNow Inc Authority vs Corp Net Inc Authority vs Swyft Filings Inc Authority vs Business Rocket Inc Authority vs My Corporation Inc Authority vs Nolo Inc Authority vs Biz Filings Inc Authority vs Rocket Lawyer Inc Authority vs Harbor Compliance Inc Authority vs LegalZoom Inc Authority vs Find Legal Forms My Company Works vs FileNow My Company Works vs Corp Net My Company Works vs Swyft Filings My Company Works vs Business Rocket My Company Works vs My Corporation My Company Works vs Nolo My Company Works vs Biz Filings My Company Works vs Rocket Lawyer My Company Works vs Harbor Compliance My Company Works vs LegalZoom My Company Works vs Find Legal Forms FileNow vs Corp Net FileNow vs Swyft Filings FileNow vs Business Rocket FileNow vs My Corporation FileNow vs Nolo FileNow vs Biz Filings FileNow vs Rocket Lawyer FileNow vs Harbor Compliance FileNow vs LegalZoom FileNow vs Find Legal Forms Corp Net vs Swyft Filings Corp Net vs Business Rocket Corp Net vs My Corporation Corp Net vs Nolo Corp Net vs Biz Filings Corp Net vs Rocket Lawyer Corp Net vs Harbor Compliance Corp Net vs LegalZoom Corp Net vs Find Legal Forms Swyft Filings vs Business Rocket Swyft Filings vs My Corporation Swyft Filings vs Nolo Swyft Filings vs Biz Filings Swyft Filings vs Rocket Lawyer Swyft Filings vs Harbor Compliance Swyft Filings vs LegalZoom Swyft Filings vs Find Legal Forms Business Rocket vs My Corporation Business Rocket vs Nolo Business Rocket vs Biz Filings Business Rocket vs Rocket Lawyer Business Rocket vs Harbor Compliance Business Rocket vs LegalZoom Business Rocket vs Find Legal Forms My Corporation vs Nolo My Corporation vs Biz Filings My Corporation vs Rocket Lawyer My Corporation vs Harbor Compliance My Corporation vs LegalZoom My Corporation vs Find Legal Forms Nolo vs Biz Filings Nolo vs Rocket Lawyer Nolo vs Harbor Compliance Nolo vs LegalZoom Nolo vs Find Legal Forms Biz Filings vs Rocket Lawyer Biz Filings vs Harbor Compliance Biz Filings vs LegalZoom Biz Filings vs Find Legal Forms Rocket Lawyer vs Harbor Compliance Rocket Lawyer vs LegalZoom Rocket Lawyer vs Find Legal Forms Harbor Compliance vs LegalZoom Harbor Compliance vs Find Legal Forms LegalZoom vs Find Legal Forms
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