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      August 3, 2020

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LegalZoom vs Corporate Creations

Best LLC Formation Services

To help you find the Best LLC Formation Services, TopConsumerReviews.com provides you with an in-depth comparison of LegalZoom and Corporate Creations.

To see ALL of our reviews for the Best LLC Formation Services, please Click Here

Who is the best LLC Creation Company? If you're self-employed, the next step in growing your business while covering your assets is probably forming an LLC. Creating an LLC is often seen as a good move for people who want to limit their liability without the cumbersome paperwork and regulations of a corporation.

No matter where your business is located, you'll typically need to register your company name and file documentation with the state, along with having accurate, complete Articles of Organization. Other requirements depend on the specific legal statutes governing businesses in your state. An online LLC Creation company can greatly help faciliate this process.

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Best Reviews

2020

LLC Formation Reviews

3.5 stars
LegalZoom

LEGAL ZOOM

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Cost:

Packages range from $49 to $349

Since 1999, LegalZoom has helped over 4 million customers to affordably access legal documents through their self-guided services. You can find documents across a wide variety of topics, ranging from business needs like LLC formation and incorporation to personal issues such as wills and trusts.

Satisfaction guarantee

A strong positive of using LegalZoom to create your LLC is their Satisfaction Guarantee. Within the first 60 days after your purchase, you can request a 100% refund of all fees paid directly to LegalZoom if you're unhappy with any part of your experience. Of course, that refund policy doesn't apply to any fees you paid for government filing or to a third-party service.

3 levels of service

However, as you select a service to form your LLC, you're likely going to find that you'll spend more by choosing LegalZoom. Here's what you can expect with their three levels of service:

  • Economy: In this package, you'll get an Operating Agreement, comprehensive state/federal business name availability search, the preparing and filing of your Articles of Association and other required paperwork, an LLC Next Steps Guide and LegalZoom's $50,000 Peace of Mind Guarantee.
  • Standard: In addition to the Economy package features, you'll also get a business newsletter, a deluxe organizer, and official printed certificates/seal. You may not think those features are worth the extra money - possibly as much as $280 more for the Standard vs. the Economy tier.
  • Express Gold: You'll get all of the features of the first two levels, along with help in getting all required federal/state/local permits and licenses, VIP processing/priority filing/express shipping, lifetime customer support, and a financial account authorization letter

Optional services

For all three packages, you can choose among a number of optional services. One of the most common - and important - is the Registered Agent Service. Many of the company incorporation services we reviewed include it for free during the first year, while others may charge $99 per year. LegalZoom's fees are $159 per year, and they are not included even with the highest package level.

Best LLC Formation Company

Free trials

As you set up your LLC, you'll also be offered free trials of other services, such as a 30-day trial of Affordable Tax, Legal Protect, and Total Compliance. These services are billed at $320/year thereafter.

Frustrating pricing

We found the process of selecting an LLC formation package through LegalZoom to be very frustrating, mostly when it came to pricing. On one screen, we were given package prices ranging from $99 to $159. But, as we went through the actual process of creating our LLC, the package prices changed to $49-$349.

Included or not?

Also, on one screen it said that an EIN would be included with the two higher levels of service. But, again, once we went through the steps to form the LLC, we were quoted an additional $199 to get the Operating Agreement, EIN, and Licenses.

Fast turnaround

In the past, we've seen good things from LegalZoom, with customers saying that their turnaround times were much faster than expected and that their LLC's were formed very quickly. But, with so many issues with pricing, it left us wondering what we were actually paying for and frequently asking "Is this included or isn't it?"

Room to improve

You can expect quality deliverables with LegalZoom. However, we hope LegalZoom will make their pricing clearer and more consistent in the future.

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2.5 stars
Corporate Creations

CORPORATE CREATIONS

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Cost:

Price varies depending on your state and services selected

Corporate Creations has been a part of the LLC Formation industry for more than 20 years. You can be confident that they have a trustworthy reputation, as evidenced by their A+ rated entity with the Better Business Bureau.

Click through the options

While some companies offer an easy-to-use website that shows prospective clients their options in a clear way - through a chart or a list of different packages, for example Corporate Creations does not. Instead, when someone clicks on the Incorporation tab at the top of the page, they're taken to a series of dropdown boxes and options to click through, to determine what features will be needed. The LLC option is listed in the dropdown for Entity Type.

Challenging to compare

This makes it challenging to compare "apples to apples" with other LLC Formation providers. Further complicating things is the fact that Corporate Creations automatically includes any required state fees in their pricing. State fees can vary widely, from under $300 in many states to more than $600 in places like Nevada - so it's frustrating not being able to quickly see what their own services cost.

Best LLC Formation Company

Price match guarantee

One feature we really liked, however, is their Price Match Guarantee: if you see a lower price for the same service with another provider, they'll match it. Or, if you've already ordered services through Corporate Creations and then find a lower price within 30 days, they'll refund 100% of the difference. This is one of the only services in our review to offer that kind of guarantee.

Annual recurring fee

One thing to be aware of Corporate Creations provides registered agent service free in the first year, but every year thereafter you'll pay a fee of $299. Given that many of the top-rated incorporation services we reviewed only charge $99-$129 per year, you should try to obtain a price match for this annual, recurring fee.

Little guidance

Compared with other online incorporation services, Corporate Creations offers very little guidance regarding the LLC process. On the Incorporation page, for example, there are no convenient "Which one is right for my company?" tools. Neither is there very much information to help a small business owner understand what they need and why they need it. The Resources tab lists just a few articles about owning a business, not just LLC's.

Comes up lacking

The few customer reviews we found were very positive, and the company as a whole has an excellent approach to servicing their clients. When it comes to keeping up with the competition in the online world of LLC Formation, however, Corporate Creations comes up lacking. We hope to see more improvements from them in the future, because they can help you create an LLC smoothly and affordably - just not in a customer-friendly environment.

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Continued from above

In the past, navigating those state-specific obligations to form an LLC was both expensive and time-consuming: finding a local lawyer with expertise in the field and paying hefty fees to get everything done correctly. Fortunately, today's small business owners have access to much more affordable options online. These services offer all of the same benefits, accuracy, and legal standing that you'd expect from working in person with an attorney. You can get as much or as little direction as you need to complete each step required for LLC formation, depending on which service you choose.

Which provider should you choose to help in forming your LLC? Not all services are the same, so when comparing what each one has to offer, keep in mind these important factors:

  • Reputation. How many small businesses have been served by the provider? What do former clients say about their experience in forming an LLC with them? Is the company rated and/or accredited by the Better Business Bureau?
  • Cost. What will you be charged to form your LLC? Are their different packages available? Are there a lot of add-on services that will increase your cost? Do you get a good value for what you pay?
  • Services. Does the company offer a wide range of services, or do they take a one-size-fits-all approach? Will the service give you one-on-one help if you need it? How much are you expected to do on your own?

TopConsumerReviews.com has reviewed and ranked the best LLC Formation Companies available today. We hope this information helps you create your LLC quickly and affordably!

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