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      August 3, 2020

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Rocket Lawyer vs LegalZoom

Best LLC Formation Services

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

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

4.5 stars
Rocket Lawyer

ROCKET LAWYER

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Cost:

7-day free trial

$39.99/month for Premium membership

Rocket Lawyer's goal is to make it affordable and easy for the average person to access legal services and documents. Since they opened, they've helped over 20 million individuals to create a wide range of legal documents ranging from Business Agreements to Property and Finance.

Free trial

Although customers can get individual documents with a la carte pricing, the least expensive way to use Rocket Lawyer's services is through a monthly membership priced at $39.99. Whether you're just looking to create an LLC or you have a number of legal documents on your to-do list, a complimentary 7-day trial gives you a no-risk method of trying Rocket Lawyer's services on for size. Yes, this does mean that you could potentially get all of your LLC formation documents completed at no cost, if you can get them filled in within the first week. Just be aware that the free trial does not include access to attorney advice on any of your paperwork.

Affordable monthly plan

Naturally, Rocket Lawyer's goal is to get you hooked on their convenient, affordable services during that 7-day trial, but the decision is yours - no obligation. Of course, if you're already running a business or even getting one started, you might find it very helpful to have access to documents in categories like Contracts & Service Agreements or maybe even Estate Planning. Fortunately, you can use Rocket Lawyer's service only for the months you need and then cancel at any time. That monthly plan also gives you access to lawyers for any legal questions that arise, including a 30-minute phone consultation for each new legal matter you'd like to discuss.

Best LLC Formation Company

Registered agent services

Is Rocket Lawyer the best LLC formation service for your business needs? You'll need to compare them with other providers to make sure that the bottom line is the right choice for your situation. One aspect to consider is that you'll likely need to use Registered Agent Services: where many of the providers in our review charge up to $299/year for that service, you get it included at a discount of 25% when you're a subscriber at Rocket Lawyer.

Extended customer service hours

Another advantage of using Rocket Lawyer to create your LLC is their customer service availability: you can get in touch with their representatives from 6A to 6P Pacific five days a week through their toll-free number or online chat. These extended hours make it possible for many business owners to call before or after their working day, rather than trying to squeeze it in during their prime hours of operation.

100% satisfaction guarantee

You'll also get a 100% satisfaction guarantee with your monthly membership: if you're not completely happy with the service you've received, you can request a full refund.

Extremely satisfied

Most of Rocket Lawyer's customers are extremely satisfied with the documents and legal help they've gotten. We did find some negative comments, but almost all of them were from free trial customers who didn't cancel before their free trial ended and were billed for the first month of service. For those who intentionally choose the service, however, Rocket Lawyer gets compliments for the wide range of available documents and the helpful advice from their attorneys on staff.

Solid reputation

Because of their unique membership approach to legal help, a solid reputation for quality customer service, and a one-week free trial, Rocket Lawyer is worth considering - not only to form your LLC, but also for any other legal forms and lawyer advice you might want for your business or your personal life.

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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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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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