We earn commissions if you shop through the links below. Read more

BetterLegal vs LegalZoom Comparison

Written by:

Coralee is a business writer with experience in administrative services, education, and software testing.

Edited by:

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

BetterLegal vs LegalZoom Comparison

Establishing a business entity is a vital step when starting a business. Given its intricate and time-consuming nature, many business starters opt for professional assistance to ensure flawless execution. These business formation services often come with added services that can benefit a new business owner.

Among the top-tier online options available, BetterLegal and LegalZoom stand out. To assist you in discerning the most suitable choice for your business, we’ve undertaken an exhaustive review of their services, stepping into an entrepreneur’s shoes. Continue reading to make an informed decision that will set your business on a trajectory towards success.

Business Formation Service
BetterLegal
LegalZoom
Plans and Pricing
1 plan at $299 + state filing fees
3 plans: Basic, Pro, and Premium; $0 – $299 + state filing fees
Registered Agent Service
Not included, $90 annually or $10 per month
Not included, $249 annually
Operating Agreement
Included
Included in Pro and Premium plans
Annual Report Service
Not included, $90 annually or $10 per month
Not included, starts at $99 + filing fees
Processing Time
Same day processing, 2 business days turnaround time
Around seven to 10 days
Customer Support
Chat, email, phone; Mon – Fri 9am – 7pm EST
Chat, email, phone; Mon – Fri 5am – 7pm PT; Weekends: 7am – 4pm PT
Business Documents Online Library
No
No
Other Services Offered
Banking resolution, Website, Business forms, Business checking, Tax analysis
Taxes, Licenses, and Permits, Legal Forms and Agreements, Trademark, Patent, and Copyright, Business Changes and Filings
Number of Business Served
Tens of thousands
Over 3.5 million
Money Back Guarantee
No
60 days

Our Verdict

Upon detailed evaluation, we’ve concluded that LegalZoom provides a wider variety of business formation options and packages that present greater value compared to BetterLegal’s offerings. Coupled with commendable customer service and positive reviews, LegalZoom stands out as a leading choice.

Given our comprehensive experience with LegalZoom and the remarkable value it offers, we endorse LegalZoom as a recommended option for budding business owners.

Pricing

Turnaround Time

Help and Support

Customer Satisfaction

Ease of Use

Overall Score: 4.2/5

Learn More

Pricing

Turnaround Time

Help and Support

Customer Satisfaction

Ease of Use

Overall Score: 4.2/5

Learn More

Even though we rank both services the same, LegalZoom offers more plan options, all of which are a good value, making them our choice over BetterLegal.

Pros and Cons

Pros

  • Quick turnaround times
  • Responsive customer service
  • Monthly subscription to certain services
  • Affordable registered agent services
  • User-friendly website and formation process

Cons

  • Only one business formation package available
  • Business formation package more costly than competition
  • Customer service only available M-F business hours

Pros

  • Reputable and reliable services
  • Local attorneys available in all 50 states
  • Great customer support
  • Quick and easy purchase process
  • Variety of legal services and documents available to business owners

Cons

  • Registered agent service cost is higher compared to competitors
  • Too many upsells when signing up
  • Slow turnaround time

Plans and Pricing – Winner: LegalZoom

BetterLegal

The BetterLegal LLC Formation plan, priced at $299 plus state fees, provides a comprehensive suite of services, including a federal tax ID essential for business banking and tax purposes, an operating agreement, a banking resolution, a business website, a checking account, and a tax analysis. The formation plan does not include registered agent services that cost $10 per month or $90 per year. The registered agent service is outsourced by a third party.

LegalZoom

LegalZoom offers an initial $0 LLC package, but the continual upselling may become costly and cumbersome. Moreover, none of their formation packages come with a registered agent service, which is an add-on service priced at $249 annually.

Experience – Winner: LegalZoom

BetterLegal

Formed in 2017, BetterLegal has served and formed tens of thousands of businesses since.

LegalZoom

Having served more than 3.5 million customers since 2001, with approximately half being business clients, LegalZoom has extensive experience in this field.

Customer Support – Winner: LegalZoom

BetterLegal

BetterLegal offers customer support via phone, chat, and email. The three channels have quick responses, and we experienced professional and polite support. Customer support is available Mon – Fri, 5am – 7pm PT.

LegalZoom

They provide support via phone, chat, and email. Overall all three channels have quick responses with polite and professional customer service representatives. Customer support is available on weekends as well, from 7am to 4pm PT.

Turnaround Times – Winner: BetterLegal

BetterLegal

BetterLegal is known for its outstanding turnaround times, offering same-day filing services. Your articles of incorporation or certificate of organization are submitted to your appropriate state on the same day you file, and payment is processed. Keep in mind that state processing times vary greatly, and the total turnaround time will depend on the state. 

LegalZoom

LegalZoom’s processing times depend on the package chosen, not the state of formation. For their premium package, finalized business formation documents could be received within 7–10 business days. Still, more economical packages could take up to 30 business days (or six weeks).

Customer Reviews – Winner: LegalZoom

BetterLegal

Considering that BetterLegal is a relatively new company, we found just over 300 reviews online. The majority of these were positive, praising the company’s swift LLC formation services.

LegalZoom

We found over 9,000 reviews on BBB and Trustpilot, with a significant portion being positive. Happy customers frequently mentioned LegalZoom’s services’ convenience and user-friendliness.

Ease of Use – Winner: LegalZoom

BetterLegal

The platform’s formation process is efficient and fast and includes explanatory videos for guidance. However, the lack of a save function can cause complications, as any attempt to navigate back can reset the process; this makes the platform most convenient for users who can complete the process at once and less so for others due to potential challenges in locating information and navigating through state websites.

LegalZoom

LegalZoom provides a streamlined approach to LLC formation, reducing the complexity of the DIY route. Their platform is well-designed, with intuitive steps, making it easier for business owners to navigate through the process and set up their operations effectively. LegalZoom also has upsells during the formation process, so make sure you choose only what you need.

Additional Services – It’s a tie between the two

LegalZoom and BetterLegal both offer a broad range of services, yet each one brings its unique offerings to the table. For instance, LegalZoom stands out for its intellectual property services and an extensive array of legal options that you can count on when needed.

In contrast, BetterLegal provides a comprehensive package that includes a website and a business checking account as part of its LLC Formation plan. Additionally, BetterLegal is recognized as a leading provider of tax services, ensuring clients receive expert tax advice.

FAQs

Why should I use a business formation service to start my LLC?

Using a business formation service to start your LLC frees you up to focus on growing your business. These services handle the filing process for you and offer additional services that can make life easier for a new business owner.

What should I take into consideration when choosing the right business formation service for my LLC?

When assessing whether or not a business formation service is right for you, it’s important to dive into the following four categories: included features, customer service, pricing, and turnaround time.

Why should I use LegalZoom?

Overall, LegalZoom is a reliable service that has been around for a while. If you need a one-stop shop for legal and business services, they are probably your best bet.

Where can I learn more about what real customers think of the various business formation services?

To learn more about the customer experience at a particular business formation service, check out the reviews and ratings on the Better Business Bureau and Trustpilot websites.

What’s good about BetterLegal?

BetterLegal’s formation process is simple and quick, and their registered agent services are competitively priced, offering customers two payment options at only $10 a month or $90 annually. BetterLegal is also known for its fast turnaround times, as well as being a leading tax services provider.

Where can I learn more about what real customers think of the various business formation services?

To learn more about the customer experience at a particular business formation service, check out the reviews and ratings on the Better Business Bureau and Trustpilot websites.  

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *