When launching a business, is it really possible to get everything — from formation services to logo design — in one seamless platform? Enter ...
BetterLegal vs LegalZoom Comparison
Written by: Coralee Bechteler
Coralee is a business writer with experience in administrative services, education, and software testing.
Edited by: David Lepeska
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.
Published on August 22, 2022
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.
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.
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
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.
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.
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.
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.
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.
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.
Subscribe to Our Newsletter
and gain insider access to cutting-edge business insights and trends.
Featured Resources
Tailor Brands Review: Features, Cost, Pros & Cons
Published on October 17, 2023
Read Now
Swyft Filings Review: Features, Cost, Pros & Cons
Published on September 11, 2022
In the ever-evolving world of startups and entrepreneurship, there’s a persistent need for reliable, efficient, and affordable businessservice ...
Read Now
Incorporate.com LLC Service Review: Is It Reliable?
Published on September 8, 2022
If you’re starting a business, the business entity formation process is one of the first and most significant hurdles. This step can be terriblyco ...
Read Now
Comments