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Bizee 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 September 6, 2022
Setting up a business entity is a vital initial step in commencing a business, and due to its frequent complexity and tediousness, numerous entrepreneurs enlist professional assistance to ensure things are done correctly. These business formation services also extend additional offerings that can be beneficial to a novice business owner.
Two predominant online platforms to take into account are Bizee (formerly known as Incfile) and LegalZoom. To aid you in identifying the superior service that may be the optimal fit for you and your business, we have conducted an exhaustive evaluation of their services from an entrepreneur’s viewpoint.
Service Overview
Our Verdict
Upon detailed evaluation, we’ve ascertained that Bizee offers superior value with their Silver package, as it doesn’t entail any costs beyond state filing fees and provides one year of registered agent services free of charge. Additionally, it includes unlimited name searches, free 30-minute business tax consultation, business banking account offer, and lifetime compliance alerts.
LegalZoom’s major strength lies in its name — if you predict that your business will necessitate significant legal counsel, it’s likely the ideal choice for you.
We’ve determined that Bizee presents formation services of better value, especially since their Silver package is free and includes registered agent services for one year.
Pros and Cons
Pros
- Affordable, with a free plan that includes all the basics
- Unlimited name searches
- Free registered agent service for a year
- Access to an online dashboard
- Unlimited access to phone and email support
Cons
- Customer service may be less responsive than other services
- Limited legal services available
- Limited customer support hours, no weekend availability
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: Bizee
Bizee
Bizee’s basic formation services (Silver plan) cost only state fees and provide a year of free registered agent services. After the first year, the registered agent service renews at $119/year. The Gold ($199) and Platinum ($299) packages offer substantial features, justifying their cost.
LegalZoom
While LegalZoom offers an initial $0 LLC package, 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
Bizee
Bizee, established in 2004 as Incfile, has aided in the formation of over a million businesses.
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 — It’s a Tie Between the Two
Bizee
We tested Bizee’s customer service channels thoroughly, including chat, email, and phone. The response times were impressive across all platforms: with almost instant replies on chat, immediate phone pickup, and an email response in less than a day. You can expect clear and helpful information from Bizee’s customer support, ensuring your queries will be handled efficiently and promptly, Monday through Friday.
LegalZoom
They provide support via phone, chat, and email. Overall all three channels have quick responses with polite and professional customer service representatives.
Turnaround Times — Winner: Bizee
Bizee
Bizee guarantees free same-day processing for their Premium plan, but you can also pay for expedited processing if you opt for Silver or Gold. It starts at $50 and varies from state to state. The turnaround time is also state-dependent, but usually, it takes around three weeks to form your business. Bizee provides a valuable comparison tool to help you estimate your turnaround time.
LegalZoom
Unlike many rivals, their 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: Bizee
Bizee
Bizee has over 18,000 customer reviews on Trustpilot alone, with the majority of them sharing highly positive customer feedback.
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: Bizee
Bizee
The process of forming a business with this service is fast, simple, and user-friendly. The upgrade options provide clear and useful information rather than being pushy. However, if you go back to the homepage, you might be prompted to start the process over.
Despite this, the website is straightforward and easy to use overall, particularly if you’re prepared to complete the entire process in one go.
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 easy for business owners to navigate through the process and set up their operations effectively. However, numerous costly upsells can make the process somewhat confusing and potentially expensive.
Additional Services — Winner: Bizee
Bizee and LegalZoom both grant access to an extensive range of supplementary services beneficial for initiating or maintaining a compliant business entity.
Many of their offerings are identical, encompassing registered agent service, annual reports, “doing business as” (DBA) names, foreign qualifications, EIN acquisitions, and more.
Nonetheless, LegalZoom expands its scope by providing several legal (personal) services that are not covered by Bizee. This can be largely attributed to the fact that Bizee restricts its offerings to business services such as business compliance services and domain and email address services.
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.
Bizee is great for entrepreneurs on a budget, as their Silver Package covers the basics and includes a free year of their registered agent service. Competitors like LegalZoom and Swyft Filings have a more robust suite of services but can be more expensive.
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.
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