LegalZoom vs Nolo Comparison

Establishing a business entity is an essential step in starting a business. Given its intricate and sometimes tiresome nature, numerous entrepreneurs enlist a professional to ensure it’s done correctly. These business formation services frequently offer extra services beneficial for new business owners.

Among the top online providers to evaluate are LegalZoom and Nolo. To aid you in deciding which is superior and potentially better suited to you and your business, we have conducted a comprehensive review of their services, adopting an entrepreneur’s perspective.

Continue reading to select the service that will set your business on the path to success.

Services Overview

Our Verdict

After a thorough assessment, we have determined that LegalZoom is a better choice than Nolo. LegalZoom’s plans offer more services, and their customer service is far superior to Nolo’s. 

LegalZoom’s site is much easier to navigate, and Nolo’s reviews were troubling. Finally, LegalZoom is widely known as a trusted industry leader, so they receive our recommendation.

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: 3/5

Learn More

We’ve chosen LegalZoom as a better option due to their value provided, superior customer service, and site usability.

Pros and Cons

Plans and Pricing – Winner: LegalZoom

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.

Nolo

Priced at $49, Nolo’s Basic package offers essential LLC formation services and presents a good value option for entrepreneurs on a budget.

The Standard package, although more costly at $149, includes additional services such as EIN tax ID application preparation and a variety of business forms.

However, the Express package, priced significantly higher at $299, mainly justifies its cost for businesses needing immediate LLC formation, as its primary advantage is rush filing, offering no additional value over the Standard package.

Experience – Winner: LegalZoom

LegalZoom

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

Nolo

Nolo was founded in 1971 and, since its early beginnings, has been assisting individuals who couldn’t afford legal advice and support. While we couldn’t determine the exact number of businesses they’ve helped form, we found that they’ve sold over 1.7 million products, some of which are business formation packages.

Customer Support – Winner: LegalZoom

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.

Nolo

Nolo offers two channels of support: phone and email. We tested both and found that phone support is much more effective than email, as we received a response from a Nolo representative 20 days after sending our email.

Turnaround Times – It’s a tie between the two

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).

Nolo

Nolo will process and file your documents with the state within 4–5 business days if you purchase the Basic or Standard package and within a day if you buy their top-tier plan. However, the turnaround time depends on the state and can take, on average, up to 3 weeks.

Customer Reviews – Winner: LegalZoom

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.

Nolo

From a few hundred reviews we could find online, many were extremely negative.

Ease of Use – Winner: LegalZoom

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.

Nolo

Overall, we didn’t find Nolo’s website to be very intuitive or easy to use since LLC information can be difficult to find. You have the option to sign up for a free account on the site, though Nolo’s login page gives the impression that it’s only for lawyers or those seeking to tackle the business formation process themselves.

Additional Services – Winner: LegalZoom

In comparing LegalZoom and Nolo, it becomes clear that each has distinct offerings beyond their comparable services. Nolo, for instance, stands out for its comprehensive collection of legal books and online documents, which makes it a great resource for self-education in legal matters.

Conversely, LegalZoom goes beyond basic business formation services by offering features such as trademark registration, copyright application, and patent services. This breadth of services in the field of intellectual property protection makes LegalZoom a versatile choice for businesses in need of legal assistance beyond their formation.