If you’re starting a business, the business entity formation process is one of the first and most important hurdles. This step can be terriblycomp ...
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Response time:
Very quick
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Written by: Natalie Fell
Natalie is a business writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.
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.
Updated on February 27, 2023
Business entity formation is a crucial element of launching a business, and because it’s often complex and tedious many entrepreneurs hire a professional to do the job right.
Two of the leading online services to consider are Northwest Registered Agent and LegalZoom. And to help you determine which is best, and which might be best for you and your business, we have thoroughly reviewed their services by putting ourselves in the shoes of an entrepreneur. Read on to make the choice that will put your business on the highway to success.
Northwest Registered Agent is our recommendation as they offer outstanding customer service, as well as a competitively priced business formation plan and affordable registered agent services.
Visit Northwest Registered AgentNorthwest Registered Agent offers several a la carte services and one business formation package, which includes a year of registered agent services. All customers will have online access to their documents and full customer support.
LegalZoom is an industry leader when it comes to LLC formation. They offer three businessformation plans, with one-time fees ranging from $0 to $299, plus state fees. Their Economy Plan is great value for what’s included and they have great customer service.
Northwest Registered Agent’s single plan includes the preparation and filing of both your LLC formation documents and an operating agreement. Customers receive same-day processing, registered agent services for one year, a business address and digital mail forwarding.
It also provides online access to your documents, and customer service support, making it a great value at a reasonable price.
The cost of the package is $225.
However, we did find a discount for customers. This link will enable you to form your LLC for just $39 and receive registered agent services for a year from Northwest Registered Agent – in any state!
The LegalZoom “base” Basic Plan costs state fees only and provides a business name availability search through the state database, your business’s formation, and full customer support. It also offers a few extras, including a digital welcome packet and a customizable business website. You’ll also have access to your formation documents online at any time.
LegalZoom’s Pro Plan costs $249 and includes all the services in the Basic Plan plus plus an operating agreement, an EIN, a business license guide, and a tax and insurance consultation..
The LegalZoom Premium Plan, at $299 offers all of the services listed above plus expedited filing.
Northwest Registered Agent has one signature plan which includes registered agent services for one year. LegalZoom offers three tiers of LLC formation plans at different annual rates plus state fees.
Northwest Registered Agent | LegalZoom | |
---|---|---|
Price | $225 upfront cost plus state fees | Basic Plan $0 Pro Plan $249 Premium Plan $299 (all + state fees) |
Turnaround time | Three to five business days plus state filing fees | 20 days for Basic 10 days for Pro 2-5 days for Premium *state processing times vary |
Registered agent | Free for one year when you purchase the formation package; $125 annually thereafter | $299 annually |
Operating agreement | Included | Included in Pro and Premium |
Worry Free compliance | Not included in plan, can be added for $100 per year plus state fees | $280 annually |
EIN | Included | Included in Pro and Premium |
Website | Not included | Included |
Tax and Insurance consultation | Not included | Included in Pro and Premium |
Customer Support | Included | Included |
Business license guide | Not included | Included |
We tested the customer experience of both services from every angle. Here’s what we found.
When you first go to the Northwest Registered Agent site, you’ll see tabs at the top that you can click on to explore free guides, products and pricing, and more about the company.
Six quick links dominate the main page’s visual hierarchy. We clicked on the Hire Us link and proceeded to form a new LLC using Northwest Registered Agent’s service. You can also choose the Start an LLC button.
You’ll then be prompted to enter the state you’re filing in, and your preferred payment method.
After you create an account with Northwest Registered Agent and provide your contact information, you can add more services or tools to your order. View the prices for these options by selecting and deselecting the items and watching your Order Summary box on the right side of the webpage. Some fees will vary depending on your state, like a certificate of good standing.
The questions are simple and quick without a lot of confusing text. We found using Northwest Registered Agent to be an extremely smooth and pain-free process, and we especially like that the website’s order form allows you to jump back and forth between the filing sections quickly.
If you need to take a break, your progress will be saved – even if you don’t return until the next day. Northwest Registered Agent makes forming your LLC quick and easy.
Overall, the site is straightforward no matter what stage of filing preparation you’re in. If you’re ready to go and just want to complete the process, the Hire Us tab is always displayed at the top of the webpage, next to the How To and Our Services tabs, which offer additional information and guidance.
Even if you don’t purchase any services, you do have the option to sign up for a free account with Northwest Registered Agent. However, this isn’t posted on their website as much as their quick links to begin filing are.
The filing/order page is where you’ll find the opportunity to sign up for a free account. But signing up for an account doesn’t seem to give you access to anything new unless you actually go ahead and form your LLC.
We tested all three forms of Northwest Registered Agent customer support.
When we tested the customer service response time through the online chat option, we received a personal response within one minute.
However, the online chat option doesn’t seem to be available consistently during Northwest Registered Agent’s posted business hours. We found that sometimes the chat was open, and other times it only displayed their “away” message.
The question we asked was about service packages – specifically, we wanted to double-check if there were any other packages.. The customer service agent was polite and quickly explained that Northwest Registered Agent only offers the one package; all other services can be purchased a la carte.
Support Rating:
Response time:
Very quick
We called Northwest Registered Agent to ask a question about that mysterious discount floating around the internet – the markdown to form your LLC for only $39. We encountered just one automated phone menu with three options to listen through. Our call was then almost immediately answered by a friendly and professional customer service representative.
He knew exactly what discount we were referring to and promptly emailed us access to the deal.
Support Rating:
Response time:
Immediate
In an email, we asked Northwest Registered Agent the same question about service packages we asked in the online chat. Within two hours, we received an email back with our question similarly answered. The person who responded was concise and made no sales pitches.
Support Rating:
Response time:
Very quick
When you first go to the LegalZoom site, you’ll be able to explore products and pricing from the menu at the top, or you can just click “start my business” and select the business entity type you want to form.
When you start the formation process by selecting LLC as your entity type, you’re asked a series of questions about your business. Then the site automatically offers you products, such as registered agent services and the operating agreement. You can accept or decline any of the services.
One of the products offered is a total compliance service, which does not appear in their products menu. This service helps you meet all your LLC’s requirements, such as annual report filings.
The service is free for 10 days, which is a rather short period, and then costs $280 per year. This seems expensive since you can purchase their annual report a la carte for $55 per year.
You’re also offered tax services, including “tax prep essentials” for $99 a month and a “full-service tax and accounting plan” for $159 per month. Then you’re offered a legal protection plan, which includes legal guidance and documents, for $49 per month.
Then you’re finally presented with their packages, so you can choose the Basic, Pro, or Premum. Once you make your selection, you get offers for special deals from Bank of America and Earth Class Mail.
Lastly, you get to your total cost. Note that anything that has an annual fee, such as registered agent services, is not included in this initial total, so you’ll need to be prepared to incur those charges later.
You can pay your initial total all at once, or you can choose to make three monthly payments. Note that if you do choose to make payments, you’ll pay a bit more due to the $2 monthly installment fee.
Overall, the process was very smooth. Yet it was also very much a sales process, as they understandably want you to spend as much money as possible.
Still, everything was made clear during the formation process and it only took a few minutes.
We tested all three forms of LegalZoom’s customer support, as detailed below.
When we tested the customer service response time through the online chat option, we received a response almost immediately.
We asked about the price of operating agreements, and what determines the final price since it’s listed as “from $99”. The answer was that it’s $99 for standard processing and $199 for rush processing.
The customer service agent was quick and polite, and after the chat, we received a follow-up email almost immediately.
Support Rating:
Response time:
Immediate
We called LegalZoom to ask a question about registered agent services. Our call was answered in two minutes and the question was answered promptly. The question was whether registered agent services are included in any of the plans, and the answer was no.
The customer service representative was professional and polite and made no sales pitches.
Support Rating:
Response time:
Very quick
We asked email support what the standard filing time is vs. expedited filing. Our email was sent on a Saturday, and we received a response on Monday at about 11 a.m. The answer was polite and clear.
Support Rating:
Response time:
Reasonable
We wanted to know how real customers feel about both services, so we thoroughly explored customer reviews at the Better Business Bureau and Trustpilot. Below we’ve summarized our findings.
Northwest Registered Agent has an A- rating on BBB.
Northwest Registered Agent has an A- rating from the BBB with 4.39/5 stars based on 99 customer reviews, but Northwest Registered Agent is not accredited with BBB. They have received 22 complaints in the last three years, all of which have a resolved status.
Many positive reviews at BBB revolve around exceptional customer service. You’ll find numerous reviews that praise Northwest Registered Agent’s prompt and efficient customer support, no matter which communication method you use. Customer service representatives have been commonly reported as polite, professional, and knowledgeable.
One review boasted fast customer assistance, saying a mistake was “fixed in less than 30 minutes.” Another said they received “the BEST” customer service in “MANY years,” and one passionate customer left a review that read they “can’t even begin to describe how much easier they have made my life.”
Some negative reviews concern billing errors and cancellation issues. One person said they waited five months for a service they ordered, and another said they experienced “bait and switch pricing.”
This latter review received a response from Northwest Registered Agent claiming the company had no record of that username’s account, so it may have been a fake – which is a serious issue in this competitive market.
A 2021 review said that Northwest Registered Agent was still refusing to execute an account cancellation request from 2014.
You can read reviews on the BBB website.
Northwest Registered Agent has an average trust score rating on Trustpilot.
The Trustpilot score for Northwest Registered Agent is 3.5/5 stars based on 10 customer reviews.
Northwest Registered Agent reviews at Trustpilot break down as follows:
Many positive Trustpilot reviews, again, revolve around excellent customer service and quick services. One person said, “the process was easy and fast,” and multiple customers highlighted how Northwest Registered Agent service representatives helped them start their businesses “without any problems.”
Another person reflected on the “awesome, friendly, and patient” assistance they received over the phone. Others mentioned the general accessibility of Northwest Registered Agent’s customer service.
Some less favorable reviews involve unexpected account charges or changes and difficulty reaching customer service. One person complained that they only received notice of an address change when they randomly checked their online account and saw a pop-up on their screen. Another complained of being unable to get a hold of anyone on the phone.
Others complained that the company finds a way to blame users who experience difficulties or have complaints. One review bemoaned how the online chat representatives did not seem to know what services Northwest Registered Agent even offered.
You can read reviews on the TrustPilot website.
LegalZoom does not have a current rating on BBB.
LegalZoom has no rating from the BBB, but they are an accredited business, with 4.55/5 stars out of 5,572 customer reviews. They have been an accredited BBB business since 2011. They have received 903 complaints in three years, all of which have a closed status.
Many of the positive reviews for LegalZoom revolved around their exceptional customer service, such as this one: “I had an issue and was able to call the company and have it resolved within a matter of minutes.”
“LegalZoom has been our trusted agent for several years now,” said another review. “The care and coordination we’ve received allows us to run a challenging business successfully and ensure compliance remains consistent each quarter.”
Some of the negative reviews were about not receiving services as expected:
“I ordered an expedited filing mid-May. It sat, and sat, and sat while nothing was filed with the state. I had to call every day to try to move the needle on this filing and this ‘expedited filing’ is still not completed. I still do not have an EIN number and it is almost July.”
Others complained about not being able to get through to customer service by phone. Many of the negative reviews were about difficulties with cancellation.
You can read reviews on the BBB website.
LegalZoom has a high trust score rating on Trustpilot.
The Trustpilot score for LegalZoom is 4.5/5 stars out of 1,644 customer reviews.
The LegalZoom reviews from Trustpilot have the following range:
Many positive reviews were again about the great customer service and the ease of use.
“Easy and affordable. Things got a bit chaotic on my end (auto-correct made changes I didn’t authorize & then there were licensing questions on my part) but all was handled with ease, patience and in a timely manner. I highly recommend, as this is the second time I’ve used LegalZoom and both times went very smoothly for usually stressful events (divorce, new business owner).”
“LegalZoom has helped me with several legal processes and they have always been highly professional and helpful.”
Some negative reviews were about not getting the services paid for and not being able to get a refund. One person said LegalZoom failed to form her business and she ended up going to the state herself to make the filing.
Another complained: “I paid for the most expensive package (Express Gold) for my LLC. I am beyond disappointed with LegalZoom. Not only did they register the wrong name for my LLC – causing me more time and money – for months they have refused to send me the physical items that were included in that package. I literally have sent over 20 emails and have been on hold and called several times explaining my situation. They just send me a link to my digital documents. That is not what I’m missing and requesting. I have sent pictures and explained ad nauseam with no avail.”
You can read reviews on the TrustPilot website.
Recommended
We recommend LegalZoom due to their affordable solutions and broad selection of offerings.
Visit LegalZoomIf you’re looking for a la carte pricing and services, Northwest Registered Agent may be right for you.
Visit Northwest Registered AgentAfter a thorough assessment, we have determined that Northwest Registered Agent offers the better value due to the included registered agent services and the affordable renewal price for those services. By choosing Northwest Agent you’ll get outstanding customer service and faster turnaround times.
The main advantage of LegalZoom is that they offer three plans to choose from, so if you don’t need registered agent services, one of their plans might be a better fit for you.
As an entrepreneurial advisory site, we take our responsibilities seriously. We understand that countless entrepreneurs, and potential entrepreneurs, rely on our judgments and insights, particularly when it comes to creating their business.
As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In this case, we:
Thanks to this full immersion in the actual customer experience, our reviewer and team are able to provide the most complete and insightful comparison of Northwest Registered Agent and LegalZoom LLC formation services.
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.
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.
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.
Northwest Registered Agent offers a competitive Corporate Guide Service package for entrepreneurs on a strict budget. Customers that purchase this package benefit from Northwest Registered Agent paying your business fees upfront, allowing you to pay them back monthly at a lower price by distributing your bill over the course of a year.
Northwest Registered Agent offers a competitive package for entrepreneurs that includes registered agent services for one year. The renewal fee for registered agent services is also very affordable.
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