When launching a business, is it really possible to get everything — from formation services to logo design — in one seamless platform? Enter ...
Rocket Lawyer vs LegalZoom Comparison
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.
Published on September 6, 2022
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. These business formation services also offer additional services that can be helpful to a new business owner.
Two of the leading online services to consider are Rocket Lawyer 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.
Services Overview
Business Formation Service
Rocket Lawyer
LegalZoom
Plans and Pricing
No plans, $99 business formation or a $39.99 per month membership
3 plans: Basic, Pro, and Premium; $0 – $299 + state filing fees
Registered Agent Service
$149.99 annually, or $111.99 with membership
Not included, $249 annually
Operating Agreement
Customizable template
Included in Pro and Premium plans
Annual Report Service
Included with the membership
Not included, Starts at $99 + filing fees
Processing Time
Standard state times, expedited
Around seven to 10 days
Customer Support
Email, phone; Mon – Fri 6am – 6pm PT
Email, chat, phone; Mon – Fri 5am – 7pm PT; Weekends: 7am – 4pm PT
Business Documents Online Library
With membership
No
Other Services Offered
Yes, variety of legal services
Taxes, Licenses, and Permits, Legal Forms and Agreements, Trademark, Patent, and Copyright, Business Changes and Filings
Number of Business Served
Over 20 million
More than 3.5 million
Money Back Guarantee
30 days
60 days
Our Verdict
After a thorough assessment, we recommend LegalZoom, which offers better value and broader service offerings. You’ll pay a bit more with some plans than you would with Rocket Lawyer, but you’ll receive higher quality service and customer satisfaction with LegalZoom.
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 4/5
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 4.2/5
We recommend LegalZoom over Rocket Lawyer due to their outstanding reputation in the industry and a more robust selection of offerings.
Pros and Cons
Pros
- Quick and easy purchase process
- A+ rating with Better Business Bureau
- Membership option is a good value if you need legal help
- Free LLC formation service for new members
- Discounts on various legal services
Cons
- Some legal documents are expensive
- Some customers complained about the complicated cancellation process
- Even if you opt for a free trial, you need to enter your credit card details
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
Rocket Lawyer
Their approach to business formation is more streamlined. They offer a single package for $99.99 that includes basic business formation. Additional features are available as add-ons. For a subscription fee of $39.99/month, new customers get free business formation, and existing clients get a discounted rate. Their registered agent service is available at $149.99 per year or $111.99 with membership.
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
Rocket Lawyer
Rocket Lawyer has served a staggering 20 million customers since its inception in 2008.
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
Rocket Lawyer
Providing customer support via phone, email, or web chat, Rocket Lawyer boasts swift response times and competent, friendly representatives. Their customer service is available from 6am until 6pm PT, 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: Rocket Lawyer
Rocket Lawyer
Rocket Lawyer’s turnaround times depend on the specific state’s processing speeds. They offer a webpage detailing average processing times for each state, along with expedited estimates. Standard processing usually takes up to 10 days, while expedited processing is done within two business days. However, this depends on the state.
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: LegalZoom
Rocket Lawyer
Similar to LegalZoom, Rocket Lawyer has a large base of satisfied customers, as reflected in over 6,200 reviews on Trustpilot, the majority of which are positive. Customers often commend the excellent value for money Rocket Lawyer offers.
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
Rocket Lawyer
With only one formation package to choose from, Rocket Lawyer simplifies the decision process. Although navigating through additional services can be a bit tricky, the overall process is straightforward and time-efficient. They generally refrain from upselling additional services, but they are quite pushy about their membership subscription.
LegalZoom
LegalZoom has numerous upsells, which can lead to a confusing and potentially costly ordering process. Despite this, the actual process of business formation with LegalZoom is efficient and straightforward. Upon forming an LLC with them, we received documents along with comprehensive instructions, which we found to be extremely beneficial.
Additional Services – Winner: LegalZoom
Both LegalZoom and Rocket Lawyer offer similar business services, including registered agent services, foreign qualifications, and LLC operating agreements.
Both companies outshine their competition in terms of the range of legal services offered, making them excellent choices for customers seeking a comprehensive service provider and seek legal help. LegalZoom offers a bit wide range of services from which customers can benefit more.
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.
What’s good about Rocket Lawyer?
Rocket Lawyer is a unique option, not offering packages of business formation services but a subscription service that allows you to form your business for free and get access to a host of business form templates.
Rocket Lawyer vs LegalZoom Comparison
- Services Overview
- Our Verdict
- Pros and Cons
- Plans and Pricing – Winner: LegalZoom
- Experience – Winner: LegalZoom
- Customer Support – It’s a tie between the two
- Turnaround Times – Winner: Rocket Lawyer
- Customer Reviews – Winner: LegalZoom
- Ease of Use – Winner: LegalZoom
- Additional Services – Winner: LegalZoom
- FAQs
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