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ZenBusiness vs LegalZoom Comparison
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
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 7, 2022
The process of establishing a business entity is an essential part of starting a business. Its complexity and often tiresome nature prompt many business founders to seek professional assistance for correct execution. These business formation services often extend to providing other helpful services to new business owners.
Two prominent online service providers in this area are ZenBusiness and LegalZoom. To guide you in choosing the most suitable one for you and your enterprise, we’ve meticulously reviewed their services from the perspective of an entrepreneur. Continue reading to make an informed decision that will steer your business toward the path of success.
Services Overview
Business Formation Service
ZenBusiness
LegalZoom
Plans and Pricing
3 plans: Starter, Pro, and Premium; $0 – $349 annually + state filing fees
3 plans: Basic, Pro, and Premium; $0 – $299 + state filing fees
Registered Agent Service
Not included, $199 annually
Not included, $249 annually
Operating Agreement
$99 if you go with the Starter plan; Included in Pro and Premium plans
Included in Pro and Premium plans
Annual Report Service
Worry-free compliance service covers annual filing; only annual reporting is $100 + state fees
Not included; Starts at $99 + filing fees
Processing Time
Standard, rush
Around seven to 10 days
Customer Support
Email, chat, phone; Mon – Fri 8 am – 8 pm CT, Sunday 9 am – 6 pm CT
Email, chat, phone; Mon – Fri 5am – 7pm PT; Weekends: 7am – 4pm PT
Business Documents Online Library
Included in Premium, $99 (one-time fee) for other two plans
No
Other Services Offered
Domain name registration, business website creation and business email address, business banking, business credit cards, online payments
Taxes, Licenses, and Permits, Legal Forms and Agreements, Trademark, Patent, and Copyright, Business Changes and Filings
Number of Business Served
Over 500,000
Over 3.5 million
Money Back Guarantee
60 days
60 days
Our Verdict
Following an exhaustive review, we concluded that ZenBusiness delivers superior value and a wider range of services. Choosing ZenBusiness could result in cost savings, exceptional customer service, and quicker processing times.
The principal strength of LegalZoom lies in its brand — if you anticipate your business will require significant legal advice, LegalZoom might be a more suitable choice for you.
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 4.7/5
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 4.2/5
ZenBusiness offers a better overall value with more competitive pricing than LegalZoom.
Pros and Cons
Pros
- Competitively-priced packages offer good value ($0 business formation plan)
- Great and helpful customer support
- Positive customer reviews
- Quick and easy purchase process
- Company is socially responsible and active
Cons
- Registered agent service not included in the plans (available as an add-on)
- Cancellation can be a lengthy process
- Some information is difficult to find on the website
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: ZenBusiness
ZenBusiness
Renowned for some of the most affordable rates in the industry, ZenBusiness offers a free LLC formation package — Starter plan.
For those desiring more comprehensive features, the $199 Pro package offers continuous compliance support, an EIN, an operating agreement, and rush processing.
Additionally, the $349 Premium plan includes rush processing service, a business website package, and a domain name.
Please note that none of these plans include state filing fees, which vary from state to state.
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
ZenBusiness
ZenBusiness was founded in 2015 and has formed over 500,000 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 – Winner: ZenBusiness
ZenBusiness
The customer support team at ZenBusiness is accessible via phone, email, or our online chat portal, and they’re available even on Sundays.
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: ZenBusiness
ZenBusiness
At ZenBusiness, formation speeds are state-dependent. For urgent requests, premium packages offer rush service. Compared to other formation services, ZenBusiness matches or slightly exceeds their speed.
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 – It’s a tie between the two
ZenBusiness
ZenBusiness shines in customer feedback, with over 12,000 reviews on Trustpilot alone, most of which are positive. Clients often praise their services for being efficient and easy to use.
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.
Additional Services – Winner: ZenBusiness
Both ZenBusiness and LegalZoom provide a variety of supplemental business services with many areas of overlap. Both can facilitate the acquisition of an EIN, filing of annual reports, foreign registrations, and more.
Nonetheless, each company offers distinct services that are not provided by the other. For instance, ZenBusiness offers bookkeeping and accounting services, which are not part of LegalZoom’s offerings. On the other hand, LegalZoom provides an extensive suite of legal services that aren’t available through ZenBusiness.
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.
Where can I learn more about what real customers think of the various business formation services?
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.
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