LegalZoom vs ZenBusiness: Which is the Best LLC Service for 2022

LegalZoom or ZenBusiness: Which is the Better LLC Service?

ZenBusiness vs. LegalZoom: Which LLC Formation Service is Best for You and Your Business?

If you want to create an LLC for your company, there are many options to choose from. ZenBusiness, and LegalZoom, are two of the most popular companies that can help customers set up LLCs. Although both companies offer excellent services, ZenBusiness offers more for entrepreneurs. ZenBusiness, however, is better for a simple LLC filing. We will be comparing both online services so that you can choose which service best suits your business formation needs.

This Review:

  • Compare ZenBusiness and LawZoom at a glance
  • ZenBusiness features
  • LegalZoom features
  • ZenBusiness, LegalZoom and other reviews
  • ZenBusiness or LegalZoom? Which one should we choose?
  • Our methodology

Visit 
https://www.legalzoom.com

https://zenbusiness.com

We Compare ZenBusiness and LegalZoom

ZenBusiness is a venture capital-funded public benefit corporation based in Austin. ZenBusiness is a newer company in legal technology but has helped more than 200,000 people form their businesses. 100,000 in the past year alone.

LegalZoom is a little older, founded in Glendale in California, in 2001. The company has assisted more than two hundred thousand entrepreneurs in creating businesses. Both companies have solid online reputations and have received thousands of positive reviews.

Leg

LegalZoom vs ZenBusiness:

LegalZoom

ZenBusiness

  • Pricey when you add the needed features
  • Customer reviews have been abysmal in the past, but there have been some recent improvements
  • 60-day money-back satisfaction guarantee
  • Regular access to an attorney
  • The business plan includes annual business evaluation and tax advice
  • Not the cheapest LLC service, but the LLC filings are affordable 
  • All-inclusive business formation, even in the basic package
  • Rapid turnaround with options for expedited submission

ZenBusiness features

Formation services

Entrepreneurs can file quickly and easily a Limited Liability Company (LLC), a corporation, or a DBA (“Doing Business As”) name.

Name availability search

ZenBusiness’s agents will run your business’ name through the database in your state to make sure it is available and unique. If it isn’t, they will contact your to suggest an acceptable alternative.

Email and phone support

Agents are available Monday to Friday from 8 am C.T. to 8:45 pm C.T. On Sundays, agents can respond to queries within 3 minutes.

Online document access

ZenBusiness allows clients to access templates for key legal documents they might need to do business with, including operating agreements, corporate Bylaws, and bank resolutions. Access to these documents is available 24/7 via your customized online dashboard.

Guide to virtual business

ZenBusiness will provide a guide that helps customers to form an LLC. The guide includes a checklist of everything they need for running their business virtually and helpful tools and advice to help them market themselves online.

Registered agent

By law, all businesses must have a registered representative. A registered agent in U.S. business law is an entity or individual that accepts tax and legal documentation on behalf of the company. ZenBusiness, acting as the registered representative for all businesses established through its site, takes care of this responsibility.

Template for an operating agreement

ZenBusiness provides an operating agreement with each business formation plan. This document protects the business owner’s personal property from the LLC’s actions, outlines acceptable business actions, and provides succession planning should the owner decide to leave the company.

Google Ads credit

ZenBusiness is partnering with Google to offer customers who have completed business formation a $150 Google Ads credit. You can begin advertising and promoting your products online to increase traffic, phone call, sales, and revenue with this credit.

Template for bank resolution

ZenBusiness provides a template to help your business quickly and efficiently resolve the resolution to open your bank account and grant signature authority. A banking resolution can be used to allow someone to open an account at your bank and provide signature authority.

Employer Identification number (EIN).

An Employer Identification Number, also known as a tax I.D. number, is a nine-digit code assigned to you by the IRS. It allows you to identify your business. A partnership corporation requires EIN, LLC to open a business bank, get financing, hire staff, and many other things. ZenBusiness comes with an EIN in both its Premium and Pro packages. You can add the EIN to the Starter package at $70 more.

Worry-free Compliance Guarantee

ZenBusiness’ Worry-Free Compliance will provide you with alerts about important compliance events and support your annual filings. If you have missed a filing, they can offer expert support to help you regain your good standing or LLC protection from the State. They also assist you in filing amendments up to two times per year. This service can be added to your Starter package at $119 per year and is included in the Premium and Professional packages.

Website and email setup

ZenBusiness can design a website for your company. It offers domain name security, privacy, and business email address services. These features can all be added to ZenBusiness’ Premium package.

  • Site for businesses: $100 per Year
  • $25 per year for a business domain
  • Domain name privacy: $10 per Year
  • $25 per year for the business email address

LegalZoom features

Various formation services

LegalZoom’s business services go beyond LLC file. Entrepreneurs have the option to file a corporation through the site, as well as a nonprofit or DBA. No matter which option you choose, LegalZoom agents are available to help with all aspects of forming your business, including the articles of incorporation.

Name check and business filing

LegalZoom’s representative will prepare your business registration paperwork and file it correctly for the client.

Next steps for LLC

LegalZoom gives you step-by-step instructions on reviewing and starting your LLC documents after your business is filed.

Support available for life

The LegalZoom agent is available by phone seven days a week, Monday through Friday, from 5 am till 7 pm (P.T.), and weekends from 7 am to 4 pm. It also allows you to submit a question via its website. A statement from LegalZoom promises that agents will respond to your inquiry by email “as soon and possible.”

Financial account authorization letter

LegalZoom’s services for business formation also include a financial authorization letter. This document identifies who is authorized to open the LLC’s bank account.

Other LegalZoom offerings – other than the formation packages

LegalZoom provides additional business features to entrepreneurs who have already established their businesses or are looking to use LegalZoom’s services to keep their businesses running.

  • Services as a registered agent
  • Annual reports
  • Compliance calendar
  • Minutes Manager
  • Operating agreement
  • Tax Assistance
  • Contracts and other agreements
  • Permits
  • Protection of intellectual property

Comparing The Differences Between ZenBusiness vs. LegalZoom

LLC Formation Plan Comparison Tables

ZenBusiness Starter LegalZoom Economy
Cost $49/year plus state fee $79/year plus state fee
Time to process orders 10-14 business days 30 business days
Included Registered Agent No, it’s an addon $119/year. No. You can add $299/year
Operating Agreement Yes You can pay $99 more
EIN Registration No. You can still add $70 Yes. It is possible to add $60. However, it must be bundled together with an operating agreement ($159 total).
Business website $100/year No
Business Domain Name $25/year No
Email address for businesses $25/year. However, domain names must be purchased together ($50 total). No

Note ZenBusiness offers customers the ability to pay more for expedited filing (4-9 business days) or Rush filing (1-3 business days) with a basic member.

Mid-level plan comparison

ZenBusiness Pro LegalZoom
Cost $199/year plus state fee $329/year plus state fee
Processing Time 4-9 business days 15 business days
Registered Agent No, it’s an extra $119/year. Yes. You can add $299/year
Operating Agreement Yes No. You can add $99 additional
EIN Registration fee Yes No. You can still add $79
Business Website $100/year No
Domain name for business $25/year No
Email Address for Business $25/year. However, domain names must be purchased together ($50 total). No

Top-level plan comparison

ZenBusiness Premium LegalZoom Express Gold
Cost $299/year $349/year plus state fee
Time to process orders 1-3 business days 10 business days
Registered Agent No, it’s $119/year. Yes. You can add $299/year
EIN Registration fee Yes Yes. You can also add $79
Website for Businesses Yes No
Name of a business domain Yes No
Business email address Yes No

 

ZenBusiness and LegalZoom Customer Reviews

ZenBusiness and LegalZoom seem to have won customers over with their positive reviews. Both businesses have received “Excellent” Trustpilot ratings. ZenBusiness scores 4.7 stars from over 7,000 reviews, while LegalZoom gets 4.3 stars from less than 1,000 reviews.

LegalZoom Customer Reviews on Trustpilot

LegalZoom reviews on Trustpilot

ZenBusiness Reviews on Trustpilot

ZenBusiness reviews on Trustpilot

ZenBusiness’s existence is much shorter than LegalZoom’s over 20-years in the industry. Therefore, it’s remarkable that ZenBusiness has so many positive comments.

ZenBusiness and LegalZoom are both Better Business Bureau accredited businesses with A ratings and received more than 4 stars from customers.

ZenBusiness BBB Rating “A”

ZenBusiness Better Business Bureau rating and reviews

LegalZoom BBB Rating of “A”

LegalZoom Better Business Bureau

ZenBusiness LegalZoom
Trustpilot Ratings 4.7/5 (7,800+ reviews) 4.3/5 (1,000+ reviews)
BBB Ratings A A
BBB Customer Review Rating 4.3/5 (200+ BBB reviews) 4.1/5 (3,800+ BBB reviews)

ZenBusiness or LegalZoom? Which do we recommend for you?

ZenBusiness is a better choice for LLC filing than LegalZoom. We found ZenBusiness to be a superior choice for LLC filing. Both companies have great reviews.

ZenBusiness’ starter plans cost first-time businesses $39 plus $79 state fee. On the other hand, LegalZoom’s Economic plan is $79 plus a $79 state fee, with a 30-day processing period. LegalZoom’s basic package, which costs $39, does not include a registered representative or operating agreement.

LegalZoom may be better suited for you if your business needs more legal assistance or you’re trying to establish a nonprofit.

Our methodology

Because our customers rely on us for accurate and objective information, we developed a rating system to rank ZenBusiness vs. LegalZoom business formation services. We used data from both providers to assess the companies on a range of ranking factors. We rated each provider on the following factors.

  • Price: 25%
  • Order processing time: 15%
  • Includes15% Registered agent
  • Operating agreement: 15%
  • Customer satisfaction: 15%
  • Customer support: 10%
  • Geographical coverage 5

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