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.
- 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
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.
LegalZoom vs ZenBusiness:
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.
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
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
- 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 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
|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|
|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
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 BBB Rating “A”
LegalZoom BBB Rating of “A”
|Trustpilot Ratings||4.7/5 (7,800+ reviews)||4.3/5 (1,000+ reviews)|
|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.
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