Should you use LegalZoom
to form your new LLC?

To answer this question, we went through the process of using LegalZoom to form an LLC. For most people, the reason for using LegalZoom is to save the time and expense of using an attorney to form their LLC.

Pros

  • Established, trusted brand
  • Smooth and relatively pain-free order process
  • Basic formation package includes a free operating agreement
  • Access to a wide range of products and services to help owners and managers navigate the legal challenges of starting and maintaining a business.
  • Ability to form an professional LLC (PLLC)
  • Cheaper than hiring a law firm to form your LLC

Cons

  • Above average prices relative to comparable online filing services
  • Slow order turn-around with low-cost package (Legalzoom Economy)
  • Easy to accidentally sign up for expensive subscription services that auto-renew

Summary

The main points to consider are:

  • Is LegalZoom a reliable option to form my LLC?
  • Is LegalZoom easy to use?

LegalZoom offers a reliable, easy to use, and full featured LLC formation service. Although, going with an established name like LegalZoom comes at higher cost. Incfile, for instance, provides a cheaper service that is just as reliable. Of course, the cheapest way to setup your LLC is to file it yourself using our free guide. First time entrepreneurs who are worried about making mistakes forming their LLC will find LegalZoom’s services most appealing.

Who is LegalZoom right for?

LegalZoom is ideal for customers who prefer to use a brand name and don’t mind paying a premium for better customer service.

Form an LLC with LegalZoom
($149 + State Fees)

Pricing Tiers

Similar to most other LLC formation services, LegalZoom offers multiple tiers of service: Economy, Standard and Express Gold. In addition to forming your LLC, LegalZoom offers a broad range of premium and add-on services that business owners may find helpful.

LegalZoom Economy

LegalZoom doesn’t rush economy orders. LegalZoom attempts to ship orders placed at this tier within 30 business days. It's important to note that this timing isn't guaranteed. In some states, such as California, economy orders may take even longer, after factoring in secretary of state processing delays.

The LegalZoom Economy Package includes a personalized operating agreement. This is a great value, as most LLC filing services do not include an Operating Agreement in their basic tier.

The economy package does not include the cost of shipping or government filing fees. State filing fees range from $50 and $250. The costs for shipping are:

  • $9.95 for standard shipping
  • $14.95 for 2 business day shipping
  • $21.95 for next business day shipping

Expect to pay around $250 total for an order placed within this tier.

Who should purchase LegalZoom Economy?

This package is suitable for customers who just want the essentials along with an operating agreement. Also, time should not be an issue for customers choosing this package as it may take 30 business days or more to arrive.

LegalZoom Standard

LegalZoom’s mid tier package starts at $289, which is $140 more than the Economy Package.

LegalZoom standard includes the essentials of the Economy package, plus a corporate kit. The corporate kit consists of:

  • A personalized binder for organizing important company documents
  • A company seal to give your LLC’s agreements and documents a more official appearance
  • 20 member certificates customized with your company’s information for other owners

LegalZoom Standard orders process ahead of Economy orders. Although not guaranteed, standard orders tend to ship within 15 business days, but can take longer in the event of Secretary of State processing delays. Government filing and shipping fees are not included at this tier and are charged separate.

Expect to pay around $350 to complete a LegalZoom Standard order.

Who should purchase LegalZoom Standard?

LegalZoom Standard includes all the essentials in the Economy package, plus some nice perks like a binder with your company name and a seal for official documents. The main benefit for this price tier is to get the documents faster than the Economy package would provide, but at a lower cost than the Express Gold tier.

LegalZoom Express Gold

LegalZoom’s Express Gold package starts at $359, which is $70 more than the Standard package and $210 more than the Economy package.

Express Gold offers all features included with the Economy and Standard packages. In addition, LegalZoom will also register an EIN for Gold customers at a discounted price of $49. For Standard and Economy customers, this add-on service costs $79.

The real advantage of LegalZoom’s premium package is faster order processing. LegalZoom Express Gold orders process ahead of Standard and Economy tiers. LegalZoom Express Gold orders typically process within 7-10 business days.

Express Gold includes 2-day shipping as standard for the business documents and materials. Next business day shipping can be be purchased at a discounted rate of $7.

State and government agencies also process Express Gold orders on an expedited basis. Expedited government filing fees are not included, and are typically $50 to $100 higher than standard state filing fees.

Expect to pay $450 or more to complete an Express Gold order.

Who should purchase LegalZoom Express Gold?

LegalZoom Gold is best suited for the individuals who absolutely need to have their LLC formed as soon as possible. From a cost-savings perspective, you’re better off with a lower tier or a different service.

Scoring

Value - 3/5

Overall, LegalZoom is one of the more expensive online business formation services. For our own LLC, we ordered the Economy package as we feel it represents the best value out of the three offered service levels.

Customer Service - 3.75/5

We had a positive experience forming an LLC using LegalZoom. Although Economy orders are advertised as taking 30 business days to complete, LegalZoom managed to complete our order in just under two weeks without any errors or issues. On the other hand, we had a below average experience with LegalZoom customer support. Also, some features seem prone to charging customers for subscription services they may not actually want. This can make for an aggravating experience having to vigilantly opt-out of services during the ordering process.

Ease of Use - 3.75/5

The entire order process should take no longer than 15-20 minutes. In case you are unable to complete an order in one sitting, LegalZoom emails a link to your saved answers, giving you the option of completing your order at a later time.

Included Features - 3/5

Once your order is completed, LegalZoom mails you a package including all LLC formation documents, paper copies of your personalized operating agreement, and the personalized corporate kit if you ordered the Standard or Express Gold package.

Our economy kit included the following:

  • Welcome letter with next steps
  • Articles of Organization filing endorsement
  • Personalized operating agreement
  • Financial authorization letter
  • Help Guide
  • 5 member certificates

Form an LLC with LegalZoom
($149 + State Fees)