ZenBusiness vs. LegalZoom 2022

Which Is the Best LLC Service for You?

Searching for the best LLC service to help you form an LLC (limited liability company)? We spent hours researching other business formation services on the market, and chose to partner with ZenBusiness to create LLC formation packages that offer the best deal and discount for our users.

In our LegalZoom vs. ZenBusiness review, we answer three simple questions to help guide you through choosing the top LLC service so you can start a business easily and successfully in 2022.

Recommended: Check out our list of the best LLC services.

ZenBusiness vs. LegalZoom: Which Is Right for Your Business?

Our Approach:

When we started comparing ZenBusiness and LegalZoom, we focused on three main questions for our review:

  • Is it a good deal?
  • Is there a better deal?
  • Who uses this LLC service and how did they review their experience?

We analyzed the LLC formation services’ overall value, customer reviews, customer service, included features, and ease of use to determine which company is best for you and your business.

Quick Comparison:

1. Choose ZenBusiness if you want reliable, basic business formation services: ZenBusiness is a good option if you are looking for basic LLC formation services starting at a lower price than LegalZoom.

Starting at only $49 plus state fees, ZenBusiness offers Articles of Organization filing, an online dashboard to access business documents, free accounting consultation, and more. 

However, you'll have to pay additional fees for important LLC features like registered agent services, an operating agreement, and an EIN.

2. Choose LegalZoom if you prefer a more well-known brand: Consider LegalZoom if you’re comfortable with a more recognized company. However, LegalZoom’s LLC formation packages are complicated and more expensive, starting at $79 plus state fees. Additionally, when we spoke to their customer service department to sign up, their upsell tactics made everything seem more difficult and stressful for business owners.

3. Explore your options: All things considered, there are better options to start your business in a fast, affordable, and reliable way.

If you're on a budget and just need the LLC essentials, we recommend checking out our top-rated service, Northwest.

If you're looking to form an LLC and build your brand and online presence, Tailor Brands is the way to go.

If you are specifically looking for a company that offers ongoing legal services past LLC formation, we recommend checking out our Rocket Lawyer New Business Bundle.

Read our full list of the best LegalZoom alternatives!

Need more details? Read on for a more in-depth breakdown of our ZenBusiness vs LegalZoom LLC services comparison.

LLC Packages: ZenBusiness vs. LegalZoom

ZenBusiness and LegalZoom offer additional business formation services beyond starting your LLC. Some features can be purchased independently, offering even more pricing flexibility. Below, you’ll find a comparison of their basic packages and the features that are valuable when forming an LLC.

Please note that the service costs for each plan do not include the state filing fees which vary by state.

LLC Formation: Basic Plan Comparison

ZenBusiness vs LegalZoom Side by Side Comparison
ZenBusiness LegalZoom
ORDER PROCESSING TIME 2-3 weeks 30 days
REGISTERED AGENT $199 per year $159 extra per year
OPERATING AGREEMENT $125 $99 extra
EIN REGISTRATION $99 extra $60 extra, must be bundled with Operating Agreement for a total of $159
ANNUAL COMPLIANCE Included in the first year 10 days free, $280/year after
WEB DOMAIN Included in Online Tools Bundle (Domain, Privacy, Email, Website) for $149 No

LLC Formation: Middle Plan Comparison

ZenBusiness vs LegalZoom Side by Side Comparison
ZenBusiness LegalZoom
ORDER PROCESSING TIME 3-9 business days 15 days
REGISTERED AGENT $199 per year $159 extra per year
OPERATING AGREEMENT Yes $99 extra
EIN REGISTRATION $99 $60 extra, must be bundled with Operating Agreement for a total of $159
ANNUAL COMPLIANCE Yes One month free, $320/year after
WEB DOMAIN Included in Online Tools Bundle (Domain, Privacy, Email, Website) for $149 No

LLC Formation: Top Plan Comparison

ZenBusiness vs LegalZoom Side by Side Comparison
ZenBusiness LegalZoom
ORDER PROCESSING TIME 2-5 business days 15 days
REGISTERED AGENT $199 per year $159 extra per year
OPERATING AGREEMENT Yes $99 extra
EIN REGISTRATION $99 $60 extra, must be bundled with Operating Agreement for a total of $159
ANNUAL COMPLIANCE Yes One month free, $320/year after
WEB DOMAIN Included in Online Tools Bundle (Domain, Privacy, Email, Website) No

See our top 6 service reviews

four point seven out of five Stars Northwest ($29 + State Fees)

four point five out of five Stars Tailor Brands ($199 + State Fees)

four point two out of five Stars ZenBusiness ($0 + State Fees)

four point zero out of five Incfile ($0 + State Fees)

three point eight out of five Stars Rocket Lawyer ($349.99 + State Fees)

three point four out of five Stars LegalZoom ($79 + State Fees)

ZenBusiness vs. LegalZoom: Customer Reviews

ZenBusiness is used by entrepreneurs who:

  • Want premium-level service
  • Want ongoing alerts and reminders about upcoming filing deadlines
  • Enjoy the benefit of an annual filing and submittal through a Worry Free Guarantee

Here are some verified ZenBusiness reviews (from Trustpilot) by customers who used this formation service to help launch their business:

“I am extremely happy with the service . They are reasonably priced and professional and really make things easy for you to form an LLC . They also offer a variety of services. They completed my order much quicker than I had planned. I really think if you are starting a business, there is no better way to go! I will be using their services again!”

"Zen was extremely easy to use. I must admit, I was skeptical because the price was so low, but I was able to ask questions online via chat and was answered immediately. The process was extremely easy and fast. I definitely recommend Zen Business to anyone!"

“I thought this was too good to be true, but it was completely legit. I was very pleased with how quick and easy ZenBusiness made the process of becoming an LLC. They offer plenty of helpful add-on options that you can pay for, but they don't push them on you. It's also nice that everything is conveniently in a dashboard on their site for me. When I want to get an EIN or make amendments or anything, I can do it super easily from their site. Definitely would recommend.”

LegalZoom is used by entrepreneurs who:

  • Want to work with a well-known brand to form their LLC
  • Are willing to pay extra for premium services and features
  • Are not in a rush to form their LLC or are willing to pay a considerable premium to expedite their order
  • Want full legal services beyond company formation

Here are some verified LegalZoom reviews (from their website and Trustpilot) by customers who used this formation service to help launch their business:

"I had never started a business before, so LegalZoom was a perfect place to go. It let me take my vision for the company and make it a reality, legally."

"I think too many people expect too much from this company. Let's be clear, when you do business with Legal Zoom, it's not the same as hiring an attorney. But for simple legal tasks, it's hard to beat Legal Zoom and their great prices."

"We've used [LegalZoom] for quite a few things over the years, and overall it's gone very smoothly. They've been easy to work with and very affordable."

ZenBusiness vs. LegalZoom Review Ratings

After conducting a quick comparison, we completed a more comprehensive review of LegalZoom and ZenBusiness LLC services based on:

  • Cost Value
  • Customer Service
  • Ease of Use
  • Included Features
ZenBusiness vs LegalZoom Overview
ZenBusiness LegalZoom
Overall 4.5/5 3.4/5
Cost Value 4.3/5 3/5
Customer Service 4.9/5 3.7/5
Ease of Use 3.9/5 3.7/5
Included Features 4.9/5 3/5

Cost Value

Both LLC formation companies are on the more expensive side compared to other services.

Competitors such as Northwest set themselves apart by including registered agent services for free in the first year. Although ZenBusiness and LegalZoom have a lot of experience forming LLCs, we recommend exploring more affordable options.

Customer Service

ZenBusiness’s customer support stands out amongst business formation services-- especially when compared to LegalZoom.

There are hundreds of positive ZenBusiness reviews online. We were impressed by their professional, thoughtful, and thorough responses on the Better Business Bureau website.

Ease of Use

Both LLC services are easy to use.

LegalZoom’s 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 so you can complete your order at a later time. ZenBusiness has an advantage over LegalZoom because the LLC service offers a personalized online dashboard; this feature acts as a central location for important documents that the user can access at any time using their ZenBusiness login. However, ZenBusiness's checkout time takes a little longer than others due to the chat bot feature.

Included Features

Both services exclude essential LLC features.

LegalZoom and ZenBusiness don't include free registered agent services for the first year in their packages. ZenBusiness does, however, include their worry-free compliance guarantee for the first year.

ZenBusiness's Worry Free Compliance Guarantee is a great option for busy entrepreneurs.

This guarantee includes:

  • Annual filing report alerts
  • Documents submitted on your behalf (you will only be responsible for state fees).
  • You are allowed two free changes to your filings per year (state filing fees may still apply).
  • Covers the costs required to regain good standing if your company should miss a deadline or state requirement.

Business email, website, and domain privacy are add-on features that are included in ZenBusiness’s Premium LLC formation package. These are great products that can help your business so your clients can easily contact you, gain visibility, and protect your private information.

LegalZoom LLC Cost

LegalZoom offers a very basic plan for $79 + state fees. Aside from lifetime customer support, they don't include as many helpful features as ZenBusiness that are essential for starting a business.

Summary

After thoroughly researching ZenBusiness and LegalZoom, we determined that there are alternatives out there that provide more features at a lower price. We highly recommend exploring those options by visiting our review of the best LLC services.

FAQ

What do I need to form an LLC and can I start one on my own?

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You can learn everything about starting an LLC — and form one on your own — by following the steps outlined in our comprehensive state-based guides!

Which LLC service is better — LegalZoom or ZenBusiness?

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ZenBusiness will save you both time and money when forming an LLC; however, other options will save you even more money.

Which company offers ongoing legal services?

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LegalZoom offers ongoing legal services past business formation; however, we recommend exploring Rocket Lawyer’s legal services for more features and an exclusive deal.

What are some ZenBusiness and LegalZoom alternatives?

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You can find ZenBusiness and LegalZoom alternatives by checking out our list of the best LLC services and our top LegalZoom alternatives article. Our top-rated services include Northwest, Tailor Brands, and more.

Written By

The TRUiC Team

TRUiC’s team of researchers, writers, and editors dedicate hours to ensure howtostartanllc.com’s articles are accessible and actionable for both established and aspiring entrepreneurs. The team is made up of experts on a variety of topics from company formation to business growth. They consistently optimize the website’s content to ensure that all of the information is accurate and up-to-date.

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