Opening an LLC in the United States is a very important task that can have its complications, so it is recommended to opt forhire a company that offers opening and administrative management services.
However, the agency in question has to be reliable, safe and effective. Does LegalZoom comply with these requirements?
Our verdict
LegalZoom is an online service that simplifies the business starting process. Its goal is to help people establish their businesses correctly and efficiently.
It will also complete and file all necessary documentation on your behalf and provide additional tools, vital information, legal forms and legal advice for additional fees.
LegalZoom's philosophy is based on ensuring that all businesses are fully protected within the legal system.
4.5
4.5/5
- From $0 + Expenses
- Process in 20 days on average
- It has a limited free plan
Advantages
- Easy-to-use platform.
- Various services available.
- Free basic plan.
- Refund policy.
Disadvantages
- May entail extra expenses.
- Annual payment per Registered Agent.
- Variable customer service.
What is LegalZoom?
LegalZoom is an LLC formation and services platform specializing in providing a user-friendly experience for the quick and easy preparation of a wide variety of legal documents.
LegalZoom offers affordable options, making it especially attractive to individuals and small businesses on tight budgets. It even provides a free plan for simple LLC formation needs and a 60-day refund policy if the client is not satisfied. At the same time, customization is key at LegalZoom, providing a wide range of customizable legal documents and over 150 forms for business and personal needs, all created by attorneys. It allows you to select, customize and save documents according to specific needs.
Meanwhile, LegalZoom offers access to experienced tax professionals and attorneys licensed in all states, ensuring solid legal advice.
What services do you offer?
LegalZoom offers a wide range of services ideal for small business owners and independent workers looking to do business in the United States.
Online document preparation
LegalZoom provides a library of over 150 customizable legal documents that can be prepared and filed online, including reports such as wills, trusts, copyrights, trademarks and more.
For an LLC, these will not be necessary. But they can always come in handy for large companies with legal teams.
Business creation
The platform also helps clients form and register different types of business entities, such as LLCs, corporations, non-profit organizations, and sole proprietorships. It also offers a name verification service to ensure that the name of the company in question is available.
Operating Agreement
LegalZoom makes it easy to create an Operating Agreement for your LLC, which can be essential for its proper functioning. The service is available for an additional cost or included in certain premium plans.
The reality is that we do not recommend paying for this service initially. You can make an operating agreement internally based on the model in the previously linked article.
Articles of Organization
Likewise, LegalZoom provides the legal documents necessary to legally operate a business in the USA, such as the Articles of Organization that allow you to establish your LLC at the state level.
Customizable website
Getting into the more creative part, LegalZoom also helps you create your own customizable website through a partnership with Wix, which will allow you to have a good corporate brand image and is usually necessary to open a bank account.
If you are short on budget, it is something you can do it yourself in Wix, for free, if you show some skill or watch some tutorials.
Registered Agent Services
On the other hand, LegalZoom can act as the Registered Agent of your LLC in exchange for a cost of $249 per year, which will serve to properly receive legal documents and notifications.
This is a value vastly higher than what a registered agent service usually charges. For example, in Business in the USA, we offer the service for $200/year.
Legal advice
Finally, the online platform also distributes a wide variety of legal tools, ranging from forms and templates to a network of lawyers who provide immediate and ongoing support.
What did we like about the LegalZoom service?
There are many aspects of LegalZoom that we have liked, starting with its long history in the online legal services industry that exceeds two decades, providing help to more than 2 million entrepreneurs and small business owners.
In addition, LegalZoom also offers a diverse range of legal services that serve to satisfy virtually all personal, professional and commercial legal needs.
From business formation to property protection intellectual property, Registered Agent services, contracts and tax agreements, LegalZoom covers all aspects.
Likewise, LegalZoom's Business Advisory Plan is another highlight as it gives convenient access to legal consultancy throughout the year for an affordable monthly fee.
On the other hand, customer support has improved significantly at LegalZoom. Today, customers consistently report excellent customer service, praising support representatives as friendly, helpful, and highly knowledgeable. Lastly, LegalZoom backs its services with a long two-month satisfaction guarantee, demonstrating its commitment to 100% customer satisfaction. If you are not satisfied, they will resolve the situation or refund you with no questions asked.
What are its disadvantages?
Despite LegalZoom's many advantages, it is not a perfect service. Firstly, because it is not the cheapest option available. Their unique services tend to have higher prices compared to other providers.
For example, their business formation starter package starts at $0 plus state fees, but does not include advanced features. While you are paying for the reliability and experience of the provider, it is important to keep in mind that you can find cheaper options on the market.
In turn, when you use LegalZoom to build your business, you will be faced with a series of upsells before reaching the package selection screen, which can be a bit of a hassle. Additionally, in some cases, the platform assumes that you will use their Registered Agent service without providing clear guidance on the costs involved.
In this last section, you need to know that LegalZoom Registered Agent services are significantly more expensive than most options available on the market, costing $299 per year. In comparison, competitors typically offer these services for around $150 per year, and some even do it for free for the first year.
Lastly, LegalZoom has slower response times compared to its competitors in the business formation process. While other providers may process your paperwork the same day or the next business day, LegalZoom has a standard processing time of 5 to 14 days.
How much does it cost to open an LLC with LegalZoom?
It is difficult to establish how much it actually costs to open an LLC with LegalZoom due to the multiple options of tools and services that the platform offers, however, there are three standard plans that stand out:
- Basic: $0 + state filing fees.
- Pro: $249 + state filing fees.
- Premium: $279 + state filing fees.
In the Plan Basic, you must also add the price of the Operating Agreement ($99) and the EIN number ($79). In turn, in all cases, the cost of the Registered Agent is $299 per year.
Who do we recommend LegalZoom to?
As you can see, LegalZoom is not a perfect platform, nor is it the cheapest on the market, but it is still a very good option for all those small business owners or independent workers looking to create an LLC in the United States in a practical and simple way or for those who want legal advice on all aspects of an organization.
Get professional help to open your LLC
- Business experts in the USA
- Legal and accounting team
- Free first consultation
Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, graduated in 2020 from the National University of Tucumán. Founder of Start Companies since 2023, he advises clients worldwide on forming LLCs in the United States and on proper tax filing. His expertise combines legal, tax, and practical knowledge, offering a comprehensive service that spans from company formation to bank account setup and sales platform integration.
