Opening an LLC in the United States is a very important task that can come with its complications, so it is advisable to hire a company that offers formation and administrative management services.
However, the agency in question has to be reliable, secure and effective. Does LegalZoom meet these requirements?
Our verdict
LegalZoom is an online service that simplifies the process of starting a business. Its goal is to help people set up their companies correctly and efficiently.
It will also complete and file all the necessary paperwork on your behalf and offer additional tools, key information, legal forms and legal advice for additional fees.
LegalZoom's philosophy is based on ensuring that every business is fully protected within the legal system.
4.5
4.5/5
- From $0 + Fees
- 20-day process on average
- Limited free plan available
Pros
- Easy-to-use platform.
- Wide range of services available.
- Free basic plan.
- Refund policy.
Cons
- May involve extra costs.
- Annual fee for the Registered Agent.
- Inconsistent customer service.
What is LegalZoom?
LegalZoom is an LLC formation and services platform that specializes in providing an easy-to-use experience for quickly and simply preparing a wide variety of legal documents.
LegalZoom offers affordable options, which makes it especially attractive to individuals and small businesses on tight budgets. It even offers a free plan for simple LLC formation needs and a refund policy during the first 60 days if the customer is not satisfied.
Customization is also key at LegalZoom, as it provides a wide range of customizable legal documents and more than 150 forms for business and personal needs, all created by attorneys. You can select, customize and save documents according to your specific needs.
Meanwhile, LegalZoom offers access to experienced tax professionals and attorneys licensed in every state, which ensures solid legal advice.
What services does it offer?
LegalZoom offers a wide range of services ideal for small business owners and freelancers looking to do business in the United States.
Online document preparation
LegalZoom provides a library of more than 150 customizable legal documents that can be prepared and filed online, including wills, trusts, copyrights, trademarks and more.
You won't need these for an LLC. But they can always come in handy for large companies with legal teams.
Business formation
The platform also helps customers form and register different types of business entities, such as LLCs, corporations, nonprofits and sole proprietorships. It also offers a name check service to make sure the company name in question is available.
Operating Agreement
LegalZoom makes it easy to create an Operating Agreement for your LLC, which can be essential for it to run properly. The service is available for an additional cost or included in certain premium plans.
The truth is that we don't recommend paying for this service at the start. You can draft an operating agreement in-house based on the template in the article linked above.
Articles of Organization
LegalZoom also provides the legal documents needed to legally operate a business in the USA, such as the Articles of Organization that let you establish your LLC at the state level.
Customizable website
Moving into the more creative side, LegalZoom also helps you create your own customizable website through a partnership with Wix, which will give you a good corporate brand image and is often required to open a bank account.
If you're on a tight budget, this is something you can do yourself on Wix for free, if you're a bit handy or watch a few tutorials.
Registered Agent services
In addition, LegalZoom can act as your LLC's Registered Agent for a fee of $249 per year, so you can properly receive legal documents and notices.
This is far higher than what a registered agent service usually charges. For example, at Business en USA, we offer the service for $200/year.
Legal advice
Finally, the online platform also provides a wide variety of legal tools, ranging from forms and templates to a network of attorneys who provide immediate and ongoing support.
What did we like about LegalZoom's service?
There are many things we liked about LegalZoom, starting with its long track record of more than two decades in the online legal services industry, helping more than 2 million entrepreneurs and small business owners.
In addition, LegalZoom also offers a diverse range of legal services that meet virtually every personal, professional and business legal need.
From business formation to intellectual property protection, Registered Agent services, contracts and tax agreements, LegalZoom covers every aspect.
LegalZoom's Business Advisory Plan is another highlight, as it provides convenient access to legal consulting all year round for an affordable monthly fee.
On the other hand, customer service has improved significantly at LegalZoom. Today, customers consistently report excellent service, praising support representatives as friendly, helpful and highly knowledgeable.
Finally, LegalZoom backs its services with a long two-month satisfaction guarantee, which shows its commitment to 100% customer satisfaction. If you are not satisfied, they will fix the issue or refund you, no questions asked.
What are its drawbacks?
Despite LegalZoom's many advantages, it is not a perfect service. First of all, because it is not the cheapest option available. Its one-off services tend to be priced higher than those of other providers.
For example, its starter business formation package begins at $0 plus state fees, but does not include advanced features. While you are paying for the provider's reliability and experience, keep in mind that you can find cheaper options on the market.
In addition, when you use LegalZoom to form your business, you will face a series of upsells before you reach the package selection screen, which can be somewhat tedious. And in some cases, the platform assumes you will use its Registered Agent service without giving clear guidance on the costs involved.
On this last point, you should know that LegalZoom's Registered Agent services are significantly more expensive than most options on the market, at $299 per year. By comparison, competitors usually offer these services for around $150 per year, and some even offer them free for the first year.
Finally, LegalZoom has slower turnaround times than its competitors in the business formation process. While other providers can 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 hard to pin down how much it really costs to open an LLC with LegalZoom because of the many tool and service options the platform offers; however, three standard plans stand out:
- Basic: $0 + state filing fees.
- Pro: $249 + state filing fees.
- Premium: $279 + state filing fees.
With the Basic Plan, you also have to add the price of the Operating Agreement ($99) and the EIN number ($79). And in all cases, the Registered Agent costs $299 per year.
Who do we recommend LegalZoom for?
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 small business owners or freelancers looking to create an LLC in the United States in a practical and simple way, or for those who want legal advice on every aspect of an organization.
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Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, founder of Start Companies and a specialist in U.S. companies for entrepreneurs, freelancers and digital businesses in Latin America. With training in international taxation and studies at UCEMA, he advises non-resident clients on forming and maintaining LLCs, opening bank accounts, invoicing, accounting and taxes. His experience combines tax strategy, compliance and practical vision for operating in the U.S. in a simple, organized and professional way.
