When you’re ready to start your business, choosing the right LLC formation service can make all the difference. ZenBusiness and LegalZoom are two popular options that offer comprehensive solutions for entrepreneurs looking to establish their companies. Both providers aim to simplify the complex process of forming an LLC, handling paperwork, and ensuring compliance with state regulations. Here at The Law Dictionary, we’ve sifted through the legal jargon and intricate government requirements to provide you with clear, actionable insights. Our goal is to help you understand what’s legally necessary for your business and make an informed decision between these two service providers.
Comparing ZenBusiness and LegalZoom
ZenBusiness and LegalZoom are both well-established players in the LLC formation industry, but they cater to slightly different needs. ZenBusiness is known for its affordable pricing and focus on small business formation, while LegalZoom offers a broader range of legal services beyond just business formation. Both companies have strong reputations and positive customer reviews, but they differ in their pricing structures, features, and overall approach to LLC formation.
Comparison at a Glance
ZenBusiness:
- Offers a $0 starter plan (plus state fees)
- Known for fast processing times
- Provides worry-free compliance service
LegalZoom:
- Has a wider range of legal services beyond LLC formation
- Offers attorney consultations with certain packages
- Boasts a strong reputation with over 2 million businesses formed
ZenBusiness Features
Pricing
ZenBusiness stands out with its $0 starter plan, which includes basic LLC formation services. This makes it an attractive option for budget-conscious entrepreneurs who want to get their business off the ground without breaking the bank.
Read more about pricing in our LLC Cost Guide.
Processing Times
One of ZenBusiness’s key selling points is its quick turnaround times. They offer expedited processing with their higher-tier plans, ensuring your LLC is formed as quickly as possible.
Compliance
ZenBusiness offers a Worry-Free Compliance service that helps keep your LLC in good standing. This includes annual report filing and two yearly amendments, giving you peace of mind about your company’s legal status.
Registered Agent Service
With ZenBusiness, you get a free registered agent service for the first year with all their packages. This is a valuable feature that ensures you never miss important legal documents or deadlines.
LegalZoom Features
Legal Services
LegalZoom goes beyond just LLC formation, offering a wide range of legal services. This makes it a one-stop-shop for businesses that may need ongoing legal support in various areas.
Attorney Consultations
With certain packages, LegalZoom provides access to attorney consultations. This can be invaluable for businesses that anticipate needing legal advice as they grow.
Reputation
LegalZoom has helped form over 2 million businesses, giving them a strong track record in the industry. Their experience and reputation can provide added confidence to new business owners.
Business Advisory Plan
LegalZoom offers a Business Advisory Plan that provides year-round attorney help on various business matters. This can be a great resource for businesses that need ongoing legal support.
Side-by-Side LLC Plan Comparisons
Here’s how these two providers compare to other competitors in general:
| ZenBusiness | LegalZoom | Bizee | Swyft Filings | Tailor Brands | |
| Operating Agreement | ✅* | ✅* | ✅* | ✅* | ✅* |
| Registered Agent Service | ✅* | ✅* | ✅* | ✅* | ✅* |
| Provides EIN | ✅* | ✅* | ✅* | ✅* | ✅* |
| License Reports | ✅* | ✅* | ✅* | ✅* | ❌ |
| Compliance Assistance | ✅* | ✅* | ❌ | ✅ | ✅ |
| Tax Advisory Services | ✅ | ✅* | ✅ | ✅ | ✅* |
| Tax Prep Services | ✅* | ✅* | ❌ | ❌ | ✅* |
| Expert Help | ✅* | ✅* | ❌ | ✅ | ❌ |
| Customer Service | ✅ | ✅ | ✅ | ✅ | ✅ |
Legend:
- ✅ = Included
- ✅* = For a fee
- ❌ = Not Available
But what about their specific plans? Here’s a side-by-side look at the tiered plans for LegalZoom and ZenBusiness.
Basic Plans:
| Feature | ZenBusiness Starter | LegalZoom Basic |
| Cost | $0 + state fees) | $0 + state fees) |
| LLC Filing | Yes | Yes |
| Registered Agent | Free for 1st year, then $199/year | $299/year |
| Operating Agreement | $99 extra | $99 extra |
| EIN Registration | $99 extra | $79 extra |
| Processing Time | 5-7 business days | 20 business days |
Mid-Tier Plans:
| Feature | ZenBusiness Pro | LegalZoom Pro |
| Cost | $199/year + state fees | $249/year + state fees |
| LLC Filing | Yes | Yes |
| Registered Agent | Free for 1st year, then $199/year | $299/year |
| Operating Agreement | Included | Included |
| EIN Registration | Included | Included |
| Processing Time | 1 business day | 10 business days |
| Business Website | No | Yes (provided by Wix) |
Premium Plans:
| Feature | ZenBusiness Premium | LegalZoom Premium |
| Cost | $299/year + state fees | $299/year + state fees |
| LLC Filing | Yes | Yes |
| Registered Agent | Free for 1st year, then $199/year | $299/year |
| Operating Agreement | Included | Included |
| EIN Registration | Included | Included |
| Processing Time | 1 business day | 2-5 business days |
| Business Website | Yes | Yes (provided by Wix) |
| Domain Name | Yes | No |
| Email Address | Yes | No |
| Rush Filing | Yes | Yes |
ZenBusiness vs. LegalZoom: Our Recommendation
After carefully comparing ZenBusiness and LegalZoom, we at The Law Dictionary recommend ZenBusiness for most small business owners looking to form an LLC. ZenBusiness offers a more affordable starting point with its $0 basic plan, faster processing times across all tiers, and a free registered agent service for the first year. These features make it an excellent choice for entrepreneurs who want to get their business up and running quickly and cost-effectively.
ZenBusiness’s focus on small business formation means they’ve tailored their services specifically to meet the needs of new entrepreneurs. Their Worry-Free Compliance service is particularly valuable, helping to ensure your business stays in good standing with minimal effort on your part.
Making the Right Choice for Your Business
Choosing between ZenBusiness and LegalZoom ultimately depends on your specific needs and circumstances. If you’re primarily looking for LLC formation services and want the most bang for your buck, ZenBusiness is likely your best bet. Their affordable pricing, fast processing times, and targeted services for small businesses make them an excellent choice for most entrepreneurs.
However, if you anticipate needing a wider range of legal services beyond just LLC formation, LegalZoom’s broader offerings might be more suitable. Their attorney consultations and comprehensive legal services can be valuable for businesses that expect to face more complex legal issues as they grow. Remember, at The Law Dictionary, we’re here to help you navigate these decisions. Don’t hesitate to dive deeper into our resources if you need more information to make your choice.
Frequently Asked Questions
What are some other competitors of ZenBusiness and LegalZoom?
Other notable competitors in the LLC formation space include Incfile (now Bizee), Northwest Registered Agent, and Swyft Filings. Each of these providers offers unique features and pricing structures that may appeal to different types of entrepreneurs. It’s worth comparing these options alongside ZenBusiness and LegalZoom to find the best fit for your specific business needs.
Is ZenBusiness a good way to start an LLC?
Yes, ZenBusiness is generally considered an excellent option for starting an LLC. They offer affordable pricing, fast processing times, and a user-friendly platform that simplifies the LLC formation process. Their worry-free compliance service and free registered agent for the first year add significant value, making them a strong choice for many new business owners.
Is LegalZoom cheaper than a lawyer?
In most cases, using LegalZoom for LLC formation and basic legal services will be significantly cheaper than hiring a traditional lawyer. LegalZoom’s standardized processes and online platform allow them to offer legal services at a fraction of the cost of most attorneys. However, for more complex legal issues, consulting with a lawyer who can provide personalized advice may still be necessary and potentially more cost-effective in the long run.
