ZenBusiness vs LegalZoom Review 2021: Here’s the Right One

Do you think you can concentrate on your business fully while dealing with the LLC filing headache and related paperwork? Well! many entrepreneurs can’t. If you feel the same, try LegalZoom or ZenBusiness; the top choices in online LLC formation services available that save you from such nuisances.

But which one to hire? This ZenBusiness vs LegalZoom comparison will surely help you decide.

LLC DIY sounds fairly good if you have enough time to learn and understand the LLC formation process. You should also have an eye for legal details.

However, if you can get it done at a fraction of the cost by hiring someone professional, why put yourself in such an inconvenient situation? Try top-ranked LLC formation services available online.

In this ZenBusiness vs. LegalZoom review, we compared the pricing, customer service, public feedback, quality of services, legitimacy, reputation, additional features, and more. So, let’s have a quick look.

RatingStartup PriceFamous ForRankingOfficial Website
ZenBusiness4.75/5$49Overall Best1stzenbusiness.com
Northwest Registered Agent4.1/5$79Value-added Features5thlegalzoom.com

How do We Compare the LLC Services?

Among hundreds of LLC formation services, we only included the 8 best in our list. Do you know why? Well, the answer is pretty simple. There is no doubt that most LLC services have at least something good which helps them sustain in the market. But, is that enough to rank them among the top service providers? We think no.

Our experts judge every LLC filing service strickly and evaluate the performance on pre-set criteria of 7 basic and most important qualities that every LLC should have. Let’s have a look at where these two stand in that criteria.

LegalZoom vs ZenBusiness | An Overview

Sr #FeaturesZenBusinessLegalZoom
1Company’s reputation4.7/54.4/5
2Registered Agent Service4.8/54.1
3Customer Support4.6/54.4/5
4Pricing and Plans4.8/53.5/5
5User experience on the company’s website4.8/54.6/5
6Turn around time4.8/53.5/5
7Key and value-added features4.9/54.1/5
8Customers reviews4.6/54.2/5

Detailed Side by Side Comparison

1. Company Reputation

ZenBusiness

ZenBusiness has worked really hard to compete with some big giants in the market. Within a short period of 6 years, it has earned the trust of thousands of happy customers with overall positive reviews. Just since the onset of the COVID pandemic, Zenbusiness has formed more than 100,000 micro & small businesses through their platform.

LegalZoom

LegalZoom was established in 2001. Being in the business for two decades, the company has a huge customer profile. However, the customers are mostly legal service-related. In LLC and other business formation services, the company is a bit behind its competitors. 

2. Registered Agent Service

ZenBusiness

ZenBusiness offers top-notch registered agent for only $99 per year. If you form an LLC with ZenBusiness, they offer you a free registered agent for the 1st year of incorporation with them even in their startup package. After that, they charge you $119 each year.

You can also add worry-free compliance with registered agent service to stay updated and tension-free related to state correspondence. It will cost you only $149 per year to enjoy both of these features.

LegalZoom

Well, this service is very expensive compared to LegalZoom’s competitors. If you incorporate your LLC with them, they do not offer a free registered agent in any of their package. They charge you $159 for this service.

If you subscribe separately, for $299 per year, LegalZoom offers registered agent services with email alerts about important tax and annual report deadlines, identity theft protection, email notification of important documents received on your behalf, and paperwork and fee coverage in case you change your registered agent’s name or address.

3. Customer Support

ZenBusiness

Most clients are satisfied and happy with the customer support team as ZenBusiness has cooperative and knowledgeable customer care representatives. Unfortunately, some clients rated ZenBusiness customer services a bit low at Better Business Bureau (BBB)as they find the support team a bit slow in responding back.

LegalZoom

Luckily, customer support services are the biggest pro of LegalZoom. They offer 24/7 customer care even on the weekends. They are much confident in their customer care representatives and offer one-to-one support to their customers. 

However, where many companies offer lifetime customer support to their customers in their basic package, LegalZoom only offers this privilege to its express gold customers only. Moreover, due to the large customer profile, sometimes you are put on the hold for very long. 

4. Pricing and Plans

ZenBusiness

To accommodate the needs of a range of customers, ZenBusiness offers 3 packages at a very competitive price. Regardless of the plan, you get a free Registered Agent, Operating Agreement template, and 100% accuracy guarantee. In other words, ZenBusiness covers all the essential and most crucial requirements of LLC formation in their plans.

LegalZoom

LegalZoom offers 3 packages at a very high price. Even the very basic feature, the registered agent service, is missing all 3 plans. The services included in plans are not worth it such as branded business folders, or seals, etc. Instead, they could offer website and domain, compliance services, annual fillings, etc.

5. User experience on the company’s website

ZenBusiness

Almost all the customers found it very easy to file their LLC with ZenBusiness. Their website has a simple and easy-to-use interface, and the registration process is very straightforward with easy checkout. You will not have to face too many upsells or third-party offers. You will have a dashboard where you can track your registration process.

LegalZoom

Almost all the customers found it very easy to file their LLC with LegalZoom. Their website has a simple and easy-to-use interface, and the registration process is very straightforward. 

6. Turn around time

ZenBusiness

It could take almost two weeks to get your LLC or corporation registered with the state using the basic package of ZenBusiness. However, the expedited and rush filing in the Pro and Premium package reduces the turnaround time to 2-5 business days.

LegalZoom

The economy package of LegalZoom could take more than a month to register your LLC or Incorporation. Even, the expedited and rush filing in the standard and express gold package take more time than the basic packages of its competitors.

7. Key and value-added features

ZenBusiness

The mix and match option makes it convenient for every new business owner to choose what they want and skip what they do not need. This is why customers of ZenBusiness praise them for their number of features such as name availability search, business website, two amendments per year, EIN, handling of state fees, and so much more.

LegalZoom

LegalZoom value-added features include essential features such as EIN, registered agent service, business license search, etc. However, in comparison to other high-profile LLC formation services, these features are expensive and should be included in its packages.

8. Customers Reviews

ZenBusiness

ZenBusiness has great customer feedback on multiple third-party review platforms. Which shows how they are performing and what is not liked by customers. Trustpilot rates Zenbusiness excellent with 4.8/5 stars from 6198 reviews while BBB (Better Business Bureau)

rates ZenBusiness as A- and gives 3.54/5 stars from 35 reviews.

LegalZoom

With more than two decades in business and only a handful of reviews on reputed third-party review websites, this is what makes business owners uncomfortable while incorporating with LegalZoom. Trustpilot rates LegalZoom as excellent with 4.2/5 stars from 867 reviews. It is quite strange for such an old company to have almost no reviews. BBB gives LegalZoom 4.29/5 stars from 2748 reviews.

A Quick Comparison of Basic Plans

ServicesZenBusinessLegalZoom
Price$49 + State Fee$79 + State Fee
Turnaround Time2-3 weeks30 days
Registered AgentFree for the 1st year, $99 per year afterwardNo free registered agent, $159 per year
Operating Agreement TemplateIncludedNo ($99 extra)
Accounting Consultation with CPAYesNo
Annual Report ServiceYesNo
Business name availability searchYesYes
Additional ResourcesVirtual Business GuideNo
Banking ResolutionNoYes

A Quick Comparison of Middle Plans

ServicesZenBusinessLegalZoom
Price$199 + State Fee$329 + State Fee
Turnaround Time7 days15 days
Registered AgentFree for the 1st year, $99 per year afterwardNo free registered agent, $159 per year
Operating Agreement TemplateIncludedNo ($99 extra)
Accounting Consultation with CPAYesNo
Annual Report ServiceYesNo
Business name availability searchYesYes
Additional ResourcesVirtual Business GuideNo
Banking ResolutionYesYes
Worry-Free ComplianceYesOne month free, afterward $320 per year
Official Certificates and SealNoYes

A Quick Comparison of Top Plans

ServicesZenBusinessLegalZoom
Price$299 + State Fee$349 + State Fee
Turnaround Time3-5 business days15 days
Registered AgentFree for the 1st year, $99 per year afterwardNo free registered agent, $159 per year
Operating Agreement TemplateIncludedNo ($99 extra)
Accounting Consultation with CPAYesNo
Annual Report ServiceYesNo
Business name availability searchYesYes
Additional ResourcesVirtual Business GuideNo
Banking ResolutionYesYes
Worry-Free ComplianceYesOne month free, afterward $320 per year
Official Certificates and SealNoYes
The web Domain Name and PrivacyYesNo
Business Website and EmailYesNo

Bottom Line

Every business owner has their personalized needs and requirements while they are looking for LLC filing services. Depending on your preference and customized needs;

Choose ZenBusiness 

If you are looking for a company with an affordable pricing model, plenty of online reviews, multiple add-on features, and a pleasant user experience, ZenBusiness is the right choice. 

Choose LegalZoom

If you want ongoing support and an established brand is your priority, LegalZoom is a decent choice. However, get ready to pay extra for many essential features and be patient as your order processing will take time with LegalZoom as compared to ZenBusiness.

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