LegalZoom Review (2023)
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LegalZoom is an online legal services provider. They operate online, giving entrepreneurs and individuals access to helpful legal services from the comfort of their own homes.
LegalZoom offers dozens of useful services, but one key focus is on new business formation. The service helps entrepreneurs form limited liability companies (LLCs), corporations, nonprofits, and other business entities.
LegalZoom works with state officials in each US state to help business owners get licensed in their home states. Essentially, they are a middleman between the business owner and the state.
Using LegalZoom can help speed up the business registration process. Instead of relying on outdated state-run systems, entrepreneurs can use LegalZoom’s advanced online tools.
Plus, LegalZoom offers dozens of other useful services. Here are just a few of their most popular services:
- Help preparing wills, trusts, and estates
- Help with intellectual property protections (copyrights, patents, etc.)
- Business legal consultations
- Personal legal consultations
- A quick way to start a business online
- Simplifies the often outdated state systems
- Fully online application process
- Options for LLC, S-Corp, C-Corp, and more
- Registered Agent services and more
- Can assist with ongoing filing requirements
- Wide range of business legal services
- A very cost-effective way to access legal help
- Pricing on some services are higher than average
- Does not offer representation in court (although LegalZoom can connect you with local lawyers)
What does LegalZoom offer?
LegalZoom offers an extensive range of legal services. Their offerings can generally be broken down into three categories: Business formation, business growth, and personal legal services. They have flagship product offerings, as well as a variety of customizable add-ons.
One of LegalZoom’s core offerings is business formation. This means that they can help entrepreneurs form new companies – LLCs, corporations, nonprofits, and more. All of this can be done in any state.
Once your business is formed, LegalZoom can still be quite helpful. They offer a variety of ongoing services that can help you grow, change, or even sell your company.
Starting a business
- Form a new corporation, partnership, LLC, or nonprofit entity
- Select from S-corp, C-corp, and B-corp
- Help obtaining tax IDs, business licenses, permits, and more
- Help choosing an available company name or business name
- Help obtaining a DBA (Doing Business As) name
- Obtaining tax-exempt status – 501 (c)(3) status for nonprofits
- Filing Articles of Incorporation, Articles of Organization, LLC Operating Agreement, etc.
- Forming a new LLC, corporation, nonprofit, or partnership
- Registered Agent services
Growing a business
- Intellectual property protections (copyrights, patents, etc.)
- Contracts & agreements (NDAs, invoices, independent contractor agreements, etc.)
- Prepaid business advisory plan for personalized legal advice
- Legal document review
- Help with changes to business structure, business sale, etc.
Personal legal services
While this article focuses on LegalZoom’s business offerings, they also offer a wide range of personal legal services.
- Last Will and Testament
- Estate planning
- Advanced Healthcare Directive
- Power of Attorney
- Prepaid personal legal advisory services
How much does LegalZoom cost?
Business formation – from $79 + state fees
- Limited Liability Companies (LLCs) – starting at $79 + state filing fees
- Corporations – starting at $149 + state filing fees
- Nonprofit – starting at $99 + state fees
- Limited Partnership – starting at $149 + filing fees
- Limited Liability Partnership – starting at $149 + filing fees
Legal consultation – from $9.99 per month
- Business legal advisory services – starting at $31.25 per month (prepay for 6-12 months)
- Personal legal advisory services – starting at $9.99 per month (prepay for 6-12 months)
- Will and Testament – from $89
- Healthcare Power of Attorney – from $39
- Financial Power of Attorney – from $35
The pricing above refers to the upfront costs of using LegalZoom. However, in some cases, there are ongoing costs to be aware of after the first year.
For example, if you want to keep using LegalZoom as your Registered Agent, you will pay $299/year.
LegalZoom’s advisory services are also based on a monthly fee, rather than flat-fee services.
Most ongoing costs are optional. And fortunately, LegalZoom makes pricing clear upfront, so there won’t be any unpleasant surprises.
Keep in mind that the state you form a business may also have ongoing fees. For example, entrepreneurs will need to renew business licenses and other permits, usually on a yearly basis.
State filing fees
In pricing for business formation services, you will likely notice that state fees are charged separately. For instance, LegalZoom’s LLC formation packages start at $79 + state filing fees.
What are these fees all about? Where does the money go?
These are the fees charged directly by the state you are forming the business in. The payment will be processed by LegalZoom, but the money goes to the state (usually the Secretary of State’s department).
These fees are different in each state. They will also be different for each business structure (LLC, corporation, etc.) Some states may charge as little as $50, while others are several hundred dollars.
During the signup process, you’ll see a preview of total costs from LegalZoom. You can also check with your state directly to see how much is charged to form each business structure.
Does LegalZoom have good customer service?
LegalZoom offers dedicated customer support through both phone and email, as well as online chat. In general, LegalZoom agents are very professional and helpful.
Some LegalZoom products actually include one-on-one access to a licensed attorney, which is quite unique.
And remember – LegalZoom has served more than 4 million customers, including more than 2 million businesses. Suffice it to say, they are very experienced at what they do.
Is LegalZoom a good choice for your business?
Small businesses have a variety of choices when it comes to getting legal help. Whether an entrepreneur needs help with incorporation, filling out legal forms, or dealing with pressing legal matters, LegalZoom can help.
Overall, LegalZoom is a good choice for those looking to start their own business, grow an existing company, or even get help with personal legal issues.
Compared to competitors like Rocket Lawyer, LegalZoom’s pricing is similar – but they also offer a wider range of services.
Compared to other LLC formation services, like Bizee, ZenBusiness, or My LLC, LegalZoom offers a far greater selection of legal services. LegalZoom’s pricing for business formation is not the lowest, but they make up for it with an impressive suite of services.
And compared to a traditional law firm, LegalZoom’s prices are a fraction of the normal cost.
- If you want the widest range of legal services and a quick and easy way to start a new company, LegalZoom is a great option.
- If you want the lowest possible pricing on new business formation packages, there are some cheaper options out there – but none that offer the service selection of LegalZoom.
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