Legalzoom Review (2023)

*We form a unique LLC with every site we review. We verify the paperwork is filed correctly and timely, monitor for unexpected charges, and report on our experience.

LegalZoom brings a lot to the table. They have high prices when compared to others (excluding the $0 LLC formation service), but they have good customer service, and they offer a lot of services outside of LLC formation including online legal services and tax services.

Until recently, LegalZoom cost more than most of its competitors for everything. Because of their high cost and ready access to cheaper alternatives, we didn’t rank Legalzoom very well. However, Legalzoom has recently added a $0 LLC formation service that demands a closer look. So we formed an LLC using this package.

The Legalzoom $0 LLC

Okay, so it’s not quite $0. You’ll still have to pay state fees (which vary by state). The package includes only the articles of organization. There are no extras, like an EIN or operating agreement. The signup process is easy (though you’ll have to avoid half a dozen upsells).

If all you want is articles of incorporation filed, and you don’t require any assistance, this is a good deal.

Pros

• Articles of Organization filed with a trusted brand
• Name check service
• Free to do list for new LLCs
• Free third party website service

Cons

• Up to two week processing time unless you upgrade to a $99 expedite package
• Chat support only
• No address option unless you sign up for registered agent service.

Other packages

Pro package ($249)- Includes articles of organization, operating agreement, EIN, and local guide to business licenses

Premium package ($299)- Includes articles of organization, hands on guidance from a local attorney (first 3 months), operating agreement, EIN, business license guide,

Other Business Services

Registered Agent Service: $299/yr/state

Annual Report Service: $99/yr/state

Operating Agreement: $99

Operating Agreement plus EIN: $159

Legal Documents: prices vary

LegalZoom pitches a lot of expensive services along the way, and the site’s design makes it easy to sign up for those services unintentionally.

For example, to turn down LegalZoom’s registered agent service, you must scroll below the very obvious “Continue with LegalZoom” button down to the much less obvious “Appoint a different registered agent” button. Similar strategies are used throughout the sign up process. It’s a marketing strategy we’re all used to, but it is still annoying nonetheless. And if it results in you signing up for a service you don’t want or need, it could also be very expensive.

Legalzoom offers a one day expedited formation speed as a $99 add on. Otherwise you’ll wait 5-15 days before Legalzoom even files your paperwork with the state. This is much longer than most services take to file paperwork.

We called LegalZooms’s customer care center three separate times and had long hold times on each occasion (average of 12 minutes). However, once we got through, we found all customer service reps we spoke with to be friendly and helpful.

In addition to calling, you can also use their free chat device, which lowered the waiting time and resulted in equally good information. LegalZoom’s customer service hours are also longer than the competition. Customer service is available weekdays from 5am-7pm PST and weekends from 7am-4pm.

This positive experience was reflected by others we read about in their reviews: some long hold times, but quality people at the end.

In addition to standard LLC formation, LegalZoom offers a variety of unique specialty packages that include combinations of popular add-ons.

• Total Compliance Package: $280/yr
  For this service, LegalZoom will send you a questionnaire each year. When you complete the questionnaire, they will file your annual report. The price does not include any state filing fees. In addition, they offer a lot of vague compliancy-type help, like a “compliance calendar” capable of seeing 18 months into the future. They market other things too, like an account from which to view that calendar. This all seems like fluff to us—the only actual valuable service offered being the annual report filing. It’s nice to have an annual report service, but $280 (plus state fees) annually seems like a lot of money for what you get.
• Complete Coverage Package: $199
  This package includes operating agreement, an employer identification number (EIN), and a licenses report. For the licenses report, LegalZoom contracts a third party to look into your business and provide a list of all the licenses, permits, and state tax registration that will be required for your specific business. Whether this is a valuable package or not depends largely on how much you value this last part of the service, as EINs are free from the IRS and operating agreement templates are common on the web.
• Full-Service Tax + Accounting Plan: $159/mo
  Tax prep and unlimited tax advice, plus access to Quickbooks
• Tax Prep Essentials Plan: $99/mo
  Tax prep services (without the unlimited calls or access to Quickbooks)
• Legal Services: $49/mo
  This service affords you access to LegalZoom’s legal forms library and unlimited 30 minute conversations with a lawyer for each unique topic. Their legal services include: wills and trusts, power of attorney, trademarks, copyrights, and patents. Utilizing these services will cost more, but LegalZoom claims it will be at a discounted price.

Not sure if LegalZoom is right for your LLC? Check out our reviews of other top LLC formation services.

• Northwest Registered Agent: Normally $225 plus state fees, including a year of registered agent service. Currently offering a promotional price of $39 plus state fees, plus a free year of registered agent service ($125 per year after that).
• Incfile: Starts at $0 plus state fees. Free year of registered agent service ($119 per year after that).
• ZenBusiness: Normally $49 plus state fees with registered agent service at $199 per year. Currently offering a promotional price of $39 plus state fees, plus a free year of registered agent service ($119 per year after that).

Want to see a side-by-side comparison? See how LegalZoom stacks up to others in our comparison reviews linked below:

• LegalZoom vs Northwest Registered Agent
• LegalZoom vs ZenBusiness
• LegalZoom vs Incfile