ZenBusiness Vs LegalZoom: Which Is Best for Your Business?

Getting a business off the ground is a major milestone in the quest for entrepreneurial success, but it also can be quite challenging — one of the first being how to legally structure your new endeavor.

Whether you’re setting up an LLC, incorporating your business, or even trademarking a logo, you want to be sure that the service you choose is trustworthy and efficient when it comes to dealing with complicated legal matters.

The two you’ll read about most in today’s market are ZenBusiness Vs LegalZoom.

It’s crucial to pick the right platform to handle your business formation so you start on the best foot. After all, you want an efficient process without the costly fees or wasted time.

In this post, I will take a close look at two business formation service providers ZenBusiness Vs LegalZoom and compare rubrics such as pricing options, features, customer support, included extras and additional product offerings to provide you with enough information to make an educated decision.

After reading this content, you know the good and bad of both services, so you can make a decision that fits your business needs.

ZenBusiness Vs LegalZoom: Overview

What Is ZenBusiness?

ZenBusiness is a relative newcomer to the online legal services space. Still, it has built its brand around the vision of making business formation and other legal compliance tasks easy for entrepreneurs.

Unlike more established, older platforms, ZenBusiness prides itself on offering a simplified, budget-friendly platform that makes it super simple for small business owners to get their companies off the ground without all the red tape.

ZenBusiness’s core services are around forming an LLC, incorporation services, and a variety of ongoing compliance solutions for businesses of all sizes. The platform’s business philosophy is all about aiding entrepreneurs in simplifying the business-formation experience, so they’re established (and run) correctly and legally.

ZenBusiness offers affordable pricing and multiple packages to cater to a variety of business types. These are among the services they provide:

• LLC Formation: ZenBusiness makes creating an LLC easy and quick. They take care of filing your Articles of Organization (a critical step as the paperwork is rather involved).

• Corporation Formation: For those who need to form a corporation instead of an LLC, ZenBusiness can also assist in creating the former.

• Registered Agent Services: This is part of their Pro and Premium plans for the first year, after which you pay an additional $99 per year.

• Annual Compliance Services: ZenBusiness provides annual compliance services including annual report reminders and critical filings.

• EIN Application: ZenBusiness assists businesses with applying for an EIN, which is necessary for taxes and opening a business bank account.

• Operating Agreements and Bylaws: Users are also given the option to create custom LLC operating agreements, if you’re forming an LLC or bylaws for a corporation.

• Business Licenses and Permits: ZenBusiness helps you obtain the licenses and permits required to legalize your business operations in the state.

One feature that sets ZenBusiness apart as one of the best LLC filing services is its focus on simplicity.

They can take care of the legal work so you can make your business setup as simple and pain-free as possible.

Whether you’re building an LLC or starting a corporation, ZenBusiness takes care of the tough stuff so that you can focus on running your business.

ZenBusiness also has some of the most affordable rates around, further contributing to it’s appeal for budget-strapped businesses.

What Is LegalZoom?

On the other hand, LegalZoom is one of the most venerable names in online legal services and one of its best-known brands.

LegalZoom LegalZoom has been serving entrepreneurs and the public for more than 20 years, since it was founded in 2001.

While its origins lie in being a first-of-its-kind business formation platform, we now offer far more than simply business services, including legal support for both businesses and consumers.

LegalZoom is a household name in the world of DIY legal services, thanks to their extensive offerings of business formations, intellectual property protection, attorney consultations, estate planning and lots more besides.

The homeounding service platform is known for delivering dependable and professional services, whilst focusing on quality service level. It is best suited for businesses needing continued legal advice or more specialized services than just general formation.

Here are some of LegalZoom’s basic offerings:

• LLC Formation: LegalZoom assists with forming your LLC by filing paperwork with your state.

• Corporation Creation: LegalZoom also helps to create corporations for your business and has tailored services for S-Corporations and C-Corporations.

• Trademark and Copyright Registration: LegalZoom is also well known for its support of entrepreneurs in protecting their intellectual property through securing the registration of trademarks and copyrights.

• Estate Planning: In addition to business services, LegalZoom also assists with will and trust creation, so entrepreneurs can have peace of mind knowing that an offshore legacy is well-protected.

• Legal Counsel: For something beyond company formation, LegalZoom offers paid legal consultations with state-licensed attorneys who’ll be able to give you personalized advice.

• Business Licenses and Permits: LegalZoom assists businesses with obtaining the required permits and licenses.

The fact that LegalZoom is known for taking on some of the most intricate types of legal issues also sets it apart. LegalZoom isn’t as business-focused as ZenBusiness, but it also offers more than just formation services.

It’s particularly attractive to entrepreneurs who require more legal help, like protecting their intellectual property or getting customized legal advice.

ZenBusiness Vs LegalZoom: Pricing Comparison

Price is often a primary consideration when comparing ZenBusiness Vs LegalZoom. However, there are some big differences between the two platforms’ pricing structures, although they both use tiered pricing. Here’s how their pricing models compare when forming an LLC:

ZenBusiness Pricing

ZenBusiness has three pricing packages suited for various types of business model. It’s usually cheaper than LegalZoom, so entrepreneurs looking to keep their startup costs low often choose Nolo.

• Starter Package ($0 + state fees): Yhis package of services is the most basic and includes only fundamental services to establish LLC. This includes filing your Articles of Organization and doing a business name availability search.

• Pro Package ($199 + state fees): The Pro package offers additional features, like a one-on-one tax consultation and personalized operating agreement and compliance alerts to keep you current with important filings.

• Premium Package ($299 + state fees): The Premium Package, which include everything in the Basic package along with a few other perks like a worry-free guarantee, business website and domain name.

ZenBusiness is fairly priced and transparently so, with a free plan that just calls for you to cover state fees.

Pro and Premium plans do provide more comprehensive services, but they’re also priced at a comparative bargain basement when you compare them to LegalZoom.

LegalZoom Pricing

LegalZoom has slightly more expensive LLC formation pricing than ZenBusiness, but that’s because they offer a wider variety of services overall. Here is a closer look at their pricing:

• Economy Package ($79 plus state fees): The most no-frills option, with LLC formation only and a name availability search as part of forming the LLC and file the Articles of Organization.

• Standard Package ($329 + state fees): Beyond the basics, Standard package offers you a customized operating agreement and membership certificates – for a more complete formation experience.

• Premium Package ($449 + state fees): The Premium Package offers expedited processing and a business banking account consultation for businesses that require speedy setup.

It charges more, LegalZoom’s base fee is higher than Rocket Lawyer and even the premium options are significantly pricier — yet at the same time it does a lot more, which can be somewhat justified by its substantially higher price for some businesses.

For business owners who only need LLC formation, ZenBusiness provides a lower price point.

ZenBusiness Vs LegalZoom: Features Comparison

LLCs and other essentials are offered on both platforms, but the services they deliver differ. Here’s a look at how the two stack up on key facets:

ZenBusiness Features

• LLC Formation: ZenBusiness manages the whole LLC formation on your behalf and all necessary filings with your state.

• Registered Agent Service: With the Pro and Premium plans you get 1 year of registered agent service for free; it’s an essential component of staying in good standing with your state. After that, it’s $99/year.

• Operating Agreement: Custom operating agreement included with Pro and Premium packages that provides the legal structure of how your LLC will be managed.

• Compliance Alerts: Stay on top of your business’s obligations with reminders for filing annual reports and other required code filings through ZenBusiness.

• Peace of Mind Guarantee: ZenBusiness will correct any errors with your formation documents for free should anything go wrong.

LegalZoom Features

• LLC Formation: LegalZoom takes care of LLC formation by filing your Articles of Organization and ensuring everything is in compliance with your state.

• Registered Agent Service: LegalZoom’s registered agent service costs $299/year, much greater than ZenBusiness.

• Operating agreement: LegalZoom also provides a personalized operating agreement with its Standard and Premium packages, so that your LLC is legally formed.

• Fast Formation: Premium plan includes expedited processing so that you can quick your formation.

• Attorney Consultations: LegalZoom can schedule a one-on-one telephone consultation with an attorney if you need personalized legal advice on a specific issue or are looking for ongoing services to help your business stay in compliance.

ZenBusiness Vs LegalZoom: Customer Support

Support is an important factor in the selection of a business formation service. ZenBusiness Vs LegalZoom both provide support, but the quality of service and responsiveness may vary.

ZenBusiness Customer Support

ZenBusiness is known for providing top-tier customer service. I also appreciate that their team is responsive, whether you contact them through phone, email or live chat.

The personalized assistance offered by ZenBusiness makes it easier for business owners to solve problems in a fast and efficient way, something that is invaluable when just getting started.

LegalZoom Customer Support

LegalZoom also offers good customer service avenues through phone, email and live chat support. But the larger size of LegalZoom can mean that support sometimes feels less personal for some customers, some users say.

That being said, the support team at LegalZoom is knowledgeable and does help with a broad range of legal needs.

ZenBusiness Vs LegalZoom: Speed of Service

ZenBusiness is also faster, and orders are usually processed in a few business days.

LegalZoom might be quicker but can especially take longer if you choose standard processing with their service.

And if you want your LLC formed expediently, ZenBusiness’s rush service rates are generally cheaper and sooner than LegalZoom’s.

ZenBusiness Vs LegalZoom: Which One Is Best for Your Business?

The best platform for you will also vary based on what specific features your business requires. Here’s a breakdown:

ZenBusiness is best for:

• Entrepreneurs who want low-cost and high-efficiency service for LLC formation and maintenance.

• Businesses too small to require substantial legal advice or intellectual property work.

• People who wish to save the time and money by not hiring a lawyer for business formation.

LegalZoom is best for:

• Entrepreneurs who have a need that goes beyond finding an attorney to resolve legal issues, such as protecting the company’s intellectual property interests or developing a working relationship with an attorney.

• Entrepreneurs who need continual legal support as they build and expand their businesses.

• Anyone willing to pay extra for expedited service or extra legal aid.

ZenBusiness Vs LegalZoom: Final Thoughts

ZenBusiness Vs LegalZoom are both two great services, but they have their respective relative strengths.

ZenBusiness is hard to beat if you want a service that’s both affordable and user friendly, which makes it ideal for most small business owners who want an efficient way to form an LLC.

Meanwhile, LegalZoom is perfect for those entrepreneurs who require more comprehensive legal services such as for trademark registration, estate planning, and even hiring a lawyer.

It all boils down to what you are after at the end of the day. If you’re looking for an affordable and hassle-free way to establish your business formation and maintain compliance, then ZenBusiness is a great option.

But if you need more comprehensive legal assistance, that extra cost might be worth it.

Regardless of which service you use, it’s most important that you’re taking the proper steps to legally protect your business so that it can succeed long into the future.

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