LegalZoom vs. ZenBusiness: Differences, pros & cons in 2024
Updated 3:58 p.m. UTC April 17, 2024
Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.
Pros
- Offers a free LLC service.
- Free package includes a Wix website.
- 60-day 100% satisfaction guarantee.
Cons
- Free package has limited services.
- Add-ons are costly.
- Pricing can be confusing.
Pros
- Free plan available.
- Each plan includes 30 minutes of tax advising.
- Free iOS and Android apps.
- Free worry-free compliance service for one year.
Cons
- No free year of registered agent services with company formation.
- Registered agent services are expensive ($199 per year).
- Add-ons can get pricey.
Featured LLC service offers
Whether you choose LegalZoom or ZenBusiness for your LLC formation needs, you’ll get a name check service, articles of organization and state business filing with every plan. Unlike ZenBusiness, LegalZoom includes a complimentary business website with its free plan, but only ZenBusiness offers complimentary tax advice and worry-free compliance service for free for one year. Registered agent services can be purchased as add-ons through either company.
LegalZoom vs. ZenBusiness: LLC services
LegalZoom and ZenBusiness both offer LLC formation services. Each company has plans that start at $0, not including state fees. No matter which company you go with or which plan you choose, you’ll get:
- Articles of organization.
- Name check service.
- State business filing.
Other services, including registered agent services, are included in the higher-tiered plans, or they can be purchased separately.
LegalZoom vs. ZenBusiness: Registered agent services
Not all states require you to have a registered agent on file for your LLC. Even if your state does have the requirement, you may be able to serve as your own registered agent. But, if you do need to go through a third party and are just forming your business, neither LegalZoom nor ZenBusiness are great options since neither company includes the service in their formation plans.
However, if you have already formed your business and are, for example, looking to change your registered agent service or to outsource the service after serving as your own registered agent, both would be good options. Both offer stand-alone registered agent services.
When it comes to add-ons, LegalZoom’s registered agent services are pricier — at $249 a year versus just $99 through ZenBusiness (renews at $199 per year). But LegalZoom includes $1 million in identity theft protection with its registered agent service, along with Experian credit monitoring. According to LegalZoom, those two features have a combined value of $239.
LegalZoom vs. ZenBusiness: Cost
BASE PLAN | MID-TIER PLAN | HIGH-TIER PLAN | REGISTERED AGENT SERVICE* | |
---|---|---|---|---|
LegalZoom
| $0
| $249
| $299
| $249
|
ZenBusiness
| $0
| $199
| $349
| $99
|
*The registered agent is an annual recurring fee. In some cases, companies waive it for the first year or other specified period of time. It’s also included in some companies’ plans. Upon renewal, prices may rise.
ZenBusiness and LegalZoom both offer three unique LLC formation plans. Regardless of which company you choose, you’ll pay between $0 and $349 for a plan. Outside of cost, the best company depends on your business needs.
With LegalZoom, you get a complimentary business website with every plan (which costs $129 a year through ZenBusiness), but ZenBusiness includes a 30-minute certified public accountant (CPA) consultation with each plan via ZenBusiness’s partner, 1-800 Accountant and free worry-free compliance service (with a free annual report and filing alerts) for one year.
LegalZoom vs. ZenBusiness: Features
NAME AVAILABILITY SEARCH | ONLINE DOCUMENT ACCESS | MOBILE APP | LEGAL SERVICES | 60-DAY MONEY-BACK GUARANTEE | |
---|---|---|---|---|---|
LegalZoom
| Yes
| Some
| No
| Included – Premium plan
| Yes
|
ZenBusiness
| Yes
| Yes
| Yes
| No
| Yes
|
Another difference between the two companies is in their mid-tier plans. The mid-tier option from ZenBusiness, the Pro plan, costs $50 more than LegalZoom’s Pro plan. For the extra cost, you get some features that ZenBusiness’s plan doesn’t offer, including a tax consultation with a small business specialist. However, ZenBusiness’s Pro plan, even at the lower cost, offers free rush filing, which legalizes your business formation within one to five business days.
If you want an EIN from ZenBusiness, you’ll have to pay $99 if you opt for the free plan. But ZenBusiness’s mid- and top-tier plans include an EIN and rush filing. All of their plans come with a complimentary 30-minute tax consultation with a CPA.
LegalZoom vs. ZenBusiness: Add-ons
ANNUAL REPORT FILING | DBA | LEGAL SERVICES | EIN | OPERATING AGREEMENT | WEBSITE | |
---|---|---|---|---|---|---|
LegalZoom
| $99
| $99
| $469 per year
| $79
| $99
| $0
|
ZenBusiness
| $100
| $95
| N/A
| $99
| $125
| $129 per year
|
Add-on pricing is similar for LegalZoom and ZenBusiness, but buying add-ons could be more affordable through LegalZoom. To give you an idea of the pricing differences, LegalZoom’s add-on prices range from $0 to $99 each, while ZenBusiness’s add-on prices range from $95 to $199 each. However, some of the most valuable add-ons (such as an operating agreement) are complementary when you buy both providers’ Pro and Premium plans.
With ZenBusiness, however, you can choose from several business banking and website-related add-ons that LegalZoom doesn’t have. For example, you can obtain a business email for $25 per year, open a business bank account for $5 a month or purchase a banking resolution template (to designate who is allowed to sign business bank documents) for $30.
LegalZoom’s legal services might be their most attractive add-on option. This feature includes 30-minute consultations on topics from business formation to estate planning, legal document review and personal and family legal matters. But you may not need the add-on if you buy the Premium package since it includes unlimited access to 30-minute legal advising sessions.
LegalZoom vs. ZenBusiness: Customer support
24/ CUSTOMER SUPPORT | PHONE SUPPORT | LIVE CHAT | KNOWLEDGE BASE / HELP | |
---|---|---|---|---|
LegalZoom
| No
| Yes
| Yes
| Yes
|
ZenBusiness
| No
| Yes
| Yes
| Yes
|
Neither LegalZoom nor ZenBusiness offers 24/7 customer support, but both offer live chat and phone support. LegalZoom’s customer service is available Monday through Friday from 5 a.m. to 7 p.m. Pacific Time. It also offers weekend support from 7 a.m. to 4 p.m. Pacific Time. ZenBusiness offers slightly less customer support, including from 8 a.m. to 8 p.m. Monday through Friday, Sunday support from 9 a.m. to 6 p.m. Central time and no Saturday support.
On Trustpilot, both companies are rated “excellent,” but ZenBusiness has more than four times as many customer reviews as LegalZoom. Reviews for ZenBusiness highlight the speed of filing and the professionalism and thoroughness of the live agents while LegalZoom’s reviews stated that customer support offered timely and proactive customer support with friendly representatives.
Which company formation service is right for your business?
Before choosing one of these formation services, you’ll need to decide what your company needs most. If you’re in the market for an operating agreement or an EIN, you’ll need to spring for a paid package or buy them as add-ons, regardless of which company you choose.
For website services or add-ons that are competitively priced, LegalZoom is the better option. But note that some of its features can be accessed at a lower price elsewhere, including registered agent services, Wix websites and Experian credit monitoring.
For both customer support and registered agent prices, ZenBusiness is the better choice.
Featured LLC service offers
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
-
Small business statistics in 2024
Business formation Mehdi Punjwani
-
What types of small businesses thrive in each state?
Business formation Mehdi Punjwani
-
Best cities to start a business in 2024
Business formation Mehdi Punjwani
-
Why incorporate in Delaware? Pros and cons in 2024
Business formation Teresa Bitler
-
How to start a corporation in 8 easy steps
Business formation Sarah Li Cain
-
LLP vs. LLC: Which is best for your business?
Business formation Robert Bruce
-
Member-managed vs. manager-managed LLC: Differences, pros and cons
Business formation Cat McAlpine
-
How to start a small business at home in 2024
Business formation Blair Travers
-
Best New Jersey registered agents in 2024
Business formation Jessica Elliott
-
Free business plan template (with examples)
Business formation Alan Bradley
-
LLC vs. S-corp: Which is best for your business?
Business formation Jessica Elliott
-
DBA vs. LLC: What’s the difference?
Business formation Gina Ponce
-
30 top small business ideas for 2024
Business formation Alison Kilian
-
LLC vs. Corporation: Which is best for your business?
Business formation Brynne Conroy
-
What is a sole proprietorship? Definition, pros and cons
Business formation Mehdi Punjwani