ZenBusiness vs LegalZoom Comparison: Pricing, Features, Discounts
Starting a new business is an exciting journey, but it comes with a lot of crucial decisions—the first of which is often how to legally form your business entity. Navigating the paperwork and legal requirements can be a daunting and confusing process. Fortunately, services like ZenBusiness and LegalZoom exist to streamline this process. They are two of the most popular and prominent options on the market, each with a unique approach.
In this guide, we’ll provide a clear, objective comparison of ZenBusiness and LegalZoom based on key criteria, helping you make the best choice for your new venture.
Table of contents
ZenBusiness vs LegalZoom differences summary table
Here is a high-level summary to help you quickly understand the key differences.
| Feature | ZenBusiness | LegalZoom |
|---|---|---|
| Best For | Budget-conscious entrepreneurs and first-time filers | Businesses needing a wide range of legal services |
| Pricing | Highly affordable, transparent pricing starting at $0 + state fees | Higher prices for comparable services, more potential for upsells |
| Speed of Filing | Faster standard processing times (often 3-5 days) | Slower standard times (often 7-10 days) unless you pay for expedited filing |
| Registered Agent Service | Free for the first year with all plans, then affordable renewal | More expensive, often a significant add-on fee |
| Customer Support | Excellent ratings, known for responsive and friendly support | Mixed reviews, with some complaints about responsiveness and upselling |
| Additional Services | Compliance alerts, EIN, business websites, and more | Extensive legal services, attorney access, trademarks, and copyright |
What is the pricing of ZenBusiness vs LegalZoom?
ZenBusiness
ZenBusiness is a standout for its straightforward and affordable pricing. Its tiered model (Starter, Pro, and Premium) is designed to give you exactly what you need without a lot of fluff. The “Starter” plan is a huge draw, often offered at a base price of $0 plus state fees, making it an incredibly attractive option for entrepreneurs on a tight budget.
One of ZenBusiness’s most valuable features is its registered agent service, which is included for free for the first year with all plans. This is a significant saving compared to its competitors. ZenBusiness’s value proposition is built on transparency—fewer surprises, more features included in the base price, and a minimal upselling approach.
Starter Plan:
- Price: $0 (plus state filing fees).
- Key Feature: Includes the essential LLC formation filing.
Pro Plan:
- Price: $199/year (plus state filing fees).
- Key Feature: Includes faster filing and typically a Worry-Free Compliance service.
Premium Plan:
- Price: $299/year (plus state filing fees).
- Key Feature: Includes the features of Pro, plus tools like a business website and domain name.
Registered Agent Service (RA):
- Cost: Free for the first year with all plans.
- Renewal Cost: Renews annually at a competitive rate (typically around $99 to $199/year, depending on the plan or special offer).
LegalZoom
LegalZoom’s pricing structure (Economy, Standard, and Express Gold) is generally higher for comparable services. While it offers a comprehensive suite of services, the costs can add up quickly. A key point of frustration for many customers is the potential for a la carte fees and numerous upsells throughout the formation process.
LegalZoom’s registered agent service, a necessary component for most businesses, is notably more expensive as a standalone service, often renewing at a high annual fee. For a new business watching every dollar, this can be a major disadvantage.
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Basic Plan:
- Price: $0 (plus state filing fees).
- Key Feature: Covers the basic formation documents.
Pro/Standard Plan:
- Price: Generally starts around $249 (plus state filing fees).
- Key Feature: Includes expedited processing, and often an Operating Agreement and EIN, though specific features can vary.
Premium/Express Gold Plan:
- Price: Generally starts around $299 (plus state filing fees) or higher.
- Key Feature: Includes the fastest processing and often attorney consultation services.
Registered Agent Service (RA):
- Cost: Higher as a standalone service, typically renewing around $249/year (renewal cost).
What are the services and features from ZenBusiness and LegalZoom?
Business Formation
Both companies offer essential business formation services, including LLC, Corporation, and Non-profit formation. However, their core philosophies differ. ZenBusiness focuses on creating a streamlined, user-friendly experience specifically for new entrepreneurs. Its platform is designed to guide you through the process with simplicity, making it ideal for those who want to get up and running with minimal fuss.
LegalZoom has a much broader scope. While it excels at business formation, its real strength lies in its wide array of personal legal services beyond just starting a business.
If business formation is your main objective, then you have to see our video below with the founder of Lygal INC., Ugur Yuruk, where we discuss the best practices for opening a business in the US. You should also consider Lygal INC. for your formation needs, which allows non-US entrepreneurs to obtain an ITIN for their business.
Registered Agent Service
A registered agent is a legal requirement for most business entities, serving as the official point of contact for legal and tax documents. ZenBusiness provides this service for free for the first year with any plan, with an affordable renewal rate. This is a key differentiator, as LegalZoom’s registered agent service is a costly add-on that can significantly increase your overall expenses.
Ongoing Legal Support
This is where LegalZoom truly distinguishes itself. It provides extensive access to attorney consultations and a vast library of legal documents for everything from contracts to trademarks. For businesses that anticipate needing ongoing legal advice or access to legal documents, LegalZoom offers a one-stop-shop solution. ZenBusiness does not provide direct legal advice or attorney access, which is a major drawback for businesses that anticipate needing this level of support.
Customer Experience and Reputation
Filing Speed
ZenBusiness is often praised for its faster filing times. Its standard processing typically takes 3-5 business days, and expedited options are included in higher-tier packages. LegalZoom’s standard processing is slower, often taking 7-10 business days, with expedited filing requiring a separate, additional fee.
User Interface
ZenBusiness’s platform is modern, intuitive, and easy to navigate. Its clean dashboard makes it simple to track your filing status and access important documents. LegalZoom’s platform, while functional, can feel more dated and complex, with a workflow that often includes a series of screens with aggressive upsells.
Customer Reviews and Ratings
Across platforms like Trustpilot and the Better Business Bureau, ZenBusiness generally has a higher rating. It is widely praised for its excellent customer support, responsive team, and straightforward process. LegalZoom has a more mixed bag of reviews, with some customers expressing frustration over the high costs of add-on services and slow customer service responsiveness.
The Verdict – Which Is Right For You?
The best choice between ZenBusiness and LegalZoom ultimately depends on your specific needs and priorities.
Use ZenBusiness If:
- You are a budget-conscious entrepreneur.
- You want a straightforward, no-frills business formation.
- You value a user-friendly platform and positive customer support.
- You don’t anticipate needing ongoing legal advice from an attorney.
Use LegalZoom If:
- You anticipate needing a wide range of legal services (trademarks, copyrights, etc.) and want a one-stop shop.
- You are willing to pay a premium for access to attorney advice.
- You value a well-established, recognizable brand with a long history.
The Final Decision
ZenBusiness and LegalZoom are both great options due to their extensive legal offerings. However, with NachoNacho, you can save 30% on LegalZoom, which makes it a more budget-friendly option.
Consider your budget, your long-term need for legal services, and the importance of a smooth user experience before making your final decision. The right choice is the one that best aligns with your business goals and peace of mind.
Let us know if you have any questions about the redemption process!
Written by Andres Muñoz
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