LegalZoom review 2023: Cost, plans, features and more

LegalZoom (LZ) can be a good service for someone with a do-it-yourself approach to business formation. 

If you’re shopping around for a low-cost LLC formation package with articles of organization and name check services included, LZ’s Basic Plan will do the trick. But you’ll have to take care of your operating agreement and EIN on your own, and LZ’s registered agent services will cost you an extra $249 per year.

LegalZoom stands out amongst the competition for its unlimited 30-minute legal consultations, included with the Premium Plan for the first three months. LZ also has a 60-day, 100% satisfaction guarantee and Wix websites to build your business’s online presence are complimentary with every plan.

LegalZoom LLC overview and facts

LegalZoom was established as a tech company in 2001. Since then, LZ has added business formation services, tax filing/advising and other business and personal services to its roster. The company now has corporate offices in Los Angeles, Austin and the San Francisco Bay Area.

While LegalZoom offers a $0 LLC formation package, the price tag isn’t the only thing to look for when deciding whether or not to sign up. According to William Fry, CEO of Beacon, a company that assists with buying and selling small businesses, you should also focus on customer reviews.

“Some providers have terrible customer service,” warns Fry, “so you’ll regret going with a service that appeared cheaper on the front end but cost you more in time and headaches on the back end.”

Most customers have positive things to say about LegalZoom. On Trustpilot, over 80% of LegalZoom reviews are five stars. Most customers comment on how easy it is to use LegalZoom and their positive experiences with customer service.

The Better Business Bureau (BBB) gives LegalZoom an A+ rating, although LZ has closed over 400 complaints over the last year. Several recent complaints mention unexpected monthly charges.

LegalZoom LLC plans and pricing

LegalZoom is one of many LLC formation services that has packages starting at $0, plus state filing fees. But you should be prepared to pay state filing fees of $50 to $500 or more, and depending on your needs, the $0 package may not include everything it takes to form your business. 

“Feature-wise, you definitely want filing of your articles of organization and registered agent services, but the EIN is so easy to D.I.Y. it’s not worth paying for,” says Fry. 

With LegalZoom, registered agent services aren’t included in any package, so you’ll have to pay $249 per year to get the services on top of your plan’s fee. By comparison, Incfile includes complimentary registered agent services in its $0 package for the first year and charges $119 annually afterward.

While registered agent services may be cheaper through some competitors, most business formation companies charge fees for EINs and operating agreements, just like LegalZoom. However, unlike some competitors, LegalZoom’s offers live chat support, a free app and a website, regardless of which plan you sign up for. 

Basic

LegalZoom’s Basic plan costs $0, plus state fees. According to LegalZoom, this plan is for someone who can do most of the work themselves and who only wants the necessities for making their business official. (Namely, filing of your articles of organization.)

For just the cost of your state filing fees, LegalZoom’s Basic plan comes with the following:

• Articles of organization filing.
• Name check service.
• Wix website.

If you go directly through Wix, you’ll pay a minimum of $16 per month for a website.

Pro

The mid-tier plan from LZ costs $249 plus state fees. LegalZoom recommends the Pro Plan for customers who need the essentials for compliant operations but who can do most of the work themselves.

For the $249 Pro plan, LegalZoom customers get these additional features that don’t come with the Basic plan:

• Operating agreement.
• An EIN.
• Tax consultation with a small business specialist.
• Consultation with a business insurance agent.

If purchased separately, you’ll pay $79 for LegalZoom’s EIN filing.

Premium

The Premium plan from LegalZoom costs $299, plus state fees. This top-tier plan is recommended for customers who want upfront advice from attorneys to help ensure they properly form their business.

When you opt for the Premium plan — which is $50 more than the Pro plan — you get all of the features listed above, plus a three-month subscription to the following services:

• Unlimited 30-minute attorney consultations.
• Attorney review of your legal contracts and documents.
• Monthly copyright registration.
• Access to a library of legal forms.

Note that attorney consultations are limited to one call per business topic, and you’ll be charged $49 per month for the legal services in this plan after the month period ends. Alternatively, legal advising is available through LegalZoom’s Business Advisory Plan for $469 a year ($39.09 per month) or $43.17 every six months.

LegalZoom add-ons and optional features

LegalZoom’s three LLC formation packages are bare-bones when it comes to business formation features, but there are plenty of services you can add to your package for an extra fee. Add-ons can be chosen during the set-up process, and they include:

• Registered agent services: $249 per year. 
• Compliance package: $280 per year.  
• Compliance calendar: $69 per year.
• Tax advisory plan: $49-$199 per month. 
• Legal protect plan: $49 per month. 
• Standard annual report filing: $99, plus state fees.
• Rushed annual report filing: $199, plus state fees.
• EIN filing: $79. 

Registered agent services

Businesses must designate a registered agent in each state where they conduct business to ensure that time-sensitive legal, government and tax documents are received and promptly forwarded to the company’s headquarters.

Since registered agents are required to list their physical locations (P.O. box addresses are not allowed), Hal Brand, a CPA in southern California, suggests “home-based business owners use registered agents within their own states, so their home addresses aren’t exposed.” 

LegalZoom’s registered agent services are easy to sign up for and use. They cost $249 per year per state. If you purchase these services as a stand-alone option, you will not be refunded if you decide to cancel. 

LegalZoom is also among the most expensive options, with companies like BetterLegal ($90 per year) and InCorp ($129 per year) offering cheaper services.

If your company already has a registered agent designated in your formation documents, LegalZoom will file the required change in registered agent documents with the state for no additional charge.

Once any mail is received, it takes five to 14 days for documents to be scanned and uploaded to your account. In comparison, there are many competitors that offer same-day delivery of documents, like Incfile. 

This service also includes access to email or SMS alerts from LegalZoom’s compliance calendar, which is typically an extra $69 per year. These alerts warn subscribers about critical tax and annual report deadlines to help avoid incurring filing penalties. LegalZoom’s registered agent services also include $1 million in identity theft protection and credit monitoring for you and your business through Experian. 

If you’re on a tight budget, you might want to go with another option, especially since the registered agent services aren’t included in any of LegalZoom’s business formation packages. Like its competitors, LegalZoom offers registered agent services in all 50 states and the District of Columbia. 

Business advisory plan

If you want the legal perks that come with the Premium plan, you might consider a Business Advisory plan instead. LegalZoom’s Business Advisory plan includes:

• Thirty-minute attorney consultation per legal matter.
• Contract/legal document review (up to 10 pages).
• Annual business evaluation (with the 12-month plan only).
• Unlimited downloads from legal form library.

These plans are available for an annual payment of $469 a year ($39.08 a month) or $259 ($43.16 a month) billed every six months.

LegalZoom customer support and experience

LegalZoom offers live chat support on its website, and you can use chat to connect to an agent in less than a minute. Phone support is also available Monday through Friday from 5 a.m. to 7 p.m. and on the weekends from 7 a.m. to 4 p.m. PST.

LegalZoom vs. ZenBusiness

If you go through LegalZoom or ZenBusiness, it can get expensive to purchase all of the key business formation services you need.

LegalZoom offers a better price on one-time EIN filing, but if you also want a registered agent and an operating agreement, you could save $24 per year by going through ZenBusiness. Plus, ZenBusiness has excellent customer reviews on TrustPilot and only around 95 closed complaints on BBB for the last year, versus LegalZoom’s over 400 closed complaints.

LegalZoom vs. Incfile

Incfile is another business formation company that offers free packages, and just like LegalZoom, the $0 package from Incfile does not include an EIN or operating agreement. 

It’s free to file with the IRS for your EIN, but some business owners prefer the help of an LLC service.

If you want to spring for help with your EIN, operating agreement and registered agent services, you’ll want to choose one of the LLC services paid plans. Both companies offer EIN filing and operating agreements with their mid-tier plans. However, you’ll save quite a bit of money by choosing IncFile’s Gold plan over LegalZoom because IncFile includes a free year of registered agent services with its plan.

Is LegalZoom right for your business?

LegalZoom can be a cost-effective option for someone who doesn’t mind doing most of their own paperwork. While the $0 package lacks some of the features you might eventually want, like an EIN, it can be easy enough to file for an EIN on your own. 

If you spring for a pricier package, you’ll still have to pay for some of the business formation services you may need, like registered agent services. For most customers, the legal consultations that come with the Platinum plan are likely to be the most valuable feature. Still, you’ll have to budget your consultation time wisely since you only get 30 minutes of advising per topic.

There are also no discounts with LegalZoom. However, if you own a law or tax firm, you can get discounts for registered agents in multiple states through Legalinc, a fully-owned subsidiary of LegalZoom.

If weekend support is important to your business, LegalZoom offers nine hours of customer service access on Saturdays and Sundays. And some of its services, such as unlimited document storage and instant compliance alerts, are helpful tools. But, for most small businesses, a more affordable option will likely be the right choice.

Frequently asked questions (FAQs)

Is LegalZoom a good way to start an LLC?

LegalZoom offers all the basic services you’ll need to start an LLC, but they can get pricey if you need multiple services, like annual report filing, registered agent services or an EIN, since you may have to pay a separate fee for each one.

Does LegalZoom provide worry-free annual compliance?

LegalZoom does not provide annual report filing or alerts with any of its LLC formation plans.

Their compliance package is available for $280 a year, and it includes filing of your annual reports, a compliance calendar to help you monitor upcoming filing dates and alerts. LegalZoom guarantees that they’ll pay your fine or penalty if they miss a deadline while you’re subscribed to their compliance package.

Are there any hidden fees with LegalZoom?

Customers with Premium plans from LegalZoom will automatically be charged $49 per month for legal services after 30 days. Some customers have filed complaints with the BBB about unexpected, recurring charges, so you may want to monitor your payment account for unexpected transactions while using LegalZoom.

What is LegalZoom’s refund policy?

LegalZoom guarantees a refund for customers who are not 100% satisfied during the first 60 days. Refunds do not include fees that have already been paid to third parties, such as state filing fees and attorney fees.

Does LegalZoom offer any other services?

LegalZoom offers a variety of business formation services, including registered agent services. LegalZoom also offers legal advice for business and personal matters, including:

• Estate planning.
• Tax advising.
• Accounting services.