Starting your own business entity is a big decision and requires legal paperwork, processing fees, and more.
New business owners are often faced with the decision of which service to use for their legal needs and ZenBusiness vs LegalZoom is a common dilemma. Both companies offer comprehensive business formation services, including assistance with forming a new limited liability company.
In this article, we’ll break down the pros and cons of each company so that you can make an informed decision. We’ll compare ZenBusiness vs LegalZoom and cover everything from pricing plans and quality of LLC formation service to ease of use and customer support.
So read on to find out which business formation service is better for your specific needs, whether you’re looking to form an LLC or explore other business services.
Let’s examine how ZenBusiness vs LegalZoom compare in their core offerings.
| ZenBusiness | LegalZoom |
| Launched in 2015, ZenBusiness is focused on making it easy for entrepreneurs to start and grow their businesses. In addition to business formation services, it offers a host of related services, such as business website builder, tax consultation, and free accounting consultation for businesses. Their Pro and Premium plans offer additional features for those seeking more comprehensive support. | Starting out as a tech company in 2001, LegalZoom has emerged as one of the popular LLC registration services in the US. LegalZoom provides a variety of business formation and legal services, including wills and trusts, incorporation, limited liability company (LLC) formation, registered agent service, and trademark registration. They also offer a range of personal services for individuals seeking legal assistance. |
| ZenBusiness | LegalZoom | |
| Overall | ||
| Support | ||
| Features | ||
| User-Friendliness | ||
| Value for Money |
| Pros | Cons |
| User-friendly | No access to legal forms and documents |
| Affordable and simple pricing plans | Lack of legal services |
| Extensive resources on business formation | |
| Pricing is clearly visible on the homepage | |
| Wide range of standalone services that you can add to any plan | |
| Good customer support |
| Pros | Cons |
| Hassle-free business formation | Expensive paid plans |
| Money-back guarantee | Fewer accounting services |
| Access to legal services and expertise | |
| Customizable legal forms | |
| Free business newsletter | |
| Lifetime customer support |
| Pricing Plan | Price |
| Starter | $0 + state filing fees |
| Pro | $199 per year + state fees |
| Premium | $299 per year + state fees |
| Registered Agent Services | $199 per year |
Both the Pro and Premium plans offer additional features such as expedited filing and an operating agreement template.
| Pricing Plan | Cost (Per Month) |
| Economy | $149 + state fees |
| Standard | $329 per year + state fees |
| Express Gold | $349 per year + state fees |
LegalZoom’s economy plan offers essential services, while their express gold package provides more comprehensive support.
| ZenBusiness | LegalZoom |
| Small and medium-sized businesses Entrepreneurs who are looking for basic and affordable business formation services | Medium-sized to large businesses Businesses looking for comprehensive services, such as trademark search, patent application, etc. |
| Businesses that need banking, accounting, and finance tools | Businesses that need ongoing legal services and services |
| ZenBusiness | LegalZoom | ||
| LLC document preparation and filing | ☑ | ☑ | |
| Business name search | ☑ | ☑ | |
| LLC formation | Reserve your business name | ☑ | ☑ |
| Guided operating agreements | ☑ | ☑ | |
| Business domain name, email address | ☑ | ❌ | |
| Website builder | ☑ | ☑ | |
| Filing for S-Corp or C-Corp formation | ☑ | ☑ | |
| Corporate formation | EIN filing | ☑ | ☑ |
| Corporate bylaws | ☑ | ☑ | |
| Business bank account assistance | ☑ | ☑ | |
| DBA search and filing | ☑ | ☑ | |
| Doing Business As (DBA) | DBA name publication | ☑ | ☑ |
| 30-minute attorney consultation | ❌ | ☑ | |
| Legal forms | ❌ | ☑ | |
| Legal document review | ❌ | ☑ | |
| Accept and monitor legal documents and notice | ☑ | ☑ | |
| Registered Agent Services | Upload digital copies | ☑ | ☑ |
| Email notifications legal or tax matters that need attention | ☑ | ☑ | |
| Credit monitoring | ❌ | ☑ | |
| Unlimited cloud storage | ❌ | ☑ | |
| Compliance notification | ☑ | ☑ | |
| Compliance | Filing annual reports | ☑ | ☑ |
| Amendment filing | ☑ | ☑ | |
| Financial and accounting tools | Tax preparation | ☑ | ☑ |
| Custom invoice | ☑ | ❌ | |
| Reports of licenses and permits | ☑ | ☑ | |
| Certificate of Good Standing | ☑ | ☑ | |
| Foreign qualification | ❌ | ☑ | |
| Trademark/patent search and registration | ❌ | ☑ | |
| Online legal services and tax advice | ❌ | ☑ |
LLC formation
Corporate formation
Doing Business As (DBA)
Registered Agent Services
Compliance
Financial and accounting tools
LLC formation
Corporate formation
Doing Business As (DBA)
Registered Agent Services
Compliance
Financial and accounting tools
The Unique Selling Point (USP) of ZenBusiness is affordability. While there is a free plan, the Pro and Premium packages offer additional value for those seeking more comprehensive services.
In addition, ZenBusiness offers add-on services like website builder, financial planning, and accounting tools that are valuable for every startup. The company has received positive feedback on various platforms, including the Better Business Bureau.
ZenBusiness can help you form an LLC or corporation in any state. The process is simple and straightforward, and they have a team of experts on hand to answer any questions you may have.
There are three pricing packages for LLC formation services. The Starter package is free and you don’t have to pay anything other than the state filing fees.
Once you fill out the forms online, ZenBusiness files the LLC formation paperwork. This makes it easy for entrepreneurs to form an LLC without the hassle of navigating complex legal requirements on their own. You can find the steps to follow to start an LLC on their website.
You can get started by entering the desired business name for your limited liability company (LLC) and ZenBusiness conducts a preliminary search to see if the name is available in the state and county in which you want to form your LLC.
If you need more time to form your LLC, you can also reserve your business name for $50 and lock it for 120 days.
Image via ZenBusiness
Reserving your business name is a straightforward process with ZenBusiness. Just choose the state where you want to form your LLC, enter the business’s physical address, and complete the steps for reserving the business name.
With the free LLC formation package, you can conduct a business name search and ZenBusiness will handle the business formation process for you.
However, if you want more services you need to opt for a paid plan. There are two types of paid plans for LLC formation—Pro and Premium plans.
The Pro plan offers expedited filing and an operating agreement template preparation, while the Premium plan offers services like fast filing speed in addition to an email address, domain name, and business website. These premium packages are designed to provide comprehensive support for businesses at various stages of growth.
ZenBusiness also offers ideas for domain names and business names once you enter a few keywords relevant to your business.
ZenBusiness offers a personalized online dashboard through which you can get 24/7 online access to business documents, making it easy to track the status of LLC formation.
When it comes to business structures, there are a lot of options to choose from. But, two of the most popular choices for small businesses are C-Corporations and S-Corporations.
As a reputed business formation service provider, ZenBusiness can help you form either type of corporation quickly and easily.
If you are not sure about the business structure, you can go through the numerous resources, step-by-step instructions, and comparisons on ZenBusiness’s website.
The ‘Corporation’ page lists the steps you need to follow to form a corporation.
Image via ZenBusiness
If you want to form a C-Corporation, you can get started by entering the desired business name and then answering the questions that follow.
If you are already registered as an LLC or a domestic corporation and have up to 100 shareholders, you can apply for an S Corp status to enjoy certain tax benefits.
ZenBusiness makes the business formation process seamless by clearly listing the different steps and requirements for filing for an S corporation.
Image via ZenBusiness
All these steps are explained in detail on their website. However, ZenBusiness’ business formation services do not extend to all the steps listed above.
Here are the incorporation services that it offers:
A Decentralized Autonomous Organization (DAO) is an emerging form of decentralized business entity that operates on a blockchain network using smart contracts.
It operates based on code and rules encoded as smart contracts, allowing it to be run by its members with no central authority or intermediaries.
Transactions and decisions are made through a consensus mechanism, making the organization transparent, secure, and resilient to censorship or interference.
To register a DAO, you need to first form your LLC. ZenBusiness lists the steps for starting a DAO in any state, as shown below.
Image via ZenBusiness
In addition to providing valuable resources and guides on starting a DAO, ZenBusiness will help you with:
Another crucial factor when comparing ZenBusiness vs LegalZoom is their registered agent services and associated costs.
A registered agent is a person or business that agrees to receive legal correspondence on behalf of your business.
As per business law, each business must have a registered agent who has a physical address in the state where the company is formed and be available during business hours to accept the service of process.
ZenBusiness provides a Registered Agent for $199 per year.
Image via ZenBusiness
These services are available in all the states for LLCs and corporations. ZenBusiness offers these specific services as part of its Registered Agent services:
A DBA, also known as a Doing Business As or Fictitious Name, is a name under which a business operates that differs from its legal name.
A DBA allows businesses to brand themselves and create a separate identity from their legal name. For example, if your business’s legal name is “John Smith Consulting,” you can operate under the DBA “Smith Consulting.”
As usual, ZenBusiness gives you all the information you need to file a DBA including the states where you need to publish the DBA name in newspapers.
Image via ZenBusiness
From conducting a DBA name search and business formation filing of necessary documents for your LLC or corporation to Registered Agent services, ZenBusiness helps streamline the DBA registration process.
An operating agreement is a legal document that outlines the ownership and operating procedures of an LLC.
The operating agreement is filed with the state when the LLC is formed and is required in some states. The operating agreement should include:
If this process of preparing an operating agreement sounds cumbersome, you can rely on ZenBusiness to provide a guided operating agreement in its paid business formation plans.
Image via ZenBusiness
The Employer Identification Number (EIN) is a nine-digit number assigned by the Internal Revenue Service (IRS) and used to identify taxpayers that are required to file various business tax returns.
Whether your business is an LLC, Corporation, or Partnership, you will need the EIN to obtain funding, open a bank account, and hire employees.
Image via ZenBusiness
As part of its formation services online, ZenBusiness will file the documents required with the IRS and inform you when the EIN is ready.
As a business owner, the last thing you want to worry about is compliance. That’s where ZenBusiness’s worry-free compliance service comes into the picture.
They offer worry-free compliance services to help you stay on top of all the required filings and paperwork for your business.
All their formation service packages include ‘worry-free compliance’ services where ZenBusiness:
ZenBusiness also offers tools to help businesses streamline their finances in addition to its formation service.
By linking your business bank account with ZenBusiness Money, you can gain a unified view of your finances including profits, losses, taxes, invoices, and expenses.
Image via ZenBusiness
It also allows you to:
Every business relies on advertising to boost their online visibility, traffic, and sales.
In addition to its formation service, ZenBusiness has something to offer in this department as well. In partnership with Google, it offers $150 worth of Google Ads credit that you can use to place ads and promote your business online.
Banking resolution is a simple way to give someone the authority to handle financial transactions on behalf of the company.
You can complete this process quickly with ZenBusiness’s banking resolution template that you can purchase for $30.
ZenBusiness offers a number of other ‘a la carte’ services that you can add to LLC/corporation formation packages. Here are some of these:
Image via ZenBusiness
In addition, ZenBusiness offers free tax consultations to help save on taxes and that is included in all formation packages. You can also find information on Better Business Bureau on its site!
As you can see, ZenBusiness is a great choice for entrepreneurs looking for comprehensive business formation services.
According to the data on LegalZoom’s website, the company has helped over 3.5 million businesses realize their dream of forming an LLC, corporation, or non-profit.
It offers all the services that ZenBusiness does, plus some more. LegalZoom services extend beyond just business formation, making it a one-stop shop for various legal needs.
When comparing ZenBusiness vs LegalZoom, the first thing that you’re likely to notice is that both offer LLC formation for free with their basic package.
Like ZenBusiness, LegalZoom also lists the simple steps you need to take to get started with LLC formation.
Image via LegalZoom
In addition to answering some FAQs on the topic, LegalZoom also offers sample documents for each state to give you a better idea of what forms and filings are required. This level of detail can be particularly helpful for a first-time business owner.
Image via LegalZoom
In addition to the Economy package, LegalZoom offers two other pricing tiers–Standard and Express Gold package.
All three packages offer these services as part of the LLC formation package:
In addition to these services, the Standard and Express Gold packages also offer:
The Express Gold package is the only plan that offers expedited 1-day processing and express shipping.
LegalZoom offers insights into what a corporation is, the benefits of forming different types of corporations, and the steps to take to form an S or a C corporation.
Once you click on the “Start my corporation” button, you are taken to the page where you need to specify the state where you want to form your corporation and answer some questions.
Image via LegalZoom
The services offered under corporation formation are similar to the LLC package.
However, the pricing structure differs because there is no free plan for corporation formation.
LegalZoom’s Economy plan starts at $149 + filing fees.
When comparing ZenBusiness vs LegalZoom, the latter has an edge if you are considering starting a non-profit organization.
While you do not need to incorporate your non-profit, doing so will give you multiple advantages. It builds credibility with donors and helps safeguard your personal assets.
It can also help you access funding meant for organizations with a formal structure.
LegalZoom offers specialized formation services for non-profits. According to the site’s claim, the company has assisted 100,000+ non-profits in starting their ventures.
Image via LegalZoom
Here are the services offered as part of its non-profit formation packages:
Just like ZenBusiness, LegalZoom helps you apply for a DBA.
Image via LegalZoom
However, when comparing ZenBusiness vs LegalZoom, another point you will notice is that LegalZoom offers 2 pricing plans (and additional services) under its DBA services.
The standard package costs $99 (+state fee) and the premium plan is priced at $119 (+state fee).
Both plans offer these features:
After the initial trial period, the standard plan subscribers can get the following legal advisory services at an additional cost of $49 per month. These services are included in the premium plan.
While both ZenBusiness and LegalZoom offer registered agent services, the latter’s services are priced at $299 per year.
Image via LegalZoom
ZenBusiness and LegalZoom offer similar Registered Agent service packages. However, LegalZoom offers additional services like identity theft protection, cloud storage, and several other features.
Here are the services offered under the Registered Agent service package:
If you want to switch your RA, LegalZoom will also take care of the fees and paperwork as part of its Registered Agent service.
Annual reports must be filed every year with the Secretary of State in most states, while in some states these have to be filed every two years.
LegalZoom makes it easy for you to comply with this requirement by handling the creating and filing process.
Image via LegalZoom
There are two pricing tiers—Standard ($99) and Rush ($119). With the higher-tier plan, you can get the benefits of expedited processing and shipping.
An interesting point to note when comparing ZenBusiness vs LegalZoom is the access to customizable legal forms, such as agreements, letters of intent, employee NDAs, and so on.
LegalZoom makes it easy to get a wide range of legal forms that you can customize, download, and print.
Image via LegalZoom
LegalZoom partners with Business Licenses to give you the list of permits and licenses you need to start and run your business.
This service is priced at $99.99.
If any of the particulars of your business change, you need to create and file amendment paperwork.
LegalZoom will handle this process for a fee.
The standard plan includes the creation and filing of paperwork while the Rush plan also offers expedited processing and shipping.
The LegalZoom Compliance Calendar is a great way to keep track of your company’s compliance deadlines.
For $69 per year, you can get a calendar that includes all the important dates for your company’s compliance requirements.
Deadlines for your type of business are pre-loaded into the calendar, including the date your company must file its annual report and the date your company must renew its registration.
The calendar also includes reminders for when you need to complete certain tasks, such as updating your contact information or submitting a new filing.
Image via LegalZoom
In addition to its business formation service, LegalZoom offers intellectual property protection and tax advisory services.
ZenBusiness has these pricing plans for both LLC and corporation formation:
While opting for the free Starter plan is a smart move if your budget is limited, remember that this is only offered for the first year and does not renew.
Of course, you can always add the a la carte services as your business grows to optimize your business’s good standing and operational efficiency.
The paid plans offer expedited processing, guided operating agreements, and worry-free compliance services that help ensure your business stays compliant while you focus on the core business tasks.
When comparing ZenBusiness vs LegalZoom, one of the key differences is in the pricing plans.
While the price points are definitely higher than that of ZenBusiness, LegalZoom offers a number of useful services, such as a customizable website by Wix, expedited processing (1 to 2 business days), and tax consultation in the bundle.
Most importantly, all the plans offer 24/7 support for customers.
| ZenBusiness | LegalZoom |
| “Zen Keeps you updated with emails and notifications on the app letting you know how your process is going and what stage of the process you’re at. What made my experience great was that they pretty much hold your hand and walk you thru every step of the process.” – CustomerChewy | “The process is easy to complete and less of a headache trying to go through the SOS / California Website as there are no real instructions as to what LLC to be licensed for on the SOS site. In other words, using Legal Zoom saves a lot of time and headache.” – DeWayne Glazewski |
| “They got my business going fast and in a hurry, and I would recommend ZenBusiness to anyone out there who is trying to start a business. They are on the ball from beginning to end they had me up and running in 20 days and it would have taken me a minimum of two years to get my business going so thank you ZenBusiness for the help.” – William & Angel Baird | “Legal Zoom has allowed me to start my dreams of being a business owner and starting a non-profit at the same time while they worry about the legal documents and assure me with their professionalism, service, speed, friendly attitudes, etc that my businesses are in the perfect hands! – Guby Wiles |
Q1. Is ZenBusiness a good way to start an LLC?
A. Absolutely! ZenBusiness is an amazing choice for businesses seeking to start an LLC.
With their free LLC package and step-by-step guidance and support, you will find it easy to form an LLC in no time at all.
Q2. Is ZenBusiness a good registered agent?
A. Yes! ZenBusiness is a great registered agent for business owners. As one of the best LLC service providers, they offer registered agent services that are affordable and reliable to help you get your business up and running.
Q3. Is it worth it to use LegalZoom for LLC?
A. With LegalZoom, you can form your LLC quickly and easily. You’ll have access to experienced attorneys who know the ins and outs of LLCs and get expert advice on how to ensure your business is set up correctly.
While LegalZoom handles all the paperwork, they also offer expedited filing and shipping. Likewise, their business advisory plan can provide ongoing support as your business grows.
Q4. Is LegalZoom cheaper than a lawyer?
A. LegalZoom offers ongoing online legal assistance at an affordable price. Instead of spending time researching and traveling to meet with a lawyer, you can get the same or better results from LegalZoom in a fraction of the time and cost.
You can test their legal services with a 14-day free trial when you opt for one of the business formation plans.
Q5. Which LLC service is better—ZenBusiness or LegalZoom?
A. It depends on what you’re looking for in LLC services.
LegalZoom offers more comprehensive services for a higher price point, while ZenBusiness’s LLC formation packages are more affordable and provide helpful extra services like registered agent services.
Ultimately, the best LLC service for you will depend on your budget and needs.
Q6. Can I use ZenBusiness or LegalZoom to form other types of business entities besides LLCs?
A. Yes, both ZenBusiness and LegalZoom offer services for forming various business entities, including corporations, nonprofits, and partnerships. They provide tailored assistance based on the specific type of business structure you choose.
Q7. Do ZenBusiness and LegalZoom offer ongoing compliance services after forming my business?
A. Yes, both companies offer compliance services. ZenBusiness provides a “worry-free compliance” service, while LegalZoom offers a “compliance calendar.” These services help ensure your business stays up-to-date with state requirements and important filing deadlines.
Q8. Can I switch my registered agent to ZenBusiness or LegalZoom if I’ve already formed my business?
A. Absolutely. Both ZenBusiness and LegalZoom allow you to switch your registered agent to their services, even if you didn’t originally form an LLC or other business entity with them. They handle the necessary paperwork to make the switch seamless.
Clearly, both ZenBusiness and LegalZoom offer a wide array of services for small business owners.
LegalZoom offers more comprehensive legal services but at a higher cost; whereas ZenBusiness provides a great business formation solution at an affordable rate.
Choose LegalZoom if your business needs ongoing legal advice, comprehensive tax consultation, trademark/patent search, and applications.
Opt for ZenBusiness if you want basic business formation services along with add-ons, such as accounting, invoicing, and expense tracking.
We hope this comparison between ZenBusiness and LegalZoom has helped you gain a better understanding of each platform so that you can make an informed decision. Good luck!
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