Many new business owners think paying more means getting better service when forming an LLC. But that’s not always true. In fact, expensive services can sometimes give you fewer features and more confusion. Some companies make money by keeping things unclear and charging extra for basics.
ZenBusiness and LegalZoom take different approaches. ZenBusiness offers a $0 starting price and includes a free year of registered agent service. LegalZoom starts at $79, and their ongoing fees can reach $299 per year. ZenBusiness also usually finishes the paperwork in 3–5 business days, while LegalZoom takes longer.
What really matters in an LLC service is how smoothly they help you set up your business—without constant upselling or delays. ZenBusiness includes helpful items like operating agreements, alerts for compliance, and quick filing. LegalZoom focuses more on offering many types of legal services. But when it comes to starting your business, the best service is the one that makes the process easier and clearer.
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After comparing both services, ZenBusiness stands out for most small business owners. Their pricing is clear, and the first-year registered agent service (worth $119) is included for free. LegalZoom offers a wide range of legal tools, but ZenBusiness is simpler and more focused on helping entrepreneurs. Their $0 Starter plan is great for those on a budget, and the $199 Pro plan offers the best mix of price and features. ZenBusiness also avoids pushy upsells, making the experience less stressful—especially for first-time business owners.
What Do ZenBusiness and LegalZoom Actually Offer?
If you’re deciding between these two companies for forming your LLC, it’s important to look beyond the marketing. What matters most is pricing, support, and which company really understands what new business owners need.
ZenBusiness: Designed for First-Time Business Owners
Founded in 2015, ZenBusiness focuses on making LLC formation easier, especially for those doing it for the first time. They offer clear instructions, educational tools, and step-by-step guidance. Their pricing is simple and their customer support is highly rated.
ZenBusiness isn’t just about filing paperwork. They offer ongoing help through resources like state-specific guides and videos. Many reviews say the company is fast, helpful, and easy to work with.
LegalZoom: Many Legal Services, But Can Be Complicated
LegalZoom has been around for over 20 years and has helped millions of customers. They offer services beyond LLCs, like wills and trademarks. However, this can make things confusing for new business owners. Their pricing includes lots of upsells, and some users say it’s hard to understand what they’re actually paying for. Reviews on TrustPilot are mixed, though LegalZoom is still a top choice for those needing more legal documents.
Pricing Breakdown: Which Service Saves You More?
Starting an LLC usually costs between $75 and $300, not including state fees. But these costs can go up quickly with add-ons and renewals. Here’s a closer look at what you actually get for your money.
ZenBusiness Pricing
Their paid plans include useful features like faster filing, help with opening a bank account, and a domain name. ZenBusiness is known for showing clear prices upfront—no surprises.
LegalZoom Pricing
But LegalZoom’s prices don’t include key services. For example:
These extras can raise your total cost to between $500 and $800—services that ZenBusiness includes at lower prices.
Extra Charges and Recurring Fees
Many people don’t realize that the initial setup cost is only part of the total expense. LegalZoom encourages users to choose higher-priced packages and often adds extra services at checkout. Some customers report being surprised by charges for annual reports, compliance alerts, or getting a tax ID (EIN). Their registered agent service also renews automatically for $299/year.
ZenBusiness gives the first year of registered agent service free and charges only $119/year after that. That’s a big difference—especially for new businesses trying to save money.
Which Service Offers Better Value?
When comparing what you get versus what you pay, ZenBusiness often comes out ahead. Over five years, a business could spend about $1,200 using ZenBusiness compared to over $2,100 with LegalZoom for the same services.
ZenBusiness gives you more for your money and doesn’t have high renewal prices. This makes them a better option for business owners who want to keep costs down without losing important features.
How Easy Are the Platforms to Use?
ZenBusiness: Simple and Fast
ZenBusiness has a clean, easy-to-use platform. It shows your business progress, required steps, and documents all in one place. Many users say they finish setting up in less than 20 minutes. Standard filing takes 1–3 business days.
Customer support is U.S.-based and easy to reach by chat, phone, or email. They are known for fast and friendly help. Their Better Business Bureau rating is excellent.
LegalZoom: Slower and Less Clear
LegalZoom’s platform is not as easy to navigate. There are more steps, and lots of upsells slow things down. It usually takes 30+ minutes to fill out the forms. Their standard processing time is 7–10 business days.
Customer service gets mixed reviews, with some users reporting long hold times or scripted answers. The BBB page shows some complaints about surprise charges and hard-to-reach staff.
Which Platform Is Easier to Work With?
ZenBusiness is easier to use, more organized, and has better customer support. LegalZoom feels more like a big corporation, while ZenBusiness feels more personal.
Key comparisons:
Ongoing Services: What Happens After You Form Your LLC?
Forming your business is just the start. You’ll need to stay compliant with state rules, file yearly reports, and more.
Registered Agent Service
This is a legal requirement. ZenBusiness includes the first year for free, then charges $119/year. LegalZoom charges $299/year starting from day one. Over five years, this adds up to $900+ in savings with ZenBusiness.
Operating Agreement, Tax ID (EIN), Compliance Tools
ZenBusiness includes these in their affordable plans. LegalZoom charges:
ZenBusiness also offers tools to help you stay on top of legal deadlines and reports. Their “Worry-Free Compliance” service helps avoid missed filings and state penalties.
Do They Help With Taxes or Bookkeeping?
Neither company provides full accounting or tax services, but ZenBusiness offers more guidance and has partnerships with bookkeeping providers. Both recommend hiring a tax professional for financial advice. Some users also turn to platforms like Tailor Brands or Bizee (formerly Incfile) for extra business tools.
Final Thoughts: ZenBusiness or LegalZoom?
Both platforms can help you form your LLC. But if you’re looking for better value, faster service, and fewer hidden fees, ZenBusiness may be the smarter pick. LegalZoom is better suited for businesses that need a wider range of legal services—but it may cost more and take longer.
Key Takeaways:
Ultimately, your choice depends on your business needs and budget. Compare features and costs carefully to pick the service that fits you best.
