Starting and managing a business, planning your estate, or navigating the legal complexities of everyday life can feel overwhelming.
For many people, the cost and formality of traditional legal services can be prohibitive, leading them to seek out alternative solutions that offer more accessible and affordable options.
LegalZoom is one of the most popular platforms providing online legal services, making it a go-to choice for people and businesses alike.
In this comprehensive review, we’ll explore what LegalZoom offers, how it works, its pros and cons, pricing, alternatives, and more to help you decide if it’s the right fit for your needs.
Quick Summary
LegalZoom is an online legal service provider that specializes in simplifying various legal tasks.
From business formation, including LLCs, corporations, and non-profits, to estate planning, document preparation, and access to licensed attorneys, LegalZoom offers an extensive suite of legal services. Founded in 2001, it has since helped millions of individuals and small businesses with their legal needs.
While LegalZoom can be a great choice for basic legal work, it may not be the best option for more complex legal issues or those that require personalized, in-depth advice.
However, it remains a strong and trusted platform for entrepreneurs and individuals looking for a straightforward, affordable way to manage legal tasks online.
Key Service Highlights
LegalZoom’s services cover a wide range of legal needs, from business creation to estate planning and ongoing legal support.
The platform offers services that are most beneficial to small business owners, freelancers, and individuals with more straightforward legal needs. Below are some of the key highlights of what LegalZoom provides:
- Business Formation: LegalZoom makes it easy to set up an LLC, corporation, or non-profit, providing the necessary legal documents and filing services. The platform guides you through each step of the business formation process, offering optional add-ons like operating agreements, business licenses, and more.
- Estate Planning: LegalZoom offers affordable and convenient estate planning services, such as wills, living trusts, powers of attorney, and healthcare directives. It’s a cost-effective way to ensure that your estate is in order without paying expensive attorney fees.
- Document Preparation: Whether you need a legal contract, non-disclosure agreement, or divorce papers, LegalZoom can help you prepare a wide range of legal documents tailored to your needs.
- Registered Agent Services: For businesses, having a registered agent is a legal requirement in most states. LegalZoom offers registered agent services, handling the receipt of legal and official documents on behalf of your business.
- Attorney Consultations: LegalZoom offers access to a network of licensed attorneys who can provide legal advice and guidance on a variety of topics. This can be particularly useful if you need more personalized help or have questions that go beyond standard templates.
Pros & Cons
Before diving deeper into the various aspects of LegalZoom, here’s a quick overview of its strengths and weaknesses.
Pros:
- Ease of Use: LegalZoom is designed to be user-friendly, with a straightforward online process that guides you step-by-step through the necessary legal tasks. This makes it ideal for individuals and business owners who are not familiar with legal jargon or complicated processes.
- Affordability: For many basic legal services, LegalZoom is more affordable than hiring an attorney. Services like LLC formation or creating a simple will can cost a fraction of what you’d pay in traditional legal fees.
- Convenience: LegalZoom allows you to handle everything online, from filling out forms to submitting filings and receiving documents. There’s no need to meet with an attorney in person, which saves time and effort.
- Wide Range of Services: Whether you need to form a business, plan your estate, or get a legal document drafted, LegalZoom offers a wide range of services to meet your needs.
- Attorney Access: With LegalZoom’s subscription plans, you can access professional legal advice, which is a rare benefit for an online platform. This can provide peace of mind if you have complex legal questions.
Cons:
- Pricing: LegalZoom can be expensive, especially when compared to competitors like IncFile and ZenBusiness. While the base fees for services like LLC formation are relatively low, add-ons and additional services can make the total cost higher than anticipated.
- Upselling: Several users report being upsold during the sign-up process, which can be frustrating. You might be offered additional services that are not always necessary.
- Customer Support Issues: Although LegalZoom offers customer support through phone, email, and live chat, some users have complained about the quality and timeliness of the support they received. There are also reports of delays in responses, which can be particularly concerning if you’re working under tight deadlines.
- Limited Personalization: While LegalZoom offers attorney consultations, it’s important to note that the consultations might not be as in-depth or personal as those you’d receive from hiring a law firm directly.
LegalZoom Pricing & Packages
LegalZoom offers several pricing tiers depending on the service you need. Below we break down the costs for the most commonly used services, such as LLC formation, trademark registration, and will creation.
Plan Options:
For LLC formation, the most popular service offered by LegalZoom, you have the following plans to choose from:
- Economy Package – Starting at $79 plus state filing fees. This is the most basic package, and it includes the essentials for forming an LLC, such as preparing and filing the Articles of Organization.
- Standard Package – Starting at $329 plus state filing fees. This plan includes everything in the Economy package, plus a business name check and a customized operating agreement. You also get faster processing times for your documents.
- Express Gold Package – Starting at $349 plus state filing fees. This is the premium package, offering expedited filing, a personalized LLC kit, and a digital LLC membership certificate.
While these prices are competitive for basic LLC services, the added cost of state filing fees and upsells can add to the total cost, making it more expensive than some other services.
Additional Services:
Beyond the core packages, LegalZoom offers several add-on services that can significantly increase the total cost. These include:
- Registered Agent Service: Starting at $249 per year.
- Expedited Processing: Starting at $75 for faster document processing.
- Legal Forms & Templates: LegalZoom provides various legal forms and templates for a wide range of needs, including contracts, non-disclosure agreements, and more. These can be purchased individually, often costing around $20–$50 per document.
LegalZoom Alternatives
While LegalZoom is one of the most well-known online legal services providers, it’s not the only option. Depending on your needs, you might find better value in alternative platforms. Some of the top LegalZoom alternatives include:
- ZenBusiness: Known for its affordable LLC formation services, ZenBusiness offers pricing plans similar to LegalZoom but with fewer upsells. They also provide a free year of registered agent service with certain packages.
- IncFile: Another popular alternative, IncFile offers a free basic LLC formation service (you only pay state fees), making it an excellent choice for entrepreneurs on a tight budget. They also provide a year of registered agent service at no extra cost.
- Rocket Lawyer: For those who need ongoing legal assistance, Rocket Lawyer offers a subscription-based service that gives you access to attorneys and legal documents at a fixed monthly cost.
Each of these alternatives offers a slightly different pricing structure and features, so it’s worth comparing them based on your specific needs and budget.
LegalZoom User Experience & Filing Process
LegalZoom’s filing process is designed to be as simple as possible. Here’s a breakdown of how it typically works:
- Fill Out a Questionnaire: The first step is to fill out an online questionnaire that details your legal needs. This includes providing personal or business information and selecting the type of service you require.
- Submit Payment: Once you’ve completed the questionnaire, you’ll pay the required fees, including any state or government fees that apply.
- Document Preparation & Filing: LegalZoom will prepare the necessary legal documents, such as articles of incorporation or an estate plan. These documents will be submitted to the relevant government agency for filing.
- Receive Documents: After the documents are processed and approved, they will be sent to you either digitally or by mail.
This process is designed to be intuitive, but for those with more complex needs, additional attorney consultation may be necessary.
LegalZoom Core Services & Features
LegalZoom offers a broad array of services designed to help with various legal needs. Some of the most frequently used services include:
- Business Formation: LegalZoom simplifies the process of forming an LLC, corporation, or nonprofit organization. Their plans vary in complexity, offering basic formation services or more advanced options like operating agreements and tax filings.
- Document Preparation: Whether you need a contract, non-disclosure agreement, or divorce papers, LegalZoom offers customizable templates for many common legal documents.
- Estate Planning: LegalZoom offers a range of estate planning services, including wills, living trusts, and powers of attorney. These documents are especially useful for individuals looking to plan for the future without hiring an attorney.
LegalZoom Customer Support
LegalZoom offers customer support through phone, chat, and email. While many customers report prompt and helpful responses, others note issues with inconsistent service, especially when dealing with more complex or non-standard filings.
LegalZoom also offers ongoing access to attorneys through its subscription plans, which can be a useful resource for business owners or individuals who need legal advice on an ongoing basis.
LegalZoom’s Review Ratings from Review Sites
LegalZoom has a solid reputation among users, with many praising its ease of use, affordability, and the quality of its documents.
On review sites like Trustpilot, LegalZoom holds a solid rating of 4.6 out of 5 stars, based on thousands of reviews. However, some users have voiced concerns about upselling and occasional delays.
Conclusion
LegalZoom offers a simple, affordable way for small business owners and individuals to handle basic legal tasks.
From business formation to estate planning, its platform makes legal processes accessible without the need for in-person meetings with an attorney.
While the pricing is generally reasonable, the upselling and additional costs can add up, so it’s important to be aware of what services you really need.
If you’re looking for a convenient, low-cost way to manage your legal affairs, LegalZoom is a strong option.
However, if your needs are more complex or you want to avoid hidden costs, you may want to consider alternatives or consult with a traditional attorney.
FAQs
What is LegalZoom and how does it work?
LegalZoom is an online platform that offers legal services such as business formation, estate planning, and document preparation.
You fill out an online form, choose the services you need, and LegalZoom handles the paperwork and filings for you.
Is LegalZoom a good option for small businesses?
Yes, LegalZoom is a popular choice for small businesses, especially for forming LLCs or corporations. It provides easy-to-use services that guide you through the process and offers affordable pricing compared to hiring a lawyer.
How much does LegalZoom cost?
Pricing depends on the service and plan. For business formation, plans start at $79 (plus state fees) for a basic LLC. More advanced plans range from $249 to $349. Estate planning services like creating a will start at $89.
Can I get legal advice from an attorney through LegalZoom?
Yes, LegalZoom offers access to licensed attorneys through subscription plans, such as the Business Advisory Plan. This allows you to consult with an attorney for legal advice, contract reviews, and more.
Are LegalZoom’s documents legally valid?
Yes, the documents created through LegalZoom, like business formation papers, wills, and contracts, are legally valid.
However, for more complex situations, it’s recommended to consult a lawyer, as templates may not cover all unique circumstances.