When starting a business, two of the most important decisions you’ll face are selecting your company structure (like an LLC) and figuring out how to manage your legal and branding needs.
The good news is that online services like Tailor Brands and LegalZoom make it easier for entrepreneurs to navigate these processes.
Both offer packages for LLC formation, but they approach the process differently. LegalZoom is focused primarily on legal services, while Tailor Brands combines business formation with branding tools to help build your business identity.
In this comparison, we’ll dive deep into what each platform offers, their pricing, pros and cons, and the overall user experience to help you decide which one is right for your business.
LegalZoom: A Traditional Legal Service Platform
Founded in 2001, LegalZoom is one of the most well-known online legal services providers. It focuses primarily on providing legal documents, business formation services, and ongoing legal support.
LegalZoom is widely regarded for its broad range of legal services, from LLC formation to trademark registration, will creation, and tax services.
LegalZoom has served millions of customers and has built a reputation for being a reliable resource for business owners who need professional legal advice or documentation.
Its business formation packages come with additional legal features, such as compliance reminders, access to attorneys, and more.
Tailor Brands: A Modern Branding-Focused Service
On the other hand, Tailor Brands is a relatively newer platform, founded in 2015, that takes a different approach. Instead of focusing purely on legal services, Tailor Brands combines business formation with an emphasis on branding and design.
Its offerings include logo design, website creation, business card design, and social media assets, in addition to LLC formation.
This makes Tailor Brands a more holistic platform, especially for entrepreneurs who want to get their brand off the ground alongside their legal foundation.
While it doesn’t offer the same depth of legal services as LegalZoom, it provides everything you need to start building your business identity right away.
Key Services and Features
Now let’s take a closer look at what each platform offers in terms of services and features.
LLC Formation
Both Tailor Brands and LegalZoom handle LLC formations, but they do so with different levels of additional support.
Tailor Brands:
- LLC filing
- Operating agreement template
- Name availability search
- EIN (in higher-tier plans)
- Registered agent (in higher-tier plans)
- Branding tools like a logo, website, and business card design
LegalZoom:
- LLC filing
- Operating agreement template
- Name availability search
- EIN (in higher-tier plans)
- Registered agent (in higher-tier plans)
- Ongoing legal compliance reminders and attorney consultations (in higher-tier plans)
Tailor Brands stands out in the fact that it integrates business formation with branding tools, which can be crucial for entrepreneurs starting a business that wants a professional online presence.
LegalZoom, however, shines with its deep legal expertise and resources, making it a strong option for those who want ongoing legal guidance.
Registered Agent Services
Both platforms offer registered agent services, which are necessary for receiving legal documents on behalf of your business.
This is especially useful if you’re not located in the state where your business is formed or if you prefer not to handle this yourself.
- Tailor Brands: The registered agent service is available in the Essential and Elite plans for approximately $199/year.
- LegalZoom: The registered agent service costs around $249/year as an add-on to any plan.
Both services provide the same core function: a registered agent will receive your official government mail, like tax documents and legal notices, and forward them to you.
LegalZoom’s higher price tag may be a bit of a turnoff, but the service has a long-standing reputation in the legal industry.
Branding and Marketing Tools
This is where Tailor Brands truly sets itself apart from LegalZoom. Beyond just LLC formation, Tailor Brands provides:
- Logo Design: Tailor Brands offers an easy-to-use logo maker, where you can create a professional logo within minutes.
- Website Builder: You can create a simple website to launch your online presence, along with digital marketing tools.
- Business Cards: The platform offers business card design services, making it easier for entrepreneurs to establish their brand identity.
- Social Media Assets: Tailor Brands provides tools for designing social media content, helping you maintain a consistent brand image online.
LegalZoom does not offer any of these branding and marketing tools, making it a less appealing choice for entrepreneurs looking for a comprehensive business package that includes design and marketing services.
Ongoing Legal Support
One of the strongest points for LegalZoom is its legal services. After the LLC formation, LegalZoom offers several ongoing legal services, including:
- Access to Attorneys: LegalZoom provides consultations with attorneys as part of certain plans.
- Legal Document Library: LegalZoom has a vast library of legal documents, from contracts to employee handbooks, that you can use for your business.
- Trademark Services: LegalZoom also offers trademark registration, helping you protect your brand at the federal level.
Tailor Brands, by contrast, is less focused on legal services. It offers some compliance reminders but does not provide access to lawyers or in-depth legal support.
If your business requires constant legal support, LegalZoom may be a better fit.
Pricing and Value for Money
Both Tailor Brands and LegalZoom offer tiered pricing plans, but they structure their pricing and include different services, which can affect the overall value depending on what you need.
Tailor Brands Pricing Structure
Tailor Brands offers a simple pricing structure for its LLC formation services:
- Lite Package: Starts at $0 for LLC formation plus state fees. This plan includes basic business formation and an operating agreement template.
- Essential Package: Priced at approximately $199/year plus state fees. It includes everything in the Lite package, plus additional features such as an EIN (Employer Identification Number), business website, and a branding kit (business card design and logo).
- Elite Package: Priced around $249/year plus state fees. This includes expedited processing, a registered agent for one year, and all the branding and marketing tools available in the Essential plan.
The pricing is fairly transparent, with additional services (like registered agents or expedited filing) available at higher tiers.
Tailor Brands also includes tools like logo design, website creation, and digital marketing assets at higher tiers, which sets it apart from LegalZoom.
This makes it ideal for businesses that need both legal formation and branding services.
LegalZoom Pricing Structure
LegalZoom has a similar tiered pricing structure, but with more emphasis on legal services. Here’s how its pricing breaks down:
- Basic Plan: This plan starts at $0 plus state fees. It includes LLC formation and access to a basic operating agreement template. This is the most affordable option but doesn’t offer as many extras.
- Pro Plan: This plan is priced at about $249 plus state fees. It includes LLC formation, operating agreement templates, a federal EIN, and compliance alerts. It also provides some additional services like more legal documents and options for ongoing legal support.
- Premium Plan: Priced at $299 plus state fees, this plan offers everything in the Pro Plan, plus access to tax consultations and a business license report.
LegalZoom’s pricing is higher, particularly in the higher-tier plans, because it provides deeper legal services such as attorney consultations, tax advice, and compliance monitoring. However, it does not include branding services like Tailor Brands does.
Customer Support and User Experience
Both Tailor Brands and LegalZoom receive positive feedback for their customer support, but there are some differences to note.
Tailor Brands:
- Users tend to appreciate Tailor Brands for its easy-to-use interface and smooth onboarding process.
- The customer service team is responsive, especially when it comes to issues related to branding and website creation.
- Negative reviews often mention billing confusion or issues with subscription renewal.
LegalZoom:
- LegalZoom is generally praised for its comprehensive customer service, especially for customers who need legal assistance.
- Many users appreciate the attorney consultations and legal advice they receive.
- Some users report that customer support can be slow, particularly for lower-tier plans, and that the platform feels “too legal” or cumbersome for simple tasks.
Who Should Choose Tailor Brands?
- Entrepreneurs who want both legal formation and branding in one package: If you’re building a business from the ground up and want to make sure your brand looks professional, Tailor Brands is a solid choice.
- Small businesses or solopreneurs with limited legal needs: Tailor Brands offers a more cost-effective approach to LLC formation if you don’t need ongoing legal advice or complex services.
- Businesses that want a modern, user-friendly platform: Tailor Brands is ideal for those who want an intuitive, visually appealing platform for starting their business.
Who Should Choose LegalZoom?
- Businesses that need ongoing legal support: LegalZoom is best for those who need access to attorneys or other legal services beyond just LLC formation.
- Entrepreneurs looking for a more traditional, legal-focused service: If you value a long-standing reputation in the legal industry and want the peace of mind of having a legal partner, LegalZoom is a good fit.
- Businesses with more complex legal needs: LegalZoom’s packages cater to businesses that anticipate needing additional legal services like trademark registration, tax advice, or compliance monitoring.
Conclusion
In conclusion, both Tailor Brands and LegalZoom offer valuable services for entrepreneurs looking to form an LLC, but they cater to different needs.
Tailor Brands is ideal for those who want a one-stop solution that combines business formation with powerful branding tools.
If you’re looking to establish your business identity with a professional logo, website, and marketing assets, Tailor Brands provides an affordable and user-friendly platform for both legal setup and branding.
On the other hand, LegalZoom shines when it comes to in-depth legal services. It’s perfect for businesses that require ongoing legal support, such as consultations with attorneys, trademark services, and compliance reminders.
LegalZoom’s long-standing reputation in the legal industry makes it a reliable choice for those who need a more traditional, legal-focused service with a strong emphasis on legal compliance and documentation.
Ultimately, your choice depends on your business’s priorities. If branding is just as important as legal formation, Tailor Brands is the way to go.
But if you anticipate needing comprehensive legal support in the future, LegalZoom will offer the peace of mind and legal resources you need. Both services are reliable, but they serve different business needs.
FAQs
What is the difference between Tailor Brands and LegalZoom?
Tailor Brands focuses on business formation and branding tools like logo design and websites. LegalZoom specializes in legal services with more in-depth offerings like attorney consultations and compliance reminders.
Which service is cheaper?
Tailor Brands tends to be more affordable for basic business formation, especially when you include branding tools. LegalZoom’s pricing is higher due to its focus on ongoing legal support and services.
Do both services offer LLC formation?
Yes, both services offer LLC formation, but LegalZoom includes more legal features like document libraries and ongoing legal support, while Tailor Brands adds branding tools.
Can I get legal advice with Tailor Brands?
No, Tailor Brands doesn’t provide legal consultations. For legal advice, you’ll need to handle it yourself or find a lawyer. LegalZoom offers attorney consultations, especially in its higher-tier plans.
Which service is better for branding?
Tailor Brands is better for branding. It includes logo design, websites, business card creation, and more. LegalZoom focuses mostly on legal services and doesn’t offer branding tools.