EZ Comparison: ZenBusiness Vs LegalZoom

Exploring ZenBusiness and LegalZoom: Which Service Best Supports Your Business Goals?

Comparison Menu

Checked and Updated on:

October 30, 2024
10:26 am

Key Differences

ZenBusiness VS LegalZoom

ZenBusiness and LegalZoom are two popular options for business formation, each catering to different needs. ZenBusiness focuses on affordability and simplicity, while LegalZoom provides comprehensive legal support. Here’s a look at how these services stand apart in key areas.

Key Differences: ZenBusiness vs LegalZoom

Pricing: ZenBusiness offers more affordable packages, starting at $299/year for the Premium package, whereas LegalZoom’s Premium package is priced at $716, making it a pricier option.
Legal Support: LegalZoom provides ongoing legal advice and document review services through a subscription, a feature that ZenBusiness does not offer.
Turnaround Time: ZenBusiness processes Premium filings in 1 business day, while LegalZoom’s turnaround time ranges from 5 to 14 business days, depending on the package.
Compliance Services: ZenBusiness includes worry-free compliance monitoring with its packages, whereas LegalZoom offers compliance services at an additional cost.
Registered Agent Fees: ZenBusiness charges $199/year for registered agent services, while LegalZoom’s rate is higher at $249/year.

Things They Have in Common

ZenBusiness VS LegalZoom

Both ZenBusiness and LegalZoom aim to simplify business formation, providing overlapping services to support new businesses. Here are the key similarities between the two:

Business Formation Services: ZenBusiness and LegalZoom both offer streamlined services for forming LLCs, corporations, and other entities, making setup easy for new business owners.
Registered Agent Services: Each company provides registered agent services to support compliance with state regulations, available at different pricing levels.
EIN Registration: Both ZenBusiness and LegalZoom offer EIN registration services, helping businesses easily acquire a federal tax ID.
Document Filing and Storage: ZenBusiness and LegalZoom handle all necessary filings and provide customers with organized business documents upon completion.
Positive Customer Reviews: Both companies receive positive feedback from customers for their ease of use and supportive customer service.

A Comparison of Features

Package Pricing

ZenBusiness

ZenBusiness’s Premium package is priced at $299/year, providing a budget-friendly option for users seeking business formation, compliance monitoring, and additional services like a website builder. This package is more affordable than LegalZoom, making it an attractive choice for small business owners.

LegalZoom

LegalZoom’s Premium package costs $716, reflecting its more extensive service offerings, including access to legal advice and document review. Although higher in price, LegalZoom caters to businesses that may need ongoing legal support in addition to formation services.

Customer Support

ZenBusiness

ZenBusiness offers extended support hours via phone and live chat on weekdays, with email support available as well. This range of support channels makes it easy for users to get help when needed.

LegalZoom

LegalZoom provides customer support via phone and contact form, with weekday hours from early morning to late evening, and weekend hours available. Users typically receive responses within 24 hours, ensuring accessible support for various business needs.

Ease of Use

ZenBusiness

ZenBusiness has a user-friendly online platform designed to guide business owners through formation and compliance management. The platform’s streamlined setup and digital tools simplify ongoing compliance tasks.

LegalZoom

LegalZoom’s platform is straightforward, with a focus on both formation and legal services. While easy to use, it provides an additional layer of legal resources, making it beneficial for those needing legal guidance beyond formation.

Processing Times

ZenBusiness

ZenBusiness offers a 1-day turnaround for Premium package filings, which is ideal for users requiring expedited service. Standard processing times for other packages are slower but still competitive.

LegalZoom

LegalZoom’s Premium package processing time ranges from 5 to 14 business days, depending on state requirements and selected services. While slower than ZenBusiness’s expedited option, it’s adequate for users not requiring urgent filing.

Business Services

ZenBusiness

ZenBusiness offers a variety of additional services, such as a website builder with SEO tools and worry-free compliance monitoring, supporting users with digital branding and compliance management.

LegalZoom

LegalZoom provides comprehensive legal services, including access to attorney consultations and document review, along with its business formation packages. This focus on legal support makes it a strong choice for users seeking ongoing legal guidance.

Pros and Cons

ZenBusiness

ZenBusiness Pros Compared to LegalZoom

✅ More Affordable Premium Package: ZenBusiness offers its Premium package at $299/year, making it more budget-friendly than LegalZoom’s Premium package, priced at $716.
✅ Faster Premium Filing Time: ZenBusiness provides 1-day filing with its Premium package, while LegalZoom’s turnaround time ranges from 5 to 14 business days, depending on the package.
✅ Built-In Compliance Monitoring: ZenBusiness includes worry-free compliance monitoring in its packages, whereas LegalZoom charges extra for compliance support and monitoring.
✅ Website Builder with SEO Tools: ZenBusiness offers a website builder with SEO tools included, a feature not provided by LegalZoom.

ZenBusiness Cons Compared to LegalZoom

❌ No Legal Advisory Services: ZenBusiness does not offer legal advice or document review, whereas LegalZoom provides access to legal consultations and document review services for a subscription fee.
❌ Higher Registered Agent Cost: ZenBusiness charges $199/year for registered agent services, while LegalZoom charges $249/year, though LegalZoom’s higher rate comes with additional legal options for those needing support beyond registration.

LegalZoom

LegalZoom Pros Compared to ZenBusiness

✅ Access to Legal Advice and Document Review: LegalZoom offers ongoing legal consultations and document review through a subscription, which can be beneficial for businesses needing legal support beyond formation.
✅ Established Reputation: LegalZoom is a well-known, established brand in the industry, which may be reassuring for clients looking for a long-standing company.
✅ Comprehensive Document Management: LegalZoom provides clients with a compliance calendar, document filing reminders, and assistance with annual reports, adding a layer of oversight.

LegalZoom Cons Compared to ZenBusiness

❌ Higher Cost for Premium Services: LegalZoom’s Premium package is priced at $716, more than double the cost of ZenBusiness’s Premium package at $299.
❌ Longer Filing Times: LegalZoom’s processing time for Premium filings can be as long as 14 business days, compared to ZenBusiness’s 1-day Premium filing.
❌ No Website-Building Tools: LegalZoom does not offer a website builder or SEO tools, while ZenBusiness includes these features.