LegalZoom Review 2021:- ( Pros, Cons) With Customer Reviews

LegalZoom is a legal service provider that helps create legal documents, business formation, attorney advice, Wills, trust, and family-related document creation and assistance online.

Moreover, LegalZoom is an established, reputed legal service company that has been around for a very long time with experienced staff.

This Legalzoom review article will provide you with every bit of information you will need to know about LegalZoom and its services.

Further, this LegalZoom review will help you conclude if it is better than other online legal service providers. Like any other company, LegalZoom has its ups and downs.

Keep reading further to know what they are and their packages, different services and provisions, article resources on their website, and much more.

At the end of this Legal Zoom review, you will be able to decide if LegalZoom is worth your time and money.

About LegalZoom

LegalZoom is an online service provider that has been around since 2001.

They provide services with a hundred percent satisfaction guarantee with independent attorneys experienced in legal issues both in personal and business law.

They can help you with any confusing legal issues to make you understand legal matters easily.

LegalZoom is a reputed, well established popular online legal service provider serving over 4 million customers for their legal needs.

Furthermore, LegalZoom offers services like creating documents like living wills, living trust, business formation documents, copyright and trademark registrations, etc.

It has been offering legal service provisions to the public from March 12, 2001, and has formed a partnership in September 2012 with UK based legal service provider QualitySolicitors to provide online legal services in the UK as a joint company.

It announced their first UK acquisition in 2015 and acquired a 200-year-old firm, Beaumont Legal.

Notably, LegalZoom is mentioned in the Huffington Post, Forbes, The Wall Street Journal, etc. It provides legal solutions to start and run a business and various other business-related legal provisions and personal legal services.

LegalZoom's customer care agents are in the United States. Their goal is to make legal help accessible to average Americans.

Packages

legalzoom packages

Legalzoom offers three different price packages, which are economy, standard, and Express gold.

Economy

The economy pack starts at $79 plus the state fee. The services under this package are:

  1. 1
    Business name availability.
  2. 2
    Preparing and filing articles of organization.
  3. 3
    Lifetime customer support.
  4. 4
    Banking resolution.
  5. 5
    Operating agreement.
  6. 6
    'Next steps' guide.

Standard package

The standard package costs $329 plus the state fee. The services offered in the package are:

  1. 1
    Business name availability check.
  2. 2
    Preparing and filing articles of organization.
  3. 3
    Lifetime customer support.
  4. 4
    Banking resolution.
  5. 5
    Operating agreement.
  6. 6
    'Next steps' guide.
  7. 7
    Deluxe organizer.
  8. 8
    Membership certificates and seals.
  9. 9
    VIP processing.

Express gold package

Express gold package cost $349 plus state fee. It includes services like

  1. 1
    Business name availability check.
  2. 2
    Preparing and filing articles of organization.
  3. 3
    Lifetime customer support.
  4. 4
    Operating agreement.
  5. 5
    'Next steps' guide.
  6. 6
    Deluxe organizer.
  7. 7
    Membership certificates and seals.
  8. 8
    VIP processing.
  9. 9
    Expedited processing with the secretary of state.
  10. 10
    Express shipping.

LegalZoom's additional services

  1. 1
    LegalZoom offers registered agent service at $249 per year, automatically renewed annually.
  2. 2
    It offers an Operating agreement service for $99.
  3. 3
    Operating agreement service along with EIN registration costs $159.
  4. 4
    Operating agreement service with EIN and licenses cost $99.
  5. 5
    Smart employer service costs $39.99 per month with a ten-day free trial in the beginning.
  6. 6
    Total compliance service costs $280 per year after a free ten-day service with your LLC order.
  7. 7
    Trademark registration cost $199 + filing fee
  8. 8
    The last Will-and-Testament service cost $179.
  9. 9
    Copyright application cost $114 + filing fee.
  10. 10
    Initial Patent application cost $199.00 + filing fee.
  11. 11
    Business advisory plan costs $31.25 per month if you choose a one year plan and $36 per month if you choose a six-month plan.
  12. 12
    In Legal forms, a single legal form costs $14.95.
  13. 13
    Unlimited access to forms library costs $7.9 per month or is available at no cost along with a business advisory plan.
  14. 14
    Forming an S-Corp and C-Corp costs $149, plus a government filing fee.
  15. 15
    Non-profit formation costs $99 plus the filing fee.
  16. 16
    LP and LLP cost one $49 plus filing fee.

Details of some of the services:

Banking resolution is where the financial account authorization letter states if you are eligible to open an account on your LLC's behalf.

'Next steps' guide will help you go through your LLC documents' reviews before submitting them.

Deluxe organizer is a box embossed with your company name.

Membership certificate and seal service is where LegalZoom provides 20 personalized membership certificates for you and your company's official seal.

VIP processing service lets LegalZoom prioritize your order over the customers from the economy package.

Expedited processing with the state secretary is LegalZoom's rush filing service, which is applicable if your state allows it. This service can cut short your waiting time to days from weeks.

The whole business formation process would be completed within 7 to 10 business days with this rush filing process.

Express shipping is where they ship your documents via Express mail with the tracking number.

The business advisory plan includes consultations over the phone, unlimited access to forms library, document review, a one- year annual evaluation plan for your business. It also includes one year of access to tax professionals and 25% off from your lawyer's per hour fee for any additional work that you decide to get.

Pros and Cons

What are the positives and negatives of Legalzoom? Do the positives outweigh the negatives? Following are the advantages and disadvantages of Legalzoom.

  • Legalzoom is a well-established company that can never go unnoticed. One might even choose it just because it's a very well known service provider in the industry.
  • It offers a 60-day satisfaction guarantee if you are not satisfied with their service. If you are not satisfied 100% with the service, you can get a refund within 60 days of your purchase.
  • Free name availability check. LegalZoom offers a free name availability check with all of the three packages to verify if your business name is already existing or not.
  • Lifetime customer support. The customer service support is available throughout the week as it is one of the few companies that offer customer support the whole week.
  • Annual report filing service. Annual report filing service by LegalZoom is one among the best in the field.
  • Tax consultation. Tax consultation services offered by Legalzoom can be very beneficial for the customers.
  • 'Next steps' LLC guide helps you review your LLC documents before submitting them.
  • Experienced attorneys. Legalzoom's legal advice lawyers are experienced and provide quality business legal plan advice.
  • Business advisory plan. It is a massive advantage in terms of additional service provisions, including phone consultation, document review, tax consultation, and annual business evaluation. It also includes copyright registration, which can be a huge advantage for many customers.
  • Some of the additional services like Registered agent service are very expensive, unlike many other competitors that offer free Registered agent service covered under their existing business formation packages.
  • You can not access Legal advice help like document review for single usage. It only can be used with a monthly plan package.
  • Legalzoom's other additional services like EIN registration and Operating agreement prices are also costly and or not covered under the packages like some of its other competitors in the industry.

Registered agent service, operating agreement, EIN, etc., are some of the necessary services in LLC formation, leading to customers opting for it, ultimately ending up with a sum amount that is way too expensive.

It is advisable to utilize the service offers from some of its other competitors that provide most of the services under $400, sometimes even with the basic package.

Features and Services

Products and services by Legalzoom

Business

  • LLC business formation.
  • Incorporation.
  • Non-profit business formation.
  • Sole proprietorship.
  • Limited Partnership
  • Limited Liability Partnership.
  • Compare business types.
  • Business names.
  • Name availability check
  • Name reservation.
  • EIN registration (Federal tax ID).
  • State tax ID.
  • 501c3 application.
  • Business license.
  • Seller's permit.
  • Trademark registration.
  • Trademark search.
  • Trademark monitoring.
  • Trademark statement of use.
  • Office action response PRO.
  • Other trademark filings.
  • Patents.
  • A provisional application for patents.
  • Patent search.
  • Utility patent.
  • Design patent.
  • Copyright registration.
  • Legal form.
  • Invoice template.
  • Bill of sale.
  • Letter of recommendation.
  • NDA.
  • Corporate amendments.
  • Dissolution.
  • Corporate name change.
  • Entity conversion.
  • Fictitious business name (DBA).
  • Residential lease.
  • Property deed.
  • Annual reports.
  • Initial report.
  • Minutes manager.
  • Compliance calendar.
  • Registered agent service.
  • Operating agreement.
  • Bylaws and resolutions.
  • Corporate supplies.
  • Certified copies.
  • Certificate of good standing.
  • Business legal plan.
  • Franchise disclosure review PRO.
  • Legal document review PRO.
  • Website terms and conditions PRO.
  • Business email by G suite.

Wills, trust, and family

  • Estate plan bundle.
  • Last Will and Testament.
  • Living Trust.
  • Living Will.
  • The financial power of attorney.
  • Healthcare power of attorney.
  • Pet protection agreement.
  • Probate and executive assistance.
  • Compare estate planning products.
  • Divorce.
  • Name change.

Attorney advice

  • Business consultation.
  • Personal consultation.
  • Contract and agreements.
  • Contract drafting.
  • Website terms and conditions.
  • Downloadable forms and agreements.

LLC

Legalzoom provides LLC business formation service packages starting at $79 plus state filing fee. The first thing that the LLC category page offers is to check if your LLC business name is available.

You can enter your business name in the search bar provided and check if your business name is available or if it's already an existing LLC.

Moreover, many business owners prefer to form LLC because it requires a minimum number of formalities, and you have options in setting up your management outline.

It protects you and your assets, like your car, home, bank accounts, etc., from any business liability in case of unfortunate situations.

It also provides tax flexibility, where by default, LLCs are taxed as a pass-through entity and provides an option to be taxed as an S-corporation or a C-corporation.

It has three simple steps for business formation.

First, you tell them about your business, then they'll provide you with the options of services that might work for you, and in the end, you will be able to pick the best package that is suitable for you that's under your budget.

Legalzoom has provided a few samples of completed documents for reference.

Incorporation

You can launch your business Corporation formation in Legalzoom with packages starting at $149 plus a filing fee.

Corporations are beneficial in attracting investors to raise funds with investors who want a corporation.

You can lure employees into winning over and sustaining by giving them shares and looking like an official corporate company to do business with other companies or other types of corporations.

One can go with either S-corp and C-Corp, where about 70% of the Legalzoom customers opt to be an S Corp and end up with C-corp in some cases. So, it is also possible to convert to C-corporation later. 

S-Corporation

S-Corporation is only taxed once, and it charges tax to the shareholder where they pay the taxes on profits. It is limited to 200 shareholders and is mandatory to be US citizens or residents.

The owners can get common stock that comes with voting rights.

C-Corporation

C-Corporation is taxed twice where the business pays corporate-level taxes, and the shareholders pay taxes for the income they earn from the business. The number of members that can own the shares is not restricted.

The owners may get stock according to their preference and do not come with any voting rights. Here the dividends are prioritized over ordinary shareholders.

The three-step process to get started with incorporation is to tell your business name, answer a few questions, and finally, they will complete and file your paperwork.

Few articles of incorporation samples are also available on the page for your reference.

Trademark registration

Trademark registration can protect your name, logo, or slogan.

Any company needs to trademark these because it can help defend your company and sue anyone who steals your mark with your exclusive rights to your brand name slogans and logos.

You can Trademark a name, a logo, and a slogan. Legalzoom will ask you some questions about your trademark with which they'll research about it and get back to you.

After you approve of it, they will file with the United States Patent and Trademark office online. The process can take approximately three to six months. Legalzoom has two ways to register a trademark. They are,

1. Do-it-yourself

This method costs $249 plus Federal filing fees. Your job is to answer the questions, and LegalZoom's job is to do the filing.

They will also provide a step by step guide to help you through the process. After everything is verified, they will file it with the state online. 

2. Trademarking with an attorney

This method lets you get the help of an attorney to trademark your company's name, logo, or slogan. This cost $599 with Legalzoom guarantees a 94% chance of registering a trademark with an attorney's help.

If your trademark gets rejected for the first time, they will not charge you extra for your second try. Everything from researching your mark, filing it for you, and dealing with any downfall, will be taken care of by your lawyer.

Last Will and Testament

You can create your legally binding bill with the help of LegalZoom, and the price starts at $89. You can schedule a call with their attorneys for any legal advice.

They have three different packages for the Last Will and Testament, which are Basic Last Will, Comprehensive Last Will, and Estate plan bundle.

1. Basic Last Will

This method is a do-it-yourself method that can help you personalize your last Will. It costs $89 with this price package. You can create a personalized Last Will under your state's policy.

You are provided with a step-by-step guide to help you with the process and a free revision for 30 days after your purchase.

2. Comprehensive Last Will

This last Will comes along with legal advice from an attorney for two weeks after your purchase. This costs discourse $99. You can ask legal questions related to the subject to the attorney for two weeks.

The renewal for attorney service costs $14.99, which you can cancel at any time.You can create a personalized Last Will under your state's policy.

Additionally, they provide a step-by-step guide to help you with the process and a free revision for 30 days after your purchase.

3. Estate plan bundle

The estate plan bundle covers last Will, Financial power of attorney, and Living Will. This bundle will help you save $100 when purchased as a bundle. The bundle cost $179.

You are also provided with attorney advice for one year to get advice from lawyers related to your estate planning. You can renew this attorney service at $119.88, which you can cancel at any time.

You can create a personalized Last Will under your state's policy. They provide a step-by-step guide to help you with the process and a free revision for one year after your purchase.

Last Will allows you to appoint someone to handle and ensure that your heir inherits your possessions.

The Last Will allows you to choose who will receive your possessions and appoint a legal guardian for your children in case of you and your spouse's unavailability.

Legalzoom's process of creating a Last Will and Testament is by getting your answers for a series of questions about who will inherit your possessions and who should be the guardian of your kids, etc., and later creating your Will and letting you or the Attorney review the documents.

Attorney advice

You can acquire attorney advice with prepaid legal advice plans provided by Legalzoom with two monthly fee options.

1. Business adversity plan

Business advisory plans have two payment methods.
One claims to be the best value at $31.25 per month as a 12-month plan, billed once a year for $375.

The other is a six-month plan priced at $36 per month, billed twice a year at $216.

This plan includes 30-minute individual consultation with an attorney on legal issues, contracts, and other annual legal business evaluations with up to 10 pages, which is available only with the 12-month plan.

Other additional benefits are unlimited downloads from the form library and exclusive discounts on other Legalzoom offerings.

2. Legal advantage plus

This prepaid Legalzoom plan offers unlimited 30-minute attorney consultation for your legal issues. The legal advantage plus's best value prepaid plan is the 12-month plan that costs $9.99 per month.

This plan includes service access to Legalzoom's network of attorneys for 12 months, unlimited 30-minute consultation on new legal issues, legal documents review with up to 10 pages, continued relationship with the professionals that you try, assess your estate plan, or update any past suggestions annually.

The other prepaid method costs $11.99 per month.

Further, this plan includes access to the Legalzoom attorney network for six months, an unlimited number of 30 minutes call consultations, reviewing legal documents with up to 10 pages, and a continued relationship with the professionals you trust.

The three-step process for attorney advice is - to select your preferred prepaid method to acquire consultations for 6 or 12 months, schedule your consultation with the attorney that you choose, consulting with the lawyer for your legal matter at the scheduled time.

Legalzoom Deals & Coupons

There are not a lot of deals and discounts found for LegalZoom services.

Although the website has mentioned that, in case of creating a Last Will or Financial power of attorney or even a Living Will, you can save $100 by opting for the estate plan bundle, which offers all of the above three document creation in one package, plus legal help for one year.

Customer Support

You can reach the customer service support team via phone call or by filling the form on their website. LegalZoom's customer service contact number is (800) 773-0888.

They are available on the weekdays from 7 am to 5 pm and on the weekends, from 7 am to 4 pm. LegalZoom's customer service is available throughout the week, which can be very beneficial for many existing customers.

However, some customers have updated several bad reviews which aren't happy with the customer support service. The waiting time to reach a support team staff takes up to one hour at least.

A few customers have also said that the sales team is way easier to reach than the support team. The sales team contact number is (855) 787-1922.

You can also contact LegalZoom's customer support by filling the contact form in the Contact Us category on the web page rather than composing your request in your mail site with your email ID.

Frequently Asked Questions

What is Legalzoom's refund policy?

Legalzoom offers a 100% satisfaction guarantee, which means, if you are not satisfied with the service, they will refund the service fee that you paid with no questions asked if you request it within 60 days of purchase.

You can choose from two options, to receive a refund or a credit on the price.

Does Legal Zoom have any upsells while purchasing?

LegalZoom has way too many upsells. It is much more than most of the other LLC formation Services.

Before reaching the price package selection page, LegalZoom force-feeds almost six upsells, an essential aspect of LLC formation for a business, which sums up to $1080, which is unimaginable pricing for small businesses.
Most of these upsells are essential services that one might require for business formation. Most of its competitors cover these upsells in their standard price packages themselves, which mostly comes under $300 to $400.

What is Legalzoom's business formation processing time?

Each package takes a different file processing time. The basic package takes 30 business days for processing.

The standard package takes 15 days of processing time, while the Express gold package offers rush filing service and processes your documents in 7 to 10 days.

Is paying an extra $79 to Legalzoom for EIN advisable?

EIN is one of the vital services for any LLC formation.

So, it is not wrong to spend a little on EIN registration service, but, at the same time, there are a few other LLC formation service providers that offer it for free under their base packages, which are way more affordable.

You can even choose to do it on your own by registering EIN directly with the IRS, which will not cost you any money.

What are our shares in the business?

A business share is a piece of ownership of the business. There are two types- common shareholders and preferred shareholders.

Can I register a trademark despite finding a similar one to mine?

Mostly, no. You can't file your trademark that can resemble an existing one. Although your trademark and the already existing trademark provide different products or services, you will be able to register yours.
So, it is only possible if the product or service provided by you and the existing trademark company is different.

Do I need to register my name, my logo, and my slogan individually?

Yes, the United States Patent and Trademark Office only allows one trademark filing per application. So if you need to register all three of your company's trademarks, you will have to do it separately. 

What is the typical processing time taken to register my trademark?

The United States Patent and Trademark Office sends an approval after they receive your registration application asking for additional information or the rejection of your application along with an office action.

This whole process takes three to six months if you are already using your mark. You should respond to their approval or rejection within six months.

What could be the possible reason for my trademark getting rejected?

The United States patent and trademark might reject your trademark if your mark could confuse the customers with any other existing trademark.

Is LegalZoom a recommended service provider for small businesses?

If you are a business on a budget, it is better to choose an alternative service provider as you can only obtain most of the package services and additional services at a high cost.

This drawback makes its services way more expensive than most of its other competitive service providers.

Few other business formation service providers offer these additional services either for an affordable amount or tagged along with the standard packages.

Conclusion

This Legalzoom review has broken it down for you to understand its flats and curves. Even though LegalZoom is a very well-established reputed legal service provider, its negatives offset the positives a lot.

Legalzoom could be the one for you if you're more about having a reputed well-established company by your side for your legal needs and don't mind paying extra.

Further, LegalZoom is not recommendable if you're a small startup business or on a budget and don't wish to put a lot of excess money into your business formation.

At the same time, many other service providers offer most of these services at affordable prices.

The provided features might be precious, but their price is high for many of us. Legalzoom's 100% satisfaction guarantee is the one big highlight of the company.

They have provided service for many customers that they have a lot of experience providing professional LLC formation service as it's one of the oldest well-known legal services.

You can choose Legalzoom if you don't mind spending an excess amount of money on Registered Agent service, EIN registration, operating agreement, etc.

Their attorney's advice can opt for quality legal advice service.

To sum up, various other LLC service providers are more affordable than can be preferred over LegalZoom in pricing. But Legalzoom's major highlight is their experience and their refund policy.

Any business owner that doesn't necessarily want to throw in a lot of money for the services can opt-out of LegalZoom.

author james
Co-founder & Writer

About James

After Finishing My Master of Laws (L.L.M.) in the University of Columbia. My friends and I decided to start an LLC. At that time, we were more insulted and disrespected by many people because we have the only idea but not proper Knowledge on how to start a business legally. So then, after knowing completely about each process, we decided to help others like us online then we started this site LLC.tips. Read More

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