BetterLegal vs LegalZoom

Thinking about hiring an online LLC service, but dozens of available options are confusing? We suggest you consider popular companies BetterLegal or LegalZoom, which are firmly positioned in the list of the industry’s best services. Either one will make the LLC registration process simple and comfortable, but will it be the perfect choice for your business? To answer this question, we have prepared a comparison of these services in which we examine the key features of these websites such as prices, features, registered agent, reviews, etc. 

Quick Overview: BetterLegal and LegalZoom

By hiring LegalZoom or BetterLegal, you will, either way, get a high-quality service of creating an LLC by an experienced and reputable online company. However, their content and prices partially differ.

In our opinion, LegalZoom is a better option if you want just a simple LLC file without overpaying for unnecessary add-ons. The cost of the basic LegalZoom package is only $79, while the BetterLegal service package will cost $299.

However, if you’re interested in additional features and long-term cooperation, BetterLegal may be a good option. Their service package provides more features such as Operating Agreement, Website, and Business Checking. 

In addition, their price for registered agent service is very competitive. None of these business formation services includes a registered agent LLC in their formation packages, so you will need to order one additionally. BetterLegal charges only $10/month or $90/year, which is less than the $299/year you would have to pay with LegalZoom. 

LegalZoom and BetterLegal: What They Have In Common?

  • Efficiency. Each of these companies is able to make the process of starting your LLC quick and smooth, as well as provide helpful additional services. To streamline a business, LegalZoom and BetterLegal also offer assistance with EINs, Operating Agreements, and much more;
  • Affordable. While BetterLegal and LegalZoom’s prices are not the lowest in the industry, their services are quite affordable even for small businesses. Compared to traditional law firms, the services cost of these companies will save you several hundred dollars;
  • Customer Reviews. Both of these LLC services have positive customer feedback and fairly high ratings. There are hundreds of reviews online in which their customers talk about how easy it is to start a business with LegalZoom or BetterLegal;
  • Customer Support. By hiring one of these services, you get professional support throughout the entire process. If you have any business questions, their experienced agents will provide you with accurate and informative answers promptly;
  • Trustworthy. Do you prefer to work with reliable companies that have earned a good reputation? BetterLegal and LegalZoom are certainly among them. They are time-proven services that have helped thousands of clients with online legal documents;
  • Experience. Both websites have extensive experience that guarantees brilliant results. You can trust them running your business with confidence because for LegalZoom and BetterLegal, there are no unsolvable tasks.

LegalZoom vs BetterLegal: Comparison

Registered Agent Service

Every American LLC is required to have a registered agent  to ensure consistent interaction with the government. They represent your company in the state and receive all official correspondence addressed to it: taxes, lawsuits, maintenance requirements, etc.

Unlike some competitors, neither BetterLegal nor LegalZoom includes registered agent service in their formation packages. If you want not just to form an LLC but also hire one of these companies as a professional registered agent, you have to pay for this service additionally. LegalZoom charges $299/year for a registered agent for an LLC while BetterLegal charges only $10/month or $90/year for the same service. In this category, the preference goes to BetterLegal! 

Pricing and Services

Both providers make it quick and easy to create an LLC online, but their approaches are different. LegalZoom offers 3 levels of service with prices from $79 to $349. As for BetterLegal, they only have 1 package for $299, which includes the following services:

  • The preparation and filing of the LLC articles of organization;
  • An Operating Agreement;
  • EIN;
  • Website;
  • Business bank account;
  • Tax Analysis;
  • Insurance Evaluation;
  • 1 – 3 Days Turnaround;
  • A banking resolution and other helpful documents (Officer Designation, Ownership Amendment Form, Meeting Minute Template, and S-Corp Tax Election).

In addition, you may order support functions such as:

  • Registered Agent ($10/month or $90/year);
  • Permit and License Search ($125);
  • State Compliance Services ($10/month or $90/year);
  • Obtain Certificate of Good Standing;
  • Add or Remove a Manager;
  • Remove a Member and Change Existing Member Contact Info;
  • Terminate LLC;
  • Register Foreign LLC, etc.

On the other hand, LegalZoom offers a choice of 3 options for LLC formations:

Economy package – $79:

  • Business name availability search;
  • Preparation and filing of Articles of Organization;
  • Lifetime Customer Support;
  • Banking resolution;
  • Peace of Mind Review;
  • LLC Next Steps Guide.

Standard package – $329:

  • Souvenir seal and organizer;
  • 20 LLC member certificates;
  • LegalZoom VIP Processing.

Express Gold package – $349:

  • Express Shipping;
  • Rush Processing.

In addition, LegalZoom can help with Intellectual Property and offer a wide variety of personal services:

  • Living trusts;
  • Testament;
  • Last will;
  • Divorce papers;
  • Financial power of attorney;
  • Healthcare power of attorney, etc.

While the BetterLegal formation package is much more expensive than the LegalZoom starter package, it is justified by the valuable features it includes. An Operating Agreement, EIN, and Website are relevant to most companies. Moreover, BetterLegal guarantees that your documents will be processed in 1-3 business days, which is much faster than in LegalZoom’s more expensive premium packages.

Customer Service

One of LegalZoom’s advantages is its great customer service with extended hours. Their representatives are available by phone or email on weekdays from 10:00 a.m. to 8:00 p.m. ET, and 10:00 a.m. to 7:00 p.m. on weekends. As a rule, their agents are knowledgeable and give accurate answers.

Unlike most companies in this field, BetterLegal does not provide customer phone support, and finding their email address or working hours is also quite a difficult task. However, you can get real-time business assistance by asking any business or filing questions in the chatbot on their website.

In this category of our LegalZoom vs BetterLegal comparison, LegalZoom has the advantage.

Reviews

LegalZoom and BetterLegal have numerous customer reviews on reputable and independent platforms.

Betterlegal reviews are predominantly positive. They have 201 reviews on TrustPilot and 8 reviews on BBB. Mostly, customers talk about how fast it is to register a new company using this website and also express satisfaction with the work of their responsive representatives.

On the other hand, although LegalZoom has about 2,000 online reviews, the number of their positive and negative reviews is equal. This is a fairly large company, so it’s not surprising that some customers express dissatisfaction with their communication with Customer Support agents.

Speed of Formation

BetterLegal calculates the time for opening an LLC based on the legal specificities of the state. However, unlike most competitors, they will process and file your LLC within 1-3 business days at no additional charge.

With LegalZoom you can choose when you want your LLC to be registered, as their turnaround time directly depends on the type of your formation package:

  • Economy package – 30 days;
  • Standard package – 15 days;
  • Express Gold package – 7-10 days.

Generally, the artificial delay in processing time does not seem quite fair, but in some cases, it can be convenient.

Ease of Use

BetterLegal offers the maximum ease of formation that customers appreciate so much. Their LLC website states that it only takes 10 minutes to submit an application, then the company’s specialists will begin preparing your LLC documents.

In comparison, LegalZoom’s LLC order process is structured slightly differently. First, you need to enter key personal and business information, and then select add-on features and a service package.

Which Is The Best Choice For Your Business?

Both of these websites are among the best online services LLC in the business startup industry and provide a quality service. So to conclude this BetterLegal vs LegalZoom review, here are a few reasons why you might choose one of these providers.

If you have an adequate budget and prefer simple and efficient solutions, BetterLegal will be a good choice. They have no multi-level subscription system and very transparent pricing. When you buy their service package, you get everything you need to start an LLC successfully. Moreover, a lot of useful services will give your company a big advantage.

Also, when it comes to speed of business formation, BetterLegal is one of the best companies. According to their website, the ordering process only takes 10 minutes and your LLC documents will be sent to the state within 1-3 business days. 

However, if you just want to create a business and save some money, LegalZoom is a better choice for you. Their $79 service package isn’t the cheapest on the market, but it’s a reasonable fee affordable to most entrepreneurs. It’s also a great option for those who value brand strength and company reputation.