BizFilings vs LegalZoom

Today, many entrepreneurs decide to start a business using a professional company. This allows them to get a ready-to-operate LLC without being distracted from day-to-day operations and saving time, money, and nerves. 

The modern market is overflowing with the offerings of dozens of LLC services that are ready to help form a new LLC and provide additional business services. Therefore, in this BizFilings vs LegalZoom review, we will analyze their features to help you make a decision. Each has a good reputation and takes into account your company’s unique needs and budget. However, what is the best business formation service for you,  LegalZoom or BizFilings? 

Quick Summary of Our Comparison

Having done the research, we concluded that BizFilings LLC service packages have a higher overall value than LegalZoom’s offerings. 

The BizFilings Basic package costs $99. It gives you access to online compliance management tools and 6 months of registered agent free of charge. 

LegalZoom formation package starts at $79. In the ordering process, however, the price can significantly increase due to additional services. 

Also, if you need a registered agent, you have to purchase one separately, because this service is not included in the LegalZoom bundles. The price is $299 a year, which is much more expensive than the BizFilings price of $164.

To summarize, if you are looking for a reliable and quality business formation service, BizFilings and LegalZoom are a decent option. BizFilings’ packages have better prices and features, while LegalZoom’s main advantage is its brand, track record, and vast experience.

6 Things They Have In Common

Affordable

If you choose BizFilings or LegalZoom for opening an LLC, you will save significantly on hiring a lawyer, whose overall pricing is much higher. At the same time, the quality of online LLC formations companies is as good as attorney services.

Strong Guarantees

You will get a 100% satisfaction guarantee when you order services for creating an LLC from any of these companies. This means money-back guarantees if they do not provide first-class online incorporation services and you are dissatisfied with the quality of service.

 Customer Support

The advantage of working with online services such as LegalZoom or BizFilings is the opportunity to contact their Customer Service for advice. You can ask any question about business formation via online support or phone. Both companies have a good track record in customer care, which is confirmed by online reviews.

Experience

LegalZoom and BizFilings are highly experienced companies and legitimate operations for incorporating businesses in any state. They have 38 years of combined experience, being one of the long-existing companies in the industry.

Efficiency

For your convenience, both BizFilings and LegalZoom offer services for increasing formation speed and launching an LLC as soon as possible. This will require an additional fee but will reduce the turnaround time from a couple of weeks to a few days. 

Additional Services

Apart from forming a limited liability company and filing incorporation documents, BizFilings and LegalZoom offer additional services. You can purchase various helpful features and business services, such as assistance with federal tax ID (EIN) obtainment, foreign qualification, etc.

Side by Side Comparisons

Pricing

Of course, the price for LLC formation service is what many entrepreneurs look at first.

BizFilings and LegalZoom have a multi-tiered subscription to open an LLC that consists of 3 Formation Packages.

BizFilings sets the starting price for the Basic Package at $99. In addition, they have the Standard Package which costs $229, and the Complete Package for $359. Prices for the latter two packages may vary by state.

The LegalZoom Economy Package is available for $79. Standard and Express Gold Packages cost $329 and $349. 

In our opinion, BizFilings has better overall value in terms of pricing. Although their prices are not as affordable compared to some of the other formation services, all packages include a free registered agent service for 6 months. With LegalZoom, you would have to pay $299 extra to order this service separately.

Let’s summarize.

BizFilings:

  • LLC formation package starts at $99;
  • Registered agent – $164/year.

LegalZoom:

  • LLC formation package starts at $79;
  • Registered agent – $299/year.

Features

All BizFillings and LegalZoom LLC formation packages provide several features that make business operating more comfortable.

With BizFillings you will get access to the online compliance management tool and free registered agent service for 6 months. LegalZoom does not include the same services in its packages. However, they help open business checking and savings accounts, which BizFilings does not offer.

Although a ready-to-use banking resolution saves time and effort for LLC owners, it is not as profitable as a free registered agent service. Considering the quite high cost of this service provided by LegalZoom, we can state that the BizFilings’ offering is more attractive.

Customer Support

During the process of registering an LLC, you may have questions. To avoid wasting time researching, take advantage of the customer help provided by BizFilings and LegalZoom.

BizFilings’ representatives are available via phone, email, and web chat options from 9:00 a.m. to 8:00 p.m. Eastern Time every business day. The support agents are friendly and willing to answer even the most complex business questions quickly and meaningfully. 

The LegalZoom customer service experience, on the other hand, is not so clear-cut. Thanks to the extended service hours, you can contact them from 10 a.m. to 8 p.m. on weekdays and from 10 a.m. to 7 p.m. on weekends, using the telephone or e-mail. Nevertheless, customers note that if you choose the latter option, it may take about a week to get an answer. Moreover, in this case, representatives do not always respond fully and limit themselves to general phrases.

Registered Agent Service

A registered agent is a person who receives the company’s legal document deliveries and also acts as a mediator between the business and the state.

LLCs are required by law to maintain a registered agent. 

If you need this service, you can hire either LegalZoom or BizFilings, as they both provide reputable registered agent services with years of experience. BizFilings registered agent service costs $164 per year and LegalZoom’s is $299.

If you look for registered agent service providers that include this service in the LLC formation service package, take a closer look at BizFilings. When you hire them to start an LLC, you will get six months of a registered agent for free. LegalZoom doesn’t have such an option.

Experience

LegalZoom is a more highly experienced company because they have served more than 4 million total customers since its first opening in 1999. 

BizFilings entered the market in 1996, having launched more than 500,000 business formations, making it one of the top LLC companies in the industry.

Customer Reviews

If you focus on customer reviews when deciding which service to entrust to create an LLC, you will not be impressed with these companies.

BizFilings has only 3 customer reviews, as well as a few complaints about payment scheduling, products, or services. In any case, this small number of reviews is not enough for definitive conclusions.

LegalZoom has a lot of customer reviews on various websites. Based on more than 1,500 customer reviews, we can conclude that the company has a positive reputation, but they also have quite a few negative reviews.

Order Tracking

Both companies allow you to track your LLC formation process in real-time. 

The BizFilings system for tracking shows the application status from the date the documents were submitted until the registration of an LLC with the state is complete.

LegalZoom has also developed a simple tool to keep you informed about your business preparations. You will be notified additionally when completed documents are available.

Turnaround Times

A special feature of both LegalZoom and BizFilings is that their processing speed depends on which service package you purchase.

LegalZoom offers the following options:

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

The BizFilings formation package will allow you to start conducting business in 4-6 weeks. If you don’t want to wait, you can get a preferred service package, reducing the turnaround duration to 7-10 days.

The companies also offer tracking turnaround times, so visit their website for that.

Ease of Use

Both companies are easy-to-use services to form an LLC with stress-free customer care contact quickly and professionally.

However, there are a few nuances. 

While most competitors offer to select your formation package right away, LegalZoom’s application process is different. It doesn’t start with packages’ reviews, but with entering your personal information. After that, you will be asked to choose additional services, and only then you will move directly to the formation packages. This method seems a little confusing.

On the other hand, LegalZoom has a good company’s website with a modern design praised by many clients.

BizFilings offers a registration wizard tool. It is a handy service that in a convenient user-friendly manner will help you decide on the right business structure. After you answer a number of questions, you will get advice on whether to form an LLC or a corporation, which may be useful for aspiring entrepreneurs. 

Additionally, BizFilings assigns each application a unique number, which can be used when contacting customer support to save time.

Additional Services

BizFilings and LegalZoom offer a wide range of additional services to meet your business needs in the best way. Besides assistance with starting an LLC, you can purchase the following services:

  • Federal Tax ID Acquisition;
  • Foreign qualifications;
  • Operating agreements, etc.

LegalZoom also offers annual report filing alerts and personal online legal services such as legal advice, help with the power of attorney or last will.

BizFilings, in turn, provides 30 days of Quickbook accounting service and two free months of business email services.

Which LLC Service Should You Choose?

As a result of this BizFilings vs LegalZoom comparison, we can state that both companies provide efficient LLC service and are quite competitive. If you have not yet decided on the best service for an LLC formation, take a look at the summary below.

Choose LegalZoom

  • You are satisfied with the pricing model of this company;
  • You like to choose the duration of your business formation;
  • You are interested in using superior customer support;
  • You appreciate the ease of use and the high value that LegalZoom LLC offers to customers.

Choose BizFilings

  • You want to get free services included in each LLC BizFilings formation package, such as registered agent service for 6 months;
  • You like this company’s approach to determining turnaround times based on service levels.