Opening your own business is a joyful and exciting event. However, in order to make the process of forming an LLC go as well as possible, you need to know very well what documents you have to file and where. You can entrust some of the formalities of registering a company to companies like Rocket Lawyer or LegalZoom.
- Quick Summary
- 6 Things They Have In Common
- Side by Side Comparisons
- Which Is the LLC Formation Service for You?
- Final Verdict
Rocket Lawyer and LegalZoom are reliable and the most popular LLC services, so when you choose them, you will get a high-quality service, no matter which one you prefer.
But when it comes to distinct advantages, most of them are on Rocket Lawyer’s side.
First, they both have an LLC formation service and offer a comprehensive legal services subscription plan, which includes:
- A wide range of creation and setting up a business services;
- Access to an extensive database of documents;
- Discounts on a registered agent, lawyer, etc.
Second, Rocket Lawyer gets excellent customer feedback, satisfied with their work speed, quality of service and customer support.
And third, their experience covers an incredible 20 million clients.
LegalZoom is no less professional an LLC service, but is inferior on some of the items mentioned above.
Overall, both services are reliable, although neither is an absolute favorite because some of their competitors’ offerings are obviously more favorable.
For example, a basic ZenBusiness package will cost only $39, while the same services from Rocket Lawyer or LegalZoom cost at least $99. Moreover, as a free bonus, ZenBusiness will provide 1 year of registered agent service, which neither LegalZoom nor Rocket Lawyer do.
6 Things They Have In Common
LegalZoom and Rocket Lawyer are not the cheapest services in the industry, but compared to hiring an attorney, they will save you several hundred dollars;
- Customer Support:
Most of the LLC formation services can not only help you start a company, but also consult you on any business issues. Rocket Lawyer and LegalZoom have built a strong customer support team, with specialists accepting requests by phone and email;
Since their creation, both companies have served millions of clients and gained extensive professional experience. Their impressive customer volume confirms that both Rocket Lawyer and LegalZoom can handle any task related to starting and setting up a business;
- Additional Services:
Like LegalZoom, Rocket Lawyer offers many services aimed at optimizing business processes. The most popular of these are:
- Registered agent service;
- Obtaining tax ID numbers;
- Consultations with experts;
- Licensing activities;
- Verification of documents;
- Customized templates, etc.
- Guaranteed Services:
Both companies offer a 100% satisfaction guarantee, which allows you to get your money back if you’re disappointed with the service. You can contact LegalZoom within 60 days and Rocket Lawyer within 30 days from the date of your purchase. Note that most competitors do not offer any similar guarantee;
Rocket Lawyer and LegalZoom have secure and easy-to-use websites that include a wealth of information on the nuances of starting and operating a business.
Side by Side Comparisons
Pricing (The Main Difference)
LegalZoom has 3 options for LLC formation packages:
- $79+state fee – Economy (base-rate formation package);
- $329+state fee – Standard;
- $349+state fee – Express Gold.
Rocket Lawyer, unlike most competitors, sets the price of an LLC service based on the availability of a subscription to their legal services. You can get it for $39.99 per month.
For those who have a membership, it will cost $0 to create a business. In all other cases, you will have to pay $99.99 + state fee for this service.
Keep in mind that the Rocket Lawyer subscription includes a free trial. It is valid for 7 days. If it takes less time to register a company in the state of your choice, you can take advantage of free business creation, even without buying a subscription.
Both companies offer basic LLC formation services, including in their packages only the minimum necessary functions.
For example, the basic Economy package from LegalZoom for $79 includes such features as:
- LLC name verification;
- Prep and filing of your articles of organization;
- A banking resolution to open a business checking account;
- Lifelong customer support;
- Document templates;
- A guide for starting a business.
Standard package for $329 additionally offers:
- 20 certificates of membership;
- Priority service;
- A souvenir seal with the company name and an organizer.
The maximum Express Gold package for $349 will provide:
- An expedited review of your documents by the Secretary of State;
- Quick delivery of the papers.
Rocket Lawyer has two sets of services depending on the membership.
If you just want to form a business without buying their legal subscription, a package will include:
- Checking name availability;
- LLC registration;
- Online account;
- Customer support.
Subscription gives you the opportunity to use additional services:
- LLC registration:
- free for new customers;
- with a 25% discount for those who have already purchased their services.
- Template for an operating agreement;
- The registered agent service with a 25% discount;
- Discounts on the lawyer;
- Free template database;
- A paper copy of your Articles of Organization;
- Consultations with specialists, etc.
The significant point that is important to consider when making choices for LLC formation service is that both companies do not add a registered agent to their business formation packages. If you need this service, you will have to pay for it separately.
Since LegalZoom started offering online business services in 2004, they have gained an impressive experience and over 4 million clients.
However, Rocket Lawyer’s results are even more impressive. The company was launched in 2008, and today it has served more than 20 million clients.
As Rocket Lawyer and LegalZoom are quite large companies, their customer services deal with a lot of requests every day. Therefore, it is quite understandable that some misunderstandings sometimes occur.
To get a consultation from a LegalZoom specialist, you can contact them in one of two ways:
- By phone;
- By email.
An advantage of LegalZoom is their extended hours of availability: on weekdays, their customer service is open from 10 am to 8 pm ET and weekends from 10 am to 7 pm ET. Of course, it’s very convenient, as it helps you save time. Nevertheless, when contacting via email, some customers are faced with a long waiting period for an answer and its low level of helpfulness.
You can contact a Rocket Lawyer representative with a question in the following ways:
- By phone;
- By email;
- Using web chat.
Their working hours are from 9 a.m. to 9 p.m. on weekdays.
For most online services, including Rocket Lawyer, the main criteria for determining processing times are the specifics of the state. Some may have turnaround times only a few days, while others may take a couple of weeks.
LegalZoom has a different approach, linking the turnaround time to the package you choose. For example:
- LegalZoom’s Economy package will take 30 business days to be processed;
- Standard package takes about 15 business days;
- Express Gold is ready in 7-10 business days.
Registered Agent Service
In order to legally conduct business, each LLC must designate a registered agent. This serves as a guarantee that the state has a way of contacting your business, for document deliveries, for example:
- Official government papers;
- Tax notifications;
- Court summonses.
According to state law, it is necessary to designate a registered agent at the preparation stage, indicating their data in the Articles of Organization.
Some LLC services offer 1 year of free registered agent services when you order a formation package. However, LegalZoom and Rocket Lawyer do not include a registered agent even in their extended packages.
As a separate service from LegalZoom, a registered agent costs $299 per year.
Rocket Lawyer’s prices are lower. Without being a subscriber, you can get a registered agent service for $149.99 for one year. And if you buy a subscription, that cost will be reduced by 25%.
Rocket Lawyer has 3,100+ reviews online, and most of them are positive.
The situation with customers’ feedback from LegalZoom is not so simple. They have over 1,700 customer reviews, where opinions are almost evenly split. In positive reviews, customers praise their ease of use, but at the same time many are not satisfied with their inconsistent service.
Ease of Use
It takes about ten minutes to order the business formation service from Rocket Lawyer. They offer just one package of services, to which you can choose a few additional features. Overall, it’s a quick and easy process.
LegalZoom offers three sets of features that take some time to consider. Also, their order form is structured in such a way that you may be faced with an unexpectedly high final cost by the end of the checkout.
When it comes to websites, the two companies are on equal terms. They have intuitive user interfaces and contain a lot of useful information.
Due to the fact that both of these companies operate in the same field, their additional business services are very similar. The most popular offers are:
- Registered agent service;
- Getting foreign qualifications;
- Drafting an LLC operating agreements template, etc.
LegalZoom and Rocket Lawyer focus their services not only on business. They also have a wide range of personal services, such as:
- Bill of sale;
- Making wills;
- An attorney consultation;
- Divorce papers, etc.
Which Is the LLC Formation Service for You?
If you have not yet chosen between Rocket Lawyer and LegalZoom, you can simplify this task by briefly formulating their specifics.
Choose LegalZoom if You Are:
- Interested only in starting a business, with no additional legal services;
- Appreciating the extended hours of Customer Support.
Choose Rocket Lawyer if You Are:
- Willing to work with a company that has tremendous experience;
- Thinking that you may need constant legal support and are ready to pay for a monthly subscription.
The needs of every business are unique, so there is no universal answer to the question: “Which LLC service is the best?”. After comparing Rocket Lawyer vs LegalZoom for the purposes of this review, we have seen that each company has its own advantages.
Nevertheless, to summarize, Rocket Lawyer is the best choice due to the best ratio of price, speed, quality and range of services.
If you don’t find any of the companies reviewed appealing, there are many other possible alternatives. Check out top LLC formation services online to get access to a list of the best companies offering LLC service and their related features.