Do you need professional help in forming a new LLC, but aren’t sure which service is right for your business? The following comparison between BizFilings and LegalZoom would help guide that decision.
|Formation Services||Key Features||Value||Learn More|
The Most Famous Formation Company
LLC services like BizFilings and LegalZoom can be useful in assisting with the formation process of legal entities such as corporations, LLPs, and LLCs.
However, there are some key differences between them worth knowing about before choosing one over another.
This BizFilings vs LegalZoom review article will cover all those major differences and similarities that concern many entrepreneurs while incorporating with LLC companies.
BizFilings vs LegalZoom: A Quick Overview
|Ease of Use||4.2/5||4.3/5|
|Registered Agent Services||3.5/0||3.5/0|
|Customers’ Review and Feedback||2.8/5||4.3/5|
How We Review & Compare LLC Services
Before we go into details, let us discover how we review and compare LLC services. In this comparison, we’ll walk you through the six main factors including some others you need to consider when choosing between BizFilings and LegalZoom.
The following 6 review points are what we set up for our stress test:
- Company Reputation
- Customer Service
- Affordability (Prices & Packages)
- Registered Agent Service
- Ease of Use
- Customers Review & Feedback
Detailed Comparison: LegalZoom vs BizFilings
1. Company’s Reputation
The reputation of a company is determined by various factors such as the quality of its products and services, customer satisfaction, public opinion, and more. Therefor, it is important to weigh all those aspects before making a decision.
Since its inception in 1999, LegalZoom has served 3.6 million customers. You can find plenty of reviews about this company; however, the reviews are of mixed nature.
Some customers are pretty happy with the services provided by LegalZoom, while some are dissatisfied. This is justifiable to an extent that with such a large customer profile, it is almost impossible to have 100% positive feedback.
BizFilings has been around a long time, serving the needs of more than 500,000 clients since 2001. Having such a large customer volume in its profile proves that BizFilings knows its stuff and can take care of your LLC creation efficiently.
However, it is strange that there are almost no reviews available on 3rd party review platforms despite having such a handsome customer profile.
2. Customer Support
Customer service is an important factor to consider when choosing an LLC service. The quality of customer support can make or break the business relationship between a company and its customers.
The customer service of LegalZoom has helpful professionals answering their phones. However, given the huge customer load and owing to being a large company, it’s no surprise that you will find some of their support representatives better than others.
On the other hand, LegalZoom goes a step ahead of the others when it comes to providing customer support. They have extended service hours, which run from 10 am-8 pm ET weekdays and 10 am-7 pm ET weekends.
BizFilings offers extended business hours, and you can reach their technical support team from Monday through Friday between 8 am and 7 pm CT. Moreover, you can browse their informative support center for more help if needed.
BizFilings do not have a hit or miss policy despite the large customer volume and their customer care is consistent on a high-quality end.
Cost matters. No one wants to spend more than necessary when setting up their business, and this is where affordability comes into play. Prices in incorporation process vary based on a company’s reputation, the quality of service, and other factors.
LegalZoom charges $0 for their basic plan and does not include a registered agent service in any of its plans. However, you will find the basic package of LegalZoom cheaper than BizFilings from the price point of view.
LegalZoom has fewer features in advanced plans and for personalized services and features you have to pay extra from their la carte option.
BizFilings charges $99 for its basic plan, which is higher than many of its competitors such as ZenBusiness, IncFile, IncAuthority, etc. Moreover, the advanced plans are also not that comprehensive compared to top-rated LLC companies.
While comparing the features offered by BizFilings and LegalZoom in their basic plan, you may prefer BizFilings as it offers 6 months more for free registered agent and compliance alerts.
4. Ease of Use
The ease of use is an important factor when it comes to the incorporation process. No one wants to spend time learning how to use a complex system. Because of this, the ease of use should be considered when choosing an LLC service.
It has a simple and user-friendly website. You can pick any service and order it online using that website. However, you face many costly upsells while selecting an LLC plan and you may end up paying more than you have estimated.
Moreover, many entrepreneurs find it annoying that they have to go through such upsells which took more time in completing the order placement.
It has a simple and user-friendly website. You can pick any service and order it online using that website.
However, some of the services offered by this company are a bit tricky to understand. One might need help from customer service if they want more information on what exactly those extra fees include before signing up for them.
5. Registered Agent Services
A registered agent is a third-party professional who is responsible for receiving important legal and tax documents on behalf of a company.
The registered agent can be an individual or a company. Therefor, it is important to select a registered agent service that will best suit the needs of your business.
In any of the formation packages, LegalZoom does not offer registered agent service. You have to order this service as an add-on feature.
You need to pay $299 per year for this service. However, if you incorporate it into your formation bundle, the first year will cost you $159 for a registered agent service.
Many reputable LLC companies offer registered agent services as a part of their formation plan or as a standalone service at a cheaper rate.
If you are to subscribe to this service as a separate feature, you can also compare the prices of registered agent services before making a final decision.
BizFilings offers 6 months free registered agent service in its basic formation and after this term is over, it charges $164 a year for registered agent service.
In our view, BizFilings wins in this category as they offer more free months in the basic package. However, LegalZoom has cheaper rates for a standalone registered agent feature.
6. Customers’ Review and Feedback
It has 3,500 reviews on BBB with a 4.4/5 stars rating. The reviews are of mixed nature: positive and negative.
However, recently there has been a massive shift of feedback towards the positive side, showing that LegalZoom has improved its incorporation services.
On Trustpilot, LegalZoom has gotten 4.3/5 stars from 1046 reviews, while CustomerAffairs has given them 4.6/5 stars from 692 reviews.
It is very disappointing to find no reviews of BizFilings on trusted review websites such as Yelp, BBB, Customer Affairs, and Trustpilot.
We found only 3 complaints about it at BBB. So, overall, this goes against BizFilings. So in this category, LegalZoom is at a clear win.
Some More Features to Consider
In addition to our 6 point litmus test, you should consider some more features before making a final decision.
BizFilings offers three different options for LLC formation: their Basic plan has a 4-6 week turnaround time and the Standard or Complete packages take 7-10 business days to form your LLC.
They also offer an expedited option that costs you $60 extra to the state filing fee. Hence, expediting your order with BizFilings gets very expensive.
On the other hand, LegalZoom is also very efficient as they have clearly mentioned on the website that their basic plan takes about 30 days while premium packages cover expedite LLC filing within 15 days or 7-10 days accordingly.
However, the customers are unaware of the average processing time of the state, so turnaround calculation for some customers may go wrong.
Features Included in the Basic Package
BizFilings offers 6 months of free registered agent service and 6 months of compliance alerts in addition to filing your LLC with the state.
In the advanced packages, you expect an LLC kit and seal, Federal Tax ID Number (EIN), expedited processing service, certified copy of state-filed documents, sample operating agreement and other customizable LLC forms, compliance DVD, overnight shipping, etc.
LegalZoom in addition to filing your article of organization offers a banking resolution in the basic plan that is needed to open business checking and savings accounts. However, in the advanced packages, there are no extraordinary features compared to the price.
Some Better Alternatives
If you are looking for comprehensive LLC services with a personalized legal touch, try BetterLegal, which also offers a $30 discount through MoneyAisle.com.
\However, if you are looking for premium LLC services and want to enjoy all the perks at a single place, there is no better company than ZenBusiness LLC service.
Price Comparison | BizFilings vs LegalZoom
|Price||$99 + state fee||$0 + state fee|
|Turnaround Time||4-6 weeks||30 days|
|Registered Agent||Yes (6 months free)||No|
|Compliance Alert||Yes (6 months free)||No|
|Price||$229 + state fee||$199 + state fee|
|Turnaround time||Depends upon the state (expedite option available)||15 business days|
|LLC Kit and Seal||Yes||Yes|
|Annual Compliance||6 months free||One month free ($320 per year afterward)|
|Registered Agent||6 months free||No|
|Shipping Fee Included||No||Yes|
|LLC Document Templates||Yes||No|
|Price||$359 + state fee||$299 + state fee|
|Turnaround time||Depends upon the state (expedite option available)||7-10 business days|
|Registered Agent||6 months free||No|
|Federal Tax ID Number (EIN)||Yes||No|
|Official Certificates and Seal||Yes (Only seal)||Yes|
|Maintain your business in good standing||Yes||No|
Which LLC Service is Better Overall?
There are several things to consider when deciding which formation company you want for your new LLC. As mentioned earlier, in this quest, there is no right and wrong choice.
LegalZoom and BizFilings offer quality services that will get the job done, but each has its own unique selling point. The final decision only depends upon your specific business situation. Let us make a final note on that.
If you want free registered agent service and compliance alerts with LLC registration, Prefer BizFilings over LegalZoom.
If you prefer brand power, appreciate the experience, and premium service, go with LegalZoom.
It covers the basic set of features at lower price points. As a reputable LLC formation service with a 3.5 million customer profile, it has all chances to work best for you.
Aisha Noreen is an owner of a small business with more than 9 years of experience in the marketing industry. With the wisdom of an old soul, she always seeks innovation and mind-blowing ROI techniques. Her unique approach helped many small businesses thrive and she can surprise you in many ways as well. Believe it or not, her energy, passion, and creativity are contagious enough to transform your business and take it to another level.