When it comes to starting a small business, there are several legal services that a business owner may require, such as forming an LLC, registering with the state, filing annual reports, and maintaining good standing status. While some business owners may choose to handle these tasks on their own, others may opt to use a business formation service to streamline the process and ensure that all legal requirements are met.
Two popular companies that offer business formation services are ZenBusiness and LegalZoom. In this article, we will compare these two companies, including their LLC formation services, business documents, state filing fees, customer reviews, annual reports, and good standing status.
ZenBusiness vs LegalZoom Comparison
ZenBusiness and LegalZoom are two of the most popular business formation services on the market. Both companies offer LLC formation services, business documents, and other legal services that small business owners may require. However, there are some key differences between the two that are worth noting.
LLC Formation Services
Both ZenBusiness and LegalZoom provide all-inclusive LLC formation packages for small business owners. However, there are some differences in the services that they offer.
ZenBusiness offers three LLC formation packages: Starter, Pro, and Premium. The Starter package includes the basic formation documents, registered agent service, and operating agreement. The Pro package includes everything in the Starter package, plus a banking resolution, EIN registration, and worry-free guarantee. The Premium package includes everything in the Pro package, plus a domain name, website hosting, and business email.
LegalZoom, on the other hand, offers four LLC formation packages: Economy, Standard, Express Gold, and Premium. The Economy package includes the basic formation documents, registered agent service, and a 30-day trial of LegalZoom's business advisory plan.
The Standard package includes everything in the Economy package, plus an operating agreement, banking resolution, and EIN registration. The Express Gold package includes everything in the Standard package, plus expedited filing and a deluxe organizer. The Premium package includes everything in the Express Gold package, plus a domain name, website hosting, and business email.
Business Documents
Both ZenBusiness and LegalZoom offer a wide range of business documents that small business owners may need. ZenBusiness offers customizable templates for operating agreements, minutes, resolutions, and other business documents. LegalZoom offers similar templates for LLC operating agreements, bylaws, minutes, and other legal documents.
State Filing Fees
State filing fees are one of the most significant costs associated with forming an LLC. The cost of state filing fees can vary depending on the state where the LLC is being formed. ZenBusiness charges state filing fees on top of their LLC formation packages.
LegalZoom includes state filing fees in its LLC formation packages. However, LegalZoom's packages are generally more expensive than ZenBusiness's packages, which may offset the savings by including the state filing fee.
Customer Reviews
Customer reviews are an important factor to consider when choosing a business formation service. Both ZenBusiness and LegalZoom have generally positive customer reviews. However, ZenBusiness has a slightly higher customer satisfaction rating on websites like Trustpilot and Better Business Bureau.
Annual Reports
In addition to forming an LLC, small business owners are required to file annual reports to maintain their good standing status. Both ZenBusiness and LegalZoom offer annual report filing services for an additional fee.
Good Standing Status
Maintaining good standing status is essential for small businesses, as it ensures that the LLC complies with state regulations. Both ZenBusiness and LegalZoom offer services to help LLCs maintain their good standing status, including annual report filing, registered agent services, and compliance monitoring.
ZenBusiness LLC Formation Services
ZenBusiness is a business formation service that specializes in LLC formation services. Their LLC formation packages are designed to make it easy for small business owners to start their LLCs and stay compliant with state regulations. In addition to its LLC formation packages, ZenBusiness also offers a range of other legal services, such as registered agent services, annual report filing, and compliance monitoring.
Advantages of Using ZenBusiness for LLC Formation
One of the advantages of using ZenBusiness for LLC formation is its affordable pricing. Their Starter package starts at just $49, which includes everything a small business owner needs to form an LLC, such as basic formation documents, registered agent service, and operating agreement.
Another advantage of using ZenBusiness is its customer support. ZenBusiness has a team of knowledgeable support agents who are available to answer any questions that small business owners may have. Their response time is generally quick, and they can provide detailed and accurate answers to complex questions.
State-Specific Requirements for LLC Formation Services Offered by ZenBusiness
One important thing to note when using ZenBusiness is that LLC formation requirements can vary from state to state. ZenBusiness is aware of these differences, and they tailor their LLC formation packages to meet the specific requirements of each state.
LegalZoom LLC Formation Services
LegalZoom is a well-established business formation service that offers a range of legal services, including LLC formation services. In addition to LLC formation, LegalZoom offers a range of other legal services, such as trademark registration, copyright registration, and business compliance services.
Advantages of Using LegalZoom for LLC Formation
One of the advantages of using LegalZoom for LLC formation is its reputation. LegalZoom is a well-established and trusted business formation service that has helped millions of small business owners form their LLCs. This reputation can provide peace of mind to small business owners who may be hesitant to use a newer or lesser-known service.
Another advantage of using LegalZoom is its range of services. In addition to LLC formation, LegalZoom offers a range of other legal services that small business owners may require, such as trademark registration and business compliance services.
State-Specific Requirements for LLC Formation Services Offered by LegalZoom
Like ZenBusiness, LegalZoom is aware of the state-specific requirements for LLC formation, and they tailor their LLC formation packages to meet the specific requirements of each state.
Customer Support and Response Time
One important factor to consider when choosing a business formation service is customer support and response time. Both ZenBusiness and LegalZoom have customer support teams that are available to answer questions and provide assistance. However, ZenBusiness has a slightly faster response time and higher customer satisfaction rating, which may be important for small business owners who value quick and accurate assistance.
When it comes to choosing a business formation service, there are many factors to consider, such as LLC formation services, business documents, state filing fees, customer reviews, annual reports, and good standing status. Both ZenBusiness and LegalZoom offer comprehensive LLC formation services and other legal services that small business owners may require. While ZenBusiness has lower pricing and higher customer satisfaction ratings, LegalZoom has a well-established reputation and a wider range of services.
Ultimately, the best business formation service for small business owners will depend on their individual needs and preferences. Small business owners should carefully consider their options and compare the services and pricing offered by both ZenBusiness and LegalZoom before making a decision.
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