Today, I'm reviewing LegalZoom based on my experience purchasing an LLC through their service. Instead of summarizing what you can find on their website, I decided to purchase an LLC from seven top LLC services, including LegalZoom, and put them through a series of tests. Here’s what I found.
LegalZoom LLC Formation Experience
I ordered an LLC from each service within the same hour to ensure a fair comparison. For LegalZoom, I registered "Festivus Supply" on March 19, 2024. I conducted four different tests, starting with customer support.
Customer Support Test
On the day of ordering, I attempted to change the LLC name from Festivus Supply to Festivus Supplies. LegalZoom's chat support responded in 15 minutes, but they required an additional $129 to file an amendment. This response time was the slowest among the services tested. The quick turnaround time of 1 hour and 37 minutes for filing did not allow for corrections, highlighting the importance of ensuring your information is correct when using LegalZoom.
Filing Speed
LegalZoom had the fastest filing time, taking only 1 hour and 37 minutes from purchase. This rapid processing can be a double-edged sword, as it leaves little room for error correction.
Upsell Frequency
LegalZoom sent me 18 upsell emails over 43 days, aggressively pushing services like the Beneficial Ownership Information (BOI) report. Contrary to their claims, you have 90 days to file your BOI report for a new LLC as of 2024. This can be done easily at fincen.gov.
Cost Analysis Over 5 Years
We created an LLC cost calculator to compare the five-year total costs, accounting for various fees beyond the first year. LegalZoom was $769 more expensive than the most affordable option. These costs include annual report filings and registered agent services, which can add up over time.
Final Grade and Promotions
LegalZoom received a grade of C. While they offer attorney access and have a longstanding reputation, their high costs and frequent upsells detract from their overall value. If you decide to use one of our affiliate links, we will donate $20 to Crisis Services of West New York, supporting people in times of crisis.
Conclusion
In conclusion, LegalZoom is fast but expensive, with aggressive upselling practices. For a detailed comparison of all seven services, check the links in the description below. You'll find a ranking and an in-depth review of each service.
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