If you are an entrepreneur searching for an online business formation service to help you start your Limited Liability Company (LLC), there is a high chance that you’ve come across LegalZoom and Rocket Lawyer. However, you might not know much about both services and would like to explore their pros and cons.
Lucky for you, this is the right place for you to learn about LegalZoom and Rocket Lawyer to understand each of the pros and cons and which one you should pick to help form your LLC. At the end of this guide, you should be able to make a more informed decision on which one is more suitable for you.
Here are the summaries of LegalZoom vs Rocket Lawyer companies along with their pros and cons.
About LegalZoom
Not only does LegalZoom provides LLC filings, but they also include other formation services for entrepreneurs like a corporation, nonprofit, or DBA filing through their online site. LegalZoom also ensures that the documents for your business formation are done correctly and up to the state’s standards with their Peace of Mind™ review.
Besides helping you file your business, LegalZoom also offers step-by-step instructions for reviewing your LLC paperwork and getting your business running. The customer support that LegalZoom provides is available 7 days a week and you can submit inquiries through its website or make use of the online chat feature.
LegalZoom provides more than just formation services and you can utilize their registered agent services at the price of $299 per year. You can also subscribe to receive alerts from LegalZoom for free in the first month and $320 per year after that.
LegalZoom’s Pros
They provide regular legal assistance
With LegalZoom, you will not only get regular legal assistance from their legal counsel, usually in the form of 30-minute phone consultations, document reviews, and annual legal compliance check-ups. LegalZoom also helps create legal forms or contracts and they have over 100 legal forms available.
Can do more than just LLC filing
Other than the basic filing services, LegalZoom also provides other services like trademark, copyright, and patent filing. As such, LegalZoom is more likely to provide a comprehensive service that you don’t get from other LLC formation services.
LegalZoom’s Cons
Their pricing is on the higher end
In comparison to other services on the market, LegalZoom’s fees are on the higher end with its registered agent services costing $299 per year and the price is not inclusive of LLC formation services. If you have a tighter budget, LegalZoom might not be the best choice.
Slow processing time
There are times when the processing time for documents takes longer than what they claimed, which would make them a poor choice if you need to form your LLC as quickly as possible.
About Rocket Lawyer
As the name suggests, Rocket Lawyer specializes in providing legal services such as legal advice, legal documents, and business registration. Unlike some services that charge on a yearly basis, Rocket Lawyer has a monthly subscription instead.
What this means is that you will have access to business attorneys and unlimited legal documents for a reasonably low monthly fee. As a member, you will need to pay $39.99 per month and you will receive a free business registration, unlimited legal documents and questions, and a free 30-minute session with an attorney.
Rocket Lawyer is also a good choice for business owners who prefer something more affordable because even if you are not a member, you can still go for their LLC formation service for $99 only. Other services are also offered at a reasonable price which is perfect for new business owners who want to save some money.
Rocket Lawyer’s Pros
Offered at an affordable price
In comparison to LegalZoom, Rocket Lawyer is much more affordable as it is offered with a monthly subscription that you can cancel anytime. By paying a reasonably small amount every month, you will have access to features that are usually charged at a high price.
Has great customer support
Whenever you encounter any issues with Rocket Lawyer, you can always chat with their customer care directly on the website.
Rocket Lawyer’s Cons
Limited membership choices
One downside about Rocket Lawyer is that there is only one membership option available. Thankfully, you’re still allowed to purchase their services separately even if you’re not a member.
Conclusion
Based on the pros and cons presented above, it is clear that LegalZoom is the premium choice while Rocket Lawyer is a more affordable option. Both services are good for business formation, but the best one for you will ultimately depend on your preference for the type of services you’re looking for.