When launching a business, is it really possible to get everything — from formation services to logo design — in one seamless platform? Enter ...
BizFilings vs Legal Zoom Comparison
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on August 31, 2022
Business entity formation is a crucial element of launching a business, and because it’s often complex and tedious many entrepreneurs hire professionals to do the job right. Business formation services also offer additional services that can be helpful to a new business owner.
Two of the leading online services to consider are BizFilings and LegalZoom. To help you determine which is best and which might be best for you and your business, we have thoroughly reviewed their services by putting ourselves in the shoes of an entrepreneur.
Read on to learn about the service that will put your business on the path to success.
Services Overview
Our Verdict
Upon careful evaluation, we’ve found that all of LegalZoom’s offerings provide superior value for money compared to the plans offered by BizFilings. Additionally, LegalZoom has earned favorable reviews and a reputation for excellent customer service.
Given these factors, we confidently recommend LegalZoom to budding business owners based on its overall value and user experience.
Overall, LegalZoom’s plans offer more for the money than the plans of BizFilings.
Pros and Cons
Pros
- Quick and easy purchase process
- Additional resources for entrepreneurs
- Positive customer reviews
- Quick and easy purchase process
- Over 20 years of experience and an A+ rating with the BBB
- Good customer support
- Part of Wolters Kluwer company, a global leader in expert solutions
Cons
- No free business formation plan; slightly expensive services compared to competitors
- Some customers had issues cancelling recurring services
- Lack of online customer reviews
Pros
- Reputable and reliable services
- Local attorneys available in all 50 states
- Great customer support
- Quick and easy purchase process
- Variety of legal services and documents available to business owners
Cons
- Registered agent service cost is higher compared to competitors
- Too many upsells when signing up
- Slow turnaround time
Plans and Pricing – Winner: LegalZoom
BizFilings
Their pricing begins at $99 for the Basic package, which includes three months of registered agent service (priced at $220/year thereafter). However, their pricing leans towards the higher end compared to other service providers, and the Standard and Complete packages, which vary in cost depending on the state, often fail to offer enough beneficial features to warrant their prices.
LegalZoom
While LegalZoom offers an initial $0 LLC package, the continual upselling may become costly and cumbersome. Moreover, none of their formation packages come with a registered agent service, which is an add-on service priced at $249 annually.
Experience – Winner: LegalZoom
BizFilings
Although BizFilings has managed more than 500,000 business formations since its inception in 1996, it still falls short of LegalZoom’s numbers.
LegalZoom
Having served more than 3.5 million customers since 2001, with approximately half being business clients, LegalZoom has extensive experience in this field.
Customer Support – It’s a tie between the two
BizFilings
They offer support through phone, email, and an online chat feature on their website. However, the online chat doesn’t operate over the weekends. We promptly received professional and comprehensive responses via both phone and email. During workdays, we were able to get immediate answers to our questions from the online chat representative.
LegalZoom
They provide support via phone, chat, and email. Overall all three channels have quick responses with polite and professional customer service representatives.
Turnaround Times – Winner: LegalZoom
BizFilings
BizFilings’ processing times, much like LegalZoom’s, are contingent on the selected service level. Their most affordable package offers a 4–6 week turnaround, but their pricier plans can reduce this to 7–10 days. An additional $60 can expedite processing for the Basic plan, but it does not hasten state processes.
LegalZoom
Unlike many rivals, their processing times depend on the package chosen, not the state of formation. For their premium package, finalized business formation documents could be received within 7–10 business days. Still, more economical packages could take up to 30 business days (or six weeks).
Customer Reviews – Winner: LegalZoom
BizFilings
There were very few BizFilings reviews available online – less than 30 were found on third-party review platforms. As a larger entity, LegalZoom naturally has more customer feedback.
LegalZoom
We found over 9,000 reviews on BBB and Trustpilot, with a significant portion being positive. Happy customers frequently mentioned LegalZoom’s services’ convenience and user-friendliness.
Ease of Use – Winner: BizFilings
BizFilings
Their incorporation wizard is a useful tool for deciding between forming an LLC or a corporation. The application process presents upselling opportunities, but they are subtly integrated and not overly aggressive. An order number is automatically assigned to your application for easy reference during customer support interactions.
LegalZoom
LegalZoom has numerous upsells, which can lead to a confusing and potentially costly ordering process. Despite this, the actual process of business formation with LegalZoom is efficient and straightforward. Upon forming an LLC with them, we received documents along with comprehensive instructions, which we found to be extremely beneficial.
Additional Services – Winner: LegalZoom
Both BizFilings and LegalZoom offer similar services, such as registered agent service, foreign qualifications, operating agreements, and EIN acquisition. Yet, LegalZoom extends its services beyond the business realm, aiding with personal legal needs like last will and testament, power of attorney, and divorce proceedings – services not offered by BizFilings.
FAQs
Using a business formation service to start your LLC frees you up to focus on growing your business. These services handle the filing process for you and offer additional services that can make life easier for a new business owner.
When assessing whether or not a business formation service is right for you, it’s important to dive into the following four categories: included features, customer service, pricing, and turnaround time.
To learn more about the customer experience at a particular business formation service, check out the reviews and ratings on the Better Business Bureau and Trustpilot websites.
Most of the BizFilings plans and services are a good value. Their site is easy to use, and they offer a great customer service experience. They don’t offer as many services as some competitors, but if you’re just looking for a business formation service, they are a good option.
BizFilings vs Legal Zoom Comparison
- Services Overview
- Our Verdict
- Pros and Cons
- Plans and Pricing – Winner: LegalZoom
- Experience – Winner: LegalZoom
- Customer Support – It’s a tie between the two
- Turnaround Times – Winner: LegalZoom
- Customer Reviews – Winner: LegalZoom
- Ease of Use – Winner: BizFilings
- Additional Services – Winner: LegalZoom
- FAQs
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