Rocket Lawyer vs LegalZoom Comparison

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Natalie is a business writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.

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 September 6, 2022

Business entity formation is a crucial element of launching a business, and because it’s often complex and tedious, many entrepreneurs hire a professional to do the job right. These 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 Rocket Lawyer and LegalZoom. And 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 make the choice that will put your business on the highway to success.

Services Overview

Business Formation Service

Rocket Lawyer

LegalZoom

Plans and Pricing

No plans, $99 business formation or a $39.99 per month membership

3 plans: Basic, Pro, and Premium; $0 – $299 + state filing fees

Registered Agent Service

$149.99 annually, or $111.99 with membership

Not included, $249 annually

Operating Agreement

Customizable template

Included in Pro and Premium plans

Annual Report Service

Included with the membership

Not included, Starts at $99 + filing fees

Processing Time

Standard state times, expedited

Around seven to 10 days

Customer Support

Email, phone; Mon – Fri 6am – 6pm PT

Email, chat, phone; Mon – Fri 5am – 7pm PT; Weekends: 7am – 4pm PT

Business Documents Online Library

With membership

Other Services Offered

Yes, variety of legal services

Taxes, Licenses, and Permits, Legal Forms and Agreements, Trademark, Patent, and Copyright, Business Changes and Filings

Number of Business Served

Over 20 million

More than 3.5 million

Money Back Guarantee

30 days

60 days

Our Verdict

After a thorough assessment, we recommend LegalZoom, which offers better value and broader service offerings. You’ll pay a bit more with some plans than you would with Rocket Lawyer, but you’ll receive higher quality service and customer satisfaction with LegalZoom.

Pricing

Turnaround Time

Help and Support

Customer Satisfaction

Ease of Use

Overall Score: 4/5

Learn More

Pricing

Turnaround Time

Help and Support

Customer Satisfaction

Ease of Use

Overall Score: 4.2/5

Learn More

We recommend LegalZoom over Rocket Lawyer due to their outstanding reputation in the industry and a more robust selection of offerings.

Pros and Cons

Rocket Lawyer LegalZoom

Pros

Quick and easy purchase process
A+ rating with Better Business Bureau
Membership option is a good value if you need legal help
Free LLC formation service for new members
Discounts on various legal services

Cons

Some legal documents are expensive
Some customers complained about the complicated cancellation process
Even if you opt for a free trial, you need to enter your credit card details

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

Rocket Lawyer

Their approach to business formation is more streamlined. They offer a single package for $99.99 that includes basic business formation. Additional features are available as add-ons. For a subscription fee of $39.99/month, new customers get free business formation, and existing clients get a discounted rate. Their registered agent service is available at $149.99 per year or $111.99 with membership.

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

Rocket Lawyer

Rocket Lawyer has served a staggering 20 million customers since its inception in 2008.

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

Rocket Lawyer

Providing customer support via phone, email, or web chat, Rocket Lawyer boasts swift response times and competent, friendly representatives. Their customer service is available from 6am until 6pm PT, Monday through Friday.

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: Rocket Lawyer

Rocket Lawyer

Rocket Lawyer’s turnaround times depend on the specific state’s processing speeds. They offer a webpage detailing average processing times for each state, along with expedited estimates. Standard processing usually takes up to 10 days, while expedited processing is done within two business days. However, this depends on the state.

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

Rocket Lawyer

Similar to LegalZoom, Rocket Lawyer has a large base of satisfied customers, as reflected in over 6,200 reviews on Trustpilot, the majority of which are positive. Customers often commend the excellent value for money Rocket Lawyer offers.

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: LegalZoom

Rocket Lawyer

With only one formation package to choose from, Rocket Lawyer simplifies the decision process. Although navigating through additional services can be a bit tricky, the overall process is straightforward and time-efficient. They generally refrain from upselling additional services, but they are quite pushy about their membership subscription.

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 LegalZoom and Rocket Lawyer offer similar business services, including registered agent services, foreign qualifications, and LLC operating agreements.

Both companies outshine their competition in terms of the range of legal services offered, making them excellent choices for customers seeking a comprehensive service provider and seek legal help. LegalZoom offers a bit wide range of services from which customers can benefit more.

FAQs

Why should I use a business formation service to start my LLC?

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.

What should I take into consideration when choosing the right business formation service for my LLC?

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.

Why should I use LegalZoom?

Overall, LegalZoom is a reliable service that has been around for a while. If you need a one-stop shop for legal and business services, they are probably your best bet.

What’s good about Rocket Lawyer?

Rocket Lawyer is a unique option, not offering packages of business formation services but a subscription service that allows you to form your business for free and get access to a host of business form templates.

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