LegalZoom vs LegalShield Comparison

The process of establishing a business entity is a pivotal step in kick-starting a business. Given its complexity and the potential for tediousness, many business starters opt to enlist professional help to ensure things are done correctly. These business formation services often provide other beneficial services that new business owners might find helpful.

Among the top online options to consider are LegalZoom and LegalShield. In order to guide you towards the most suitable choice for you and your business, we’ve conducted an in-depth review of their services, adopting the perspective of an entrepreneur. Continue reading to make an informed decision that will set your business on the path to success.

Services Overview

Our Verdict

Upon a comprehensive evaluation, our conclusion is that LegalZoom provides superior value and a wider range of services. While LegalZoom might be slightly pricier, we hold the view that the quality matches the cost and that they are among the industry’s best.

The primary benefit of LegalShield is its access to a pool of seasoned lawyers. If your needs are more inclined toward business legal services, LegalShield could be a suitable choice for you.

Pricing

Turnaround Time

Help and Support

Customer Satisfaction

Ease of Use

Overall Score: 4.2/5

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Pricing

Turnaround Time

Help and Support

Customer Satisfaction

Ease of Use

Overall Score: 3.4/5

Learn More

We recommend LegalZoom over LegalShield due to their outstanding industry reputation and better customer service experience. 

Pros and Cons

Plans and Pricing – Winner: LegalZoom

LegalZoom

LegalZoom offers an initial $0 LLC package, but 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.

LegalShield

LegalShield’s Launch plan, priced at $149 + state fees, includes services like single-member LLC creation, business name check, and acquisition of a federal tax ID number. Additionally, it provides 3 months legal support as part of the package.

Experience – Winner: LegalZoom

LegalZoom

Having served more than 3.5 million customers since 2001, with approximately half being business clients, LegalZoom has extensive experience in this field.

LegalShield

The company has changed its incorporation name over the years and changed ownership. Since they changed their name to LegalShield in 2011, they have served more than 140.000 businesses.

Customer Support – Winner: LegalZoom

LegalZoom

They provide support via phone, chat, and email. Overall all three channels have quick responses with polite and professional customer service representatives. Customer support is available on weekends as well from 7am to 4pm PT.

LegalShield

LegalShield offers support through chat, email, and phone. Our interactions across these channels were seamless, and our inquiries were addressed promptly. The support is available from Monday to Friday, from 7am to 7pm CST, with no weekend service.

Turnaround Times – It’s a tie between the two

LegalZoom

LegalZoom’s 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).

LegalShield

Upon submitting your information and payment to LegalShield, your membership application generally processes within 48 hours, excluding weekends and holidays. Following this, a small business lawyer contacts you, and the rest of the filing process takes about three to five business days, but turnaround times may vary by state.

Customer Reviews – Winner: LegalZoom

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.

LegalShield

With more than 3,600 reviews that we found, there are some positive, but also, on BBB, there are a lot of negative concerns about the quality of the lawyer fleet that LegalShield offers, and customers claim they have difficulties canceling their services.

Ease of Use – Winner: LegalZoom

LegalZoom

LegalZoom provides a streamlined approach to LLC formation, reducing the complexity of the DIY route. Their platform is well-designed, with intuitive steps, making it easier for business owners to navigate through the process and set up their operations effectively. LegalZoom also has upsells during the formation process, so make sure you choose only what you need.

LegalShield

Overall, the site is easy to use if you’re ready to go and just want to complete the process. Otherwise, information can be difficult to find. The website isn’t as user-friendly as LegalZoom’s, and we found customer service to be inconsistent. 

Additional Services – It’s a tie between the two

Both companies offer similar services to business owners when it comes to forming an LLC. Their main difference is their pricing of the additional services.  LegalZoom offers an array of legal services that are individually charged, whereas LegalShield’s primary model involves selling pre-paid legal plans with an associated monthly charge.