Starting a business is an exciting adventure, and choosing the right tools and services can make or break your experience. If you’ve been researching LLC formation services, you’ve probably come across LegalZoom—it’s one of the most recognized names in the business. But does that mean it’s the best choice for you?
In this LegalZoom review, I’ll share why LegalZoom might not be the right fit for forming your LLC. While I’ll keep it friendly and straightforward, I won’t shy away from discussing the flaws that could leave you frustrated, overcharged, and questioning why you chose them in the first place.
1. The Price Tag is Misleading
At first glance, LegalZoom’s pricing might seem reasonable. Their business formation package starts at $0 plus state fees. Sounds great, right? Who doesn’t love the word “free”? But here’s the kicker: the $0 package doesn’t include much. You’ll essentially get the bare minimum—your LLC paperwork filed with the state. Need help with compliance? That’s extra. Want an EIN? That’s extra. Need an operating agreement? Yep, you guessed it—extra.
By the time you add on the services you actually need to run your business, the cost can skyrocket. For example, their operating agreement template is $99, and EIN filing is another $79. Suddenly, your “free” LLC is costing hundreds of dollars more than you expected. Compare that to other services that include these essentials in their base packages, and LegalZoom starts looking like the expensive option.
2. Upsells, Upsells, and More Upsells
LegalZoom’s website is like a minefield of upsells. At every step of the process, they’ll suggest upgrades or additional services that you “might need.” While some of these may genuinely be useful, others feel unnecessary, especially if you’re a small business owner trying to keep costs down.
For example, they’ll suggest adding registered agent services for $299 per year—a steep price compared to competitors who offer it for free for the first year or charge as low as $39 annually. And let’s not even get started on their “compliance calendar” service for $69 per year. If you’re diligent, you can set up reminders yourself or find cheaper alternatives.
3. Lack of Personalization
LegalZoom operates like a giant machine, churning out LLC filings without much consideration for your unique needs. While this assembly-line approach might work for some people, it can be frustrating if you have specific questions or require guidance tailored to your situation.
For example, if you’re forming an LLC in a state with unique requirements (looking at you, Alabama, and Hawaii), you might find yourself confused or unsure about the next steps. LegalZoom won’t hold your hand through the process. Instead, they rely on generic templates and FAQs, which may or may not address your concerns.
4. Customer Support Can Be Hit or Miss
One of the biggest complaints about LegalZoom is their customer support—or lack thereof. When you’re paying a premium price, you’d expect top-notch support, right? Unfortunately, many customers report long wait times, unhelpful responses, and even instances where their issues were never resolved.
Let’s say you’re in the middle of filing your LLC and hit a roadblock. You call LegalZoom’s support line, only to wait 30 minutes to speak to someone who directs you back to the FAQs. Not exactly the hands-on help you’d expect from such a well-known brand.
5. Slow Processing Times
In today’s fast-paced world, efficiency matters. Unfortunately, LegalZoom isn’t known for speed. Their standard processing time can take weeks, and even their “expedited” service is slower than many competitors’ standard timelines.
For example, Northwest Registered Agent and ZenBusiness both offer faster filing options—often without charging extra. With LegalZoom, you might find yourself anxiously refreshing your email for weeks, wondering when your LLC will finally be approved.
6. Not the Best Value for Your Money
Let’s talk about value. If you’re going to spend money on an LLC formation service, you want to feel like you’re getting a lot for your dollar. Unfortunately, LegalZoom doesn’t stack up well against its competitors in this department.
For example, ZenBusiness’s Pro package includes LLC filing, an EIN, an operating agreement template, and compliance monitoring for $199 per year. Compare that to LegalZoom, where the same services could cost you upwards of $300. And remember, that’s without any of the added perks like a registered agent or a website builder.
7. Registered Agent Services Are Overpriced
Speaking of registered agents, LegalZoom’s pricing in this area is downright painful. At $299 per year, they’re one of the most expensive options on the market. Meanwhile, competitors like Northwest Registered Agent charge $125 annually—and they’re known for exceptional customer service.
Even better, many LLC formation companies, like Bizee and ZenBusiness, include a year of free registered agent service with their formation packages. LegalZoom’s refusal to include this basic service feels like a slap in the face to budget-conscious entrepreneurs.
8. Not Small Business-Focused
LegalZoom’s size and reputation can make it feel impersonal. They cater to a wide range of clients, from individuals drafting wills to large corporations filing trademarks. While this breadth of services might seem impressive, it also means that their focus on small businesses and entrepreneurs can get lost in the shuffle.
For instance, a smaller, more specialized company like Northwest Registered Agent is dedicated entirely to LLC formation and business services. They understand the unique challenges entrepreneurs face and are better equipped to provide personalized support.
9. The Reputation Isn’t As Stellar As You’d Think
You’d think a company as big as LegalZoom would have glowing reviews across the board, but that’s not the case. A quick glance at online review sites reveals a mix of happy customers and frustrated ones. Common complaints include hidden fees, poor customer service, and delays in processing paperwork.
When you’re starting a business, the last thing you want is to feel like you’re gambling with your LLC formation. Unfortunately, with LegalZoom, it sometimes feels like that’s exactly what you’re doing.
10. Alternatives Offer More for Less
Perhaps the biggest reason not to use LegalZoom is that there are simply better options out there. Companies like ZenBusiness, Northwest Registered Agent, Registered Agents Inc., and Bizee offer more affordable pricing, better customer support, and a more streamlined experience.
For example:
- Registered Agents Inc. They charge a $100+ state fee and throw a registered agent services free for the first year
- ZenBusiness: Their Starter package is free (plus state fees) and includes essentials like an operating agreement template and compliance reminders.
- Northwest Registered Agent: They charge $39 plus state fees for LLC formation and include a year of free registered agent service.
- Bizee: Their base package is free (plus state fees) and includes a year of registered agent service.
When you compare these companies to LegalZoom, the value difference is clear. You get more bang for your buck and avoid the headaches that come with LegalZoom’s upsells and hidden fees.
Friendly Advice: Choose Wisely
I get it—LegalZoom’s name recognition can make it feel like the “safe” choice. But bigger doesn’t always mean better, and in the case of LLC formation, there are better options out there. Whether you’re looking for affordability, personalized support, or just a smoother experience, LegalZoom often falls short of expectations.
If you’re serious about forming your LLC and want a service that truly has your back, I recommend exploring alternatives like ZenBusiness, Northwest Registered Agent, or Bizee. Not only will you save money, but you’ll also save yourself a lot of frustration.
At the end of the day, your business deserves the best start possible. Don’t settle for a service that overpromises and underdelivers. Choose a partner that understands your needs and helps you succeed—without breaking the bank.
