Introduction
Are you looking to create a new limited liability corporation (LLC) but don't know where to begin? BizFilings and LegalZoom are two firms that may help you create an LLC, but how do you decide which one to use?
This BizFilings vs LegalZoom comparison is set up so that you have all the information you need to make an educated decision, from the similarities and differences between the two. Also check Northwest LLC reviews for more information on LLC formation.
Elements They Have in Common
Affordability
You'll save hundreds of dollars over hiring a lawyer by using BizFilings or LegalZoom to incorporate your LLC. Because many LLC forms are straightforward, you may not need to hire an attorney.
Customer Support
Using a service like LegalZoom or BizFilings instead of doing everything yourself offers you access to their customer support networks. Instead of attempting to find out the answers on your own, simply phone or email their customer support representatives for assistance.
Solid Guarantees
Both of these businesses provide a guarantee of their services. LegalZoom has a 100% satisfaction guarantee, which means that if you're not satisfied for any reason, they'll return your money. BizFilings, on the other hand, offers a lifetime warranty on their services against filing errors.
Additional Services
These companies' LLC services are only the tip of the iceberg. Do you require the services of a registered agent? Do you need help obtaining a federal tax ID (EIN)? It's no issue. These and other business services are available via BizFilings and LegalZoom.
Efficiency
If you need to incorporate an LLC quickly, both BizFilings and LegalZoom provide services to help you do it. While expediting an order will certainly cost you more money, it may be worth it if you're in a hurry.
Comparisons
Pricing
LegalZoom's $79 price tag is $20 less than BizFilings' $99 price tag. Obviously, everyone would rather pay $79 for equivalent services than $99 for them, right? Take a look at how BizFilings not only regains the distance they lost to LegalZoom in this category but also takes the overall lead in this competition as we proceed through the categories below.
Features
With any LLC formation package from BizFilings, you get six months of registered agent service and access to their online compliance monitoring tool, which LegalZoom does not.
LegalZoom, on the other hand, offers a banking solution to assist you to create business checking and savings accounts, which BizFilings' base-rate plan does not. In this area, though, BizFilings has the upper hand.
Six months of registered agent service, in our opinion, is far more beneficial than a banking resolution. In fact, it's enough for us to declare that we prefer BizFilings over LegalZoom. Given that LegalZoom's registered agent service costs roughly $300, you'd have to pay approximately $150 to a LegalZoom LLC formation package to gain the same benefits as BizFilings.
Experience
BizFilings is a seasoned firm that has completed over 500,000 business forms since its inception in 1996. They're still not on the same level as LegalZoom, which has serviced over 4 million customers since 1999, with over half of those being commercial clients.
Support
In our experience, BizFilings is rather straightforward to contact, with the phone, email, and web chat options accessible from 9 a.m. to 8 p.m. ET Monday through Friday. Their customer service representatives are kind and helpful.
We've also had a lot of personal experience with LegalZoom, and their results are a bit more varied. It's reasonable that not all of their salespeople are top-notch because they're such a large firm. While their customer service might be hit or miss, there's no disputing that their extended hours of operation are a blessing. On weekdays, they're open from 10 a.m. to 8 p.m. ET, and on weekends, they're open from 10 a.m. to 7 p.m. ET.
Turnaround Time
BizFilings and LegalZoom determine their turnaround time differently than every other LLC formation service provider we're aware of. Unlike their rivals, who base their processing times on the average processing times of each state, these providers have turnaround time dependent on the level of LLC service you pick. You have the option of using LegalZoom's Express Gold (7-10 business days), Standard (15), or Economy services (30). BizFilings offers three options: Basic (4-6 weeks), Standard (7-10 business days), and Complete (7-10 business days) (7-10).
Tracking Orders
LegalZoom features a straightforward tracking mechanism. When your order is received, you'll receive an email notification, and you may check the progress of your purchase at any time on their website. BizFilings features a more precise 7-step status system that records your LLC formation from the time you place your purchase until you receive your finished documentation.
Registered Agent Service
Every LLC in the United States must name a registered agent, who is a person or online business that receives critical document deliveries (such as service of process) from your state government, notifies you of the delivery, and then transfers the papers to you. This is critical since the state requires a dependable way to reach your company at any time.
LegalZoom charges $299 per year for registered agent service (or $249 for the first year if purchased in conjunction with LLC formation), whereas BizFilings charges $199 per year for the same service. Remember that BizFilings includes six months of registered agent service with any LLC formation plan, but LegalZoom does not.
Reviews from Customers
Customer feedback is not one of these firms' strong suits. BizFilings has relatively few internet reviews; in fact, we were only able to uncover 18 on any third-party review websites. Given their size, LegalZoom has a significantly higher number of consumer feedback than you might imagine. While there are some unfavorable reviews mixed in with the 4,700+ reviews for LegalZoom, most of the feedback is good.
Additional Services
Many of the same services are offered by BizFilings and LegalZoom, such as registered agent services, international qualifications, operating agreements, and EIN acquisition. However, LegalZoom provides several services that BizFilings does not, most of which are geared at individuals rather than enterprises. LegalZoom can assist you with your last will and testament, power of attorney, and divorce processes, for example.
Which One Should You Choose?
Overall, BizFilings offers benefits over LegalZoom that make it a superior option for the majority of our readers.
For starters, BizFilings' LLC service packages include six months of registered agent service and access to their online compliance management tools, which LegalZoom's LLC service packages do not. Furthermore, BizFilings costs $164 per year for continuous registered agent service, compared to LegalZoom's $299 per year.