The main difference between LegalZoom and Legalshield is that Legal zoom offers legal services and Legalshield primarily offers prepaid legal plans.
In our LegalZoom vs Legal Shield comparison, we break down everything you need to know before using these legal and LLC formation services.
LegalZoom Vs. Legal Shield
What is the difference between Legal Shield and LegalZoom? And what services do both offer? Well, this article will go over everything you need to know about LegalShield and LegalZoom, from their prices to their upsides and downsides. Are you planning to start a new business, or do you already have a business running? You must have access to both reputable and affordable legal services, as it ensures you have peace of mind when running your business.
Having a better understanding of LegalShield and LegalZoom is vital as it ensures you are well informed about what each legal service has to offer. This information makes it easy to decide which legal service will provide more value to your small business.
It is worth noting that anyone who has recently ventured into business can significantly benefit from company formation services that LegalZoom and LegalShield offer to new businesses. Furthermore, both companies also provide various legal services for business and personal purposes.
Starting a business can be nerve-wracking, and having a trusted company formation service can be a huge relief. Even better is that using this service means that experienced professionals will handle all the paperwork on your behalf. Therefore, the process will be less stressful, and you can relax knowing that everything will be filed on time and done the right way.
Need help starting an LLC? We highly recommend ZenBusiness.
What Is The Difference Between LegalShield And LegalZoom?
While both LegalShield and LegalZoom offer legal services, they are different entities. Here are some differences between the two:
- While LegalZoom offers registered agents services, LegalShield does not provide this service.
- LegalShield offers businesses on their legal plans HR services. On the other hand, LegalZoom does not provide HR services.
- LegalShield mainly sells prepaid legal plans for small businesses and individuals, while LegalZoom offers various legal services that one has to buy individually.
LegalZoom
LegalZoom is an online-based legal service provider that provides various legal services for personal and business purposes. To access LegalZoom services, all one needs to do is buy the service they need whenever it suits their needs. Having a contract or retainer is not necessary when dealing with LegalZoom.
Most entrepreneurs and small business owners choose to work with LegalZoom because it offers a quick turnaround and has pretty affordable prices. LegalZoom has launched more than 1.5 million new businesses globally while serving more than 400 million customers. They are also quite reputable based on their excellent customer satisfaction reviews.
What Services Does LegalZoom Offer?
Here is a list of some services offered by LegalZoom:
- Registered Agent Services
- Legal Forms and Agreements
- Taxes, Licenses & permits
- Real Estate
- Trademark, Patent & Copyright
- Business Names
- Business Compliance
- Corporate Changes and Filings
- New Business Formation
LegalZoom also offers various personal legal services aside from their business legal services. These include:
- Accident and Injury
- Immigration and Work
- Finance
- Real Estate
- Marriage and Divorce
- Estate Planning Products
In addition to the listed personal and business services, you can contact a LegalZoom attorney and seek advice on both personal and business matters. Make the most from their flexible attorney-prepared services, including international trademark filing, website terms, and conditions, contract drafting, or any other service you may require.
How Does LegalZoom Work?
Would you like to get LegalZoom services but don’t know how to go about it? All you need to do is contact LegalZoom, and their team will walk you through the entire process from start to finish, ensuring that everything is done appropriately to start your business right.
With LegalZoom, it is pretty straightforward to start an LLC, and the best part is that you can conduct most things online. However, before you begin, you have to make up your mind about the state you would like to register your business. There is a different registration fee for the various states, so it helps to have this in mind to factor in all your costs.
After deciding the state you want to register your business in, LegalZoom runs a check to confirm that the business name you selected is available. If it is available, they will send you some forms to fill out with your business information. You will then select the ongoing service you need to use from LegalZoom, like the registered agent service. You can also add a tax and legal service you may need, choose a package, and proceed to checkout.
After making your payment at checkout, LegalZoom takes care of everything else left. They will review your paperwork before filing it to ensure there are no errors and that everything is in order.
You will receive your incorporation documents once they file your paperwork and are approved by the state. It is worth mentioning that how long this process takes is dependent on the state you register in and the package you will have selected.
Other Services Offered By LegalZoom
After setting up your business and getting it to run, there are multiple other services that LegalZoom will offer you to ensure things keep running flawlessly. The best part is choosing the services you require and leaving out those you think are unnecessary.
The registered agent service is the most popular service offered by LegalZoom. You will pay $299 annually for the registered agent service. In the United States of America, every business is legally required to have a registered agent assigned to the business.
You can act as the registered agent for your business. But it would be best to get a dedicated service instead. Having a registered agent reduces the stress of running your business. Besides, it also helps you avoid using your home address for business, especially if you do not have an official business premise.
Essentially, a registered agent accepts all legal documents and paperwork on your business’ behalf and uploads them online so that you can view them immediately. It is crucial to have your documents uploaded online to the cloud; this way, there will be a record of all your business documents. Additionally, you are guaranteed that the documents will not be misplaced online.
Moreover, a registered agent ensures your business stays in good standing by not getting penalized by the state because of forgetting filing deadlines. You are guaranteed that they will be available throughout the business hours to receive mail on your behalf. This is an excellent thing for business owners, especially those who are often out of the office regularly and travel a lot.
Suppose you have recently started your business; in that case, you will need to apply to get a Federal Tax ID (EIN) Number. LegalZoom can offer your business this helpful service. The IRS assigns this unique number to your business, allowing you to pay and hire employees and create a business bank account.
With the EIN, you do not have to use your social security number in your business, especially if you are the sole proprietor, which essentially protects you from identity theft.
There are multiple other services that LegalZoom can offer you to ensure your business stays compliant. These include trademarking your business name, filing annual reports, setting ground rules from the get-go, drafting your business’ operating agreement, among other corporate changes and filings.
Make more use of the prepaid legal plans offered by LegalZoom if you frequently require legal advice. Doing so provides you access to a LegalZoom attorney when you need one at a specific fee every month.
With LegalZoom, small business owners can access an attorney regarding business matters like tax advice, copyrights and trademarks, and contracts through their business advisory plan. You can also have access to a personal lawyer whenever you need one, through the legal advantage plan, regardless of whether it is for estate planning, family matters, or an employment problem.
LegalZoom Reviews And Customer Service
You can reach the LegalZoom customer service team by phone between 5 am to 7 pm on Monday to Friday and 7 am to 4 pm on Saturdays.
Overall, the LegalZoom customer service review is positive across several platforms. They have a 4.4star rating out of 5 on Trustpilot and an A+ rating on Better Business Bureau (BBB).
What Are The Advantages Of Using LegalZoom?
There are multiple advantages of using LegalZoom. These include:
- LegalZoom offers various legal services besides business formation services, meaning you can get everything you need in one place regardless of your needs.
- LegalZoom offers its customers a 100% satisfaction guarantee. They have a 60 day within purchase refund policy if you are unhappy with the service you get.
- All you need is to fill out a form online, and LegalZoom takes care of the rest of the paperwork and filing to ensure everything is in order.
- With LegalZoom, you know what you are getting beforehand, so there are no unexpected bills. There are no hourly fees either, and you pay a fixed one-off payment for each service you need.
- LegalZoom has served more than 4 million customers and is a reputable and well-established company.
What Are The Disadvantages Of Using LegalZoom?
Some disadvantages that some users experience when using LegalZoom include:
- Forming an LLC can take up to 30 business days.
- It may not be an excellent choice for complex legal cases
- The registered agent service and add-ons are pretty costly.
LegalZoom Price
Overall, LegalZoom offers different prices for their various services, so there is no standard pricing. Their prices vary depending on the legal service you want.
In addition to the different prices for the various services, LegalZoom offers two prepaid attorney packages, one for personal use and one for business. These start at $31.25 per month, and you can choose between two options, paying for 6months or 12 months at a time.
LegalZoom plans include a 30-minute attorney consultation on annual business evaluation, contract and document reviews, and new legal matters. Furthermore, their LLC price packages are relatively simple. They have three packages you can select from, Express Gold, Standard, and Economy.
The Economy package goes for $79, plus the filing fees. When you choose this package, you receive business document filing with your state, a business name check, LLC next steps guide, and articles of organization. You also get lifetime customer support, a personal order review before the business is created, and a financial account authorization letter.
The Standard package goes for $329 plus the state fees. The standard package offers everything that the Economy package offers in addition to LegalZoom processing that ensures a quick turnaround. You also get an official company seal to record your business’ ownership, 20 personalized company membership certificates, and a deluxe organizer that is embossed with your business name.
Lastly is the Express Gold package, which comes with everything offered in the Standard and Economy package. It also comes with express shipping and faster processing of your state, meaning your turnaround will be between 7 to 10 days.
LegalShield
LegalShield offers moderately priced legal help to individuals, families, and businesses by billing them with a monthly subscription fee instead of per service or hourly.
By billing individuals monthly, LegalShield allows one to talk to a lawyer when they need to without worrying that they cannot afford it. With a separate one-off fee, LegalShield can help you start your business and offer you ongoing help with any legal needs your business may have.
Services Offered By LegalShield
LegalShield offers its clients a range of services. These services include:
- Pre Trial Work
- Trial Defense
- Documents and contracts
- Debt collection letters
- Letters and calls on your behalf from an attorney
- Legal Research
- Legal Consultation
- Business Formation
How Does LegalShield Work?
LegalShield works pretty straightforwardly, and you only need to follow four steps to begin the process. Ideally, they help you take out all the second-guessing that comes with starting a new business.
The first step is contacting LegalShield and telling them everything about your business. LegalShield will need you to answer eight easy questions that will give them all the essential information they should know about your business.
Afterward, the LegalShield attorney assigned to you will reach out to you within four business hours to go over your business. They will also assist you in figuring out the type of business entity that will suit you best.
Next, the attorney will put together all the necessary documents you require to form the business and file them with your chosen state. When the state approves your documents, the documents are sent back to you, meaning your business is official, and you can start it at any time.
You will receive a legal plan to protect your business when you start your business with LegalShield’s Launch. Here are some of the things that the legal plan will include:
- Phone calls and letters on your behalf
- Legal document and contract review
- Business legal advice and consultation
You will get 25% off for additional legal services you may want to purchase that is not included in their legal plan.
Fundamentally, the legal plans that LegalShield offers function by them charging you a monthly fee for providing your business protection and legal advice. The price depends on the number of employees you want to include in the plan. Generally, the charge starts at $39 every month with no enrollment fee.
Other Services Offered By LegalShield
Are you interested in contacting the team at LegalShield ASAP? A fast and easy way to quickly get in touch with LegalShield is by sending them a message on Twitter or Facebook. They usually get back to you within an hour. Alternatively, you can get in touch with them through an email or a phone call. However, their website does not display their office hours.
When you work with LegalShield, they can offer you Human Resource services as an extra service for your business to ensure you offer your employees a safe workplace. The Human Resource service is vital to your business as it helps make it attractive to potential employees since they will trust that the job is more secure.
LegalShield also offers you the chance to become a broker of sorts. When you recommend them to other businesses, they offer you a commission. Moreover, they offer their members ‘member benefits’ that include an array of special offers and exclusive discounts to the LegalShield plan members.
Features
In their package, Inc Authority also includes S-corporation tax election filing (something that most LLCs do not need) and one whole year of registered agent service at no cost. By contrast, LegalZoom’s package, which costs $79 mind you, only offers you a banking resolution, which is only meant to help you open a bank account for your business.
In our view, the banking resolution and tax election filing are, to some extent, equivalent in value. However, nothing LegalZoom does can beat Inc Authority’s one year of free registered agent service. To add one year of registered agent service to the LLC package LegalZoom offers, that’d cost you an extra $249 to $299.
What Are The Disadvantages OF Using LegalShield?
The disadvantages of using LegalShield include:
- LegalShield is a multilevel marketing business: You must be careful when buying LegalShield services from independent brokers. Based on the complaints from some customers, independent brokers working on commission mis-sold their services.
- You do not choose your attorney: LegalShield assigns you an attorney based in your area. There is no guarantee about the quality of the attorney you will get.
Customer Service And Reviews
The fastest way to reach LegalShield is by sending them a message on Twitter or Facebook, and they will respond within an hour. While LegalShield has not listed its business hours on its website, you can still reach them via email or phone.
Overall, their customer service has mixed reviews. While they have an A+ rating on BBB, they have a few complaints from their customers. Some claim they have not been able to get a refund, while others say LegalShield representatives working on commission have sold them misleading legal plans.
What Are The Advantages of Using LegalShield
There are multiple advantages of working with LegalShield. Some of the benefits include:
- They offer great value plans with various options to best suit your personal or business needs.
- All members of LegalShield have access to their multiple ‘member benefits’ allowing them to save money on the services and products they are already using.
- LegalShield’s business launch packages make it easy for one to start their business.
- LegalShield offers unlimited calls to your attorney for both personal and business matters.
- With LegalShield, you can easily access an attorney as they have a low monthly fee. It is worth stating that accessing an attorney usually costs $150 to $400 per hour.
LegalShield Price
If you plan to start your business with LegalShield, it will cost you $145 for one of their Launch packages. This package comes with everything you require to start your business and a legal plan to protect your business.
The primary offer from LegalShield is their prepaid monthly legal plans. The prices for these plans will vary depending on your business’ size.
Their legal coverage starts at $39 per month for ten employees or less. This plan includes:
- Unlimited minutes and matters with your attorney
- Member benefits
- 25% off hourly rates
- Five debt collection letters every month
- Document review of up to 20 documents annually, with a maximum of 15 pages for each document
- Up to 20 calls and letters annually, with a maximum of six in any month
- 3 x 30 minutes allocated consultations annually
- Up to two appointed users
You will pay $89 per month if your business has 50 employees or fewer. This plan includes:
- Up to 15 hours of pre-trial work
- Trial defense for your business, with a total of 75 hours annually
- Member benefits
- 25% off hourly rates
- 10 debt collection letters every month
- Document review of up to 30 documents annually, with a 15-page maximum per document
- Up to 30 calls and letters annually, with a maximum of six in any given month
- 3 x 30 allocated consultations annually
- Unlimited minutes and matters with your attorney
- Up to 3 appointed users
Lastly, a legal coverage fee of $149 every month for any business with 100 employees or less. This plan includes:
- Up to 25 hours of pre-trial work
- Trial defense for your business, with a total of 75 hours annually
- Member benefits
- 25% off hourly rates
- 15 debt collection letters every month
- Document review of up to 40 documents annually, with a 15-page maximum per document
- Up to 40 calls and letters annually, with a maximum of six in any given month
- 3 x 30 allocated consultations annually
- Unlimited minutes and matters with your attorney
- Up to 3 appointed users
It is worth mentioning that LegalShield offers the most value for money for businesses that need a prepaid legal plan. You will receive a lot of value for low monthly fees for personal and small business legal plans. This is an excellent plan for individuals who need frequent legal help but cannot afford the hourly attorney fee.
However, remember that you cannot choose your preferred attorney. Therefore, this is a great choice depending on the legal assistance you need.
LegalShield is an excellent choice if you need this service for simple business matters. On the other hand, if you need defense in court, it may be a good idea to resort to choosing your preferred attorney.
LegalShield vs. LegalZoom: Which is the better service?
Based on the above-discussed information about LegalShield and LegalZoom, you can tell that while both offer legal services, they are not similar to each other. Therefore, the better service is relative to what service and price you want or need.
However, if you plan to start a business, both services may not be the best solution for you. Take LegalShield, for instance; it does not have the best customer reviews. On the other hand, LegalZoom is quite pricey compared to its competitors. Therefore, consider researching other affordable and reputable services that can help you start your business.
Consider working with Go Virtu, we are a reputable and professional business formation service with a 5-star customer support system, and our registered agent is cheap!