The main difference between Rocket Lawyer and Legalzoom is that LegalZoom offers a larger selection of services. Rocket Lawyer is more affordable but most of their services are subscription based.
In this Rocket Lawyer vs LegalZoom comparison we will break down the top pros and cons of each LLC formation service.
Rocket Lawyer Vs. LegalZoom: Which Is The Best LLC Formation Company Between The Two
Are you looking to form an LLC but are not comfortable going at it alone? Well, if you are, you will be glad to know that there are companies out there, such as LegalZoom and Rocket Lawyer, that exist to help people like you with their LLC formation journey.
But as someone who’s never worked with such a company, how do you know which one is right for you?
Well, you’ve come to the right place. In this LegalZoom vs Rocket Lawyer comparison, we will be answering your question by providing you with the information you need to make a better and more informed decision.
Judging by the sheer number of customers they serve, LegalZoom and Rocket Lawyer are, without a doubt, the top LLC formation services providers in the industry. As such, you wouldn’t go wrong choosing either to help you form an LLC. However, it’s worth noting that Rocket Lawyer has a few distinct benefits over LegalZoom that make them our top recommendation for our readers.
LegalZoom’s biggest advantage over other players in the industry is its experience. However, despite their experience, Rocket Lawyer has a much larger customer base, an all-inclusive legal services subscription plan that offers great discounts on registered agent services and LLC formation services, and you can try it for one week risk-free.
While there are plenty of advantages to working with either company, none of them is our absolute favorite company in the industry. For our readers looking for a dependable LLC formation service, we generally recommend using ZenBusiness.
ZenBusiness offers its services from as low as $39 compared to the $79 LegalZoom charges, or the $99.99 offered by Rocket Lawyer. Moreover, the ZenBusiness package comes inclusive of one full year of free registered agent service and a host of other vital features. Furthermore, the company has tons of positive online reviews from the thousands of customers it has helped over the years.
Things LegalZoom and Rocket Lawyer Have in Common
1. They are Affordable: Both Rocket Lawyer and LegalZoom fill the gap between hiring a lawyer and the DIY option. Choosing either means you get to have professionals handle the LLC formation process for you while saving them thousands of dollars you’d have spent hiring a business lawyer.
2. Experience: Both LegalZoom and Rocket Lawyer serve millions of customers countrywide. Both companies have impressive customer volumes and a ton of experience.
3. Great Customer Support: Speaking of not handling the process yourself, one of the main benefits of hiring an LLC formation company is that they have customer service representatives on standby to help resolve any issues you might have. If you have any concerns or questions, they are just one email or phone call away.
4. Business Advice: If you’d like to learn more about business or need additional help, both company’s websites have a wealth of information on most of the issues your company might face as it continues to grow.
5. Guaranteed Services: LegalZoom offers a 100 percent satisfaction guarantee that customers can take advantage of at any time within sixty days of their purchase. Rocket Lawyer, on the other hand, offers a similar guarantee, only that it lasts for 30 days. There aren’t many companies in the industry that make such promises.
6. Extra Services: Both companies still have much to offer their customers even after the formation process is complete. From tax ID numbers and registered agent services to ongoing compliance and licensing, LegalZoom and Rocket Lawyer both provide a host of other services your LLC needs.
The starting price for Rocket Lawyer’s LLC formation services is $99, while LegalZoom charges $79. However, it’s worth noting that Rocket Lawyer also has an offer where customers who subscribe to their $39.99 per month legal services plan get to have their LLC formation done for free. Well, if you are like most people, you’d rather pay $79 over $99.99 for the same services and solutions. Right?
Let’s look at the two a bit more to see if Rocket Lawyer’s services and solutions justify their pricing.
Both Rocket Lawyer and LegalZoom offer rudimentary LLC formation solutions. However, apart from the simple preparation and filing of articles of organization, LegalZoom also offers banking resolution to help their clients open business savings and checking accounts. Rocket Lawyer, on the other hand, only gives their clients a hard copy of the formation documents.
The only disappointing thing about both companies is that neither includes registered agent services in their formation services package. This is one of the main reasons why neither company is in our top three list of LLC formation services to work with – there are companies such as IncFile and ZenBusiness that offer their clients indispensable features for less.
LegalZoom and Rocket Lawyer are both such big companies that it isn’t surprising to hear that their customer support is either a hit or miss. Despite having wide-reaching support networks, it is logical that a few unsatisfied clients will sometimes slip through the cracks.
However, it’s worth noting that LegalZoom has an advantage over Rocket Lawyer when it comes to the number of hours their customer support is available. On weekdays, the company’s reps are available from 10 am to 8 pm (Eastern Time) and 10 am to 7 pm (Eastern Time) on weekends. Rocket Lawyer’s representatives, on the other hand, are only available on weekdays from 9 am to 9 pm (Eastern Time).
LegalZoom has helped well over 4 million customers form LLCs since they started providing online business solutions in 2001, with almost half of them being business clients. While that is quite remarkable, Rocket Lawyer is on a whole other level with an astounding 20 million clients served since 2008.
LegalZoom is faster in some states, Rocket Lawyer in others. This is mainly because Rocket Lawyer’s estimates vary from one state to another while LegalZoom bases its turnaround on the package you buy. The company’s Express Gold package is typically ready in 7 to 10 business days with the Standard Package taking about 15 days while the Economy Package takes up to 30 business days to be ready. In this instance, we strongly recommend using Rocket Lawyer as we do not appreciate how LegalZoom slows down or speeds up the LLC formation process based on how much money you’ve spent.
Registered Agent Service
In America, every LLC is required to have a registered agent, i.e., a business entity or person that receives crucial document deliveries such as service of process from the LLC’s state government, informs the LLC of the receipt, and then forwards the received documents to the LLC. This is essential since your state government needs a reliable channel through which it can contact your business at any time.
Neither Rocket Lawyer nor LegalZoom includes registered agent solutions in its LLC services packages as some other service providers do. LegalZoom offers this as a $299/year add-on (or $249 for the initial year if you add the service to your formation order.) In contrast, Rocket Lawyer charges an annual fee of $149.99 with clients who’ve subscribed to their legal services plan being eligible for a 25 percent discount.
LegalZoom has over 4700 online customer reviews. And while the company’s positive reviews outnumber the negative ones, the margin isn’t quite as wide as that of some competitors. While most of the company’s customers are happy with their general accessibility, they still do get some complaints about their customer service.
For Rocket Lawyer, however, customer feedback is one of their biggest pros. While the company also has over 4,700 online reviews, they have the upper hand since their ratio of positive reviews to negative feedback is much higher than LegalZoom’s. Rocket Lawyer’s customers will often be seen raving about the value they get from the service.
Ease of Use
This is one area where both Rocket Lawyer and LegalZoom shine as it could not be much simpler to use either one of the services. Moreover, their websites are intuitive, streamlined, and simple to use.
Most of the business services both companies offer are quite similar; they both provide LLC operating agreements, foreign qualifications, registered agent service, and more.
Additionally, both Rocket Lawyer and Legal Zoom offer a variety of personal services such as power of attorney, last will, and divorce papers. They both even offer attorney consultation. the two companies offer more services and solutions than any other company in the industry, which makes them both great choices to work with when searching for an all-in-one service provider.
Which LLC Formation Service is Best for You?
LegalZoom and Rocket Lawyer are two of the best online LLC formation services providers available today and share many similarities – and some differences too!
While both companies offer great overall value and have helped form thousands of LLCs all over America, we recommend using Rocket Lawyer over LegalZoom.
However, considering everything, neither of the two takes our #1 spot. We highly recommend that you check out our list of top LLC formation services to find out which of the available options is the best or to learn more about ZenBusiness.