Legalzoom vs CorpNet Comparison : Which one Should you Pick?

One of the most popular choices among entrepreneurs in the US is to form a corporation. Due to this, there are now more incorporation service provider companies nationwide, and among the top choices are LegalZoom and Corpnet. 

These two companies help clients make incorporation less challenging and time-consuming. However, they differ a lot in how they provide their services and other aspects. 

But no need to worry, this article contains a comprehensive comparison between the two service providers so that you can identify which one is the best choice for you. 

Legalzoom and Corpnet Key Comparison Points

The review will discuss the five key comparison points that will reveal the similarities and differences between the two services. The comparison will be done on the following aspects:

  • Pricing on par with the features to determine the overall value
  • Track record and experience
  • Customer service efficacy
  • Testing order process and ease of use
  • Review of turnaround times for online incorporation

Overall Pricing and Value

Legalzoom’s LLC formation starts at $99 (+ state fee) and is considered to be one of the most famous incorporation services. It is a lot cheaper compared to CorpNet, however, this does not equate to a better value for their customers considering that the upsells can turn out to be overwhelmingly expensive.

Moreover, Legalzoom does not offer registered agent service in any of their packages and instead charges around $159 to $299 per year in addition.

On the other hand, including the additional $29 fee for shipping and order handling, Corpnet’s $108 basic package is already a great choice for simple business formation needs. Besides, it already includes a 60-day registered agent service a year which is valued at $149.

With this, Corpnet would be a better choice for the formation of your corporation since its higher-tier service packages have a lot more valuable features to offer such as a registered agent service in comparison to Legalzoom.

Legalzoom’s Official Website

 

Track Record and Experience

Founded in 1999, Legalzoom has served over 3.6 million customers ever since. They are not just limited to business formation services, and they also assisted in the formation of more than a million businesses which is a lot more compared to CorpNet. 

Looking through Legalzoom’s customer reviews; however, you would spot a large faction of one-star ratings which would most likely give you second thoughts on pursuing with them.

CorpNet, on the other hand, was founded much earlier in 1997 and assisted a lot less in number as opposed to Legalzoom at over 500,000 businesses. However, CorpNet’s customer reviews are their greatest strengths, with over 98% and tons of 4 and 5-star ratings all over third-party sites.

 

Customer Service

Legalzoom offers phone and email support whereas Corpnet offers phone, chat, and email support. With how large Legalzoom’s company is, their customer services can go from excellent to disappointing – basically a hit or miss. Their phone support is excellent, but their email support is not as good as one would expect and will need a lot of improvement.

CorpNet offers excellent customer services in all three support options, and unlike other service companies, they have bilingual support for their customers who are not versed in the English language. This is a much-appreciated gesture.

 

Ease of Use

Starting off with Legalzoom, they do not show you your packaging options at the beginning of your application. Instead, you would need to fill out the necessary information beforehand and go through various upsells which are quite expensive before you are given the ability to select your formation package.

Because of this, there are high chances of increased price points as you navigate over the order form, which is not very user-friendly.

As opposed to Legalzoom, CorpNet lets you start off by selecting your formation package before you proceed to your add-ons. Your total price, including your state fee, is then shown at the very bottom of the page, allowing you to make alterations before filling up your personal information and company information. 

This way is much more user-friendly, given that the user can control their expenses according to their needs without fear of going beyond the budget.

Corpnet’s Official Website

Speed of Formation

Both LegalZoom and CorpNet offer an advanced tracking system that allows customers to track down their progress in real-time. The difference lies in the basis for their turnarounds. 

For CorpNet, they take basis from your state of formation requirements which means that the process could be as quick as a couple of days to several weeks depending on the state. They list down turnaround times on the package selection screen for both standard and expedited services. In addition, both Complete and Deluxe packages include efficient 24-hour document preparation.

On the other hand, Legalzoom specifies the number of days depending on the level of LLC service package you purchased:

  • Economy ($99) – 30 business days
  • Standard ($329) – 15 business days
  • Express Gold ($349) – 7-10 business days

In this case, CorpNet follows a fairer method since the processing time is based on the actual requirements, unlike Legalzoom which takes basis from the amount of money you spend.

Additional Services

Both LegalZoom and CorpNet offer services outside LLC that make the formation of your business smoother and easier. Their customers are given access to the following services:

  • Registered agent service
  • Foreign qualification
  • Annual reports
  • Amendments
  • Conversion

 

However, when it comes to personal services, Legalzoom has more to offer compared to CorpNet. They allow customers to avail of attorney consultations which is a service CorpNet does not offer.

Other than business services they also offer the following features:

  • Last will and testament
  • Power of attorney
  • Divorce papers

Common Questions

What is the biggest advantage each service offers?

Corpnet has quite a number of advantages from Legalzoom. However, if we are to choose the most relevant one, then it would be their customer feedback. They have the upper hand over Legalzoom with their excellent reviews from their clients with an astounding 98% score.

As for Legalzoom, CorpNet could not compare to their customer volume and experience despite being founded much earlier. The 3.6 million businesses assisted by Legalzoom compared to CorpNet’s 500,000 already says a lot.

 

What is the best package to avail of from these services?

We recommend choosing a service package that includes the filing and preparation of necessary legal documents as well as a registered agent service. Between the two, the best choice would be CorpNet’s Deluxe Package which would cost you $228.

 

Which offers more help with regards to ongoing compliance requirements?

Either of these companies would be of huge help when it comes to assistance. Legalzoom charges $159 to $299 per year for their registered agent service and an annual report service for $55. CorpNet charges less for a registered agent service at $149 annually, but their annual report service costs more at $69.

 

Can I get a refund?

Both offer the exact same refund policies with guaranteed 100% satisfaction. Their policy states that a refund request done within 60 days of purchase would be fully granted without any questions thrown.

 

Which has fewer upsells?

Legalzoom has a lot more upsells compared to CorpNet, with it having $1080 worth of attempted upsells before you actually select the LLC package you would like to purchase. 

CorpNet has less, though they do not include the shipping costs to their advertised prices which can cost around $29 for a few papers. This is quite disappointing since this is considered a significant added cost. 

 

Which LLC formation website is faster?

CorpNet would be a better choice when it comes to turnaround times since their process is much more sensible compared to Legalzoom. The speed of formation for Legalzoom is based on the money you spent on their services, which means that the more expensive the package you avail, the quicker the processing.

However, CorpNet offers a fairer system wherein the speed is based on your requirements and the state you’re in. This means that regardless of the amount you spend, if you require basic services, then it would mean a quicker formation process.

 

The Better LLC Service Choice

To conclude, both Legalzoom and CorpNet are capable in LLC formation service handling, and whichever one you choose, rest assured that you are in professional hands. However, as shown above in the key points to take note of, CorpNet gains the upper hand in this comparison with better overall value. 

CorpNet’s packages have more inclusions compared to Legalzoom. Aside from that, it also boasts excellent customer ratings, customer support services, ease of use, and more sensible turnaround times. All these make CorpNet the better choice when it comes to the quality of incorporation services. Moreover, it also offers premium features such as EIN obtainment and an operating agreement.

However, if you’re looking for a company with additional personal services, more experience, less expense, and more features, Legalzoom may be the better choice for you. Legalzoom has massive brand power, and although it has decent overall value in comparison to CorpNet, it offers attorney consultations which the other does not.

LegalZoom Official Website

 

 

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