Incorporating your business can be a time-consuming and daunting task, especially if you’re undergoing the process by yourself. However, this doesn’t have to be the case as there are numerous incorporation services available online. These companies can handle the incorporation process for you, eliminating the need for you to exert time and effort to do so.
Here are the two most popular online legal services companies – LegalZoom and Rocket Lawyer. Both these companies offer services for business start-ups which include business formation paper works, formulation of legal documents, and some other legal services not related to business.
Both LegalZoom and Rocket Lawyer have reputable names in the legal industry, but they have their respective advantages and disadvantages. So, how can you choose the one best suited for your business?
With that said, in this article, we will present you with a comprehensive comparison of their services. Find out which one fits your business nature with our rigorous analysis.
Important Comparison Points
Our review will present five comparison points, detailing each item and presenting our verdict. These comparison points focus on the following factors:
Price comparison and Customer Value.
Price and customer value can be two opposite things, that’s why we checked-out the which offer reasonable price that is commensurate with customer value.
Company Track Record and Experience.
The track record of the company speaks for itself. Customers highly consider the reputation of the company in terms of years in the business, their expertise, and their experience with customers.
Customer Service Quality Assessment.
The company’s values and quality policy begin with customer service. Customer service is the front liner of any company.
Customer Friendly Inquiry Processes/Ease of Use.
Customer service is the lifeline of any customer service-oriented company. Having an organized, systematic, and easy application processing is more favored by customers than a complicated one.
Length of Turnaround and Processing Time.
Business owners value time more than money, that is why a faster transaction is more favorable to them.
Overall Value and Prices
LegalZoom offers a starting price of $79 for business formation plus government filing fee and $99 for nonprofit plus government filing fee. On top of these fees, registered agent service costs $159 per year, and legal forms costs range from $7.99 – $14.95 per year.
As you go through the process of applying, you’ll encounter several “add-ons” and “upgrades” with additional costs. A good point about Legal Zoom is their transparency in pricing, they have detailed prices for each service they offer including additional costs for additional services.
Rocket Lawyer offers one business formation plan costing $99.99 (excluding state fee). This plan has no added features other than the basics of business formation. They have a separate registered agent service which costs $149.99 per year. For legal documents, they charge $39.99 for each legal document. You can have the option to get a Personalized Corporate Kit and Seal which costs $99.99. Their good point is that they offer a 7-day Rocket Lawyer free trial.
The Verdict: A TIE
- For business formation, Rocket Lawyer charges $20.00 more than LegalZoom
- For registered legal agents, LegalZoom charges $10.00 higher than Rocket Lawyer.
- Legal documents are much cheaper than Rocket Lawyer $25.00
- LegalZoom has plenty of upsells which generate additional costs.
At first glance, LegalZoom offers a better option in terms of pricing, but their add-ons come at additional costs which may incur more costs in the end.
Track Record and Experience
LegalZoom has been in the industry since 1999. Their website claimed that they have helped over 2 million businesses and 3.6 million customers. In 2016 they began operating in the UK as a full-fledged law firm. Their goal is to make legal services accessible to average Americans. They have a network of attorneys with a wide range of experiences in legal issues.
LegalZoom prides itself on 10 web-based products, among them are estate planning, business formation, intellectual property protection, legal documents with e-signature, consultation and review of legal documents, and business tax advice.
Rocket Lawyer was founded in 2008. In their short stint in the industry, they claimed to have helped 20 million customers. Although not all these clients are business formation customers, they still obviously shown their worth as legal experts. They show their commitment by providing affordable and accessible legal services among these services are business and contracts, real estate and family and personal. They have proven this commitment by garnering impressive reviews from their satisfied customers.
The Verdict: ROCKET LAWYER WINS!
- LegalZoom has been in the industry longer than Rocket Lawyer.
- Experienced-wise LegalZoom has an edge.
- Rocket Lawyer claimed a whopping 20 million clients compared to LegalZoom with more or less 4 million clients.
- Rocket Lawyer’s commitment to customers and good service has made them be popularly known in the legal services industry.
The volume of their customers speaks louder. Although LegalZoom is older and more experienced, the Rocket Lawyer has proven their competitive spirit by the number of customers who trusted their legal service.
LegalZoom has call center support accessible on weekdays, 5 AM-7 PM, and Saturdays 7 AM-4 PM. You can also email them. You can register in their Business Advisory Plan on their website for legal help. The plan is either 6 months or 1-year flat fee consultation. After picking a planned scheduled appointment, at the scheduled time an attorney will call you. You can find their directory of attorneys with ratings and reviews on their website.
Rocket Lawyer has a phone and chats customer services open from Monday-Friday, 6 AM – 6 PM. You can also send them an email and they will get back to you within 1 business day. Their customer support staff are proven to be very helpful and knowledgeable in legal matters. They have a Rocket Lawyer plan which you can avail of unlimited phone consultations with an attorney. You can try their service by asking for legal advice from their Rocket Lawyer On-call Attorney on their website.
Rocket Lawyer has a special membership offer. If you are a member you save on all essential legal services such as:
- instant access to their library of legal documents
- quick legal advice from on-call lawyer network
- document defense
- free 30-minute consultations on each new matter
- secure cloud storage
- reduced rates for your incorporation
They charge a $39.99 per year membership fee. You can also avail of a 7-day free trial.
They have a directory of lawyers with their professional rates for services such as document reviews, hourly rates, and consultations.
The Verdict: ROCKET LAWYER WINS!
- Both have phone support.
- Rocket Lawyer goes the extra mile by having chat support.
- Both have a comprehensive legal advisory plan.
- Rocket Lawyer offers free legal advice in minutes.
- Rocket Lawyer also offers a 7-day free trial period.
When it comes to web-based customer support, they both have equal footing. But when it comes to customer service and satisfaction, it is clearly shown that Rocket Lawyer values their customer better than LegalZoom. The free trial period and legal advice in minutes is a plus point to clients.
When you log in to LegalZoom’s website you will be presented with different legal services. Click the one you need. LegalZoom asks you relevant questions about the legal services you seek, while you are going through answering questions, they provide you with relevant information about the legal services you might be needing. Then you will be presented with a wide array of legal packages and their corresponding pricing. When you have finally checked and clicked the right package you can proceed with check out and pay.
Rocket Lawyer provides you with a selection of legal services as you log-in to their website. Once you choose your legal service, you will fill-out business information to personalize your filing. After filling-out, you will have to select from the options given to customize your package, then proceed to checkout. Upon check-out, you will be informed of how long the processing of your document will take place. They only have one legal package and one to two options for additional services which you are no inclined to avail of.
The Verdict: ROCKET LAWYER WINS!
Rocket Lawyer offers a simpler process of availing legal services whereas LegalZoom’s processes are a bit complicated with all its many confusing packages that the customers have to choose from.
Rocket Lawyer simplified the process by not adding more legal features that would confuse an ordinary person who is not well versed with legal terms.
LegalZoom has a 6-step process in the application form whereas Rocket Lawyer has only a 3-step process.
How Fast Are The Formations
LegalZoom’s speed of formation depends on the kind of package the client availed. Service completion ranges between 10 to 30 days. Their cheapest package takes around 30 days while their premium package will take only 10 days. Aside from that turnaround time is also dependent on which state the client is forming his business.
Rocket Lawyer’s speed of processing depends solely on which state the client’s business is located. It usually takes 3-5 days to complete LLC. Their website has a page that provides information on the average processing time per state.
The Verdict: ROCKET LAWYER WINS!
Speed and transparency are more important for customers, especially start-ups because the longer they wait the more money they waste. Good thing Rocket Lawyer values time and equal treatment and service for all customers.
LegalZoom is a reputable company with more than 12 years in the legal industry. They have a selection of experienced attorneys in different fields. However, Rocket Lawyer is more competitive in terms of customer service. Clients are the number one asset of any company and Rocket Lawyer knows what their client wants in terms of legal services. They also know how to make the client happy by providing free services.
Although LegalZoom has more products and services than Rocket Lawyer, they lack in terms of customer service because they received a quite number of negative reviews while Rocket Lawyer has redeemed their reputation from bad reviews a few years back.
Frequently Asked Questions
What is each service’s biggest advantage?
Both Legal Zoom and Rocket Lawyer offers the same service, but if your business needs trademark registration, initial patent application, or copyright application choose LegalZoom otherwise, choose Rocket Lawyer. LegalZoom offers costlier and more complicated packages for Business Formation than competitors.
Which is the best package offered by the two services?
If you are looking for a unique package customized to the nature of your business, LegalZoom is more recommended. LegalZoom offers a wide variety of legal packages that can be customized to the nature of your business.
If you are looking for a legal service with a package that includes registered legal agents, neither LegalZoom nor Rocket Lawyer offers it. Some companies offer a combination of Business Formation and Legal Consultation some of these are Incfile and ZenBusiness.
Which company offers the best assistance when it comes to ongoing compliance requirements?
When it comes to compliance requirements LegalZoom has you covered. Unlike their competitors, LegalZoom covers tax advice and annual business evaluation in their legal package (optional). Including in their package is one copyright registration per month which is ideal for artists, singers, and other creative businesses. Their legal agents’ cost ranges from $159 – $299 per year. Their annual report service cost as low as $55.00
Can I get a refund if I need to?
Both LegalZoom and Rocket Lawyer offer a refund. Rocket Lawyer offers a 30-day full refund whereas LegalZoom offers a 60-day money-back guarantee. Both of them do not charge cancellation or processing fees for refunds.
Do these services overdo upsells or take too many third-party partnerships?
If we can consider it an upsell, Rocket Lawyer pushes for their subscription and membership, other than that they don’t have anything to be called an upsell. They also avoid third-party partnerships. As for LegalZoom, they don’t have third-party offers, but their “add-ons” and “upgrades” are way too much than any company, reaching as much as $1000 upsell attempts.