LegalZoom vs BetterLegal

(November 2024)

LegalZoom-vs-BetterLegal

In This Article

Our Verdict

LegalZoom vs BetterLegal Our Verdict

The choice is between LegalZoom and BetterLegal, both popular online legal services that can assist you in forming LLCs and corporations. They offer similar core services, but differ in pricing models, features, and target customers.

LegalZoom, the more established and comprehensive option, provides a wide range of legal services beyond business formation. It offers tiered pricing plans and access to attorney consultations, making it ideal if you seek ongoing legal support and assistance with personal legal matters.

BetterLegal, on the other hand, takes a simpler approach with a single flat-fee plan for business formation. It focuses on speed and transparent pricing without upsells, perfect for you if you want a straightforward, no-frills LLC formation service at a predictable price point.

Both companies have their strengths, but the best choice is LegalZoom. This in-depth comparison explores how LegalZoom and BetterLegal measure up in key areas to help you determine which is the right fit for your business.

Why Choose LegalZoom

Why-Choose-LegalZoom

You get more than just business formation help. LegalZoom assists with wills, trusts, intellectual property, and other personal and business legal needs, making it your one-stop shop for various legal matters. Tap into a network of attorneys for consultations and ongoing legal advice through LegalZoom’s Business Advisory Plan. This access is invaluable for you as a new business owner that needs professional guidance. With a long track record and millions of satisfied customers, LegalZoom’s established presence offers you peace of mind, knowing you’re working with a pioneer in online legal services.

You can utilize a wide library of customizable legal forms and templates to meet various business and personal needs, ensuring your legal documents are tailored to your specific requirements. Manage your account, track orders, and access documents on the go with LegalZoom’s convenient mobile app. Benefit from a partnership with Wix, as LegalZoom offers a free customizable website with its business formation packages, helping you establish an online presence from the get-go.

Who LegalZoom Is Best For

LegalZoom is an excellent choice for you if you:

  • Want comprehensive legal support
  • Need help with both business and personal legal matters
  • Value brand recognition and established reputation
  • Want a free website
  • Prefer tiered pricing options

>>>MORE: LegalZoom Review

Who LegalZoom Is Not Right For

LegalZoom may not be the best if you:

  • Seek the lowest-cost option
  • Want the fastest possible turnaround
  • Like simple, all-inclusive pricing

Why Choose BetterLegal

Why-Choose-BetterLegal

You can benefit from same-day filing and two-day turnaround times for most services, getting your business up and running without delay. Enjoy transparent pricing with a single flat fee that covers all essential formation services, eliminating upsells or confusing pricing tiers.

Receive your Employer Identification Number (EIN) with the standard package at no additional cost, unlike many competitors. Take advantage of affordable registered agent services at $90 per year or $10 per month. Experience a user-friendly process with an easy-to-use online interface that makes business formation simple and straightforward. Additionally, BetterLegal partners with Taxfyle to provide a complimentary tax analysis, a valuable tool for new business owners.

Who BetterLegal Is Best For

Make BetterLegal your first choice if you:

  • Value speed
  • Seek simple, transparent pricing
  • Stay budget-conscious
  • Limit or do not need any ongoing legal support
  • Require a straightforward, no-frills service

Who BetterLegal Is Not Right For

Consider other alternatives if you:

  • Seek comprehensive legal services
  • Want to obtain access to attorney consultations
  • Value multiple plan options
  • Need help with more complex legal matters

Main Differences

LegalZoom emerges as the winner for main differences between LegalZoom and BetterLegal. LegalZoom’s extensive array of legal services beyond business formation, including personal legal matters and access to attorney consultations, sets it apart.

LegalZoom BetterLegal

Ideal For

LegalZoom is ideal for you if you need a wide range of legal services, including both business and personal matters. Its Business Advisory Plan makes it a good fit for ongoing access to legal advice. The company’s established reputation and comprehensive offerings make it suitable for those who prefer a one-stop shop for various legal needs.

BetterLegal, on the other hand, is ideal if you’re an entrepreneur who is primarily focused on quick and efficient business formation. It’s best for you if you value speed, transparent pricing, and a no-frills approach to LLC or corporation setup. BetterLegal is well-suited for budget-conscious business owners who don’t need extensive ongoing legal support.

Prices

LegalZoom offers tiered pricing with three main plans for LLC formation:

  • Basic: $0 + state filing fees
  • Pro: $249 + state filing fees
  • Premium: $299 + state filing fees

LegalZoom also has a Business Advisory Plan for $39.99/month that provides access to attorney consultations.

BetterLegal takes a different approach with a single flat-fee plan:

  • LLC/Corporation Formation: $299 (one-time fee) + state filing fees

This plan includes all essential formation services, including EIN obtainment and operating agreement or bylaws.

Integrations

LegalZoom partners with several third-party services to offer additional features like Wix, QuickBooks, Rocket Lawyer

BetterLegal also has some integrations including Square, Taxfyle, Sure, Mercury

Standout Features

  • Access to attorney network
  • Comprehensive legal services beyond business formation
  • Mobile app for account management
  • Extensive library of customizable legal forms
  • Free Wix website included with business formation
  • Fast processing times (same-day filing, 2-day turnaround)
  • All-inclusive pricing with no upsells
  • EIN included in standard package
  • Affordable registered agent service
  • Free tax analysis through Taxfyle

Standout Features

LegalZoom

LegalZoom-Standout-Features

Attorney Access

LegalZoom’s standout feature is its Business Advisory Plan, which provides access to attorney consultations for a monthly fee. This can be invaluable for new business owners who need ongoing legal guidance.

Comprehensive Legal Services

Beyond just business formation, LegalZoom offers a wide range of legal services for both personal and business matters. This includes wills, trusts, intellectual property protection, and more.

Customizable Legal Forms

LegalZoom provides a vast library of legal forms and templates that can be customized for various needs. This can save time and money on common legal documents.

Mobile App

The LegalZoom mobile app allows you to manage your account, track orders, and access documents on the go. This adds convenience if you prefer mobile access.

Brand Recognition

As one of the pioneers in online legal services, LegalZoom has strong brand recognition and an established track record. This can provide peace of mind if you value working with a well-known company.

BetterLegal

BetterLegal Standout Features

Fast Processing

BetterLegal’s standout feature is its speed. The company offers same-day filing and a 2-day turnaround for most services, which is faster than many competitors.

Transparent Pricing

BetterLegal’s single flat-fee plan includes all essential formation services without upsells or complex pricing tiers. This transparency is appealing if you dislike surprises in your final bill.

Included EIN

Unlike some competitors who charge extra for this service, BetterLegal includes EIN obtainment in its standard package at no additional cost.

Affordable Registered Agent Service

BetterLegal offers competitively priced registered agent services at $90 per year or $10 per month, which is lower than many competitors.

User-Friendly Process

BetterLegal emphasizes simplicity in its formation process, with an easy-to-use online interface designed to make LLC or corporation setup as straightforward as possible.

Pros and Cons

LegalZoom stands out as the winner for standout features. LegalZoom’s access to attorney consultations through its Business Advisory Plan and its extensive library of customizable legal forms provide significant added value to customers.

LegalZoom

LegalZoom-Pros-and-Cons
  • Provides Comprehensive Services: LegalZoom offers a wide range of legal services beyond just business formation, making it a one-stop shop for various legal needs.
  • Grants Attorney Access: Through its Business Advisory Plan, LegalZoom provides access to attorney consultations, which can be valuable for ongoing legal support.
  • Boasts Established Reputation: With over 20 years in the industry, LegalZoom has built a strong track record and brand recognition.
  • Offers Customizable Legal Forms: LegalZoom provides a vast library of customizable legal documents and templates.
  • Includes Free Website: Business formation packages include a free customizable website through Wix.
  • Features Mobile App: LegalZoom’s mobile app allows for convenient account management and document access.
  • Provides Tiered Pricing: Multiple plan options allow customers to choose based on their needs and budget.
  • Incurs Higher Pricing: LegalZoom’s paid plans tend to be more expensive than some competitors.
  • Includes Upsells and Add-ons: The tiered pricing structure and additional services can lead to a higher final cost than initially anticipated.
  • Provides Varying Processing Times: LegalZoom’s turnaround times can be slower than some competitors, with expedited service costing extra.
  • Offers Limited Customer Support Hours: Customer service is not available 24/7, which may be inconvenient for some users.
  • Presents Complexity: The wide range of services and pricing options can be overwhelming for some users who prefer simplicity.

BetterLegal

BetterLegal Pros and Cons
  • Delivers Fast Processing: BetterLegal offers same-day filing and 2-day turnaround times for most services, which is faster than many competitors.
  • Provides Transparent Pricing: The single flat-fee plan includes all essential services without upsells, making costs predictable.
  • Includes EIN Obtainment: BetterLegal includes EIN obtainment in its standard package at no extra cost.
  • Offers Affordable Registered Agent Service: At $90 per year or $10 per month, BetterLegal’s registered agent service is competitively priced.
  • Ensures User-Friendly Process: The company aims to make the formation process as simple and straightforward as possible including legal translator and AI.
  • Provides Free Tax Analysis: BetterLegal partners with Taxfyle to provide a complimentary tax analysis.
  • Avoids Upsells: The all-inclusive package means customers aren’t pressured to buy additional services.
  • Limits Services: BetterLegal focuses primarily on business formation and doesn’t offer the same range of legal services as some competitors.
  • Lacks Attorney Access: Unlike LegalZoom, BetterLegal doesn’t provide direct access to lawyers as part of its services.
  • Offers No Free Plan: While competitively priced, BetterLegal doesn’t offer a free formation option like some competitors do.
  • Provides Limited Customer Support: Customer service options are more limited compared to some competitors, with no 24/7 support.
  • Lacks Money-Back Guarantee: BetterLegal doesn’t offer a satisfaction guarantee or refund policy, which some competitors do provide.
  • Features One-Size-Fits-All Approach: The single plan might not appeal to those who prefer to choose from different service tiers.

How to Sign Up for LegalZoom

To sign up with LegalZoom as a small business owner, follow these straightforward steps:

  • Start online registration on the website
  • Choose your legal service
  • Select specific service
  • Answer guided questions
  • Create your account
  • Review and payment
  • Complete your order

How to Get Started with BetterLegal

To sign up for BetterLegal, you have to:

  • Complete the simple questionnaire on the website
  • Prepare and file your documents
  • Wait for state processing
  • Carry out an IRS ein filing
  • Generate your legal documents
  • Receive your documents via email

After receiving your documents, you’re ready to grow your business. The service is ready to support you further with banking, tax, accounting services, website design, and more.

Customer Reviews

LegalZoom generally receives better reviews compared to BetterLegal, with a higher average rating indicating greater customer satisfaction.

LegalZoom has a mixed reputation across various review platforms. It holds a rating of 4.3 on Trustpilot, 3.7 on U.S. News & World Report, and an A+ rating from the BBB. Customers often appreciate LegalZoom for its user-friendly website, straightforward processes, helpful customer service, and the range of services available. Positive reviews highlight the convenience of attorney consultations.

However, LegalZoom also faces criticism, including complaints about unexpected charges, slower processing times, and challenges with subscription cancellations.

In contrast, BetterLegal, as a newer company, has fewer online reviews available. The feedback it has received tends to be positive, with an excellent rating of 4.3 on USA Today and an A- rating from the BBB.

Positive reviews for BetterLegal commonly mention its fast processing times and transparent pricing. Negative feedback, though less frequent, notes the company’s limited services beyond business formation and some customers expressing a desire for more personalized support.

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Competitors

While LegalZoom and BetterLegal are popular choices for online legal services, they’re not the only options available. Here are some notable competitors in the business formation and online legal services space:

ZenBusiness

ZenBusiness known for its affordable pricing and user-friendly platform, ZenBusiness offers a free basic LLC formation package plus state fees. It also provides ongoing compliance support and a variety of add-on services.

Incfile (now Bizee)

Similar to ZenBusiness, Incfile offers a free basic LLC formation package plus state fees. They’re known for their straightforward pricing and included registered agent service for the first year.

Rocket Lawyer

More similar to LegalZoom in its comprehensive approach, Rocket Lawyer offers a wide range of legal services including business formation, legal document creation, and attorney consultations.

Inc Authority

Another service offering free basic LLC formation, Inc Authority is known for its user-friendly process and additional business services.

MyCompanyWorks

This service offers competitive pricing and a 100% satisfaction guarantee. They’re known for their fast processing times and comprehensive formation packages.

Pro Tips

When choosing between LegalZoom, BetterLegal, or any other online legal service, keep these pro tips in mind:

  • Utilize free consultations
  • Assess your needs
  • Consider long-term costs
  • Value your time
  • Read the fine print
  • Check processing times
  • Research state-specific requirements

Recap

LegalZoom and BetterLegal are prominent choices for online legal services, particularly in LLC and corporation formation. While both offer core services, they differ significantly in pricing structures, service features, and target clientele.

LegalZoom, established and comprehensive, provides a broad spectrum of legal services beyond business formation. It appeals to those needing ongoing legal support and assistance across personal and business matters, backed by attorney consultations and a diverse array of customizable legal forms. However, it comes with higher pricing, varying processing times, and complex service tiers.

In contrast, BetterLegal emphasizes simplicity with a straightforward, all-inclusive pricing model ideal for budget-conscious entrepreneurs seeking fast LLC or corporation setup. It offers same-day filing, includes an EIN at no extra cost, and provides a user-friendly process without upsells. However, its service scope is limited compared to LegalZoom, lacking attorney access and comprehensive legal services.

Both services have garnered positive customer feedback, with LegalZoom enjoying a higher average rating and more extensive user base. BetterLegal, despite being newer, earns praise for its speed and transparent pricing, though some users note its limited service offerings.

Ultimately, your choice between LegalZoom and BetterLegal hinges on your specific business needs, preference for service complexity, and budget considerations. This comparison aims to guide you towards the service that best aligns with your priorities for online legal support.

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