BetterLegal vs. LegalZoom: Which service is better?

Explore the nuances of legal advisory and formation services with our in-depth comparison of BetterLegal and LegalZoom to make an informed decision.

Embarking on your business journey or managing an established enterprise involves a multitude of legal and administrative tasks.

In the realm of legal services and business solutions, two prominent contenders stand out: BetterLegal and LegalZoom.

As we embark on a detailed comparison of BetterLegal vs. LegalZoom, we’ll explore crucial questions, including:

• What distinguishes these platforms in terms of pricing, features, and overall user experience?
• Which one aligns seamlessly with your distinct business goals?
• How can you confidently navigate the initial steps or make informed decisions for your ongoing business operations?

Keep reading this guide to unveil the optimal solution tailored to your entrepreneurial needs.

Pro-Tip: For deeper insights into these services, be sure to check out our reviews of BetterLegal and LegalZoom.

BetterLegal vs. LegalZoom at a glance

Feature	BetterLegal	LegalZoom	Winner
SMB Guide’s Rating	8/10	8.6/10	LegalZoom
Business Formation Services	LLCs and corporations	Multiple entity types	LegalZoom
Processing Time	2 business days	5 to 14 days	BetterLegal
Registered Agent Services and Costs	Priced at $90 per year or $10 per month	$249/year	BetterLegal
Name Availability Search	❌	❌	Tie
Online Document Access	❌	✅	LegalZoom
Money-Back Guarantees	None	60 days	LegalZoom
Platform User-Friendliness	Easy and straightforward UI	Aesthetic UI	Tie
Customization Options	✅	✅	LegalZoom
Compliance Assistance	✅	✅	BetterLegal
Industry-Specific Expertise	Established in 2016	Founded in 2001	LegalZoom
Customer Education and Resources	Blog	Blog, legal forms and document templates	LegalZoom
Customer Support	Phone, live chat, email	Phone, live chat, email	Tie
Pricing	$299 + state filing fees	$149 – $349	LegalZoom
Scalability	Limited scalability options	Convert as you grow	LegalZoom

How we evaluate and test softwares

When testing softwares/apps, SMB Guide employs a dual approach based on free trial availability and demos. For platforms offering free trials, we test their functionalities, usability, navigation, and ease of use. In the case of tools lacking a free version or trial, we rely on in-depth research and user testimonials through software review platforms like G2, Capterra, TrustRadius, Software Advice, and GetApp to gauge their performance and capabilities. Learn more about our ratings criteria for business formation services here.

BetterLegal: Key Features, Pros, Cons, & Pricing

BetterLegal stands out as an internet-based business formation service prioritizing rapid service and clear pricing.

Opting for a single-price model streamlines choices but positions the cost at a moderate point, often regarded as the ideal balance among formation services. 

BetterLegal’s approach is focused on straightforwardness, ensuring that what’s presented is precisely what you receive.

Pros & Cons

Pricing

BetterLegal’s pricing is as simple as it gets. It offers a single flat-rate pricing plan of $299 you can use to form either an LLC or a Corporation. 

Keep in mind this fee doesn’t cover the state filing fee.

LegalZoom: Key Features, Pros, Cons, & Pricing

LegalZoom sets itself apart by providing a comprehensive range of business formation services, covering aspects such as entity selection, name reservation, and document filing.

Their offerings extend to registered agent services, ensuring businesses comply with legal requirements and receive important documents and notifications.

This provider also has a strong emphasis on attorney expertise. While not a substitute for an attorney, the platform provides access to valuable legal advice through its legal plan services.

This enables customers to consult experienced attorneys on a diverse array of legal matters.

Furthermore, LegalZoom offers an extensive library of legal documents and templates, simplifying tasks such as contract drafting and will creation.

This broadens the platform’s overall usefulness.

Pros & Cons

Pricing

LegalZoom adopts a flexible pricing structure based on selected services and packages.

For LLC business formation, the commonly chosen package starts at $0, with state filing fees separate.

Different pricing models apply to services like registered agent services, legal plans, and trademark registration.

Business Formation Services

BetterLegal specializes in LLC and Corporation formation, offering a comprehensive package for these entities.

The package includes various services from third-party partners including:

• State formation filing with express processing
• EIN application
• Operating agreement/bylaws
• Business forms
• Banking resolution
• Tax analysis
• Insurance evaluation
• State compliance services
• Registered agent services
• Payroll and HR platforms

LegalZoom formation services

LegalZoom is renowned for its comprehensive array of business formation services, catering to various entity types:

• LLCs: Receive expert guidance in navigating the nuanced process of selecting a distinctive business name, filing crucial documents, and ensuring strict adherence to state regulations.
• Corporations (C and S Corp): Benefit from services encompassing the filing of articles of incorporation and adherence to essential legal guidelines for corporate structures.
• General and Limited Partnerships: Obtain assistance in the naming process and streamline the filing of mandatory documents.

LegalZoom’s flexibility allows businesses to make tailored choices that seamlessly align with their unique requirements and budget considerations.

LegalZoom wins this category as it offers business formation services for more entity types.

✅ Winner: LegalZoom

Processing Time

BetterLegal boasts a swift business formation process, usually within two business days, outpacing many competitors in speed.

However, this timeframe might fluctuate based on the state’s individual processing periods.

Additionally, documents are conveniently delivered via email, further expediting the process.

Compared to other services that often take weeks and may charge extra for expedited services, BetterLegal’s promptness stands out.

This rapid turnaround time is beneficial for those eager to kickstart their business.

LegalZoom processing times

Typically, standard processing times for business formation services and document submissions to government entities fall within the range of 5 to 14 business days.

In practical terms, this implies that upon initiating the process, there is an anticipated waiting period of up to two weeks before the finalized documentation is received.

LegalZoom provides expedited services as well, incurring an additional fee.

The specific cost varies based on the chosen service and your geographic location.

As BetterLegal’s services are faster, BetterLegal wins this category.

✅ Winner: BetterLegal

Registered Agent Services and Costs

BetterLegal doesn’t automatically include Registered Agent services in its base package.

However, you can acquire this service separately for $10 per month or $90 per year.

This cost is notably lower compared to rates from other providers. Opting for this service allows you to maintain your privacy by using BetterLegal’s address.

Any critical mail, including state compliance notices, reports, or legal documents, will be handled by BetterLegal to ensure you don’t miss any important communications.

LegalZoom registered agent

LegalZoom includes registered agent services as a separate add-on and at an annual fee of $249.

This service is particularly beneficial for businesses, especially those operating in multiple states.

By utilizing LegalZoom’s registered agent services, you can:

• Manage Crucial Legal Documents: Efficiently handle essential legal documents such as tax notifications, legal summons, and other official correspondence on behalf of your business.
• Safeguard Owner Privacy: Ensure the privacy of business owners by utilizing the registered agent’s address for public records, maintaining the confidentiality of personal addresses.
• Access Expert Legal Guidance: Benefit from the expertise and guidance of a reputable legal services provider, serving as a valuable resource, especially for new business owners navigating complex legal compliance requirements.

BetterLegal wins this category as its RA services are significantly lower priced.

✅ Winner: BetterLegal

Name Availability Search

BetterLegal provides a name search page that directs you to the business office of your state’s Secretary of State.

This allows you to verify the availability of your desired business name in your state before initiating the form-filling process.

Ensuring your chosen name is available beforehand helps prevent delays in the entire procedure.

Should your preferred business name not be available, BetterLegal allows you to provide two alternative names, ensuring smoother progress in case your primary choice is unavailable.

Presently, LegalZoom lacks a dedicated tool on its website exclusively designed for conducting name availability searches.

Instead, this feature is seamlessly integrated into their service packages, becoming accessible only when opting for one of their service plans.

This stands out as a notable limitation when juxtaposed with certain competitors, such as Firstbase.io, who offer users free and comprehensive online name search tools.

Both tie in this category as they don’t offer a free tool.

✅ Winner: Tie

Online Document Access

BetterLegal offers a dedicated resources section on its website, presenting essential documents and educational materials to assist users in comprehending the business formation process. 

Documents are not stored online but are instead sent via email, allowing users to manage them using their preferred cloud storage service.

LegalZoom does not provide an elaborate online document storage system for housing your business documents and filings.

Instead, they dispatch the original documents and filings via traditional postal mail.

Nonetheless, they grant access to an extensive repository of templates covering various legal forms and documents.

These templates are conveniently presented in PDF format, enabling users to peruse and download them at their convenience.

As LegalZoom has a wider repository of documentation resources, it wins this category.

✅ Winner: LegalZoom

Money-Back Guarantees

BetterLegal does not provide a money-back guarantee upon payment for their services.

Additionally, there are no free trials or formation plans available, unlike some competitors. 

Upon paying the one-time fee, users are committed to the service without the option of a refund.

LegalZoom guarantees

LegalZoom offers the “LZ Guarantee,” underscoring their unwavering commitment to delivering high-quality legal services with precision.

It’s crucial to understand that this guarantee differs from conventional money-back guarantees.

If LegalZoom makes an error on your order, they pledge to rectify it without incurring additional costs to you.

However, it’s important to clarify that LegalZoom’s guarantee does not include a standard, straightforward money-back policy for situations where customers express dissatisfaction or have a change of mind about a service.

In cases unrelated to errors made by LegalZoom, the eligibility for a refund is typically evaluated on an individual basis.

✅ Winner: LegalZoom

Platform User-Friendliness

BetterLegal boasts a user-friendly platform that is remarkably easy to navigate. 

While the company claims its formation process can be completed in less than 10 minutes, it’s best to prepare all necessary information beforehand for accuracy.

LegalZoom’s platform

LegalZoom provides a user-friendly platform designed to accommodate a broad spectrum of users, spanning from novice entrepreneurs to seasoned business owners.

You’ll find it intuitive and easy to navigate.

✅ Winner: Tie

Customization Options

BetterLegal provides a somewhat restricted scope for customization within its one-time fee package.

However, it does offer several separate add-ons that can be tailored to suit specific needs. 

These add-ons include Registered Agent Services, Compliance Services, License & Permit Search, Business Amendments & Other State Filings, Tax, Accounting & Bookkeeping Services, Business Insurance, Payroll & HR Services, and Business Banking. 

This allows users to personalize their services according to their distinct business requirements beyond the basic package.

LegalZoom customization options

LegalZoom presents a range of service packages tailored to address diverse business needs, giving customers the flexibility to choose the package that aligns with their immediate demands and financial considerations.

These service packages often come with supplementary services that customers can tailor to their specific needs.

Whether it’s opting for registered agent services, acquiring an Employer Identification Number (EIN), or securing a business license, customers can select options that suit their individual requirements.

LegalZoom wins this category as it provides a more extensive variety of add-ons for different business types as well.

✅ Winner: LegalZoom

Compliance Assistance

To ensure compliance, BetterLegal gives you the option to have them handle your state compliance filings for an additional cost.

This service is priced at $90 per year or $10 per month. 

By choosing BetterLegal for this service, they will handle the submission of your annual compliance reports on behalf of your LLC or corporation.

It’s crucial to file these reports regularly to avoid risking termination of your business, loss of liability protection, and other associated benefits.

LegalZoom compliance assistance

LegalZoom provides comparable support for maintaining compliance, covering aspects like filing annual reports, meeting tax deadlines, and staying abreast of pertinent regulations.

This includes access to their Compliance Calendar tool, registered agent services, annual report submissions, routine updates to corporate records, and facilitation in obtaining essential licenses and permits for lawful operation within the relevant jurisdiction.

BetterLegal’s compliance and RA service priced together is still more affordable than LegalZoom’s.

✅ Winner: BetterLegal

Industry-Specific Expertise

Established in 2016, BetterLegal is relatively new to the market. However, it aims to simplify the business setup process. 

It’s important to note that BetterLegal is not a law firm and does not offer legal advice or recommendations.

The company assists individuals in setting up their businesses but does not provide guidance on legal rights, remedies, business structure, operational strategies, or legal forms. 

BetterLegal focuses on facilitating business formation procedures rather than providing legal advice or opinions.

LegalZoom’s expertise

Founded in 2001, LegalZoom boasts a significant background that has propelled it to prominence in the industry.

As a legal technology firm from its inception, it embarked on an innovative journey to leverage technology for increased accessibility to legal services.

Building on this tech-driven foundation, LegalZoom has utilized its extensive experience to pioneer innovative solutions and optimize the efficiency of legal processes.

✅ Winner: LegalZoom

Customer Education and Resources

BetterLegal offers valuable educational resources to aid individuals in understanding business formation.

Their website includes a Resources page housing informative articles on various aspects of business setup.

Moreover, BetterLegal maintains an informative YouTube channel, where users can find additional guidance. 

They are also active on popular social media platforms such as Facebook, Twitter, and Instagram, providing insights and updates to assist individuals seeking information on business formation.

LegalZoom resources

LegalZoom presents an extensive library of informative articles covering diverse legal and business topics, conveniently accessible on its website.

Authored by legal experts and seasoned industry professionals, these articles offer a rich source of insights, including in-depth analyses, real-world case studies, and actionable advice.

Additionally, LegalZoom provides a diverse range of legal document templates, encompassing tasks such as contract creation, agreement drafting, and will preparation.

To stay updated and connected, you have the option to subscribe to their newsletters and follow LegalZoom on popular social media platforms like Facebook, LinkedIn, YouTube, Twitter, and Instagram.

✅ Winner: LegalZoom

Customer Support

BetterLegal offers live chat support during business hours, but my experience with their availability seemed inconsistent.

Despite reaching out within standard business hours, the live chat was offline. Instead, I was prompted to leave my details for a callback within a few hours.

Their website indicates phone support availability Monday to Friday, from 9 a.m. to 7 p.m. EST, and they also offer support via email.

However, when I emailed them with inquiries, I didn’t receive a response even after four days, which left me less satisfied with their customer service.

LegalZoom’s customer support

LegalZoom offers diverse avenues for customer assistance, accommodating different preferences.

If you favor phone-based support, you can connect with their customer care team during their service hours, which span from 5 a.m. to 7 p.m. PT on weekdays and from 7 a.m. to 4 p.m. PT on weekends.

For general inquiries, you can contact them at (888) 379-0854, and for sales-related questions, reach out to them at (855) 787-1922.

Alternatively, for those who prefer online communication, you have the option to submit your questions or inquiries through their website.

LegalZoom also provides real-time chat support, enabling you to engage in live conversations with their agents.

✅ Winner: LegalZoom

Pricing

BetterLegal’s pricing is as simplified as it gets, consisting of a one-time $299 flat fee (excluding state fees) with various add-ons available at other, reasonably priced rates.

However, it’s lack of a free plan is a definite disadvantage. LegalZoom’s pricing plans are structured as below:

Entity Type	Plan and Price	Plan and Price	Plan and Price
LLC	Basic: $0 + state filing fees	Pro: $249 + state filing fees	Premium: $299 + state filing fees
Corporation	Economy: $149 + state filing fees	Standard: $329 + state filing fees	Express Gold: $349 + state filing fees
Nonprofit Corporation	Economy: $99 + state filing fees	Standard: $239 + state filing fees	Express Gold: $359 + state filing fees
Limited Partnership	Economy: $149 + state filing fees	Standard: $259 + state filing fees	Express Gold: $379 + state filing fees
Limited Liability Partnership (LLP)	Economy: $149 + state filing fees	Standard: $259 + state filing fees	Express Gold: $379 + state filing fees

✅ Winner: LegalZoom

Scalability

BetterLegal’s scalability is notably constrained primarily due to its simplistic pricing structure and the restricted range of corporation types it supports.

The company’s straightforward pricing model lacks flexibility in accommodating diverse business needs and growth stages.

Moreover, BetterLegal’s focus on a limited selection of corporation types restricts scalability options for businesses that may require alternative structures

LegalZoom’s scalability

Whether you aim to enrich your existing entity with a multitude of features or nurture the expansion of your business while ensuring legal compliance, LegalZoom provides the ideal solution.

LegalZoom’s adaptability spans a wider range of entity types, giving it a competitive edge in this regard.

✅ Winner: LegalZoom

Standout Features of BetterLegal

BetterLegal stands out for its exceptional speed in processing documents, surpassing competitors who might take weeks to finalize filings.

This rapid turnaround time is particularly advantageous for those aiming to swiftly establish their businesses. 

Several customer reviews also praise BetterLegal’s user-friendly and interactive dashboard for future modifications.

This dashboard displays real-time updated business information, allowing users to access compliance filing reminders and modify details like business name, address, or ownership. 

Once you’re signed up with your own account, it also provides a library of commonly used contracts and agreements free of charge, enhancing its overall utility and value for users.

Standout Features of LegalZoom

LegalZoom’s Compliance Calendar stands as a valuable tool empowering businesses to stay proactive and well-informed about critical deadlines and necessary filings.

This tool ensures businesses receive timely notifications for important dates like annual reports and state income tax deadlines, actively contributing to their compliance efforts.

Furthermore, LegalZoom provides a Trademark Search service, aiding businesses in making informed decisions before initiating the process of applying for a federal trademark.

BetterLegal vs. LegalZoom: SMB Guide’s Verdict

After our thorough evaluation, LegalZoom takes the lead by a mile.

LegalZoom stands out as the ultimate choice owing to its vast industry expertise and a diverse array of services.

It’s an ideal solution for businesses seeking comprehensive support in expanding their operations, particularly those aiming beyond C-Corp structures.

Explore LegalZoom’s offerings here to experience its extensive benefits!

BetterLegal, on the other hand, is a perfect fit for those looking for a cost-affordable option limited to just Corporations and LLCs.

To get started with BetterLegal, click here.