Tailor Brands vs. LegalZoom: Which LLC service is better?

What can a startup do to avoid fines during the business formation stage? Find out services that can help in this Tailor Brands vs. LegalZoom comparison.

Choosing the right legal structure for your startup as a first-time founder is crucial.

Markets like the US come with stringent laws that you need to comply with.

Now, compliance is one factor, but there are other backend processes you need to align to ensure your venture succeeds.

One way to streamline all these processes and avoid getting penalized is by using a formation and incorporation service.

Two that have gained much recognition are Tailor Brands and LegalZoom.

Tailor Brands combines formation services with branding tools. LegalZoom specializes in legal services during formation and post-incorporation.

However, how do the services compare, and which offers value for money?

Let us find out in this Tailor Brands vs. LegalZoom comparison.

Tailor Brands vs. LegalZoom at a glance

Feature	Tailor Brands	LegalZoom	Winner
SMB Guide’s Rating	8.2/10	8.6/10	LegalZoom
Business Formation Services	LLC only	Multiple entity types	LegalZoom
Processing Time	2 weeks	5 to 14 days	LegalZoom
Registered Agent Services and Costs	$199/year	$249/year	Tailor Brands
Name Availability Search	❌	❌	Tie
Online Document Access	✅	✅	Tie
Money-Back Guarantees	None	60 days	LegalZoom
Platform User-Friendliness	Offers a complete studio	Aesthetic UI	Tailor Brands
Customization Options	✅	✅	LegalZoom
Compliance Assistance	✅	✅	Tie
Industry-Specific Expertise	Established in 2015	Founded in 2001	LegalZoom
Customer Education and Resources	Blog	Blog, legal forms and document templates	LegalZoom
Customer Support	Live chat, email	Phone, live chat, email	Tie
Pricing	$0-$249/year	$149 – $349	Tailor Brands
Scalability	Not scalable	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, and TrustRadius to gauge their performance and capabilities. Learn more about our ratings criteria for business formation services here.

Tailor Brands: Key Features, Pros, Cons, & Pricing

Tailor Brands is an all-rounded business formation and branding service. It acts as a one-stop shop for startups to launch their LLCs in US states.

Tailor Brands is a valuable resource for entrepreneurs, offering support in generating a logo, building a website, and creating business cards.

It helps in their brand visibility. Tailor Brands also helps non-US citizens form and launch a venture in any state.

Pros & Cons

Pricing

Tailor brands offer basic formation services for free (+ state fees). However, the additional services come at a cost.

Let me break down some of the additional service charges:

• Annual report filing: $199 annually
• Registered Agent: $199 annually
• Operating agreement: $29

LegalZoom: Features, Pros, Cons, & Pricing

LegalZoom is a formation service that helps first-time founders launch their startup in 50 states as a DBA, LLC, non-profit, or C-Corp.

Entrepreneurs will find that LegalZoom will provide additional services besides the basic formation.

They include annual tax filing, registered agent, and more. Not only that, the service also provides tools, professional consultation, and legal forms at a cost.

Pros & Cons

Pricing

LegalZoom offers three pricing packages: Basic, Pro, and Premium, each equipped with a 60-day money-back guarantee.

These plans include:

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

Business Formation Services

Both Tailor Brands and LegalZoom provide fundamental LLC formation services tailored to suit various types of businesses.

Tailor Brands excels in providing marketing and branding services. LegalZoom narrows its focus on legal services.

Tailor Brands exclusively offers LLC formation services across all states in the US, specializing in this particular business entity type.

On the other hand, LegalZoom offers partnerships, LLC, C-Corp, non-profit, and DBAs as entity types.

In addition to formation services, users will discover that Tailor Brands provides a range of supplementary offerings beyond just setting up businesses.

The platform is a one-stop shop that allows you to enhance your brand visibility.

It allows you to create a domain name, website, logo, and social network. Startups can also leverage Tailor Brands AI to develop unique designs that match brand voice and industry.

While LegalZoom doesn’t offer branding services like Tailor Brands, it does provide access to a variety of legal services.

Some are patent applications, legal consultation, trademark registration, and more.

The legal services come in handy when startups want to be compliant or solve legal challenges.

✅ Winner: LegalZoom

Processing Time

Although Tailor Brands and LegalZoom provide LLC formation services, entrepreneurs will find their processing times vary.

Tailor Brands typically processes and files formation paperwork within a remarkable timeframe of under 2 days.

However, the average turnaround time is 2 weeks. It comprises paperwork review, filing with the state, and entity formation confirmation.

One thing to note is the government turnaround time varies with the state.

LegalZoom’s processing times

LegalZoom processing times will depend on the pricing plan a startup purchases.

The free plan takes 30 days for a turnaround, the Pro plan 15 days, and the Premium plan under 10 days.

The processing times encompass several steps, including reviewing paperwork, filing with the state, and confirming the entity, all of which Tailor Brands aims to complete within a streamlined timeframe.

Unlike Tailor Brands, LegalZoom offers expedited services through an express gold package.

It’s $349 + state fees and shipping in 1-2 days. Unlike LegalZoom, Tailor Brands doesn’t offer any expedited services.

✅ Winner: LegalZoom

Registered Agent Services and Costs

Both Tailor Brands and LegalZoom offer registered agent services as part of their entity formation offerings.

However, unlike competitors, they both don’t offer a free first-year service.

Tailor Brands charges $199 annually and provides startups with basic services.

They include sending reminders on due dates, forwarding legal paperwork, physical address, and more.

However, unlike LegalZoom, Tailor Brands doesn’t provide advanced compliance support features, like contract templates or lifetime notifications.

LegalZoom’s registered agent services

LegalZoom charges a premium of $249 annually for its registered agent services.

Unlike Tailor Brands, the LegalZoom fee is higher, but the service offers more than the basic features.

In addition to contract templates, lifetime notifications, and compliance calendars, both platforms provide access to legal guidance from professional attorneys to ensure ongoing compliance.

✅ Winner: Tailor Brands

Name Availability Search

Tailor Brands features a name search tool designed to assist in finding a fitting business name for your venture.

Accessing it is easy, and you have to navigate to the “Tailor Studio” on the platform site.

The good thing is that the tool integrates with the formation service. It helps startups find a suitable name, entity type, and state of incorporation.

After entering a name, the tool checks availability in the state database. However, unlike LegalZoom, the tool doesn’t check through the federal database, which can cause trademark issues.

To bypass this, you’ll have to use a third-party tool to do so. It recommends an alternate name similar to the first choice if the name is unavailable.

Not only that, you can reserve a name with the state at a cost.

LegalZoom stands out by offering a comprehensive name search tool that’s easily accessible on its platform’s homepage, a feature that sets it apart from Tailor Brands.

The tool provides accurate name-checks from the state and federal databases to help avoid trademark issues.

The tool suggests alternative names similar to the first choice if a name is unavailable. Not only that, entrepreneurs can view state-specific naming rules on the website.

✅ Winner: LegalZoom

Online Document Access

Tailor Brands offers access to your formation documents conveniently through the Tailor Studio, providing an online platform for document retrieval and management.

When you log in to the Tailor Studio, you access the LLC section that allows you to download or view your formation certificates, EIN, and RN.

However, unlike LegalZoom, Tailor Brands’ online access to documents comes with limitations.

The platform doesn’t give online access to permits, annual reports, contracts, or licenses.

Entrepreneurs have to request customer support to get access or get sent through email.

LegalZoom document access

Similar to Tailor Brands, LegalZoom offers the convenience of accessing your formation documents online through their dedicated portal, facilitating easy document retrieval and management.

Accessing these documents is straightforward; all you need to do is log in to your respective accounts and navigate to the documents section for easy access. 

However, unlike Tailor Brands, LegalZoom allows entrepreneurs to view and download their business formation documents.

They include certificates, RN, EIN, agreements, and more. Not only that, access operation documentation like permits, annual returns, and licenses.

✅ Winner: Tie

Money-Back Guarantees

Tailor Brands doesn’t offer a money-back guarantee. However, they have a cancellation policy that states the subscription ends with the current billing cycle at no extra charge.

Upon cancellation, you’ll retain access to the plan’s features until its expiration date, allowing you to continue utilizing them until the subscription period concludes.

Although Tailor Brands lacks a money-back guarantee, the cancelation policy is decent and can give customers peace of mind.

LegalZoom’s guarantees

LegalZoom, on the other hand, offers a money-back guarantee of 60 days, unlike Tailor Brands.

The request process is simple: email or call customer support before submitting your order to the agency.

However, if your package is an attorney-led trademark registration, you have 7 days to request if no action is on the order.

A $150 cancellation fee applies if you attended an agent consultation. LegalZoom’s money-back guarantee is remarkable and can give peace of mind to customers.

✅ Winner: LegalZoom

Platform User-Friendliness

Tailor Brands boasts a user-friendly navigation platform, making it effortless to locate any desired feature or service with ease.

The dashboard has a menu with categories and a search bar for a specific keyword.

Within the Tailor Studio platform, users can seamlessly search for domain names, create websites, design logos, and craft social media posts, consolidating various branding and online presence tools in one place for convenience.

The studio also has a library of templates, making it easy to customize the features and services to match the brand image.

The platform also provides easy-to-follow instructions on business formation.

An entrepreneur can view estimated time, cost, and tips on each page on any query.

Completing the necessary steps is also fast, and you can complete an application form in less than 7 minutes.

Not only that, the forms require the basic info of a business and automate the other processes.

LegalZoom also provides entrepreneurs with a modern platform, but navigation is challenging.

Now, to find a service through the platform’s dashboard requires you to browse up to 2 pages.

Not only that, filling out the application forms is a lengthy process, unlike Tailor Brands.

Now, to use the services on the platform, LegalZoom provides clear instructions on formation, choosing an entity, and more.

However, it can take up to 15 minutes to complete the steps in the online application form.

✅ Winner: Tailor Brands

Customization Options

Tailor Brands offers different levels of customization for new users during the business formation process, allowing for tailored approaches to suit individual preferences and needs.

An entrepreneur can customize the formation services by picking from the paid additional products that are standalone.

They include name reservation, foreign qualification, website builder, and more.

One thing to note is that the options for customization are transparent and flexible, where you find a breakdown of each add-on price.

However, unlike LegalZoom, Tailor Brands’ customization options are not extensive. 

You can only pick an LLC as the only entity type. Not only that, entrepreneurs must follow Tailor Brands’ default choices on entity structure.

It can clash with individual choices.

LegalZoom’s customization options

LegalZoom offers more options for customization, unlike Tailor Brands, where you can pick from DBA, LLC, C-Corp, and non-profits.

You can also customize the legal forms provided. Now, there are several ways to do it, such as picking a business name, shareholders, registered agent, and more.

Not only that, you can choose to add an extra service like EIN registration.

Tailor Brands doesn’t offer tools specifically for creating an employee handbook, which is a service available through other platforms or services.

It can outline policies of your enterprise, like dress code, work from home, and more.

✅ Winner: LegalZoom

Compliance Assistance

Tailor Brands offers an “Annual Compliance” service designed to assist users during tax season by aiding in the filing of annual tax reports.

You’ll get recurring reminders through email, a calendar, and a corporate center account to help you understand tax filing guidelines and due dates. 

Not only that, you’ll get help with permits and licenses from the government to help stay compliant when operating a business.

LegalZoom’s compliance assistance

LegalZoom, on the other hand, has a service called “Total Compliance” that helps entrepreneurs file their annual tax reports on time.

The package includes an online dashboard, compliance calendar, tax filing, and RN services.

It is a package that comes in handy in staying compliant and avoiding late tax filing.

Unlike Tailor Brands, LegalZoom offers you a Business Advisory plan that gives you access to a network of attorneys.

Through the network, startups can get tax compliance and legal consultations.

Not only that, startups get annual business evaluations from an attorney.

One thing to note is that LegalZoom provides you with annual tax filing and other compliance assistance.

However, it charges $55 + state fees.

✅ Winner: Tie

Industry-Specific Expertise

Tailor Brands doesn’t limit its focus to a specific industry; instead, it caters to a wide range of businesses and ventures.

Tailor Brands provides a versatile formation and branding solution that can suit the needs of businesses across various niches, offering a general yet adaptable approach. 

One of Tailor Brand’s specialties is the creation of a logo that can match any brand voice, whether real estate, fashion, or entertainment.

One thing to note is that a service like creating a logo doesn’t equate to industry-specific expertise like legal services.

LegalZoom’s expertise

Unlike Tailor Brands, LegalZoom specializes and focuses on providing legal services to entrepreneurs during formation and post-incorporation.

Startups will find that LegalZoom links them with a network of attorneys and accountants for legal issues. 

LegalZoom also provides an attorney in every US state to help entrepreneurs understand the local and federal laws.

Unlike Tailor Brands, the attorneys specialize in intellectual property, real estate, business, and more.

Not only that, the attorney solutions are also tailor-made for each customer.

✅ Winner: LegalZoom

Customer Education and Resources

Compared to LegalZoom, Tailor Brands’ educational resources might be less extensive, offering a more limited depth of information and guidance.

The platform has a resource center that answers FAQs on the services and products.

Tailor Brands hosts a blog sharing tips on entrepreneurship and branding, though the content might not delve deeply into these subjects.

The help center also covers websites, finance managers, business mailboxes, and more. 

Now, searching for a specific topic is possible in the help center because there is a search bar where you can enter any query.

However, unlike LegalZoom, Tailor Brands lacks tutorials and in-depth guides on management, incorporation processes, and more.

LegalZoom’s resources

LegalZoom does offer comprehensive education resources to entrepreneurs, unlike Tailor Brands.

Startups will find a learning center full of articles, FAQs, and tutorials on management, incorporation processes, and more.

The learning center also has professional accountants and attorneys writing guides covering family law, real estate planning, and more.

Searching for a specific topic is also possible because there is a search button to enter any query.

Unlike Tailor Brands, LegalZoom regularly updates its content with new trends and topics.

✅ Winner: LegalZoom

Customer Support

To reach customer support on Tailor Brands, you can utilize live chat, email, or submit a support ticket, providing various options for assistance and query resolution.

Live chat is the quickest, with response times less than 5 minutes, while email and ticket can take up to 10 hours.

However, unlike LegalZoom, Tailor Brands doesn’t offer a dedicated representative. Startups must fill out forms, submit their queries, and await a response.

LegalZoom’s support

LegalZoom, on the other hand, offers live chat, email, and phone as mediums for reaching customer support.

Live chat is the quickest, with responses in 1-3 minutes, while email and phone can take up to 6 hours.

However, unlike Tailor Brands, LegalZoom offers a dedicated representative for guidance during formation and post-incorporation.

✅ Winner: LegalZoom

Pricing

Tailor Brands offers free basic formation services for startups (+ state fees).

The service also offers advanced features and additional services at a fee. Startups can choose to purchase the add-ons as a standalone or as a package.

The advantage lies in the flexibility it offers, allowing you to select the specific assistance or support method that suits your requirements.

LegalZoom’s pricing

LegalZoom offers startups three packages: basic: $0 + state fees; Pro: $249 + state filing fees; and Premium: $299 + state filing fees.

The service also offers add-on services, but they cannot get purchased as standalone as on Tailor Brands.

✅ Winner: Tailor Brands

Scalability

Tailor Brands services are not scalable as they lack tiered plans and only offer LLC formation.

Entrepreneurs looking to change their company structures will encounter limitations.

They include a lack of proper legal guidance from the service.

LegalZoom offers scalable plans and multiple entity types to startups. Entrepreneurs can change their company structure with ease, unlike Tailor Brands.

Not only that, startups get legal consultation when scaling, enabling them to stay compliant with the law.

✅ Winner: LegalZoom

Standout Features of Tailor Brands

In addition to the formation and incorporation features, Tailor Brands stands out with three notable services, which are:

Logo maker

Tailor Brands provides a builder to create a unique logo that matches their brand image.

The entrepreneur can tweak their logo by adding a color or a theme to their design.

Finance manager

Entrepreneurs will find that Tailor Brands offers an accounts expert that analyzes their startup performance annually.

The expert works by reviewing the startup books and offers advice on where to improve.

Standout Features of LegalZoom

Besides the incorporation services that LegalZoom offers, there are 2 services that make it stand out. They include.

Business legal plan

It is a plan that LegalZoom provides to startups to help them get cheaper legal services.

The plan offers benefits like document review, unlimited half an hour of attorney consultations, and annual business evaluation.

Intellectual property services

Entrepreneurs will find that LegalZoom offers a broad range of services that help them safeguard their ideas and inventions.

LegalZoom provides attorneys to help entrepreneurs trademark their creations.

Tailor Brands vs. LegalZoom: SMB Guide’s Verdict

Our Tailor Brands vs LegalZoom comparison shows that both companies excel at offering formation and incorporation services to startups.

However, when you look closer, you will find some differences in what each focuses on.

Tailor Brands combines formation and branding, while LegalZoom specializes in legal services.

After considering all the factors, LegalZoom is the winner, and here is why.

LegalZoom personalizes its services by offering a dedicated representative to guide an entrepreneur during formation and post-incorporation, unlike Tailor Brands.

The service also offers multiple entities to choose from and even has a feature that helps pick one that fits your situation. 

LegalZoom also provides in-depth educational resources such as guides and articles.

Most get written by experts, such as accountants and attorneys. Now, besides the basic formation services, the company offers add-on features.

They include a business legal plan and intellectual property services, unlike Tailor Brands.

A combination of all these factors is the reason LegalZoom wins this duel. Tailor Brands is a decent alternative for entrepreneurs looking for an affordable solution for incorporating an LLC in the US.

The service offers features like a logo maker, website builder, finance manager, and more.

Startups can also form an LLC in any US state, even for non-US citizens. However, the lack of multiple entity types, pricey additional services, and no legal assistance makes it lose to LegalZoom.

Choose LegalZoom If:

You need a service that allows you to choose from 4 entities to form a business and offers a dedicated representative to guide you through the process.

Choose Tailor Brands If:

You need a free basic formation service for an LLC, even for non-US citizens in all US states.