Business is changing all around us, and more people than ever are discovering the appeal of being their own boss and launching their own company. But even when you go out on your own, you rarely do it entirely alone.
There are dozens of online companies that can help with the paperwork, from getting set up with the IRS to acting as your registered agent. Here we compare two of the best-known services for small business owners, ZenBusiness and LegalZoom, to help you decide which fits you best.
About ZenBusiness
Built for a new generation of founders, ZenBusiness is designed to help fast-moving people get their business filings done quickly. It is also a Public Benefit Corporation (PBC), which means a commitment to the public good is written into its founding documents. In practice, ZenBusiness directs part of its revenue and operations toward human and animal rights causes.
About LegalZoom
Founded in 2001, LegalZoom was arguably the first online legal resource aimed at everyday people. It specialises in delivering paperwork, services, and even legal advice over the internet, and it is active on social issues, having granted millions of dollars to organisations promoting social change.
How they are the same
Both LegalZoom and ZenBusiness can help you get a company off the ground and turn the idea of being your own boss into reality. Among their many services, both can:
- Check whether your preferred business name is available
- Act as your registered agent (more on that below)
- Assist with your Employer Identification Number and other tax compliance
A quick note about registered agents: when you form an LLC in any state, you must list who your registered agent is. This is the person or company that receives legal documents on your behalf. You can act as your own, or pay a service like LegalZoom or ZenBusiness to do it for you.
How they are different
The two services diverge in some important ways. First, what ZenBusiness does specifically:
- 100% accuracy guarantee
- Step-by-step tutorial
- Focused solely on starting small businesses
And how LegalZoom sets itself apart:
- A full range of legal services, including estate planning
- Intellectual property protection
- Referrals to actual attorneys
And the winner is…
Pricing: ZenBusiness
There are plenty of options on both sites, but boiling it down to basic LLC formation and registered agent services, ZenBusiness comes out meaningfully cheaper on both.
Experience: LegalZoom
ZenBusiness is a much newer, internet-age company, while LegalZoom has operated since 2001. Beyond longevity, LegalZoom also brings a far broader depth of legal experience.
Customer support: ZenBusiness
ZenBusiness takes this one, largely because it concentrates exclusively on small business services. That breadth is a strength for LegalZoom, but it also means it lacks the small-business focus ZenBusiness is built around.
Turnaround time: LegalZoom
This is splitting hairs, since so much depends on how quickly your individual state processes paperwork. Both offer expedited options, with LegalZoom edging slightly ahead on the fastest tier.
Overall winner: ZenBusiness
ZenBusiness wins on price, specialisation, and focus. There is nothing wrong with LegalZoom, but if your only goal is starting a small business, ZenBusiness is our pick.
And the winner is – ZenBusiness
- Affordable, low starting price
- Great customer reviews
- Registered agent service included
- Excellent customer support
