I'm finally launching my online store (nothing huge, just selling handmade stuff) and need to pick an LLC formation service. LegalZoom and ZenBusiness keep coming up. Does anyone have experience with either? I don't want to spend a ton but also don't want to get stuck with surprise fees later.
LegalZoom or ZenBusiness for someone starting an online business?
I used LegalZoom for my LLC a couple years ago. It was fine, but they upsell you on everything during checkout. Like, do I really need a $200 'compliance package'? Probably not.
ZenBusiness has a $0 formation tier but then charges for registered agent after the first year. LegalZoom is more upfront with their pricing but higher base cost. Depends on if you want cheap now or predictable later.
Honestly, just file the articles yourself with your state. It's like $50-$100 and takes 20 minutes. These services are mostly middlemen unless you really have no clue what you're doing.
Eh, I disagree. Some of us don't wanna mess with state websites that look like they were built in 2003. I'll pay for convenience. But yeah, GravelPit is right about the registered agent thing.
Used ZenBusiness last year. No complaints, but their 'free' tier felt like a trap. By the time I added registered agent and expedited filing it was was almost $300. Still cheaper than a lawyer I guess.
lol @ 'trap' - every service does that. Have you seen LegalZoom's checkout? It's like 12 screens of extras. I just cicked 'no' a lot and it was fine.
I think the real answer is neither if you're even slightly comfortable reading instructions. But But if you must pick one, LegalZoom is more established. ZenBusiness is fine too. It's not a life-or-death choice.
Also check if your state requires an operating agreement. Some services charge extra for that. It's usually just a template you can find free online though.
This thread is making me glad I'm a sole prop. All this LLC stuff sounds exhausting.
Until you get sued and lose your house, lol. Anyway, OP, I'd go ZenBusiness if you want cheap up front, LegalZoom if you want a brand you've heard of. Both work
Just don't forget the annual report fees. That's the real gotcha no matter who you pick.