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by Mike Vestil 

Discover How Much It Costs To Form An LLC With LegalZoom

Starting a business can be overwhelming and expensive. But with LegalZoom's LLC formation services, creating a new business doesn't have to break the bank.

LegalZoom offers LLC formation services starting at $79 plus state fees, making it an affordable option for beginning entrepreneurs. With that in mind, this LegalZoom review will further explore the service's pricing and customer reviews and rate their specific features. 

LegalZoom homepage

LegalZoom Homepage

What Is LegalZoom?

LegalZoom is an online legal services platform that enables businesses and individuals to access the professional help quickly they need for a fraction of the cost. 

With LegalZoom, you can form an LLC, incorporate a business, get divorced, create estate plans, and more – all with the help of experienced attorneys and legal professionals. The company has been around since 2001 and is trusted by over 4 million customers who have used its services.

When it comes to LLC formation through LegalZoom, they provide step-by-step instructions to guide you through the process. They also handle all required paperwork and filing fees on your behalf. 

For an additional fee, they can provide expedited service so that your LLC can be up and running within 48 hours. Once your LLC is formed, LegalZoom will provide ongoing support for questions related to compliance or other LLC matters.

In addition to forming an LLC, LegalZoom also offers many other services, such as setting up a corporation or registering a trademark. They are dedicated to affordably providing quality legal advice and strive to ensure everyone can access the help they need without breaking the bank. 

With simple payment plans for some services and discounts for multiple orders or long-term contracts, LegalZoom makes it easy for businesses of all sizes to find the right solution at the right price.

LLC LegalZoom Cost: How Much Does It Cost To Form An LLC?

The state filing fee is the main expense involved in forming an LLC and can range anywhere from $40 to a maximum of $500. Every state requires an initial filing fee. 

However, the regulations on extra costs may differ. For example, some states may also need a price for registering with their Department of Revenue or Department of Commerce. Some cities may also impose fees for LLC registration in those areas. 

In addition to the filing fee, most states also require a minimal cost for LLC maintenance. Maintenance fees can again vary from state to state, but they generally require payment for annual report filing or biennial report filing.

Some states also require certain taxes like franchise taxes (defined as a set percentage of the business's net worth each year) or excise taxes (defined as a special tax on certain products or services). It is important to note that these costs may increase yearly depending on your business's profits and gross receipts.

Comparing LegalZoom LLC Formation Cost To Other Llc Formation Services

Here are a few of the companies that offer LLC formation services.

Northwest Registered Agent

Northwest Registered Agent

Northwest Registered Agent Homepage

Northwest Registered Agent offers an LLC service that's probably as reliable as LegalZoom's. It also has shorter order turn-around times than LegalZoom's basic package. They provide additional services, such as registered agent filing services, corporate record maintenance packages, and more.

Tailor Brands

Tailor Brands Homepage

Tailor Brands Homepage

Tailor Brands offers an all-in-one Elite plan that includes LLC formation and annual compliance, expedited processing, an operating agreement, and business-building tools such as logo maker and website builder. 

Rocket Lawyer

Rocket Lawyer

Rocket Lawyer

Rocket Lawyer provides online incorporation services, registered agent services, legal forms, ongoing legal advice from their network of attorneys, document storage solutions, and more. 

They also offer discounts on specific packages when purchased in advance or bundled with other products or services from Rocket Lawyer's partner companies. 

LegalZoom LLC Pricing Plans

To help you decide which package is correct, let's look at what each of their three tiers of service offers. 

LegalZoom LLC Pricing Plans

LegalZoom LLC Pricing Plans

  • Economy Package: The Economy package is perfect for entrepreneurs looking for the essentials such as business filing. This package does not include extra bells and whistles. Plus, since it is the most affordable option, customers should not expect speed, as documents may take up to 30 business days to arrive. 
  • Standard Package: The Standard package includes all the features from the Economy plan plus some nice perks like a binder with your company name and a seal for official documents. However, one key benefit that makes this tier worth considering is speed. Documents are processed within five days and typically arrive within 15 business days, so if you need your LLC formed quickly, this could be an ideal choice. 
  • Express Gold Package: The Express Gold package is more expensive than both other packages, but it offers numerous benefits that may make it worthwhile for some customers. Firstly, customers receive a higher quality binder with their company name, a Corporate Kit cover page, and a seal for official documents - both of which make this package great for presentations and branding purposes. Secondly, customers get faster document delivery than the Economy or Standard plan. And lastly, customers receive additional legal help, such as unlimited attorney advice, along with discounts on legal services offered by LegalZoom. 

LegalZoom Additional Fees

Besides their core formation service packages, one can purchase other optional fees from LegalZoom for an additional cost. 

Depending on your purchasing item, these optional fees range from $20 to $400. For example, if you want to buy a one-year subscription to their trademark search tool, it will cost you $199 after the initial setup fee of $40. The most expensive additional fee is the registered agent service at $159/year (not including the first year).  

Do I Need To Purchase Registered Agent Service?

You don't need to purchase a registered agent service from LegalZoom—you can hire any company that makes sense, or you can even be your registered agent if you choose to do so. 

However, it's highly recommended that businesses hire a professional service provider because they provide better protection against lawsuits and other legal processes served on your business. 

Hiring a professional also eliminates potential conflicts of interest between members of an LLC or corporate entity and its registered agent due to representation in legal matters or court proceedings when acting as a representative of the entity being served with legal process documents or notices.

LegalZoom Reviews

If you still need to decide whether LegalZoom is right for you, look at verified reviews from customers who have used their services to help launch their businesses. Many reviews indicate that the process was easy and helpful in getting their businesses off the ground quickly and efficiently. A few reviews express frustration over being charged for services they didn't know they were getting but, overall, seem satisfied with their experience with LegalZoom.

Key Factors When Naming Your LLC

If you are interested in forming an LLC, you must ensure that your business has the correct name. Not only will this help ensure that your company stands out from the competition, but it is also essential to make sure that the name is legally available in your state.

When choosing an LLC name, there are some essential tips to remember. First, it is crucial to keep it simple and easy to remember. This will help potential customers easily recall your business's name when they need services or products related to your industry. Additionally, try to be creative with your naming process; this will allow for quick recognition of your actions.

When selecting a business name for your LLC, you must also be mindful of any trademarks or intellectual property rights. Before settling on a final choice for the company's title, search through the USPTO database and search online for similar names and phrases that others may have already registered with their state government office or other legal entities. 

Finally, remember to secure a domain name. That way, you can ensure that no one else uses the same name or phrases associated with it. The perfect website address will add another layer of credibility and professionalism to your brand image and marketing efforts.

Conclusion

Starting a business is an exciting and daunting endeavor. One of the first steps to creating a successful business is forming an LLC, which can be confusing for first-time entrepreneurs.

LegalZoom offers various services that make it easy to form an LLC without worrying about making mistakes.

When you're thinking about forming an LLC, cost should be one of your top considerations.

With its various packages, LegalZoom has an option for you if you're curious about the cost of an LLC in Maryland, an LLC in Tennessee, or an LLC in California.

They can also help you with more educational-based services dealing with LLC formation.

Whether you want to learn how to start an LLC in Texas for free or simply how to start an LLC in NY, this platform offers the proper assistance to get your business up and running.

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About the author 

Mike Vestil

Mike Vestil is the author of the Lazy Man's Guide To Living The Good Life. He also has a YouTube channel with over 700,000 subscribers where he talks about personal development and personal finance.

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