No, it is not cheaper to form a legal entity on LegalZoom. Their catchy ads “starting at $79” are far from the final tally. I used LegalZoom to form an LLC a couple of years ago. I was able to navigate the decisioning process with a law degree, but was unable to avoid the add-ons. I discovered that the widely promoted base price was like buying a new car and finding out it had no engine–it was missing a lot of the essentials.
No, it is not cheaper to form a legal entity on LegalZoom.
Their strategy of hooking new customers on the cheap, and then upselling the essentials, or exploiting the gray areas, have made them millions. For example, their orange-letter warning visitors that a registered agent is “legally required!” is true. They don’t tell you that you can serve as your own registered agent for FREE, nor that most attorneys charge a low fee for this service.
The proof is in the pudding, based on posted pricing January 6, 2021:
Legal Service Legal Zoom Johnson Legal through Fortress Law
Annual Corporate Review $ 249 $ 95
Registered Agent Service – 1yr. $ 299 $ 25
Entity Formation Package $ 907 $ 695
TOTAL $1,455 $ 815
In addition, Johnson Legal, PLLC will have your company formed within 10 days, as long as the NC Secretary of State responds in a timely way. LegalZoom’s processing time is 30 days, with an upsell to 15 days or 10 days. While the nice graphics and colorful logos seem innocuous, in fact they are lulling you into believing you are saving money and time, when neither is the case.
While the nice graphics and colorful logos seem innocuous, in fact they are lulling you into believing you are saving money and time, when neither is the case.
Finally, LegalZoom is a legal services company and cannot provide you with legal advice. Imagine that. All that money spent and if something is wrong, who is on the hook? Not LegalZoom. Let us know if you have questions about whether you should form a company or if you have other support needs as a small business. We are here to help you protect what matters
Shane T. Johnson is the CEO and Managing Partner of Johnson Legal, an estate planning and business law firm in Wilmington, NC. With years of experience in estate and business law, he has zealously represented clients in various legal matters, including small business formation and purchasing, estate planning, probate, domestic violence, and other legal cases.
Shane received his Juris Doctor from the University of Wyoming and is a member of the North Carolina Bar Association. He has received numerous accolades for her work, including being named among the Best Probate Lawyers in Wilmington by Expertise.com.
