Value It for Solopreneurs in 2025?

When you’re a freelancer who’s been pushing aside forming an LLC, I get it. The entire course of feels intimidating—all these state varieties, authorized jargon, and the nagging fear that you just’ll miss one thing essential and get fined later.

I’ve been there. I spent means too many hours on state web sites making an attempt to determine which varieties I wanted, what order to file them in, and whether or not I used to be even doing it proper. It was exhausting, and truthfully, I virtually gave up.

That’s once I found LegalZoom.

LegalZoom guarantees to deal with all of the difficult stuff for you—submitting paperwork, checking identify availability, getting your EIN, and even creating your working settlement. However does it truly ship? And extra importantly, is it value the price for freelancers?

I made a decision to search out out by utilizing LegalZoom to type an LLC for certainly one of my aspect tasks. On this overview, I’m sharing precisely what occurred, what I beloved, what annoyed me, and whether or not it’s best to use it to arrange your personal enterprise.

Brief Reply: Ought to You Use LegalZoom?

Don’t have time for the complete overview? Right here’s my fast take:

YES: When you’re a busy freelancer who desires the LLC formation course of dealt with professionally with out spending hours figuring it out your self. Particularly priceless if you’d like entry to authorized consultations and complete assist. The peace of thoughts is value it for most individuals. [Get started with LegalZoom here](particular supply obtainable).

PROBABLY NOT: When you’re extraordinarily budget-conscious and comfy navigating state web sites your self, or if you happen to don’t want any of the add-on providers like working agreements or authorized consultations. There are cheaper DIY choices.

What Is LegalZoom?

My Expertise: Forming an LLC with LegalZoom

Let me stroll you thru what truly occurred once I used LegalZoom to arrange an LLC for a consulting aspect mission I’ve been operating.

Getting Began: The Questionnaire

The very first thing you do with LegalZoom is fill out a web based questionnaire. This took me about quarter-hour, and it was truthfully fairly painless.

They ask simple questions:

• What state are you submitting in?
• What’s your online business identify?
• Who will handle the LLC (you or a separate supervisor)?
• Do you want an EIN (tax ID quantity)?
• Would you like assist with licenses and permits?

What impressed me immediately was the identify availability test. I entered “Horizon Artistic Consulting” (the identify I wished), and LegalZoom instantly searched the Colorado Secretary of State database and confirmed it was obtainable. No want to go to the state web site myself or guess whether or not the identify was taken.

The interface defined every query clearly with out overwhelming me with authorized terminology. Once they requested about member-managed vs. manager-managed LLCs, they offered a easy clarification: “Most single-member LLCs are member-managed, that means you run it your self.” Good—that’s precisely what I wanted to know.

Selecting a Bundle

LegalZoom affords three packages:

Primary ($0 + state charges): Simply recordsdata your articles of group with the state. That’s it. You deal with the whole lot else your self.

Professional ($249 + state charges): That is what I selected. It contains:

• Articles of group submitting
• Identify availability test
• Working settlement custom-made in your state
• EIN submitting with the IRS
• 3 months of bookkeeping software program
• Limitless e-signatures
• 150+ authorized doc templates
• Primary enterprise web site via Wix

Premium ($299 + state charges): Every thing in Professional, plus:

• 30 days of limitless 30-minute legal professional consultations
• Assist making authorized adjustments to your LLC paperwork

I went with the Professional bundle as a result of I undoubtedly wished an working settlement (extra on why this issues later) and having them deal with the EIN submitting was value it to keep away from coping with the IRS web site myself.

The Submitting Course of

After finishing the questionnaire and paying, LegalZoom took over. That is the place issues received spectacular.

Submitting pace: My LLC was authorised by the state in simply 1 hour and 37 minutes. I ordered on a Tuesday afternoon, and by late afternoon, I had my official LLC formation paperwork. This was genuinely stunning—I anticipated it to take at the least a number of days.

The quick turnaround is a double-edged sword, although. As a result of it processes so rapidly, there’s mainly no window to make adjustments after you submit. After I realized I had typed “Horizon Artistic Consulting” however truly wished “Horizon Artistic Consultants” (plural), it was already filed. Buyer assist informed me I’d must pay $129 to file an modification with the state to vary it.

Lesson realized: Triple-check the whole lot earlier than you click on submit. The pace means there’s no going again with out paying extra.

The Working Settlement

One of many smartest issues I did was selecting a bundle that included an working settlement. Right here’s why this issues:

An working settlement is a authorized doc that outlines how your LLC operates—who owns what proportion, how choices are made, what occurs if somebody desires to depart, how income are distributed, and so on.

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Technically, not each state requires an working settlement. However right here’s the factor: banks typically require one once you open a enterprise account. I discovered this out the onerous means on a earlier LLC I’d fashioned myself. The financial institution requested for it, I didn’t have one, and I needed to scramble to create one utilizing a generic template I discovered on-line.

With LegalZoom, the working settlement was mechanically created based mostly on my solutions to their questionnaire. It was custom-made for Colorado regulation, included all the usual provisions I wanted, and appeared skilled. After I went to open my enterprise checking account, I simply handed it over—no questions requested.

This alone saved me hours of analysis and possibly $200-300 if I’d employed a lawyer to draft one.

Getting My EIN

LegalZoom additionally dealt with submitting for my EIN (Employer Identification Quantity) with the IRS. That is your online business’s tax ID quantity, and also you want it to:

• Open a enterprise checking account
• Rent staff or contractors
• File enterprise taxes
• Apply for enterprise licenses

You are able to do this your self on the IRS web site free of charge, nevertheless it’s tedious. It’s important to navigate a clunky authorities web site, fill out type SS-4, and anticipate approval. LegalZoom dealt with all of this mechanically, and my EIN arrived by way of e-mail inside a number of days.

Was it value paying further to keep away from the IRS web site? For me, completely sure.

The Dashboard Expertise

After the whole lot was filed and authorised, all my paperwork appeared in my LegalZoom dashboard:

• Articles of group (the official state submitting)
• Working settlement
• EIN affirmation letter
• Compliance calendar (reminding me of submitting deadlines)
• Digital welcome packet

The dashboard is clear and well-organized. When my financial institution wanted proof of my LLC formation, I logged in, downloaded the PDF, and emailed it over. The entire thing took about 30 seconds.

LegalZoom additionally makes it straightforward to order licensed copies of paperwork if you happen to want bodily variations for sure authorities places of work or banks. Some establishments nonetheless need the old-school stamped paper copies, and LegalZoom handles ordering these for you.

What I Liked About LegalZoom

Let me spotlight the issues that genuinely impressed me:

Skilled and Established

LegalZoom has been round since 2001. They’ve fashioned tens of millions of LLCs. They know what they’re doing. This issues as a result of LLC legal guidelines range considerably by state, and LegalZoom’s system is constructed to deal with these nuances mechanically.

After I crammed out the questionnaire for Colorado, the system knew precisely which varieties to file, which state-specific necessities to incorporate, and methods to format the whole lot appropriately. I didn’t must analysis Colorado LLC regulation myself—LegalZoom already knew it.

The Pace is Actual

I can’t overstate how briskly the submitting occurred. Below 2 hours from cost to authorised LLC. That is partly as a result of LegalZoom has relationships with state submitting places of work and is aware of methods to expedite issues, and partly as a result of they’ve streamlined the method so nicely.

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For context, once I fashioned an LLC myself years in the past, it took me about 6 hours of labor unfold over a number of days, plus ready per week for state approval. With LegalZoom, I spent quarter-hour on the questionnaire and it was achieved.

The Working Settlement Builder

The working settlement creation software requested me easy questions and generated an expert, state-specific doc. Questions like:

• Is that this a single-member or multi-member LLC?
• How will income be distributed?
• How are choices made?
• What occurs if a member desires to depart?

Even if you happen to’re not accustomed to authorized terminology, the questions make sense. And the ultimate doc appears like one thing a lawyer would draft—as a result of it’s based mostly on lawyer-created templates.

Authorized Session Entry (Premium Plan)

I upgraded to the Premium plan for my second LLC particularly to strive the legal professional session function. I had questions on methods to construction contracts with shoppers and whether or not I wanted extra licenses for my kind of enterprise.

I scheduled a 30-minute cellphone name with a small enterprise legal professional via LegalZoom’s portal. The legal professional was educated, answered my questions clearly, and even beneficial a few issues I hadn’t considered.

I later verified the recommendation with my private legal professional, and it was correct. So this isn’t only a advertising gimmick—you’re speaking to actual attorneys who know what they’re doing.

The caveat: You get 30 days of limitless 30-minute consultations. When you solely have one or two questions, you may not want the complete month. However if you happen to’re launching a enterprise and have ongoing authorized questions, this entry is extremely priceless.

The Compliance Calendar

This can be a small function, nevertheless it’s useful. LegalZoom’s dashboard features a compliance calendar that reminds you of essential deadlines:

• Annual report filings
• License renewals
• Tax deadlines
• Registered agent renewal

Staying compliant with state necessities is a type of issues that’s straightforward to neglect, and lacking a deadline may end up in penalties and even having your LLC dissolved. The automated reminders assist stop that.

What Annoyed Me About LegalZoom

Nothing is ideal, and LegalZoom has some official downsides:

The Upsell Emails Are Relentless

After forming my LLC, I acquired 18 emails from LegalZoom over 43 days. Each single one was making an attempt to promote me one thing:

• Trademark registration
• Enterprise licenses
• Web site providers
• Accounting software program
• Tax preparation providers
• BOI submitting providers (extra on this under)

A few of these providers are genuinely helpful, however the fixed emails felt aggressive. I needed to unsubscribe from their advertising record to make it cease.

The BOI Submitting Strain Techniques

One notably annoying factor was the aggressive messaging round BOI (Helpful Possession Data) submitting. This can be a new federal requirement as of 2024 the place companies should report who owns the corporate to FinCEN (Monetary Crimes Enforcement Community).

LegalZoom despatched a number of emails saying my BOI submitting was “overdue” and urging me to pay them $99 to file it for me. Right here’s the issue: it wasn’t truly overdue.

Whenever you type a brand new LLC, you may have 90 days to file your BOI report. I had solely had the LLC for 3 weeks. The “overdue” messaging was deceptive and designed to create urgency.

Additionally, you may file BOI reviews your self free of charge at boifiling.fincen.gov. It takes about 5-10 minutes and could be very simple. LegalZoom charging $99 for this felt like taking benefit of people that don’t know they’ll do it themselves.

Buyer Assist Can Be Gradual

After I realized I wished to vary my LLC identify (keep in mind my “Consulting” vs “Consultants” typo?), I contacted buyer assist by way of their chat function.

It took quarter-hour to get a response, which isn’t horrible but additionally isn’t nice. Extra irritating was the response itself: they wished me to pay $129 to file an modification with the state to vary the identify.

To be honest, that’s an precise state submitting price plus LegalZoom’s service cost. However I used to be annoyed as a result of the LLC had simply been filed—if there had been a short overview interval earlier than submission, I might have caught the error myself.

Different providers I’ve used have a 24-hour overview window earlier than submitting. LegalZoom’s pace is nice till you make a mistake.

The Prices Add Up Over Time

The preliminary formation price is just the start. LegalZoom affords ongoing providers that create recurring prices:

Registered Agent Service: Each LLC wants a registered agent—somebody who receives authorized paperwork on behalf of your online business. LegalZoom contains one yr of registered agent service together with your formation, however after that, it prices $299/yr to proceed.

You will be your personal registered agent free of charge (you simply want a bodily deal with within the state), or you may rent a less expensive service. However if you happen to stick to LegalZoom, that’s an ongoing expense.

Annual Report Submitting: Most states require LLCs to file annual reviews. You are able to do this your self for simply the state price (normally $10-50), or you may pay LegalZoom to do it for you (sometimes $150-200).

Compliance providers: LegalZoom affords varied compliance packages that remind you of deadlines and file issues for you. These can price $200-400+ per yr.

Over 5 years, sticking with LegalZoom for all these providers can price considerably greater than dealing with a few of it your self or utilizing cheaper options.

The Primary Plan is Too Primary

LegalZoom advertises that their Primary plan is free (you simply pay state charges). That is technically true, however the Primary plan solely recordsdata your articles of group with the state. That’s it.

You don’t get:

• An working settlement
• EIN submitting
• Registered agent service past one yr
• Any doc templates
• Any authorized assist

For most individuals, the Primary plan isn’t sufficient. You’ll want at the least the Professional plan to get the necessities, which brings the price to $249+ state charges. This isn’t unreasonable, nevertheless it means the “free” fundamental plan is extra of a advertising declare than a sensible choice.

How LegalZoom Compares to Options

Let me evaluate LegalZoom to 2 fashionable options I’ve additionally used:

LegalZoom vs. ZenBusiness

ZenBusiness is a more recent, extra inexpensive competitor. Right here’s how they stack up:

Pricing: ZenBusiness is cheaper. Their Starter plan is $0 + state charges and features a free yr of registered agent service. Their Professional plan is $199 vs. LegalZoom’s $249.

Pace: LegalZoom is quicker. My ZenBusiness LLC took 5 enterprise days vs. LegalZoom’s below 2 hours.

Assist: ZenBusiness has higher, extra responsive buyer assist. Much less company, extra useful.

Options: LegalZoom contains extra of their packages (working settlement, EIN submitting, doc templates). ZenBusiness is extra bare-bones until you improve.

Compliance: ZenBusiness sends useful compliance reminders with out the aggressive upselling. A lot much less spammy.

Verdict: If you would like quick, complete service and don’t thoughts paying extra, select LegalZoom. If you would like inexpensive, strong service with nice assist, select ZenBusiness.

LegalZoom vs. Incfile (now rebranded as Bizee)

Incfile (now Bizee) is one other inexpensive various:

Pricing: Incfile’s fundamental plan is free + state charges with a yr of registered agent service included. Similar to ZenBusiness.

Pace: Slower than LegalZoom however akin to ZenBusiness.

Options: Much less complete than LegalZoom however covers the fundamentals nicely.

Enterprise banking: Incfile has partnerships with banks and will help you open enterprise accounts extra simply.

Verdict: Incfile is nice if you happen to’re budget-conscious and don’t want hand-holding. LegalZoom is healthier if you’d like extra complete service and authorized assist entry.

LegalZoom vs. Doing It Your self

You’ll be able to completely type an LLC your self by submitting instantly together with your state. Right here’s the breakdown:

Price: DIY is least expensive—simply state submitting charges ($50-500 relying on state). LegalZoom prices $249-299 + state charges.

Time: DIY takes 3-8 hours of analysis and form-filling. LegalZoom takes quarter-hour.

Complexity: DIY requires understanding authorized varieties and state necessities. LegalZoom handles all of it.

Threat: DIY has greater threat of errors or lacking necessities. LegalZoom reduces that threat considerably.

Verdict: When you’re comfy with authorized paperwork and have time to analysis, DIY works. If you wish to save time and scale back stress, LegalZoom is value the price.

Suggestions for Utilizing LegalZoom Efficiently

When you resolve to make use of LegalZoom, listed below are my hard-won suggestions:

Double-Verify Every thing Earlier than Submitting

As a result of LegalZoom processes so quick, you received’t have time to repair errors after submission. Evaluation your online business identify, deal with, member data, and each element fastidiously earlier than clicking submit.

Begin with the Professional Plan

Except you’re extraordinarily budget-conscious, skip the Primary plan. The Professional plan contains the working settlement and EIN submitting, which you’ll in all probability want anyway. Shopping for them individually later prices extra.

Think about Premium Solely If You Want Authorized Recommendation

The Premium plan’s legal professional session is effective when you’ve got authorized questions. However if you happen to simply want fundamental LLC formation, the Professional plan is adequate. Don’t pay further for options you received’t use.

Unsubscribe from Advertising and marketing Emails

Proper after your LLC is fashioned, go into your LegalZoom account settings and unsubscribe from advertising emails. You’ll nonetheless get essential notifications about your LLC, however you’ll keep away from the fixed upselling.

File Your BOI Report Your self

Don’t pay LegalZoom $99 to file your Helpful Possession Data report. Go to boifiling.fincen.gov and do it your self in 10 minutes free of charge. It’s easy and simple.

Determine on Registered Agent Service Early

After your first yr of free registered agent service, resolve whether or not to proceed with LegalZoom ($299/yr) or swap to a less expensive various ($100-150/yr). Or, when you’ve got a bodily deal with in your online business state, you will be your personal registered agent free of charge.

Use the Dashboard

LegalZoom’s dashboard is genuinely helpful. Bookmark it and use it to retailer all your online business paperwork. When it’s worthwhile to show your LLC exists (for banks, shoppers, and so on.), you’ll have the whole lot in a single place.

Hold Compliance Reminders On

Don’t flip off the compliance calendar notifications. Lacking annual report deadlines or renewal dates can price you penalties or trigger your LLC to be dissolved. Let LegalZoom remind you.

Who Ought to Use LegalZoom?

After utilizing LegalZoom for a number of LLC formations, right here’s who I feel advantages most:

You Ought to Undoubtedly Use LegalZoom If:

You’re a busy freelancer who values time over cash. If spending quarter-hour and $249 to have the whole lot dealt with professionally sounds higher than spending 6+ hours doing it your self, LegalZoom is ideal.

You need complete service with authorized assist. The Professional and Premium plans embrace working agreements, EIN submitting, doc templates, and legal professional entry that might price considerably extra if bought individually.

You need quick submitting. When you want your LLC fashioned ASAP, LegalZoom’s pace is unmatched. This issues if you happen to’re closing a consumer contract that requires an LLC or assembly a deadline.

You’re not assured dealing with authorized paperwork. If state submitting varieties makes your eyes glaze over, LegalZoom walks you thru the whole lot in plain English.

You need skilled, established service. LegalZoom’s 20+ years of expertise means they know each state’s necessities and have programs to deal with edge circumstances.

You want ongoing enterprise authorized assist. Past LLC formation, LegalZoom affords trademark registration, contract creation, annual compliance, and authorized consultations—multi functional place.

You In all probability Don’t Want LegalZoom If:

You’re extraordinarily budget-conscious. If each greenback counts, there are cheaper options (ZenBusiness, Incfile) or you are able to do it your self for simply state charges.

You’re comfy with authorized paperwork. When you’ve fashioned companies earlier than otherwise you’re assured navigating state web sites, DIY will prevent cash.

You don’t want add-on providers. When you simply need fundamental LLC formation with no working settlement, EIN submitting, or authorized assist, the price will not be justified.

You’re forming an LLC in a state with complicated necessities. Some states have uncommon necessities that may be higher dealt with by a neighborhood legal professional who is aware of state-specific nuances.

The Backside Line: Is LegalZoom Value It?

After utilizing LegalZoom to type a number of LLCs, right here’s my trustworthy verdict:

Sure, LegalZoom is value it for many busy freelancers and small enterprise homeowners.

Is it the most affordable choice? No. Nevertheless it’s complete, quick, skilled, and considerably much less aggravating than doing it your self. The time you save alone justifies the price for most individuals.

The working settlement, EIN submitting, and doc templates included within the Professional plan present actual worth. And having legal professional entry within the Premium plan is genuinely useful if you happen to’re navigating enterprise authorized questions.

The downsides are actual however manageable:

• The upsell emails are annoying (however you may unsubscribe)
• The continuing prices add up (however you may select to not renew providers)
• The quick processing means no error correction window (however cautious overview prevents this)

My advice: Use LegalZoom’s Professional plan to type your LLC, unsubscribe from advertising emails instantly, file your BOI report your self, after which resolve year-by-year whether or not to proceed with their registered agent and compliance providers or swap to options.

For the preliminary formation? LegalZoom delivers. It takes the intimidating strategy of beginning a enterprise and makes it really feel manageable. That peace of thoughts is value the price for many freelancers.

Able to get began? Take a look at LegalZoom and type your LLC as we speak. Use our affiliate hyperlink under to entry particular affords you received’t discover on their web site instantly.

Have you ever used LegalZoom or one other LLC formation service? What was your expertise? Drop a remark under or be part of the dialog in our Fb group—I’d love to listen to what labored (or didn’t work) for you!

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