Rocket Lawyer vs. LegalZoom: Comparing LLC Formation Services

Many savvy entrepreneurs turn to online legal service providers to start and run their businesses while saving money on legal expenses. Rocket Lawyer and LegalZoom are two established companies in the industry that offer LLC formation, registered agent services, and other necessary services to operate a successful business. 

Rocket Lawyer and LegalZoom share multiple similarities, so you might wonder which service provider is right for you. We’ve done a comprehensive Rocket Lawyer vs. LegalZoom review so you can make an informed decision. 

Rocket Lawyer vs. LegalZoom: At a Glance

• Rocket Lawyer and LegalZoom are some of the industry's most established online legal service providers. 

• Rocket Lawyer offers a membership with unlimited access to free and discounted legal services.

• LegalZoom’s legal services are á la carte, and you only have to pay for what you need. 

Rocket Lawyer vs. LegalZoom: What Sets Their Business Formation Services Apart

One of the main differences between Rocket Lawyer and LegalZoom is that Rocket Lawyer operates on a subscription-based model. While you can still get legal services á la carte, Rocket Lawyer heavily incentivizes customers to enroll in their membership. 

Rocket Lawyer members pay $39.99/month for continuous access to a wide range of free or discounted legal services. That said, non-members still have access to some of Rocket Lawyer's services, including LLC formation services and registered agent services. They just have to pay a higher fee than members.

LegalZoom doesn’t offer a company-wide membership; you can only get incorporation services as a one-off. If you want continuous support in legal matters, LegalZoom offers a prepaid Business Advisory Plan that gives you access to an independent lawyer network for ongoing consultations and legal help. 

Business Formation Pricing

Rocket Lawyer offers two ways of incorporating your LLC with them. If you join their monthly subscription for $39.99/month, you’ll only need to cover the state filing fees, and Rocket Lawyer won’t charge you for their service. 

If you decide against joining the membership, Rocket Lawyer will charge you $99.99 + state filing fees for their formation package. 

Rocket Lawyer’s website is quite outdated, so it’s unclear what the business formation package includes and what kind of results and legal documents you can expect to get at the end of the process. 

During the checkout process, you’ll be offered multiple upsells, including: 

• Rush filing: fees and turnaround time vary by state 

• EIN/Tax ID: $59.99 

• Personalized corporate kit and seal: $104.99

• Registered agent service: $149.99/year for non-members, $119.99/year for members

At the end of the checkout process, you can join Rocket Lawyer’s membership to get a hefty discount on your LLC incorporation order. If you decide to join the membership, your LLC will be incorporated for free, but you’ll still need to cover state fees. You can also enroll in a free seven-day membership trial. 

LegalZoom charges $79 + state filing fees for their LLC formation package. Their website is more straightforward to navigate than Rocket Lawyer’s, and it's clear that LegalZoom’s Economy package includes: 

• Comprehensive name search and business entity filing

• Peace of Mind Review 

• Tax savings consultation

• Complete digital LLC welcome packet

• Digital tracker

• Lifetime customer support

• Entrepreneur’s business newsletter

• Customizable business website powered by Wix

This starter package doesn’t include rush filing. If you want to incorporate your LLC with a faster turnaround time, you can add on rush filing at a higher price.

Unless you join Rocket Lawyer’s membership, LegalZoom offers LLC incorporation service at a lower price of $79 + fees vs. Rocket Lawyer’s $99 + fees. Moreover, LegalZoom’s package also includes various valuable add-ons, such as a tax savings consultation and a business website. 

Turnaround Times

Rocket Lawyer offers different turnaround times depending on the state where you’re incorporating your limited liability company. It can vary from a few business days to a few weeks. 

During checkout, you’ll also have the option to speed up your business incorporation process with rush filing at an additional cost. The processing time and fee vary depending on your state, and Rocket Lawyer charges their rush filing fee on top of the government fees. 

When incorporating with LegalZoom, you can upgrade to their Standard or Express Gold packages for a faster turnaround time.

Putting a rush on your formation process with LegalZoom involves high fees. Upgrading to the Standard Package to have LegalZoom process your order within five business days will cost you $250. Increasing your processing speed to one business day comes with a whopping $270 package cost increase. 

Typically, Rocket Lawyer offers lower rush filing fees than LegalZoom, but it depends on where you’re incorporating your LLC. 

Registered Agent Service

Regardless of your incorporation state, the law requires your new business to appoint a registered agent.[1] Your registered agent (RA) will be responsible for receiving important mail, such as lawsuits and IRS notices, on behalf of your LLC. 

Every business needs a registered agent, and not complying with this requirement can result in serious trouble for your new LLC. 

Anyone can be appointed as your registered agent as long as they: 

• Are 18 years old or older

• Have a street address in your incorporation state (not a P.O. box) 

• Are present at that address during normal business hours

Many business owners hire a registered agent service instead of appointing themselves as their agent. Delegating the registered agent title to a professional service provider has multiple benefits. 

Increased Flexibility

Your registered agent must be present at their address during regular business hours, Monday through Friday, from 9 am to 5 pm. This is because many essential documents, such as lawsuits, can only be served in person. 

Being your own registered agent means you won’t be able to leave your home or office during business hours, except on holidays and weekends. Hiring a registered agent service means you’ll have more flexibility in your schedule. 

No Privacy Concerns 

Your registered agent’s address becomes part of the public record since it’s used for communication on behalf of your business. If you run your business from home, you may feel unsafe having your address publicly available to everyone. 

Improved Organization 

Hiring a professional registered agent service means that important legal documents won’t get lost or misplaced. Knowing that this vital part of your business is in good hands gives you peace of mind to focus on growing your business. 

Rocket Lawyer offers a registered agent service as an upsell during the checkout process for their business formation service. If you enroll in Rocket Lawyer’s membership, you’ll be charged $119.99 annually for your registered agent service. If you opt out of the membership, the regular fee is $149.99/year. 

Rocket Lawyer’s website doesn’t list the features of their service, but it includes an online portal to have all of your documents easily accessible and email notifications to alert you when you receive new mail. 

LegalZoom offers a registered agent service for $299 per year. It includes: 

• Alerts whenever mail is received

• Emails about critical tax and annual report deadlines

• $1M in identity theft protection and credit monitoring services

• Unlimited cloud storage

• If you are switching your RA, LegalZoom will handle the paperwork and cover your fees

With both Rocket Lawyer and LegalZoom, you can add the registered agent service to your incorporation package during checkout.

Overall, Rocket Lawyer charges a lower fee for their registered agent service when compared to LegalZoom, even if you decide not to join the membership and pay the regular fee of $149.99/year. 

Compliance Services

Once you incorporate your small business, you must file various legal documents to keep your LLC compliant with the law. These documents may include an LLC operating agreement, articles of organization, employer identification number (EIN), or an annual report. 

As a part of the Rocket Lawyer membership, you’ll get unlimited access to compliance-related documents for your business for $39.99 per month. You’ll be able to create them in a few minutes, and there’s no limit to the number of documents you can create per month. 

If you’re not a member, Rocket Lawyer charges a flat fee of $39.99 per legal document. 

LegalZoom offers a variety of compliance services for small business owners. Here are some of them: 

• Operating agreement: $99 + fees

• Initial report: $35 + fees

• Annual report: $99 + fees 

• Compliance calendar: $69/year

• Record keeping: $99/year for unlimited usage

• Bylaws and resolutions: $99

Overall, Rocket Lawyer makes it easier and cheaper to keep your LLC in good standing with the state if you anticipate needing a large volume of compliance documents.

Creating an LLC operating agreement and an annual report would cost you a one-off fee of $198 + fees with LegalZoom. Rocket Lawyer membership brings the cost down to $39.99/month for worry-free compliance. 

Legal Services

Rocket Lawyer membership includes ongoing licensed attorney services for legal advice and legal services. For $39.99/month, you’ll have access to: 

• Document defense to help you navigate disputes (such as a client not paying their invoice) 

• Unlimited 30-minute attorney consultations for your legal questions 

• Legal document and legal form creation

• Document review 

• Discounts when you hire Rocket Lawyer network attorney 

• Discounts on various services that Rocket Lawyer offers, such as trademark registration

You can also use your Rocket Lawyer online legal services to create personal legal documents, such as estate planning, last will and testament documents, and power of attorney.

LegalZoom offers a similar ongoing online legal service subscription but on a smaller scale. You can decide to enroll in their Business Advisory Plan for either 6 or 12 months to get access to: 

• 30-minute vetted lawyer consultations 

• Contract and legal document reviews (up to 10 pages)

• Annual business evaluation (12-month plan only)

• Unlimited downloads from legal form library

• Discounts on other LegalZoom services 

The 6-month plan is billed twice a year at $259 ($43.16/month), and the 12-month plan is billed once a year at $469 ($39.08/month). 

Overall, Rocket Lawyer offers a more robust, premium membership for your legal needs than LegalZoom. The subscriptions have comparable pricing, but Rocket Lawyer offers more additional services. 

Add-On Business Services

As a part of the Rocket Lawyer membership, you can create various business documents, such as an independent contractor agreement or a business contract. If you anticipate having to create business documents to operate your LLC regularly, you may consider enrolling in Rocket Lawyer’s membership. 

As a Rocket Lawyer member, you’ll also get a 50% discount on Rocket Tax, Rocket Lawyer’s tax filing service. The cost of the LLC tax package starts at $399.99 for non-members. It includes: 

• CPA or EA preparing your entire return from start to finish

• Business activity review to maximize tax benefits

• Federal and state tax filing

• Year-end bookkeeping

• Opportunity to request an extension at no charge 

LegalZoom offers a variety of one-off business services in the following areas: 

• Legal forms and agreements

• Trademark search, registration, and monitoring 

• Business changes and filings

• Tax consultations

• Licenses and permits 

You can also use LZ Tax — a LegalZoom company — for tax preparation services and accounting solutions. 

Investing in a Rocket Lawyer membership is a good option for business owners who know they’ll need a high volume of business documents and agreements. If you only need this kind of support occasionally, you may be better off purchasing individual services to only pay for what you need.

Customer Support

To reach a Rocket Lawyer representative, you can call or email them Monday through Friday from 6 am to 6 pm PST. If you’re a Rocket Lawyer member, you can also use your online account to perform simple operations, such as upgrading or downgrading your membership. 

To contact LegalZoom, you can phone them Monday through Friday, from 5 am to 7 pm PT and from 7 am to 4 pm PT on the weekends. Alternatively, you can fill out a contact form on their website to be contacted via email. 

Similarities Between Rocket Lawyer and LegalZoom

Rocket Lawyer and LegalZoom use different formats to offer similar services. Both providers offer LLC formation services, registered agent services, and various legal services, from attorney consultations to trademark registration. 

Rocket Lawyer vs. LegalZoom: Customer Reviews

Rocket Lawyer typically gets more positive customer reviews than LegalZoom. Multiple past customers highlight ease of use and the affordability of the monthly membership, especially in comparison to what it’d cost to hire a lawyer. 

However, multiple negative reviews also highlight Rocket Lawyer’s impersonal customer support, lack of communication from attorneys, and unprofessional advice.[2]

When it comes to LegalZoom, almost 20% of customer reviews on Trustpilot are one-star reviews. They emphasize poor customer service, failure to cancel subscriptions, and frequent delays.[3] 

Overall, customers appear to be happier with Rocket Lawyer’s service. 

Alternatives to Rocket Lawyer and LegalZoom

Incorporating your LLC is an essential step in every business owner’s life. Rocket Lawyer and LegalZoom are solid online legal providers that can help you get your LLC up and running. 

However, you may not need all the bells and whistles of Rocket Lawyer’s membership, and multiple negative reviews of LegalZoom show that there are better alternatives out there. 

Swyft Filings is a trustworthy online legal service provider with over 5,000 five-star reviews that has helped 300,000 business owners successfully bring their big visions to life. When compared with Rocket Lawyer and LegalZoom, Swyft Filings offers multiple advantages. 

Affordable Rates 

It costs as low as $0 + state filing fees to incorporate your LLC with Swyft Filings. LegalZoom charges $79 + state filing fees for a similar service, and Rocket Lawyer charges $99 + state filing fees unless you join their membership. 

Excellent Customer Service

Multiple negative customer reviews for Rocket Lawyer and LegalZoom highlight poor customer service and lack of communication. 

When you incorporate with Swyft Filings, you can easily call or email customer service for reliable support from a business specialist. With over 5,000 five-star reviews, it’s clear that their customer service is at the top of its game.

Fast Processing Times

Starting your LLC formation process will take you as little as 10 minutes with Swyft Filings. From then on, Swyft will file your LLC with the Secretary of State with some of the fastest turnaround times in the industry. And if you want rush filing, it’s significantly more affordable than LegalZoom. Conclusion: Rocket Lawyer vs. LegalZoom

Rocket Lawyer and LegalZoom provide LLC formation services to entrepreneurs and business owners. If you join Rocket Lawyer’s membership for $39.99/month, they’ll incorporate your LLC for free. For non-members, the business formation service costs $99.99 + state fees. 

LegalZoom offers LLC formation services at a slightly lower price — $79 + state fees. However, multiple negative customer reviews are making business owners look for alternatives. 

Swyft Filings is a cost-effective alternative to Rocket Lawyer and LegalZoom. You can incorporate your LLC for just $0 + state fees with personalized customer service and some of the fastest turnaround times in the industry. 

FAQs

How much does it cost to start an LLC?

Online legal service providers charge you a service fee on top of the incorporation fees you must pay your state. LegalZoom charges $79 + fees. Rocket Lawyer charges $99 + fees unless you decide to join their monthly membership, in which case they’ll incorporate your LLC for free. 

If you’re looking for a more affordable alternative, try Swyft Filings. You can incorporate your LLC for just $0 + fees. 

Is Rocket Lawyer or LegalZoom a better way to start an LLC?

After a comprehensive Rocket Lawyer vs. LegalZoom review, we recommend looking for a better alternative. Swyft Filings offers LLC formation services at a significantly lower rate, and customer reviews show consistent customer satisfaction. 

Is Rocket Lawyer cheaper than LegalZoom?

The pricing of Rocket Lawyer and LegalZoom is hard to compare because Rocket Lawyer operates on a subscription basis while LegalZoom provides their services à la carte. 

If you decide to join Rocket Lawyer’s membership for $39.99/month, their business formation service will be free. For non-members, it costs $99.99 + fees, which is $20 higher than LegalZoom. 

What company offers ongoing legal services?

Both Rocket Lawyer and LegalZoom offer ongoing legal services and legal advice. Rocket Lawyer offers a comprehensive monthly membership with legal documents and attorney consultations to support your business. LegalZoom offers a similar service as a part of its Business Advisory Plan but on a smaller scale. 

What are some Rocket Lawyer and LegalZoom alternatives?

There are many online filing services that can serve as Rocket Lawyer or LegalZoom alternatives. Swyft Filings is a smart alternative to Rocket Lawyer and LegalZoom because it offers consistently lower fees, significantly better customer service, and some of the fastest processing times in the industry. Incorporate your LLC with Swyft Filings today. 

Bibliography 

1. US Small Business Administration. Register your business. Accessed February 3, 20223. 

2. Trustpilot. Rocket Lawyer. Accessed February 4, 2023. 

3. Trustpilot. LegalZoom. Accessed February 3, 2023.