When starting a new business, navigating legal requirements such as LLC formation can be daunting. Several online services have simplified this process by offering comprehensive LLC formation packages, legal document support, and ongoing compliance assistance.
Among the most prominent players in this industry are ZenBusiness and Rocket Lawyer. While both companies provide essential services to entrepreneurs, they differ significantly in terms of their offerings, pricing, and approach.
In this detailed comparison, we’ll explore ZenBusiness and Rocket Lawyer, their features, pricing, and the overall value they provide. By the end, you’ll have a clear understanding of which service is best suited to help you successfully start and run your business.
Overview of ZenBusiness and Rocket Lawyer
ZenBusiness Overview
Founded in 2015, ZenBusiness has quickly become one of the most popular LLC formation services. Its mission is to make LLC formation accessible to everyone, especially small business owners and startups, by offering affordable pricing and a user-friendly platform.
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ZenBusiness also focuses on giving back to the community by supporting small businesses through grants and mentorship programs.
ZenBusiness provides a range of services, including LLC formation, registered agent services, operating agreement drafting, and ongoing compliance support.
With a tiered pricing structure, ZenBusiness caters to different budgets and needs, allowing business owners to choose the plan that fits them best.
Rocket Lawyer Overview
Rocket Lawyer, founded in 2008, offers a more legal-centric approach to LLC formation. While Rocket Lawyer provides LLC formation services, its primary focus is on offering affordable legal help through online tools.
Rocket Lawyer is more than just an LLC formation service—it is a comprehensive legal platform where users can access documents, attorney consultations, and more.
Rocket Lawyer operates on a subscription model, giving users access to a wide range of legal documents and services beyond LLC formation.
This makes it a valuable option for businesses that may require legal support beyond the formation process, such as contract drafting or legal consultations.
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Features Comparison: ZenBusiness vs. Rocket Lawyer
1. LLC Formation Services
ZenBusiness:
ZenBusiness offers a smooth LLC formation process that’s both affordable and easy to navigate. They provide three main pricing tiers: Starter, Pro, and Premium, with each tier offering different levels of service.
The basic plan includes LLC formation and registered agent services for the first year, with higher-tier plans offering additional benefits like operating agreements and Employer Identification Number (EIN) filing.
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Rocket Lawyer:
Rocket Lawyer also provides LLC formation services, but its core strength lies in its legal offerings. Users can file for an LLC either as part of their monthly subscription or through a one-time service.
The LLC formation process with Rocket Lawyer is straightforward and covers all the essentials, such as preparing and filing formation documents, but it doesn’t offer the same level of ongoing compliance support as ZenBusiness unless you subscribe to their services.
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2. Legal Document Services
ZenBusiness:
ZenBusiness offers operating agreement templates and EIN filing services in their higher-tier packages. However, they do not provide a vast range of legal documents for other purposes beyond business formation.
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Rocket Lawyer:
Rocket Lawyer excels in providing a comprehensive library of legal documents. Whether you need a contract, a lease agreement, or a non-disclosure agreement, Rocket Lawyer has templates for nearly any legal situation.
Users can create, edit, and sign legal documents online, making it easy to handle routine legal needs. Rocket Lawyer also offers consultations with attorneys, which can be particularly valuable for businesses that need ongoing legal advice.
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3. Registered Agent Services
ZenBusiness:
Registered agent services are included for free for the first year with all ZenBusiness plans. After the first year, there is a fee to maintain the service.
The registered agent is responsible for receiving important legal documents on behalf of your business and ensuring that you remain compliant with state regulations.
Rocket Lawyer:
Rocket Lawyer also offers registered agent services, but they are an additional cost. Unlike ZenBusiness, these services are not included with LLC formation and must be purchased separately or as part of the subscription model.
This can be a drawback for business owners who prefer an all-in-one package.
4. Customer Support
ZenBusiness:
ZenBusiness provides customer support through phone, email, and live chat. The company is known for its helpful and responsive support team, although response times can vary during peak hours. ZenBusiness’s online help center also offers a range of resources to assist users.
Rocket Lawyer:
Rocket Lawyer offers customer support through phone, email, and live chat. In addition, Rocket Lawyer provides access to real attorneys who can answer legal questions and provide guidance on various issues. This added layer of legal support is where Rocket Lawyer truly shines compared to ZenBusiness.
5. Compliance Assistance
ZenBusiness:
One of the standout features of ZenBusiness is its compliance support. ZenBusiness helps businesses stay compliant with state requirements by offering annual report filing, compliance reminders, and worry-free compliance support.
This makes it easy for entrepreneurs to avoid missing important deadlines or filing the wrong paperwork.
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Rocket Lawyer:
While Rocket Lawyer doesn’t offer the same level of automated compliance support as ZenBusiness, it does provide legal consultations that can help businesses stay on track.
If compliance issues arise, Rocket Lawyer users can consult with an attorney for guidance, but this service is not as automated as ZenBusiness’s compliance assistance.
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Pricing: ZenBusiness vs. Rocket Lawyer
ZenBusiness Pricing
- Starter Plan: $0 + state fees (includes LLC formation, registered agent service for 1 year, and basic support)
- Pro Plan: $199 + state fees (includes everything in the Starter Plan, plus an operating agreement and EIN filing)
- Premium Plan: $349 + state fees (includes everything in Pro, plus a business website, domain name, and business email)
ZenBusiness offers competitive pricing, with its free Starter Plan being a popular choice for budget-conscious entrepreneurs. However, registered agent services renew annually at $199 after the first year.
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Rocket Lawyer Pricing
- Subscription Plan: $39.99 per month (includes unlimited legal document access, attorney consultations, and discounts on other services like registered agent and LLC formation)
- One-Time LLC Formation: $99.99 + state fees (a one-time fee to form an LLC without the subscription)
Rocket Lawyer’s pricing is based on a subscription model, which can be beneficial for businesses that need ongoing legal support.
The subscription includes access to a wide range of legal documents and attorney consultations. However, if you only need LLC formation, Rocket Lawyer offers a one-time fee option that might be more suitable for one-off users.
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FAQs
What is the cost of forming an LLC with ZenBusiness?
ZenBusiness offers a free Starter Plan plus state fees, with higher-tier plans starting at $199 + state fees.
Does Rocket Lawyer offer a free plan for LLC formation?
No, Rocket Lawyer charges a one-time fee of $99.99 + state fees or offers LLC formation as part of their $39.99 per month subscription.
Does ZenBusiness provide legal consultations?
No, ZenBusiness does not offer legal consultations, but they provide basic customer support and compliance assistance.
Is registered agent service included with Rocket Lawyer?
No, Rocket Lawyer charges separately for registered agent services unless you subscribe to their monthly plan.
Can I cancel my Rocket Lawyer subscription at any time?
Yes, Rocket Lawyer allows users to cancel their subscription at any time.
Which service offers better legal document support?
Rocket Lawyer offers more comprehensive legal document support, including templates for contracts, leases, and other legal needs.
Do both services provide compliance support?
ZenBusiness offers automated compliance reminders and annual report filing, while Rocket Lawyer provides attorney consultations for legal guidance.
Conclusion: ZenBusiness or Rocket Lawyer – Which Is Right for You?
Both ZenBusiness and Rocket Lawyer provide valuable services to entrepreneurs, but they cater to different types of business owners.
If you’re primarily focused on forming an LLC and need ongoing compliance support, ZenBusiness is the better option. It offers an affordable, easy-to-use platform with a focus on helping small businesses stay compliant with state requirements.
With its competitive pricing, especially the free Starter Plan, ZenBusiness is ideal for entrepreneurs who want to minimize costs while receiving essential services.
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On the other hand, if your business requires more robust legal support beyond just LLC formation, Rocket Lawyer is the way to go.
Rocket Lawyer’s subscription model provides access to a wide range of legal documents, attorney consultations, and ongoing legal assistance. This makes it an excellent choice for businesses that anticipate needing regular legal advice or document creation.
In conclusion, ZenBusiness is a better fit for businesses that need straightforward LLC formation and compliance support, while Rocket Lawyer shines for businesses that need ongoing legal support and a broader range of legal tools.
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Consider your specific business needs and budget before making your choice, as both services offer unique advantages that can benefit your entrepreneurial journey.