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Rocket Lawyer vs LegalZoom | Which Is Better For Business Formation?

Rocket Lawyer vs LegalZoom - the question and conundrum entrepreneurs often find themselves wrestling with while looking for the best LLC formation service. If looking to start a new business, online legal services can offer huge savings compared to traditional legal representation. They can also be much quicker and easier to access, which is always preferable for today’s entrepreneur.

Rocket Lawyer and LegalZoom are two of the most popular online legal services out there, but are they really up to the job? Is Rocket Lawyer legit as an online legal service? How does Rocket Lawyer pricing compare to that of LegalZoom? Is LegalZoom good enough to eliminate the need for legal representation entirely? How reliable and user friendly is the LegalZoom app or the Rocket Lawyer app?

All important questions, which we’ll be taking a closer look at in this independent LegalZoom vs Rocket Lawyer comparison. If you’ve been thinking of subscribing to either of the services, be sure to take the following information into account before doing so. We have also covered LegalZoom vs Nolo to give you even more comparable data.

LegalZoom vs Rocket Lawyer at a Glance

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Both LegalZoom and Rocket Lawyer are designed to streamline and simplify the process of establishing a new business. Setting up a Rocket Lawyer LLC or LegalZoom LLC is designed to be quicker, easier and cheaper than doing so with traditional legal representation.

Along with assisting with the initial business establishment process, both services also allow for the creation of important legal documents. Examples of which include non-disclosure agreements, loan agreements, prenuptial agreements, financial contracts, lease agreements, eviction notices and trademarks.

Rocket Lawyer has been around since 2008 and is based in San Francisco.  LegalZoom has been around for slightly longer, originally established in 2001 and likewise based in California.

When to Use LegalZoom

For the most part, LegalZoom is recommended when looking to set up a new business in the quickest and easiest way possible, with the added bonus of excellent customer service and access to a comprehensive catalogue of legal services from the same provider.

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RocketLawyer features

When to Use Rocket Lawyer

Rocket Lawyer excels by offering a free seven-day initial trial, so you can see how the whole thing works before paying for a subscription. They also provide a comprehensive range of legal services under one roof, backed by quality customer support and the option of consulting directly with qualified attorneys in real-time.

How We Evaluated LegalZoom & Rocket Lawyer

The requirements and preferences of all businesses are unique, but there are some points of appeal that are universal. Hence, evaluating Rocket Lawyer and LegalZoom means taking into account things like value for money, user friendliness, customer support provision and so on. Rocket Lawyer and LegalZoom LLC pricing structures are quite different, though in both instances have the potential to represent good value for money.

Of course, the specific features and facilities your business needs will ultimately determine which of the two is the more appropriate choice.

LegalZoom vs Rocket Lawyer: Pricing & Features

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The whole point of signing up for a service like this is to save time and money.  Hence, there’s no reason why you should need to pay a small fortune to establish a new business using an online legal service.

Both in the case of LegalZoom and Rocket Lawyer, the costs of setting up a new business from scratch can be reduced to a few hundred dollars.  Exponentially lower legal costs, without compromising the quality of the legal support and advice you’re provided.

There are currently three subscription packages available at LegalZoom, starting with the FREE Economy package and graduating to Standard at $329 and Express Gold at $349. 

Over at Rocket Lawyer, membership costs $39 per month, providing access to a wide variety of benefits including form filling, attorney services, custom legal documents and so on. All of which are free for members, or can be purchased separately by non-members.

LegalZoom Pricing & Features

The pricing policy at LegalZoom is clear and easy to understand, with just three options available as listed above - Economy packages $0, Standard package $329, and Express Gold $349. The paid packages at LegalZoom all include a wide variety of services, though copyright applications, registered agent services and business formation are all offered at a cost.

LegalZoom pricing plans

LegalZoom Products

LegalZoom is used by thousands of entrepreneurs across the United States for the formation of new businesses, though also provides direct access to experienced lawyers that can be consulted in real-time. Aside from business matters, LegalZoom’s solicitors can provide information and advice on employment issues, estate planning, family planning and various other personal and professional matters.

An extensive range of legal forms is available and can be customized to suit their requirements of the subscriber. LegalZoom also simplifies the process of entering into power of attorney, with solicitors on hand to provide advice on this important matter accordingly.

LegalZoom Business Legal Forms

The archive of business legal forms at LegalZoom currently contains more than 150 documents, which can be customized in a variety of ways via the service and then downloaded. If any difficulties are encountered when selecting or personalizing a business form, lawyers are available to provide advice accordingly.

LegalZoom Business Formation Services

This is one of the primary selling points of LegalZoom, which is designed to make it as quick and easy as possible to set up a new business from scratch.  The process begins by selecting the business types you wish to set up - corporation, sole proprietorship, LLC etc. - after which a price plan is selected in accordance with requirements.

Depending on the type of business you intend to set up, your business will be officially registered within a few business days after completion of the online admin. LegalZoom can also provide complete legal support and advice on tax matters, business naming, registered agent services and more.

LegalZoom Legal Advice Services

LegalZoom has become a byword for low-cost legal support that does not compromise on quality. Signing up with LegalZoom and consulting with the company’s experienced lawyers could save you a small fortune on traditional legal fees.

The experience and expertise of LegalZoom’s lawyers extends far beyond business establishment and related business matters. You can also contact them to discuss employment issues, estate planning, tax liabilities, family matters and so on.

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LegalZoom Intellectual Property Services

The protection of intellectual property is also simplified with a LegalZoom subscription, which paves the way for streamlined and accelerated patent registration, copyright registration, trademark registration and more.

In addition, the team at LegalZoom can also provide comprehensive support and advice for businesses and entrepreneurs unsure how to protect their intellectual property,

Rocket Lawyer Pricing & Features

One of the best features of Rocket Lawyer is the way in which it can be trialed for free, giving you an idea of what to expect before subscribing. Becoming a paid subscriber means paying $29.99 per month, after which you will gain access to a wide variety of services for free. Examples of which include preparation of legal documents, business filing, submitting questions to experienced lawyers and so on.

Non-members can forgo the monthly subscription fee and pay for the services they need individually. Examples of which include legal document creation at $40 per document, $50 to submit a question to a solicitor, $60 for a 30-minute real-time consultation and $100 for business filing.

Most entrepreneurs therefore find it more cost-effective to sign up for a monthly subscription.

RocketLawyer pricing plans

Rocket Lawyer Products

Rocket Lawyer provides a relatively similar range of services to LegalZoom, including but not limited to new business establishment, real-time consultations on legal matters, personalization and preparation of legal forms, employee identification number registration and more.

They also offer attractive discounts on additional paid services for members, such as 40% of the usual costs of hiring one of their attorneys and 20% lower registered agent service costs.

Rocket Lawyer Business Forms

The archive of business forms at Rocket Lawyer is enormous, which in all instances can be personalized and downloaded as required. Members with a paid monthly subscription can access these forms for free, which otherwise cost $40 each for non-members.

Rocket Lawyer’s forms are categorized for ease of access, bracketed under credit, contracts, services, construction, real estate, business, financial, employment and more.

Rocket Lawyer Business Formation Services

Starting a new business from scratch with Rocket Lawyer is free for paid subscribers, or charged at $100 (plus applicable fees and taxes) for non-members. In both instances, this amounts to an enormous potential saving when compared to the costs of setting up a new business with more traditional legal representation.

Rocket Lawyer Legal Advice Services

Real-time legal advice from Rocket Lawyer is provided by way of 30-minute consultations, which can be organized free of charge for paid subscribers.  Otherwise, it costs $60 for the same 30-minute consultation, or $50 to submit a specific legal question to a solicitor.

Again, both of which are significantly more cost-effective than consulting with a traditional lawyer.

The initial seven-day free trial provides newcomers with the opportunity to see how Rocket Lawyer handles its provision of legal advice, without having to pay for it.

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Rocket Lawyer Intellectual Property Services

This is where Rocket Lawyer falls slightly behind LegalZoom, as the service doesn't currently include any intellectual property services. You can consult with Rocket Lawyer’s experts for advice and information, but services like patent registration, trademark registration and copyright registration are not available.

Where intellectual property services are required, LegalZoom is therefore the preferred choice.

LegalZoom vs Rocket Lawyer: Ease of Use

Both companies can streamline and simplify the business establishment process, though LegalZoom edges ahead with its exceptionally user-friendly website.  Even if this is your first venture into entrepreneurship and you have no prior knowledge or experience, it’s almost impossible to go wrong with LegalZoom’s simplified approach to business formation.

Other than this, both companies are on a pretty even keel in terms of simplicity and user friendliness. Though again, Rocket Lawyer won’t guide you through the process of registering and safeguarding your intellectual property.

LegalZoom vs Rocket Lawyer: Customer Service

It’s a close call with customer service, though LegalZoom once again has a slight edge. Not only is their business formation service one of the fastest available right now, but their customer support team is also one of the most helpful. Customer support is available by way of telephone and e-mail from Monday to Friday.

Customer support at Rocket Lawyer is also superb, which again is available via e-mail or by telephone from Monday to Friday.

Bottom Line: Which Service Is Better for You?

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As touched upon back at the beginning, choosing the ‘best’ of the two services means assessing what’s on offer in accordance with your requirements.  However, in terms of overall value for money, LegalZoom brings slightly more to the table than Rocket Lawyer. Not only is LegalZoom a potentially more cost-effective option, but also provides the added bonus of intellectual property services included as standard.

Rocket Lawyer also has the potential to represent outstanding value for money, in accordance with the requirements of your business. Though to use Rocket Lawyer as a non-member can quickly become extremely expensive, as the costs of the individual services provided are comparatively high.

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